HomeMy WebLinkAboutItem 17 Ratification of the Metropolitan Wastewater Management Commission (MWMC) FY 2015-16 Regional Wastewater Program Budget and Capital Improvement Program (CIP)_ AGENDA ITEM SUMMARY Meeting Date: 5/4/2015
Meeting Type: Regular Meeting
Staff Contact/Dept.: Matt Stouder/DPW Staff Phone No: 541-736-1006
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 2015-16 REGIONAL WASTEWATER PROGRAM
BUDGET AND CAPITAL IMPROVEMENT PROGRAM (CIP).
ACTION
REQUESTED:
Adopt a motion ratifying the FY 2015-16 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 2015-16, as approved by MWMC
DISCUSSION/
FINANCIAL IMPACT:
The FY 2015-16 (FY 15-16) Regional Wastewater (RWP) Budget and CIP
document was approved by the MWMC on April 10, 2015. 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 15-16 MWMC Budget. The
FY 15-16 Budget funds all operations, administrative services, and capital projects planned for the Regional Wastewater Facilities. The approved operating budget is $17.35 million, which includes a total increase of 4.0% ($665,625) in FY 15-16.
The CIP outlines and describes the capital projects planned for the next five years.
The FY 15-16 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 2.0% increase in regional wastewater user charges in order to fully fund the Budget and CIP. On May 4, 2015
the City Council will hold a public hearing on the FY 15-16 regional rates within
the City. Following the public hearing, Council is scheduled to adopt a resolution to set the FY 15-16 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 15-16 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, 2015). The
Eugene City Council is scheduled to ratify the MWMC Budget and CIP on May 11, 2015, and the Board of Commissioners is scheduled to ratify the MWMC Budget
and CIP on May 19, 2015, with MWMC final budget adoption on June 12, 2015.
Preliminary
REGIONAL WASTEWATER PROGRAM BUDGET
AND CAPITAL IMPROVEMENTS PROGRAM
Fiscal Year 2015-16
Preliminary
REGIONAL WASTEWATER PROGRAM
BUDGET
and
CAPITAL IMPROVEMENTS PROGRAM
Fiscal Year 2015-16
The Metropolitan Wastewater Management Commission adopted its Operating Budget and Capital
Improvements Program (CIP) for FY 15-16 April 10, 2015. The Budget and CIP are currently scheduled
for consideration and ratification by the Springfield City Council on May 4, 2015, the Eugene City
Council on May 11, 2015, and the Lane County Board of Commissioners on May 19, 2015. The Commission is scheduled for final ratification of the Budget and CIP on June 12, 2015.
COMMISSION MEMBERS:
Hilary Loud, President (Eugene) Joe Pishioneri, Vice President (Springfield) George Brown (Eugene)
Bill Inge (Lane County)
Doug Keeler (Springfield)
Walt Meyer (Eugene) Faye Stewart (Lane County)
STAFF:
Anette Spickard, 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 15-16 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 DETAIL BY PROGRAM
Springfield Program and Budget Detail ................................................................................. 25
Exhibit 8: Springfield Administration Program Budget Summary ................................. 28
Exhibit 9: Springfield Administration Line Item Summary ........................................... 29 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 Budget Document Acronyms and Explanations .................................................................... 60
REGIONAL WASTEWATER
PROGRAM BUDGET
BUDGET MESSAGE
Metropolitan Wastewater Management Commission Budget Message
Page 1 Preliminary FY 15-16 BUDGET AND CIP
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) 2015-16. 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 15-16 capital budget and 5-year capital improvements work plan, which are
included in this budget document, are derived from the 2004 MWMC Facilities Plan. The
budgeted amount for FY 15-16 Facilities Plan capital improvement projects is $18,074,004; $10,049,703 is carryover from unfinished projects budgeted in FY 14-15, and $8,024,301, is new
or rephased funding programmed in FY 15-16. The FY 15-16 capital budget also includes
Equipment Replacement, Major Rehabilitation and Major Capital Outlay projects, budgeted at
$593,300, $371,300 and $2,900,000 respectively. The capital budget for FY 15-16 is
$21,938,604. Approximately $17.4 million of the total capital budget will not be spent in FY 15-16, but is included to enable MWMC to commit to contracts that will occur in FY 15-16.
Unspent funds will be carried forward to the FY 16-17 budget as appropriate. In order to fund the
actual cash flow requirements of the FY 15-16 CIP, the Commission will use existing revenue
bond proceeds, as well as strategic draw downs of capital reserves. The FY 15-16 RWP Operating Budget for Personnel Services, Materials and Services and
Capital Outlay expense is $17,348,272. Consistent with the Commission’s Financial Plan and
policies, the FY 15-16 budget maintains and uses several reserves, which are fully described in
this budget document. Finally, the FY 15-16 budget includes Debt Service payments totaling $9,163,743 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 15-16 user fee revenues (including septage
service and SDC Compliance Charge) are projected at $30,987,500. This level of revenue is
based on a projected increase in the total volume of wastewater generated from commercial and
industrial activity and a 2% 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 $1,100,000.
In summary, the projected FY 15-16 budget funds operations and administration sufficiently to
maintain existing levels of service, and to meet the environmental performance and other legal
REGIONAL WASTEWATER
PROGRAM BUDGET
OVERVIEW
Metropolitan Wastewater Management Commission Overview
Page 3 Preliminary FY 15-16 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 38 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 15-16 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 15-16 RWP Operating Budget, Capital Improvements
Program and associated work plans.
Metropolitan Wastewater Management Commission Overview
Page 4 Preliminary FY 15-16 BUDGET AND CIP
Outcome 1: Achieve and maintain high environmental standards.
Indicators: Performance:
FY 13-14
Actual
FY 14-15
Estimated Actual
FY 15-16
Target
Amount of wastewater treated to
water quality standards 100%; 11.4
billion gallons
100%; 12.7
billion gallons
100%; 13
billion gallons
Compliance with environmental
performance requirements of all
permits
One non-
compliance*
In compliance In 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
58 million gallons 85 million gallons 80 million gallons
Performance targets under the
Environmental Management System are achieved
100% of EMS targets met or on
schedule
100% of EMS targets met or on
schedule
100% of EMS targets met or on
schedule
*Biosolids Management Facility spill due to ice storm damage from the Severe Winter Storm on February 6-10, 2014
Outcome 2: Achieve and maintain fiscal management that is effective and efficient.
Indicators: Performance:
FY 13-14
Actual
FY 14-15
Estimated Actual
FY 15-16
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
2.14 >1.25 >1.25
Metropolitan Wastewater Management Commission Overview
Page 5 Preliminary FY 15-16 BUDGET AND CIP
Outcome 3: Achieve and maintain a successful intergovernmental partnership.
Indicators: Performance:
FY 13-14
Actual
FY 14-15
Estimated Actual
FY 15-16
Target
Industrial Pretreatment Program
implementation in compliance
with state/federal requirements; any required corrections
completed
In compliance
In compliance
In compliance
Capacity Management
Operations and Maintenance
(CMOM) Program development
Developed
Regional CMOM
Program Framework
Adopted Regional
CMOM Program
Framework
Regional CMOM
Program Plan
implementation and annual reporting
MWMC Facilities Plan projects consistent with CIP budget and
schedule
100% of initiated projects within budget and 63%
(5 of 8 projects)
on schedule
100% of initiated projects within budget and 67%
(4 of 6 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 13-14
Actual
FY 14-15
Estimated Actual
FY 15-16
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)
4:1 4.5:1 5:1
Emergency maintenance required (best practices benchmark is <2%
of labor hours)
0.5% 0.2% <2% of labor hours
Metropolitan Wastewater Management Commission Overview
Page 6 Preliminary FY 15-16 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 13-14 Actual FY 14-15 Estimated Actual FY 15-16 Target
MWMC Annual Report Produced Produced Produce
Create and distribute
e-newsletters 2 Newsletters 3 Newsletters 4 Newsletters
Organize pollution prevention campaigns 2 Campaigns 3 Campaigns 4 Campaigns
Provide tours of the Water Pollution Control Facility 20 Tours 27 Tours > 20 Tours
MWMC website traffic Maintained
visitor levels
Maintained visitor
levels
Maintain visitor
levels
Customer survey
In progress
Completed survey
and reviewed
results
---
Develop video series --- Design and begin production Final production complete
Implement bi-annual customer survey --- --- Draft survey
Metropolitan Wastewater Management Commission Overview
Page 7 Preliminary FY 15-16 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 15-16 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 15-16 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 15-16 BUDGET AND CIP
EXHIBIT 1
REGIONAL WASTEWATER
PROGRAM BUDGET
BUDGET AND PROGRAM
SUMMARY
Metropolitan Wastewater Management Commission Budget and Program Summary
Page 10 Preliminary FY 15-16 BUDGET AND CIP
REGIONAL WASTEWATER PROGRAM FY 15-16 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 14-15” column in all budget tables represents the updated FY 14-15 RWP budget as of February 2, 2015, which reconciled actual beginning balances at July 1, 2014, and approved budget transfers and
supplemental requests.
Notes:
1. The Change column and Percent Change column compare the adopted FY 15-16 Budget with the originally Adopted FY 14-15 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 14-15 FY 14-15 FY 15-16 INCR/(DECR)
Full-Time Equivalent Staffing Level 93.29 93.29 93.29 0.00 0.0%
Personnel Services (2)$9,656,542 $9,656,542 $10,102,922 $446,380 4.6%
Materials & Services (2)6,962,605 6,719,842 7,200,350 237,745 3.4%
Capital Outlay (2, 3)63,500 63,500 45,000 (18,500) -29.1%
Equip Replacement Contribution (4)500,000 500,000 650,000 150,000 30.0%
Capital Contribution (5)7,000,000 7,200,000 8,500,000 1,500,000 21.4%
Debt Service Contribution (6)7,763,982 7,763,982 7,163,743 (600,239) -7.7%
Working Capital Reserve (7)900,000 900,000 900,000 0 0.0%
Rate Stability Reserve (8)2,000,000 2,000,000 2,000,000 0 0.0%
Insurance Reserve (9)100,000 180,000 500,000 400,000 400.0%
Operating Reserve (10)3,017,045 4,786,590 4,823,396 1,806,351 59.9%
Rate Stabilization Reserve (11)2,000,000 2,000,000 2,000,000 0 0.0%
SRF Loan Reserve (12)642,866 642,866 670,908 28,042 0.0%
Revenue Bond Reserve (13)4,100,000 4,100,000 4,100,000 0 0.0%
Budget Summary $44,706,540 $46,513,322 $48,656,319 $3,949,779 8.8%
EXHIBIT 2
REGIONAL OPERATING BUDGET SUMMARY:INCLUDING RESERVE CONTRIBUTIONS
Metropolitan Wastewater Management Commission Budget and Program Summary
Page 11 Preliminary FY 15-16 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 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 15-16 is $7,163,743 the balance of which is budgeted from SDCs.
7. 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.
8. 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.
9. The Insurance Reserve was established to set aside funds equivalent to the insurance deductible
amount for property and liability insurance coverage, for losses per occurrence.
10. The Operating Reserve is used to account for the accumulated operating revenues net of operations expenditures. The Commission’s adopted a policy provides minimum guidelines to
establish the Operating Reserve balance at approximately 10% of the adopted Operating Budget.
The Operating Reserve provides for contingency funds in the event that unanticipated expenses or revenue shortfalls occur during the budget year.
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. Separately, the $4 million bond reserve for the 2008 bond issuance is held in the Capital funds.
Metropolitan Wastewater Management Commission Budget and Program Summary
Page 12 Preliminary FY 15-16 BUDGET AND CIP
ACTUAL
ADOPTED
BUDGET
AMENDED
BUDGET
ADOPTED
BUDGET CHANGESPRINGFIELDFY 13-14 FY 14-15 FY 14-15 FY 15-16 INCR/(DECR)MWMC ADMINISTRATION
Personnel Services $1,033,895 $1,280,438 $1,280,438 $1,319,081 $38,643 3.0%
Materials & Services 1,556,715 2,050,323 1,969,523 1,924,947 (125,376) -6.1%
Capital Outlay 0 0 0 0 0 0.0%
TOTAL $2,590,610 $3,330,761 $3,249,961 $3,244,028 ($86,733) -2.6%INDUSTRIAL PRETREATMENT
Personnel Services $294,888 $334,275 $334,275 $340,854 $6,579 2.0%
Materials & Services 104,217 122,551 122,551 117,252 (5,299) -4.3%
Capital Outlay 0 0 0 0 0 0.0%
TOTAL $399,105 $456,826 $456,826 $458,106 $1,280 0.3%ACCOUNTING
Personnel Services $86,897 $91,932 $91,932 $95,196 $3,264 3.6%
Materials & Services 18,389 31,770 31,770 34,871 3,101 9.8%
Capital Outlay 0 0 0 0 0 0.0%TOTAL $105,286 $123,702 $123,702 $130,067 $6,365 5.1%TOTAL SPRINGFIELD
Personnel Services $1,415,680 $1,706,645 $1,706,645 $1,755,131 $48,486 2.8%Materials & Services 1,679,321 2,204,644 2,123,844 2,077,070 (127,574) -5.8%
Capital Outlay 0 0 0 0 0 0.0%
TOTAL $3,095,001 $3,911,289 $3,830,489 $3,832,201 ($79,088) -2.0%EUGENEADMINISTRATIVE SERVICES
Personnel Services $1,458,873 $1,737,124 $1,737,124 $1,799,936 $62,812 3.6%
Materials & Services 428,458 745,403 544,788 640,252 (105,151) -14.1%
Capital Outlay 0 0 0 0 0 0.0%TOTAL $1,887,331 $2,482,527 $2,281,912 $2,440,188 ($42,339) -1.7%BIOSOLIDS MANAGEMENT
Personnel Services $1,078,180 $1,203,064 $1,203,064 $1,265,210 $62,146 5.2%
Materials & Services 810,285 991,252 990,709 990,888 (365) 0.0%
Capital Outlay 6,225 0 0 0 0 0.0%TOTAL $1,894,691 $2,194,316 $2,193,773 $2,256,098 $61,781 2.8%INDUSTRIAL SOURCE CONTROL
Personnel Services $407,988 $535,786 $535,786 $554,628 $18,842 3.5%
Materials & Services 76,950 133,776 133,605 132,957 (819) -0.6%
Capital Outlay 0 20,000 20,000 45,000 25,000 125.0%TOTAL $484,938 $689,562 $689,391 $732,585 $43,023 6.2%TREATMENT PLANT
Personnel Services $3,894,390 $4,123,432 $4,123,432 $4,360,274 $236,842 5.7%
Materials & Services 2,353,973 2,458,368 2,456,727 2,993,678 535,310 21.8%
Capital Outlay 26,529 43,500.00 43,500.00 0.00 (43,500) 0.0%TOTAL $6,274,892 $6,625,300 $6,623,659 $7,353,952 $728,652 0.0%REGIONAL PUMP STATIONS
Personnel Services $102,212 $181,185 $181,185 $191,450 $10,265 5.7%
Materials & Services 210,086 338,369 379,441 307,501 (30,868) -9.1%
Capital Outlay 0 0 0 0 0 0.0%TOTAL $312,298 $519,554 $560,626 $498,951 ($20,603) -4.0%BENEFICIAL REUSE SITE
Personnel Services $116,551 $169,306 $169,306 $176,293 $6,987 4.1%
Materials & Services 87,206 90,792.75 90,728.33 58,003.60 ($32,789) -36.1%
Capital Outlay 0 0 0 0 0 0.0%TOTAL $203,758 $260,099 $260,034 $234,297 ($25,802) -9.9%TOTAL EUGENE
Personnel Services $7,058,194 $7,949,897 $7,949,897 $8,347,791 $397,894 5.0%
Materials & Services 3,966,958 4,757,961 4,595,998 5,123,280 365,319 7.7%
Capital Outlay 32,754 63,500 63,500 45,000 (18,500) -29.1%TOTAL $11,057,907 $12,771,358 $12,609,395 $13,516,071 $744,713 5.8%
TOTAL REGIONAL BUDGET $16,682,647 $17,348,272 $665,625 4.0%
EXHIBIT 3
REGIONAL WASTEWATER PROGRAM OPERATING BUDGET
LINE ITEM SUMMARY BY PROGRAM AREA
Metropolitan Wastewater Management Commission Budget and Program Summary
Page 13 Preliminary FY 15-16 BUDGET AND CIP
Note: * The Change (Increase/Decrease) column compares the adopted FY 15-16 budget to the originally adopted FY 14-15 budget column.
ADOPTED
BUDGET
AMENDED
BUDGET
ADOPTED
BUDGET CHANGE *
OPERATING BUDGET FY 14-15 FY 14-15 FY 15-16 INC(DECR)Administration $3,906,289 $3,825,489 $3,828,201 ($78,088)Operations 12,771,358 12,609,395 13,516,071 744,713Capital Contribution & transfers 7,000,000 7,200,000 8,500,000 1,500,000Equip Repl - Contribution 500,000 500,000 650,000 150,000Operating & Revenue Bond Reserves 12,759,911 14,610,256 14,994,304 2,234,393Debt Service 7,763,982 7,763,982 7,163,743 (600,239)
Total Operating Budget $44,701,540 $46,509,122 $48,652,319 $3,950,779Funding:Beginning Balance $13,693,350 $15,650,933 $16,289,243 $2,595,893User Fees 29,370,000 29,370,000 30,985,000 1,615,000Other 1,638,190 1,488,189 1,378,076 (260,114)
Total Operating Budget Funding $44,701,540 $46,509,122 $48,652,319 $3,950,779
CAPITAL PROGRAM BUDGETPoplar Harvest Mgmt Services $161,700 $184,691 $1,265,000 $1,103,300Facility Plan Engineering Services 70,000 95,000 70,000 0Capacity Mgmt., Operations, and Maint. $96,504 $122,833 $16,833 ($79,671)Influent PS/Willakenzie PS/Headworks 208,051 262,393 145,140 (62,911)Digestion Capacity Increase 2,800,000 2,800,000 8,645,000 5,845,000WPCF Lagoon Remove/Decommission 4,705,000 4,998,231 4,938,231 233,231Sodium Hypochlorite Conversion 2,063,690 2,063,690 1,039,800 (1,023,890)Operations Building Improvements 1,300,000 1,300,000 950,000 (350,000)Thermal Load Pre-Implementation 275,000 254,005 210,000 (65,000)Thermal Load Implementation 1 433,928 539,003 794,000 360,072Biosolids Force Main Rehab 915,870 1,933,983 0 0Tertiary Filtration 1 200,000 210,253 0 0Primary Sludge Thickening 36,504 102,088 0 0Asset Management:Equipment Replacement Purchases 439,400 614,530 593,300 153,900Major Rehab 1,234,000 1,654,498 371,300 (862,700)Major Capital Outlay 0 0 2,900,000 0
Total Capital Projects $14,939,647 $17,135,198 $21,938,604 $6,998,957Funding:Equipment Replacement $439,400 $614,530 $593,300 $153,900Capital Bond Fund 10,937,849 12,383,548 12,213,286 1,275,437Capital Reserve 3,562,398 4,137,120 9,132,018 5,569,620
Total Capital Projects Funding $14,939,647 $17,135,198 $21,938,604 $6,998,957
EXHIBIT 4
REGIONAL WASTEWATER PROGRAM
BUDGET SUMMARY AND COMPARISON
Metropolitan Wastewater Management Commission Budget and Program Summary
Page 14 Preliminary FY 15-16 BUDGET AND CIP
OPERATING BUDGET AND RATE HISTORY The graphs on pages 15 and 16 show the regional residential wastewater service costs over a 5-year period, and a 5-year Regional Operating Budget Comparison. Because the Equipment
Replacement, Major Infrastructure Rehabilitation and Major Capital Outlay 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 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.
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 prior year rates, and in FY14-15 user rates
increased by 3.5% over the prior year rates to provide for Operations, Administration, Capital
programs, reserves, debt service, and debt coverage requirements.
The FY 15-16 Budget is based on a 2% user rate increase over the FY 14-15 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 Commission’s
Financial Plan policies and covenants associated with the MWMC’s 2006 and 2008 revenue
bonds, as well as financially positioning for future investments in capital assets.
Metropolitan Wastewater Management Commission Budget and Program Summary
Page 15 Preliminary FY 15-16 BUDGET AND CIP
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, which includes a $0.48 increase
effective July 1, 2015.
Metropolitan Wastewater Management Commission Budget and Program Summary
Page 16 Preliminary FY 15-16 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.
REGIONAL WASTEWATER
PROGRAM BUDGET
STAFFING
Metropolitan Wastewater Management Commission Staffing
Page 17 Preliminary FY 15-16 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 15-16
CITY OF EUGENE **Wastewater Division77.40 FTE
Division Director.85 FTE
Operations Manager.93 FTE
Wastewater Treatment Plant39.30 FTE
Regional Pump
Stations1.26 FTE
ComputerServices2.73 FTE
Biosolids Management 12.62 FTE
Operations16.0 FTE
Beneficial Reuse Site1.77 FTE
Equipment
Maintenance10.3 FTE
Facility Maintenance8.51 FTE
Laboratory
2.65 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.80 FTE
AdministrationSupport.3 FTE
Accounting.88 FTE
MWMCAdministration10.75 FTE
Industrial Pretreatment3.3 FTE
AdministrationSupport.70 FTE
Regulations & Enforcement3.0 FTE
Budget & Financial Management1.15 FTE
Property/ Risk Mgmt.20 FTE
Customer Service.55 FTE
Public Education1.0 FTE
Construction Management5.35 FTE
CITY OF SPRINGFIELD **Environmental Services Division & Finance Department15.89 FTE
Facility Maintenance.41 FTE
Special Projects/ Planning1.80 FTE
Metropolitan Wastewater Management Commission Staffing
Page 18 Preliminary FY 15-16 BUDGET AND CIP
REGIONAL WASTEWATER PROGRAM
POSITION SUMMARY
BUDGET BUDGET BUDGET FTE
CLASSIFICATION FY 13-14 FY 14-15 FY 15-16 CHANGE
SPRINGFIELD ENVIRONMENTAL SERVICES & FINANCE
Accountant 0.80 0.80 0.80 - Accounting Supervisor 0.08 0.08 0.08 -
Administrative Specialist - Clerk III 0.25 0.25 0.25 -
Administrative Specialist - Secretary 0.80 0.80 0.80 -
Administrative Specialist 0.00 0.00 0.80 0.80
Assistant Project Coordinator 0.90 0.90 0.90 -
Civil Engineer/Design & Construction Coordinator 3.00 3.00 3.00 -
Construction Inspector II 1.00 1.00 0.00 (1.00)
Development and Public Works Deputy Director 0.08 0.08 0.08 -
Development and Public Works Director 0.08 0.08 0.08 -
Engineering Assistant 1.60 1.60 0.80 (0.80)
Environmental Management Analyst 0.00 0.00 0.65 0.65
Environmental Services Program Manager 0.55 0.55 1.35 0.80
Environmental Services Program Coordinator 1.00 1.00 1.00 -
Environmental Services Technician I 0.50 0.50 0.50 -
Environmental Services Technician II 1.00 1.00 1.00 -
ESD Manager/MWMC General Manager 0.75 0.75 0.80 0.05
Managing Civil Engineer 2.00 2.00 2.00 -
Public Information & Education Specialist 1.00 1.00 1.00 -
Senior Finance Analyst 0.50 0.50 0.00 (0.50)
TOTAL SPRINGFIELD 15.89 15.89 15.89 -
EXHIBIT 6
Metropolitan Wastewater Management Commission Staffing
Page 19 Preliminary FY 15-16 BUDGET AND CIP
REGIONAL WASTEWATER PROGRAM
POSITION SUMMARY
BUDGET BUDGET BUDGET FTE
CLASSIFICATION FY 13-14 FY 14-15 FY 15-16 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 1.28 3.28 3.28 -
Engineering Associate 0.35 0.35 0.35 -
Maintenance Worker 12.29 12.29 12.29 -
Management Analyst 4.25 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 3.00 1.00 1.00 -
Wastewater Plant Operations Manager 0.93 0.93 0.93 -
Wastewater Operations Supervisor 2.00 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 36.71 36.71 36.71 -
TOTAL 77.40 77.40 77.40 -
GRAND TOTAL 93.23 93.29 93.29 -
EXHIBIT 6 (Continued)
REGIONAL WASTEWATER
PROGRAM BUDGET
RESERVES
Metropolitan Wastewater Management Commission Reserves
Page 20 Preliminary FY 15-16 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 15-16 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 15-16, $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 million, 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 15-16 no
additional contribution to this reserve is budgeted and the balance at June 30, 2016, will remain
at $2 million.
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 $4.1 million for FY15-16, and is held in
Metropolitan Wastewater Management Commission Reserves
Page 21 Preliminary FY 15-16 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 $670,908 for FY 15-16.
INSURANCE RESERVE
The Insurance Reserve was established to set aside funds equivalent to the insurance deductible
amount for property and liability insurance coverage, for losses per occurrence. The Insurance
Reserve is set at $500,000 for FY 15-16.
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 provides minimum
guidelines to establish the Operating Reserve at approximately 10% of the adopted operating
budget. For FY 15-16, the Operating Reserve is budgeted at $4,823,396, 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 14-15
AMENDED
BUDGET
FY 14-15
ADOPTED
BUDGET
FY 15-16 Beginning Balance $13,693,350 $15,650,933 $16,289,243 User Fee Revenue 29,200,000 29,200,000 30,800,000 Septage Revenue 170,000 170,000 185,000 Other Revenue 1,570,300 1,420,300 1,273,800 Interest 50,000 50,000 85,000 Transfer from Bond Capital Fund 0 0 0 Transfer from Reimbursement SDCs 17,890 17,890 19,276 Personal Services (9,656,542)(9,656,542)(10,102,922) Materials & Services (6,957,605)(6,914,843)(7,196,350) Capital Outlay (63,500)(63,500)(45,000) Interfund Transfers (7,500,000)(7,500,000)(9,150,000) Transfer to Bond Debt Service Fund (6,306,701) (6,306,701)(5,709,628) Debt Service - SRF Loan (1,457,281)(1,457,281)(1,454,115) Working Capital (900,000)(900,000)(900,000) Insurance Reserve (100,000)(180,800)(500,000) SRF Loan Reserve (642,866)(642,866)(670,908) 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 2006 (4,100,000)(4,100,000)(4,100,000)Operating Reserve $3,017,045 $4,786,590 $4,823,396
Metropolitan Wastewater Management Commission Reserves
Page 22 Preliminary FY 15-16 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 15-16 budget total $650,000, 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 15-16 are approximately $1.1 million. Budgeted expenditures include $2
million from Improvement Fees to fund portions of the annual debt service payments on the
EQUIPMENT REPLACEMENT RESERVE
ADOPTED
BUDGET
FY 14-15
AMENDED
BUDGET
FY 14-15
ADOPTED
BUDGET
FY 15-16 Beginning Balance $11,159,523 $11,498,954 $11,420,690 Annual Equipment Contribution 500,000 500,000 650,000 Annual Vehicle Contribution 0 0 0 Annual Computer Contribution 0 0 0 Interest 40,000 40,000 40,000 Equipment Purchases (439,400)(614,530)(593,300)Equipment Replacement Reserve $11,260,123 $11,424,424 $11,517,390
Metropolitan Wastewater Management Commission Reserves
Page 23 Preliminary FY 15-16 BUDGET AND CIP
2006 and 2008 revenue bonds. The projected beginning SDC Reserve balance on July 1, 2015 is $3,443,974.
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 15-16
Budget includes a contribution from the Operating Reserve of $8.5 million. The beginning balance on July 1, 2015, is projected to be $76,014,033. 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 15-16 the Bond Reserve is
budgeted at $4 million 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 14-15
AMENDED
BUDGET
FY 14-15
ADOPTED
BUDGET
FY 15-16 Beginning Balance $382,525 $421,036 $490,946 Reimbursement SDCs Collected 80,000 80,000 100,000 Interest 1,800 1,800 1,300 SDC Compliance Charge 2,000 2,000 2,500 Xfr to Debt Service (Fund 312)000 Xfr to Debt Service (Fund 612)(17,890)(17,890)(19,276) Materials & Services (2,000)(2,000)(2,000)Reimbursement SDC Reserve $446,435 $484,946 $573,470
IMPROVEMENT SDC RESERVE
ADOPTED
BUDGET
FY 14-15
AMENDED
BUDGET
FY 14-15
ADOPTED
BUDGET
FY 15-16 Beginning Balance $2,282,352 $3,247,528 $2,953,028 Improvement SDCs Collected 750,000 750,000 1,000,000 Interest 7,500 7,500 8,000 Materials & Services (3,000)(3,000)(2,000) Xfr to Debt Service (Fund 312 )(1,400,000)(1,400,000)(2,000,000)Improvement SDC Reserve $1,636,852 $2,602,028 $1,959,028
Metropolitan Wastewater Management Commission Reserves
Page 24 Preliminary FY 15-16 BUDGET AND CIP
CAPITAL RESERVES
ADOPTED
BUDGET
FY 14-15
AMENDED
BUDGET
FY 14-15
ADOPTED
BUDGET
FY 15-16 Beginning Balance $70,566,686 $73,497,729 $76,014,033 Transfer from Operating Reserve 7,000,000 7,000,000 8,500,000 Interest 60,000 60,000 60,000 Interest Income (Revenue Bond Proceeds)200,000 200,000 240,000 Revenue Bond Sale & SRF Proceeds 175,000 175,000 0 Other revenue 0 0 0 Funding For Capital Improvement Projects (13,266,247)(14,866,170)(18,074,004) Funding For Major Rehabilitation (1,234,000)(1,654,498)(371,300) Funding For Major Capital Outlay 00(2,900,000) Revenue Bond Reserve 2008 (4,000,000)(4,000,000)(4,000,000)
Capital Reserve $59,501,439 $60,412,061 $59,468,729
REGIONAL WASTEWATER
PROGRAM BUDGET
SPRINGFIELD
PROGRAM DETAIL
Metropolitan Wastewater Management Commission Springfield Budget Detail
Page 25 Preliminary FY 15-16 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 15-16 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 2015, there were 20 significant industrial users under permit in Springfield. The Industrial Pretreatment Program also addresses
Metropolitan Wastewater Management Commission Springfield Budget Detail
Page 26 Preliminary FY 15-16 BUDGET AND CIP
the wastewater discharges of some commercial/industrial businesses through the development 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 15-16, the City of Springfield will support the following major regional initiatives in addition to ongoing Commission administration and industrial pretreatment activities:
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 exploring 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 and 2014 Partial Facilities Plan Update to meet all regulatory requirements and capacity needs. Considering
emerging environmental regulations that may impact the operation of the WPCF.
Continue public information, education and outreach activities focused on the MWMC’s
Key Outcomes and 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, including but not limited to a recycled water program.
Continue participation with the Association of Clean Water Agencies and the
Department of Environmental Quality on regulatory permitting strategies and the
development of water quality trading rules.
Metropolitan Wastewater Management Commission Springfield Budget Detail
Page 27 Preliminary FY 15-16 BUDGET AND CIP
SIGNIFICANT BUDGET CHANGES FOR FY 15-16
The budget for Springfield Personnel Services, Materials and Services, and Capital Outlay for FY
15-16 totals $3,832,201 representing an overall decrease of $79,088 or 2.0% below the adopted FY
14-15 budget, as displayed in Exhibit 8 on page 28. Personnel Services
Personnel Services totaling $1,755,131 represents a FY 15-16 increase of $48,486 or 2.8% over
the originally adopted FY 14-15 budget. The major changes are summarized below:
Staffing Level - 15.89 full-time equivalent (FTE) staff remains level Staffing remains level in the FY 15-16 budget when compared to FY 14-15.
Regular Wages and Overtime - $1,160,286, an increase of $21,638 or 2.0%
Salaries are based upon the negotiated management/labor contracts as approved by the Springfield City Council.
Health Insurance - $317,214, an increase of $17,526 or 5.8%
Health Insurance includes employee related medical and dental insurance.
PERS/OPSRP Contributions - $159,121, an increase of $7,550 or 5.0% Projected employee retirement contribution for FY 15-16.
Materials and Services
The Materials and Services budget total is $2,077,070 in FY15-16, representing a decrease of $127,574 or 5.8% below the adopted FY 14-15 budget. The major changes are summarized below:
Contractual Services –$141,000, a net decrease of $45,180 or 24.3%
The $45,180 total decrease includes a $30,000 decrease for the one-time market survey previously conducted, a $22,680 budget reduction for technical assistance, and a one-time
increase of $7,500 to fund the production of an educational video series.
Internal Charges - $146,302, a decrease of $33,759 or 18.7%
The $33,762 decrease is primarily related to the regional portion of the City of Springfield internal insurance charges including liability, auto, property and risk insurance.
Indirect Costs - $289,618, a decrease of $41,206 or 12.5%
The $41,206 decrease is based on changes in overhead costs as programmed in the FY 15-16
budget, when compared FY 14-15. Indirect Costs are based on a methodology approved by the federal government, which is outlined in the MWMC Intergovernmental Agreement.
Property and Liability Insurance - $440,000, a decrease of $23,600 or 5.1%
The $23,600 decrease is in comparison to the orignially adopted FY 14-15 budget. The
MWMC requested Proposals for an Insurance Agent of Record in FY 14-15 and contracted for services with a new provider.
Metropolitan Wastewater Management Commission Springfield Budget Detail
Page 28 Preliminary FY 15-16 BUDGET AND CIP
Computer Software & License - $44,150, an increase of $5,200 or 13.4%
The $5,200 increase is due to ongoing service maintenance agreements annual charges.
Note: * Change column compares the adopted FY 15-16 Budget to the adopted FY 14-15 Budget.
ACTUAL
ADOPTED
BUDGET
AMENDED
BUDGET
ADOPTED
BUDGET CHANGE *
FY 13-14 FY 14-15 FY 14-15 FY 15-16 INCR/(DECR)
Personnel Services $1,415,680 $1,706,645 $1,706,645 $1,755,131 $48,486 2.8%Materials & Services 1,679,321 2,204,644 2,123,844 2,077,070 (127,574)-5.8%Capital Outlay 0000 0 0%
Budget Summary $3,095,001 $3,911,289 $3,830,489 $3,832,201 ($79,088) -2.0%
EXHIBIT 8
SPRINGFIELD ADMINISTRATION PROGRAM
ADOPTED FY 15-16
BUDGET SUMMARY
$3,609,970 $3,670,958 $3,636,762 $3,911,289 $3,832,201
$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 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16
5-YEAR MWMC ADOPTED BUDGET COMPARISON
SPRINGFIELD ADMINISTRATION
Metropolitan Wastewater Management Commission Springfield Budget Detail
Page 29 Preliminary FY 15-16 BUDGET AND CIP
ADOPTED AMENDED ADOPTED
ACTUAL BUDGET BUDGET BUDGET
FY 13-14 FY 14-15 FY 14-15 FY 15-16 INCR/(DECR)
PERSONNEL SERVICES
Regular Wages $965,244 $1,138,648 $1,138,648 $1,160,286 $21,638 1.9%
Overtime 433 7,716 7,716 7,716 0 0.0%
Employee Benefits 95,550 109,022 109,022 110,794 1,772 1.6%
PERS/OPSRP 125,259 151,571 151,571 159,121 7,550 5.0%
Medical/Dental Insurance 229,194 299,688 299,688 317,214 17,526 5.8%
Total Personnel Services $1,415,680 $1,706,645 $1,706,645 $1,755,131 $48,486 2.8%
FTE 16.68 15.89 15.89 15.89 - 0.0%
MATERIALS & SERVICES
Billing & Collection Expense 561,068 575,000 575,000 577,000 2,000 0.3%
Property & Liability Insurance 396,267 463,600 382,800 440,000 (23,600) -5.1%
Contractual Services 11,268 186,180 186,180 141,000 (45,180) -24.3%
Attorney Fees and Legal Expense 44,645 175,505 175,505 185,505 10,000 5.7%
WPCF/NPDES Permits 110,664 126,600 126,600 126,600 0 0.0%
Materials & Program Expense 44,090 86,689 86,689 85,015 (1,674) -1.9%
Computer Software & Licenses 38,138 38,950 38,950 44,150 5,200 13.4%
Employee Development 13,185 20,915 20,915 20,780 (135) -0.6%
Travel & Meeting Expense 13,113 20,320 20,320 21,100 780 3.8%
Internal Charges 140,565 180,061 180,061 146,302 (33,759) -18.7%
Indirect Costs 306,318 330,824 330,824 289,618 (41,206) -12.5%
Total Materials & Services $1,679,321 $2,204,644 $2,123,844 $2,077,070 (127,574) -5.8%
CAPITAL OUTLAY 0 0 0 0 0 NA
Total Capital Outlay 0 0 0 0 0 NA
TOTAL $3,095,001 $3,911,289 $3,830,489 $3,832,201 (79,088) -2.0%
EXHIBIT 9
SPRINGFIELD ADMINISTRATION
LINE ITEM BUDGET SUMMARY
CHANGE
REGIONAL WASTEWATER
PROGRAM BUDGET
EUGENE
PROGRAM DETAIL
Metropolitan Wastewater Management Commission Eugene Budget Detail
Page 30 Preliminary FY 15-16 BUDGET AND CIP
Program Responsibilities
Administration & Management
Biosolids Management
Facility Operations
Facility Maintenance
Industrial Source Control
Laboratory Services
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 to
Metropolitan Wastewater Management Commission Eugene Budget Detail
Page 31 Preliminary FY 15-16 BUDGET AND CIP
maximize equipment life and reliability; a corrective maintenance program for repairing
unanticipated equipment failures; and 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. 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 2014 there were 24 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.
The Sampling Team is responsible for the sampling activities related to regional wastewater program functions. These include the Eugene pretreatment program, wastewater treatment
Metropolitan Wastewater Management Commission Eugene Budget Detail
Page 32 Preliminary FY 15-16 BUDGET AND CIP
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 National Pollutant Discharge
Elimination System (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. 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 15-16, 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 Lane Regional Air Protection Agency (LRAPA) air emissions permit for the regional wastewater treatment plant.
Continue to evaluate impacts of regulatory actions (such as the federal sanitary sewer
overflows (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.
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.
Metropolitan Wastewater Management Commission Eugene Budget Detail
Page 33 Preliminary FY 15-16 BUDGET AND CIP
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 15-16
The budget for Operations and Maintenance of the regional wastewater treatment facilities
(personnel, materials and services, and capital outlay) for FY 15-16 totals $13,516,071. The amount
represents an increase of $744,713 or 5.8% from the FY 14-15 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 15-16 Operations and Maintenance budget as compared to
the FY 14-15 budget include:
Personnel Services
Personnel Services totaling $8,347,791 represents a FY 15-16 increase of $397,894 or 5.0%. The major changes are in the following budget categories:
Staffing The FY 15-16 budget requests no change in staffing level from the FY 14-15 budget. Staffing
requests remains at 77.40 Full Time Equivalent (FTE).
Regular Wages - $5,023,104, an increase of $112,251 or 2.3%
Salaries are based upon the negotiated management/labor contracts between the City of Eugene
and the local union (AFSCME).
Employee Benefits - $1,776,013, an increase of $195,675 or 12.4% The employee benefits consist mainly of PERS/OPSRP retirement system costs and Medicare contributions.
Health Insurance - $1,385,853, an increase of $89,094 or 6.9%
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 $5,123,280 and represents an FY 15-16 increase of
$365,319 or 7.7%. The major changes are in the following budget categories:
Indirect Charges - $1,001,150, an increase of $17,650 or 1.8% 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 - $795,235, a net increase of $157,787 or 24.8%
This account includes services for outside lab testing, USGS water monitoring, poplar tree
pruning and grit waste disposal. The FY15-16 budget request also includes an additional request of $291,600 for ongoing landscape maintenance services. The MWMC invested approximately
$1.6 million in recent years for major landscaping improvements to the wastewater treatment
facility. The landscape improvement contract included a 2-year maintenance agreement with the
contract that expired in 2014. Upon expiration, the City of Eugene assumed operational
Metropolitan Wastewater Management Commission Eugene Budget Detail
Page 34 Preliminary FY 15-16 BUDGET AND CIP
responsibility for all landscape maintenance associated with the project. The overall contractual services request includes a net increase of $157,787 due to an offsetting budget decrease in one-
time services such as electrical arc flash safety studies and a reduction in contracted seasonal
extra help.
Materials & Program Expense - $658,104, a net increase of $20,624 or 3.2% The Materials & Program Expense account includes a wide variety of operational items such as
telephone charges, training costs, tools, small equipment, safety supplies, and inventory. The
FY15-16 budget request includes an increase of $35,000 for additional flow monitoring
equipment, with offsetting budget decreases in small equipment and other materials and supplies.
Chemicals - $330,152, a decrease of $10,150 or 3.0%
Chemicals cost decrease are due to favorable price agreements resulting in lower costs for disinfection chemicals and slightly lower usage.
ACTUAL
ADOPTED
BUDGET
AMENDED
BUDGET
ADOPTED
BUDGET CHANGE *
FY 13-14 FY 14-15 FY 14-15 FY 15-16 INCR/(DECR)Personnel Services $7,058,194 $7,949,897 $7,949,897 $8,347,791 $397,894 5.0%Materials & Services 3,966,959 4,757,961 4,595,999 5,123,280 365,319 7.7%Capital Outlay 32,754 63,500 63,500 45,000 (18,500)-29.1%Budget Summary $11,057,906 $12,771,358 $12,609,396 $13,516,071 $744,713 5.8%
NOTE: Does not include Major or Equipment Replacement
EXHIBIT 10
EUGENE - OPERATIONS AND MAINTENANCE PROGRAMADOPTED FY 15-16
BUDGET SUMMARY
$12,112,828 $12,509,757 $12,716,031 $12,771,358
$13,516,071
$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 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16
5-YEAR MWMC ADOPTED BUDGET COMPARISONEUGENE - OPERATIONS AND MAINTENANCE
Metropolitan Wastewater Management Commission Eugene Budget Detail
Page 35 Preliminary FY 15-16 BUDGET AND CIP
ADOPTED AMENDED ADOPTED
ACTUAL BUDGET BUDGET BUDGET CHANGE
FY 13-14 FY 14-15 FY 14-15 FY 15-16 INCR/(DECR)
PERSONNEL SERVICES
Regular Wages $4,306,004 $4,910,853 $4,910,853 $5,023,104 $112,251 2.3%
Extra Help 86,482 0 0 0 0 0.0%Overtime 40,983 71,120 71,120 70,975 (145) -0.2%
Employee Benefits 1,413,506 1,580,338 1,580,338 1,776,013 195,675 12.4%
Workers' Comp/Unemploy Ins 89,052 90,827 90,827 91,846 1,019 1.1%Health Insurance 1,122,167 1,296,759 1,296,759 1,385,853.00 89,094 6.9%
TOTAL PERSONNEL SERVICES $7,058,194 $7,949,897 $7,949,897 $8,347,791 $397,894 5.0%
FTE 77.40 77.40 77.40 77.40 0.00 0.0%
MATERIALS & SERVICES
Utilities $672,768 $751,190 $751,190 $754,682 $3,492 0.5%
Fleet Operating Charges 463,089 391,967 391,967 439,691 47,724 12.2%
Maintenance-Equip & Facilities 233,665 341,408 341,408 354,538 13,130 3.8%
Contractual Services 389,011 637,448 437,448 795,235 157,787 24.8%Materials & Program Expense 462,020 637,480 675,518 658,104 20,624 3.2%
Chemicals 319,370 340,302 340,302 330,152 (10,150) -3.0%
Parts & Components 304,181 300,034 300,034 357,656 57,622 19.2%Risk Insurance - Employee Liability 65,464 49,174 49,174 51,527 2,353 4.8%
Laboratory Equipment & Supplies 64,175 80,000 80,000 93,000 13,000 16.3%
Computer Equip, Supplies, Maint 216,760 245,458 245,458 287,545 42,087 17.1%Indirects 776,456 983,500 983,500 1,001,150 17,650 1.8%
TOTAL MATERIALS & SERVICES $3,966,959 $4,757,961 $4,595,999 $5,123,280 $365,319 7.7%
CAPITAL OUTLAY
Motorized Vehicles 26,529 0 0 45,000 45,000 0.0%Capital Outlay-Other 6,225 63,500 63,500 0 (63,500) 0.0%
TOTAL CAPITAL OUTLAY $32,754 $63,500 $63,500 $45,000 ($18,500)-29.1%
TOTAL $11,057,906 $12,771,358 $12,609,396 $13,516,071 $744,713 5.8%
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 15-16 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 15-16 CIP Budget,
the FY 15-16 AMCP Budget, and the associated 5-Year Capital Plan are based on the 2004
MWMC Facilities Plan (2004 FP) and the Partial Facilities Plan Update dated June 2014. 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 15-16 BUDGET AND CIP
Capital Program Funding and Financial Planning Methods and Policies
This annual budget document presents the FY 15-16 CIP Budget, the FY 15-16 AMCP Budget,
and 5-Year Capital Plan which includes the CIP and AMCP Capital Plan. The MWMC CIP 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, 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. From 2008-2010, The MWMC secured several CWSRF loan
agreements totalling $20.8 million. These 20-year loans provide the MWMC below-market
interest rates ranging from 0 to 2.77 percent (%), along with additional financial benefits,
including:
$450,000 in “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.
$4 million funded through the American Reinvestment and Recovery Act (ARRA, or
“Stimulus”). The ARRA funding provided 50% of the loan in principal forgiveness (not requiring repayment), and the remaining 50% of principal payment bearing 0% interest. This
resulted in $2 million 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.
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 the MWMC 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
Metropolitan Wastewater Management Commission Capital Improvement Program
Page 38 Preliminary FY 15-16 BUDGET AND CIP
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 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 2014, capital project budgets now reflect a
4% annual inflationary factor in the FY 15-16 Budget and 5-year Capital Plan.
Regional Wastewater Capital Program Status and Budget
CIP Project Status and Budget
The FY 15-16 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 15-16 project budgets is $18,074,004. Each capital project represented in the FY 15-16
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 15-16 BUDGET AND CIP
Completed Capital Projects
In FY 14-15, 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 15-16.
Tertiary Filtration – Phase 1 (landscape component)
Primary Sludge Thickening
Repair/Replacement of Biosolids Force Main
Outfall Mixing Zone Study
Carryover Capital Projects
The remaining funding for active capital projects in FY 14-15 is carried forward to the FY 15-16 Budget. The on-going carryover projects are:
Increase Digestion Capacity
WPCF Lagoon Removal/Decommissioning
Sodium Hypochlorite Conversion
Operations & Maintenance Building Improvements
Poplar Harvest Management Services
Thermal Load Mitigation: Pre-Implementation
Thermal Load Mitigation: Implementation 1
Influent Pumping and Headworks Expansion
Facilities Plan Engineering Services
Capacity Management Operations and Maintenance (CMOM)
Overall, the budgeting for these projects follows, and is consistent with, the 2006 CH2M Hill estimated cost of the listed capital projects.
New Projects
No new projects are anticipated for the MWMC FY 15-16 Capital Budget.
Metropolitan Wastewater Management Commission Capital Improvement Program
Page 40 Preliminary FY 15-16 BUDGET AND CIP
FY 15-16 Capital Budget Summary (Exhibit 12)
Exhibit 12 below displays the adjusted budget and end-of-year expenditure estimates for FY 14-
15, the amount of funding projected to be carried over to FY 15-16 and additional funding for existing and/or new projects in FY 15-16.
FY 15-16 Asset Management Capital Project Status and Budget
The AMCP consists of the following three programs:
Equipment Replacement
Major Rehabilitation
Major Capital Outlay
The FY 15-16 budget and status of each program is described below
Equipment Replacement Program - Budget
The FY 15-16 Capital Programs budget includes $593,300 in Equipment Replacement purchases
that are identified on the table below.
Summary of FY 15-16 MWMC Construction Program Capital Budget
FY 14-15
ADJUSTED
BUDGET
FY 14-15
ESTIMATED
ACTUALS
FY 14-15
CARRYOVER
TO FY 15-16
NEW
FUNDING
FOR FY 15-16
TOTAL
FY 15-16
BUDGET
Projects to be Completed in FY 14-15
Repair/ Replacement of Biosolids Force Main 1,933,983 1,770,000 0 0 0
Tertiary Filtration - Phase 1 210,253 75,000 0 0 0
Primary Sludge Thickening 102,088 10,000 0 0 0
Outfall Mixing Zone Study 9,580 9,580 0 0 0
Projects to be Carried Over to FY 15-16
Increase Digestion Capacity 2,800,000 525,000 2,275,000 6,370,000 8,645,000
WPCF Lagoon Removal / Decommissioning 4,998,231 60,000 4,938,231 0 4,938,231
Poplar Harvest Management Services 184,691 184,000 691 1,264,309 1,265,000
Sodium Hypochlorite Conversion 2,063,690 172,000 1,039,800 0 1,039,800
Operations & Maint Building Improvements 1,300,000 350,000 950,000 0 950,000
Thermal Load Mitigation: Implementation 1 (1)539,003 24,000 515,003 278,997 794,000
Thermal Load Mitigation: Pre-Implementation 254,005 85,000 169,005 40,995 210,000
Influent Pumping and Headworks Expansion 370,140 225,000 145,140 0 145,140
Facilities Plan Engineering Services 95,000 95,000 70,000 70,000
Capacity Mgmt Operations Maint (CMOM)122,833 106,000 16,833 0 16,833
TOTAL $14,983,497 $3,690,580 $10,049,703 $8,024,301 $18,074,004
Note:
(1) Thermal Load Mitigation: Implementation 1 budget includes Mill Race Sponsorship ($200,000) and Cedar Creek Sponsorship ($250,000).
EXHIBIT 12
Metropolitan Wastewater Management Commission Capital Improvement Program
Page 41 Preliminary FY 15-16 BUDGET AND CIP
Fleet Replacement. An assessment of age, mileage, hours of operation, and maintenance costs
supports the replacement of an integrated tool carrier (a heavy duty piece of equipment for hauling
and handling biosolids), two pickup/utility trucks, and one electric cart.
Polymer Mixer/Feeders. Polymer machines provide chemical addition which is necessary for treatment of sludge at the plant and biosolids facility. This equipment has reached the end of its
useful life and needs replacement for ongoing operational reliability.
W2 Water Strainers. The W2 strainers at the treatment plant provide removal of particulate matter from plant process water so it may be reused as seal water, cooling water, irrigation, washdown, and other miscellaneous uses. These reuse applications minimize consumption of
potable water.
Electric Motors. An assessment of electric motors is scheduled to identify motors with the least service life remaining. Motors at Willakenzie Pump Station and the plant headworks will likely need replaced.
Acid Duo Pro Distiller. The acid distiller system allows the laboratory to make high purity acids
at dramatically reduced costs. This equipment needs replacement for ongoing operational reliability.
Pumps. The heavy solids/secondary scum pumps at the treatment plant are scheduled for
replacement. These pumps provide drainage of plant process tankage and conveyance of RV
receiving station wastewater.
Project Description
FY 15-16
Budget
Fleet Replacement 325,000
Polymer Mixer/Feeders 78,000
W2 Water Strainers 61,300
Electric Motors 55,000
Distiller, Acid Duo Pro 40,000
Pumps 34,000
Total $593,300
Equipment Replacement
Metropolitan Wastewater Management Commission Capital Improvement Program
Page 42 Preliminary FY 15-16 BUDGET AND CIP
Major Rehabilitation Program - Budget
The FY 15-16 Capital Programs budget includes $371,300 for Major Rehabilitation projects that are identified on the table below.
Air Drying Bed Resurfacing. The biosolids drying process takes place on 13 asphalt drying beds
over a 25 acre area. The beds have been on a rotational schedule for resurfacing to extend their
useful life. In FY15-16 two beds will be resurfaced.
Willakenzie Pressure Vacuum Relief Valves. The discharge pressure main from Willakenzie Pump Station includes two air pressure vacuum relief valves. The valves are meant to exhaust
large volumes of air from the system when the pressure main is being filled and also to allow air to
re-enter the pipe when being emptied. Drain systems for both valves require redesign and
construction.
Operations/Maintenance Building Improvements. This expenditure will go towards
miscellaneous improvements, repairs, and renovations to improve the functionality and usefulness
of existing buildings.
Major Capital Outlay - Budget
The FY 15-16 Capital Programs budget includes $2,900,000 for two Major Capital Outlay items
identified on the table below.
Engine Generator. The existing 800 KW engine generator provides about 55% of plant electric
power needs and heating water for sludge digestion, building heat, and hot water. This project will
replace the existing equipment with greater generation capacity (up to 1.2 megawatts) and replace
related electrical and control systems that have reached the end of their useful life.
Project Description
FY 15-16
Budget
Air Drying Bed Resurfacing (2 beds)231,300
Willakenzie Pressure Vacuum Relief Valves 90,000
Operations/Maintenance Building Improvements 50,000
Total $371,300
Major Rehabilitation
Project Description
FY 15-16
Budget
Engine Generator Replacement 2,700,000
Distributed Control System Upgrade/Replacement 200,000
Total $2,900,000
Major Capital Outlay
Metropolitan Wastewater Management Commission Capital Improvement Program
Page 43 Preliminary FY 15-16 BUDGET AND CIP
Distributed Control System Upgrade/Replacement. The regional plants computer system for
process monitoring and operation has reached the end of its useful life and requires upgrade or
replacement. Funds to be budgeted for this project will support system upgrade or support services
for full replacement.
Summary of FY 15-16 AMPC Budget
The following table summarizes the FY 15-16 AMCP program budgets described above.
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 14-15
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. In addition to these yearly adjustments, RWP staff were further informed by a Partial Facilites Plan Update that was completed in June of 2014. Those changes were reflected in the MWMC FY 14-15 budget and continue forward in the
FY 15-16 for the 5-Year Capital Plan.
Exhibit 13 displays the MWMC 5-Year Capital Plan programs budget, which includes $63,599,004 in planned capital projects and $11,826,600 in planned asset management capital projects for an overall 5-Year Capital Plan Budget of $75,425,604.
Capital Project Type
FY 15-16
Budget
Equipment Replacement 593,300
Major Rehabilitation 371,300
Major Capital Outlay 2,900,000
Total $3,864,600
Asset Management Capital Project Budget Summary
Metropolitan Wastewater Management Commission Capital Improvement Program
Page 44 Preliminary FY 15-16 BUDGET AND CIP
FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 TOTAL
CAPITAL PROJECTS
Biosolids Management
Poplar Harvest Management Services 1,265,000 358,000 708,000 370,000 32,000 2,733,000
Non-Process Facilities and Facilities Planning
Facility Plan Engineering Services 70,000 70,000 70,000 70,000 70,000 350,000
Capacity Mgmt Operations Maint (CMOM)16,833 16,833
Comprehensive Facility Plan Update 726,000 762,000 1,488,000
Conveyance Systems
Influent Pumping & Headworks 145,140 145,140
Plant Performance Improvements
Increase Digestion Capacity 8,645,000 8,645,000
WPCF Lagoon Removal / Decommissioning 4,938,231 4,938,231
Sodium Hypochlorite Conversion 1,039,800 1,039,800
Operations & Maintenance Building Improvements 950,000 6,700,000 7,650,000
Thermal Load Mitigation: Pre-Implementation 210,000 159,000 369,000
Thermal Load Mitigation: Implementation 1 794,000 813,000 4,577,000 4,196,000 2,818,000 13,198,000
Thermal Load Mitigation: Implementation 2 2,000,000 3,000,000 5,000,000
Aeration Basin Improvements - Phase 2 2,900,000 11,400,000 14,300,000
Glenwood Pump Station Upgrades 926,000 926,000
Tertiary Filtration - Phase 2 2,800,000 2,800,000
TOTAL CAPITAL PROJECTS $18,074,004 $8,826,000 $6,117,000 $10,462,000 $20,120,000 $63,599,004
ASSET MANAGEMENT
Equipment Replacement 593,300 1,589,300 1,016,000 2,150,500 855,000 6,204,100
Major Rehab 371,300 421,800 792,400 686,000 451,000 2,722,500
Major Capital Outlay 2,900,000 2,900,000
TOTAL ASSET MANAGEMENT $3,864,600 $2,011,100 $1,808,400 $2,836,500 $1,306,000 $11,826,600
TOTAL CAPITAL IMPROVEMENTS $21,938,604 $10,837,100 $7,925,400 $13,298,500 $21,426,000 $75,425,604
EXHIBIT 13
Regional Wastewater 5-Year Capital Programs
REGIONAL WASTEWATER
PROGRAM BUDGET
CAPITAL PROGRAM
PROJECT SHEETS
Page 45 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
POPLAR HARVEST MANAGEMENT SERVICES
Description: The Biocycle Farm comprises nearly 400 acres in plantation, which were planted as three successive management units (MUs). The MUs were planted in 2004, 2007, and 2009
and can be harvested at any year prior to the end of the 12th year of growth. This project develops the harvest management regime of the Biocycle Farm through market
exploration and refinement of poplar harvest and replanting techniques. The project addresses the initial plantings of the farm’s three MUs and ensures that harvest is completed in each MU within the regulatory 12-year rotation limit as well as subsequent
replantings of each MU.
Status: 18% completed. MU-1, comprising 156 acres, is 80% complete with initial harvests of 52
and 72 acres respectively in 2013 and 2014. MU-1 will be fully completed in FY 15-16. Harvest activities within MU-2 could start in FY 15-16.
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 12-year rotation duration.
Project Type: 100% Performance
Improvement SDC Eligibility: 0%
Estimated Project Cost: $3,033,009 for harvest and administration of the initial plantings across all three MUs.
Estimated Cash Flow: FY 13-14 = $116,009; FY 14-15 = $184,000; FY 15-16 = $1,265,000; FY 16-17 = $358,000; FY 17-18 = $708,000; FY 18-19 = $370,000; FY 19-20 = $32,000
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total
Design/Construction $116,009 $184,000 $1,265,000 $358,000 $708,000 $370,000 $32,000 $3,033,009 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $116,009 $184,000 $1,265,000 $358,000 $708,000 $370,000 $32,000 $3,033,009
Page 46 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
FACILITIES 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 focused on assessment of biogas utilization alternatives, which used a Triple Bottom Line approach to inform staff recommendations.
Justification: Projects were developed to varying levels of specificity in the 20-Year Facilities Plan and there is an on-going need for ongoing 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. This task also
provides ongoing planning work related to items not addressed by the 2004 MWMC Facilities Plan.
Project Driver: Ongoing goal to efficiently follow and accommodate the upgrades resulting from the 20- Year Facilities Plan.
Project Trigger: On-going need.
Estimated Project Cost: $863,639
Estimated 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 = $36,690; FY 13-14 = $146,491; FY 14-15 = $95,000;
FY 15-16 = $70,000; FY 16-17 = $70,000; FY 17-18 = $70,000; FY 18-19 = $70,000; FY 19-20 = $70,000
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0
Other $418,639 $95,000 $70,000 $70,000 $70,000 $70,000 $70,000 $863,639 Total Cost $418,639 $95,000 $70,000 $70,000 $70,000 $70,000 $70,000 $863,639
Page 47 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
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 (SSO’s). 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’s 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 effort funded through this project provides or supports workshop organization and facilitation, guidance development
and documentation, technical analysis, standards establishment, and CMOM gap analysis assistance.
Status: Last year, both partner cities completed a CMOM gap analyses to identify the needed
effort to implement their respective CMOM programs. In addition, the Regional Wastewater Policy Team approved the MWMC’s Regional CMOM Framework and guidance documents. This year, the MWMC adopted the Regional CMOM Framework
document and the Consultant, CH2M Hill, reviewed the two cities’ CMOM Gap Reports. The consultant’s feedback was then reviewed by each city and their responses were
discussed. That feedback was incorporated into the planning framework. Each city is now working on CMOM Implementation Plans based on the results of the gap analysis process.
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 inflow and infiltration.
Improvement SDC Eligibility: 11%
Estimated Project Cost: $532,000
Estimated 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 = $91,671; FY 14-15 = $106,000; FY 15-16 = $16,833
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $409,167 $106,000 $16,833 $0 $0 $0 $0 $532,000 Total Cost $409,167 $106,000 $16,833 $0 $0 $0 $0 $532,000
Page 48 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
COMPREHENSIVE FACILITIES PLAN
Description: This will be the first MWMC Comprehensive Facilities Plan since the 2004 MWMC Facilities Plan. This Comprehensive Facilities Plan effort will consider a 20-year planning horizon and will draw on the most recent plant data, current 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: Provides comprehensive facilities planning to develop the capital program for the upcoming 20-year period once the MWMC receives new regulatory requirements under
the next NPDES permit renewal.
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
ImprovementSDC Eligibility: 21%
Estimated Project Cost: $1,488,000
Estimated Cash Flow: FY 16-17 = $726,000; FY 17-18 = $762,000
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $726,000 $762,000 $0 $0 $1,488,000 Total Cost $0 $0 $0 $726,000 $762,000 $0 $0 $1,488,000
Page 49 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
INFLUENT PUMPING IMPROVEMENTS AND HEADWORKS EXPANSION
Description: This project provides influent pumping improvements and headworks expansion required to accommodate planning through 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.
Status: Construction was completed by Wildish at the end of 2009 with some punch list items addressed in year 2010. The remaining budgeted project money will help fund improvements to an influent gate system in 2015 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 flow of 277 mgd by January 1, 2010.
Project Trigger: Increase treatment capacity: 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: $28,161,748
Estimated 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 = $41,659; FY 14-15 = $225,000; FY 15-16 = $145,140
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total Design/Construction $27,791,608 $225,000 $145,140 $0 $0 $0 $0 $28,161,748 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $27,791,608 $225,000 $145,140 $0 $0 $0 $0 $28,161,748
Page 50 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
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: As of January 14, 2015, the project to Increase Digestion Capacity is in the pre-design phase and the MWMC hired a design consultant. 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 the need for anaerobic digestion capacity. 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: Estimates indicate that expanded digestion facilities will be needed by 2017 or 2018. The design phase is starting in 2015.
Improvement SDC Eligibility: 54.3%
Estimated Project Cost: $9,353,170 (funding for administration, design, permits, construction, etc.)
Estimated Cash Flow: FY 11-12 = $139,028; FY 12-13 = $44,142; FY 13-14 = $0; FY 14-15 = $525,000 FY 15-16 = $1,394,000; FY 16-17 = $2,755,000; FY 17-18 = $4,152,000; FY 18-19 = $344,000
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total Design/Construction $183,170 $525,000 $8,645,000 $0 $0 $0 $0 $9,353,170 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $183,170 $525,000 $8,645,000 $0 $0 $0 $0 $9,353,170
Page 51 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
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 14, 2015: The project is in pre-design phase. The MWMC hired a consultant in December of 2014 to create a bid package for this project and for the increase digestion
capacity project.
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 (funding for administration, design, permits, construction, etc.)
Improvement SDC Eligibility: Not applicable
Estimated Cash Flow: FY 13-14 = $1,769; FY 14-15 = $60,000; FY 15-16 = $390,000; FY 16-17 = $1,460,000;
FY 17-18 = $3,088,231
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total Design/Construction $1,769 $60,000 $4,938,231 $0 $0 $0 $0 $5,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $1,769 $60,000 $4,938,231 $0 $0 $0 $0 $5,000,000
Page 52 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
SODIUM HYOCHLORITE 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. Some of the project funding supported the treatment plant landscape upgrades.
Status: The converted disinfection system has been in operation since March of 2010 but the
chemical injection/mixing system has never been accepted due to performance issues.
As of January 16, 2015: Staff responded to the construction contractor submittal package related to changing the chemical injection and mixing system. On January 7, 2015, staff requested a contractor/supplier work plan and 2015 schedule to complete the construction
contract work.
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 the need to meet peak flow treatment
requirements.
Project Type: 50% Capacity; 50% Performance
Improvement SDC Eligibility: 25%
Estimated Project Cost: $5.8 million (reduced from past budgeting)
Estimated 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 = $21,890; FY 14-15 = $172,000; FY 15-16 = $1,039,800
2014-15
Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total Design/Construction $4,588,200 $172,000 $1,039,800 $0 $0 $0 $0 $5,800,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $4,588,200 $172,000 $1,039,800 $0 $0 $0 $0 $5,800,000
Page 53 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
OPERATIONS & MAINTENANCE BUILDING IMPROVEMENTS
Operations Building Maintenance Building Aerial Maintenance Building ISC Modular Building
Description: This project will update and expand the Operations and Maintenance (O&M) support facilities at the Water Pollution Control Facility (WPCF). The support facilities to be evaluated include the Maintenance Building, Operations Buildings (including laboratory space), and the temporary Industrial Source Control (ISC) building. The upgrades may include new structures in addition to renovations to the existing structures.
Status: As of January 12, 2015: The MWMC has hired a consultant team to provide architectural and engineering services. The project is in the pre-design (architectural programming) phase to develop a short-list of alternatives for consideration before implementing the design based on a preferred alternative/solution. The architectural programing phase will also include evaluation of the existing laboratory space. After an alternative has been
selected, the design consultant will work together with staff to finalize the bid package(s), obtain permits and procure construction contractor(s).
Justification: The original design for the O&M Buildings at the WPCF was completed in the late 1970s.
Since that time, use of the O&M Buildings have changed substantially due to modifications in the workforce, advancing technology, regulatory changes, and an increase in staff to
support additional facilities. Building codes, such as seismic standards, have also changed during this time, necessitating upgrades. Lastly, the ISC modular building was installed as a temporary structure in 1996 and has since reached the end of its useful life.
Project Driver: The need to update and/or replace the existing O&M support facilities is driven by the need to provide a safe and efficient work environment for WPCF staff. Many of these
changes stem from a changing wastewater/environmental business since the MWMC original construction that occurred in the early 1980’s.
Project Trigger: As needed, due to expansion and changes related to the MWMC facilities and safety.
Estimated Project Cost: Estimated project costs are being determined during the project architectural programming
phase. For budgeting purposes, the current cost estimate of $8 million is based on the scope items listed below, past planning studies and current best information. Staff plans to update the Commission as the project team develops the short-list of alternatives with cost
estimating in 2015. Project scope of work includes: Maintenance Building improvements, Admin/Operations Building improvements, Modular Building replacement, Water Quality Laboratory Upgrades.
Improvement SDC Eligibility: To be determined
Estimated Cash Flow: FY 14-15 = $350,000; FY 15-16 = $625,000; FY 16-17 = $3,655,000; FY 17-18 = $3,300,000; FY 18-19 = $70,000
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total
Design/Construction $0 $350,000 $950,000 $6,700,000 $0 $0 $0 $8,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $350,000 $950,000 $6,700,000 $0 $0 $0 $8,000,000
Page 54 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
THERMAL LOAD MITIGATION PRE-IMPLEMENTATION
Description: This project includes the study and planning of thermal load mitigation measures including recycled water feasibility studies, shading and water quality trading credit development, and associated permit negotiation and legal strategy related to the temperature TMDL and
NPDES permit renewal.
Status: Two of three planned phases of thermal load strategy planning have been completed. The
third phase of study will be underway in FY 15-16 along with ongoing permit and TMDL compliance coordination and development of water quality trading partnerships and
riparian shade projects.
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: Planning necessary for ongoing compliance with Oregon’s temperature standard
Project Type: 100% Performance
Improvement SDC Eligibility: 26%
Estimated Project Cost: $750,000
Estimated Cash Flow: FY 13-14 = $ 295,995; FY 14-15 = $85,000; FY 15-16=$210,000; FY 16-17=$159,000
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $295,995 $85,000 $210,000 $159,000 $0 $0 $0 $749,995
Total Cost $295,995 $85,000 $210,000 $159,000 $0 $0 $0 $749,995
Page 55 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
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 facilities and/or extension of recycled water services to community partners, water quality trading credit strategies through shade credit investments, and collaborative partnerships for permit compliance. The
recycled water projects 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 project opportunities are being evaluated for future implementation under the Thermal Load Mitigation: Pre-Implementation Project.
Justification: Meet future thermal load permit limits and improve water quality. 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: Project implementation necessary for ongoing compliance with Oregon’s temperature standard
Project Type: 100% Performance
Improvement
SDC Eligibility: 26%
Estimated Project Cost: $13,300,925
Estimated Cash Flow: FY 13-14 = $78,925; FY 14-15 = $24,000; FY 15-16 = $794,000; FY 16-17 = $813,000;
FY 17-18 = $4,577,000; FY 18-19 = $4,196,000; FY 19-20 = 2,818,000
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total Design/Construction $78,925 $24,000 $794,000 $813,000 $4,577,000 $4,196,000 $2,818,000 $13,300,925
Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $78,925 $24,000 $794,000 $813,000 $4,577,000 $4,196,000 $2,818,000 $13,300,925
Page 56 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
THERMAL LOAD MITIGATION – IMPLEMENATION 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 total maximum daily loads (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 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: $5,000,000 (plus up to $12,000,000 anticipated project need in the out-years FY 20-21
and beyond for a total project cost of $17,000,000).
Estimated Cash Flow: FY 18-19 = $2,000,000; FY 19-20 = $3,000,000
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total
Design/Construction $0 $0 $0 $0 $0 $2,000,000 $3,000,000 $5,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $0 $0 $2,000,000 $3,000,000 $5,000,000
Page 57 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
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 four 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 2018
with consultant services.
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). The MWMC Partial Facilities Plan Update document dated June 2014 recommended moving the initial budget year to FY 18-19 as shown
below.
Project Type: 50% Capacity; 50%Performance
Improvement SDC Eligibility: 58.7%
Estimated Project Cost: $14,300,000 (funding for administration, design, permits, construction, etc.)
Estimated Cash Flow: FY 18-19 = $1,500,000; FY 19-20 = $6,100,000; FY 20-21 = $5,900,000; FY 21-22 = $800,000
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total Design/Construction $0 $0 $0 $0 $0 $2,900,000 $11,400,000 $14,300,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $0 $0 $2,900,000 $11,400,000 $14,300,000
Page 58 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
GLENWOOD PUMP STATION UPGRADE
Description: Expand Glenwood pump station capacity. The existing pump station is built to be
expandable in capacity when the need arises. Two pumps are installed with the expandability to add up to two additional pumps when needed.
Justification: Additional pumping capacity will be required at this MWMC pump station to handle increasing flows in the Glenwood area (Springfield) and the Laurel Hill area (Eugene).
Project Driver: Keep up with capacity needs, maintain required pumping redundancy, and prevent overflows upstream of the Glenwood pump station.
Project Trigger: Planning work in 2014 anticipates that a third pump to increase capacity should be operational by about year 2019. The timing will be impacted by the rate and type of
development in the area and efforts to minimize infiltration and inflow that impact the Glenwood pump station. The MWMC Partial Facilities Plan Update document dated June 2014 recommended moving the initial budget year to FY 18-19 as shown below.
Project Type: 100% Capacity
Improvement SDC Eligibility: 38%
Estimated Project Cost: $926,000 (funding for administration, design, permits, construction, etc.)
Estimated Cash Flow: FY 18-19 = $864,000; FY 19-20 = $62,000
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total Design/Construction $0 $0 $0 $0 $0 $926,000 $0 $926,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $0 $0 $926,000 $0 $926,000
Page 59 Preliminary FY 15-16 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
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. 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
19-20. 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 options can be developed. The MWMC Partial Facilities Plan Update document dated June 2014
recommended moving the initial budget year to FY 19-20 as shown below.
Improvement SDC Eligibility: 41.6%
Estimated Project Cost: $11,400,000 (funding for administration, design, permits, construction, etc.)
Estimated Cash Flow: FY 19-20 = $1,550,000; FY 20-21 = $4,650,000; FY 21-22 = $5,200,000
2014-15 Expenditure/Category: Prior Years Est. Act. 2015-16 2016-17 2017-18 2018-19 2019-20 Total
Design/Construction $0 $0 $0 $0 $0 $0 $2,800,000 $2,800,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $0 $0 $0 $2,800,000 $2,800,000
REGIONAL WASTEWATER
PROGRAM BUDGET
ACRONYMS AND
EXPLANATIONS
Metropolitan Wastewater Management Commission Acronyms and Explanations
Page 60 Preliminary FY 15-16 BUDGET AND CIP
BUDGET DOCUMENT ACRONYMS AND EXPLANATIONS
AMCP – Asset Management Capital Program. 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.
ARRA – American Reinvestment and Recovery Act. This funding was part of the federal
government’s economic stimulus program and issued loans under favorable conditions to stimulate infrastructure and capital project investment.
BMF – Biosolids Management Facility. The Biosolids Management Facility is an important part
of processing wastewater where biosolids generated from the treatment of wastewater are turned
into nutrient rich, beneficial organic materials.
CIP – Capital Improvements Program. This program implements projects outlined in the 2004
Facilities Plan and includes projects that improve performance, or expand treatment or hydraulic
capacity of existing facilities.
CMOM – Capacity Management and Maintenance Program. The CMOM program addresses wet weather issues such as inflow and infiltration with the goal to eliminate sanitary sewer overflows
to the extent possible and safeguard the hydraulic capacity of the regional wastewater treatment
facility.
CWSRF – Clean Water State Revolving Fund. The Clean Water State Revolving Fund loan
program is a federal program administered by the Oregon DEQ that provides low-cost loans for
the planning, design and construction of various water pollution control activities. (DEQ)
EMS – Environmental Management System. An EMS is a framework to determine the environmental impacts of an organization’s business practices and develop strategies to address
those impacts.
ESD – Environmental Services Division. The ESD is a division of the City of Springfield’s
Development and Public Works Department that promotes and protects the community’s health, safety, and welfare by providing professional leadership in the protection of the local
environment, responsive customer service, and effective administration for the Regional
Wastewater Program.
IGA – Intergovernmental Agreement. Pursuant to ORS 190.010, ORS 190.080, and ORS 190.085, the IGA is an agreement between the cities of Eugene and Springfield and Lane County
that created the MWMC as an entity with the authority to provide resources and support as
defined in the IGA for the Regional Wastewater Program.
Metropolitan Wastewater Management Commission Acronyms and Explanations
Page 61 Preliminary FY 15-16 BUDGET AND CIP
MWMC – Metropolitan Wastewater Management Commission. The MWMC is the Commission
responsible for the oversight of the Regional Wastewater Program. In this role, the MWMC
protects the health and safety of our local environment by providing high-quality management of
wastewater conveyance and treatment to the Eugene-Springfield community. The Commission is responsible for the oversight of the Regional Wastewater Program.
NPDES – National Pollutant Discharge Elimination System permit. The NPDES permit program
is administered by the Oregon Department of Environmental Quality (DEQ) in fulfillment of
federal Clean Water Act requirements. The NPDES permit includes planning and technology requirements as well as numeric limits on effluent water quality.
RWP – Regional Wastewater Program. Under the oversight of the MWMC, 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.
SDC – System Development Charge. SDCs are charges imposed on development so that government may recover the capital needed to provide sufficient capacity in infrastructure
systems to accommodate the development.
SRF –Clean Water State Revolving Fund. The Clean Water State Revolving Fund loan program
is a federal program administered by the Oregon DEQ that provides low-cost loans for the planning, design and construction of various water pollution control activities. (DEQ)
SSO –Sanitary Sewer Overflows. Discharges of raw sewage.
TMDL – Total Maximum Daily Load. The federal Clean Water Act defines Total Maximum Daily Load as the maximum amount of any pollutant that can be safely assimilated by a waterway in one day without significant degradation of water quality.
TSS – Total Suspended Solids. Organic and inorganic materials that are suspended in water.
WPCF – Regional Water Pollution Control Facility. The WPCF is a state-of-the-art facility providing treatment of the wastewater coming from the Eugene/Springfield metropolitan area.
The WPCF is located on River Avenue in Eugene. The treatment plant and 49 pump stations
distributed across Eugene and Springfield operate 24 hours a day, 7 days a week, 365 days a year
to collect and treat wastewater from homes, businesses and industries before returning the cleaned
water, or effluent, to the Willamette River. Through advanced technology and processes, the facility cleans, on average, up to 30 million gallons of wastewater every day.
WWFMP – Wet Weather Flow Management Plan. This plan evaluated and determined the most
cost-effective combination of collection system and treatment facility upgrades needed to manage
excessive wet weather wastewater flows in the Eugene/Springfield metropolitan area.