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HomeMy WebLinkAbout11072012 City Council Work Session Notes - 2013 Budget Modifications N I Minh , WORK SESSION NOTES ON Ai 3 BAd ft- /Thalff-yi-ith' S 0(141/a'-'t W,ft v?.%71 SkypL. Purpose: Present: r _a VC / i Co ncil Members Present: Softivv,,,,t,, k.)C ) 0-1-3 I Ja we(R,r- 4,..z.A.. / _40 ANN idP.,‘„ , i: -43 WI telgy: ONSIIM- illir- ily ' ' TimeAfra ,/y7 , II ate A I 5_,/k Artalft4 4==1<********************* °**** /*********** . * • ******* DUA f5(L "Beoca)74)-‘0' Q0E-51-1004 cbolLi5,' VNACk L7 A , il ,z, ek-otAt , .,,0 (I. 4.-6,,,,tk._ (56 2 0 tz-I -0,40 t 5 jouctcae+) vA tox . c it..._ — i\\\l 1,;(\ GLt-k-tutt - \J•is-°'-i ` citAA. Lipcct t J' s1-4L+. 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' -'41&"\"1" a."/'-•OU c...mN_,c,..e iv'=.)ckic----- at, 1,),ACLC alkIhr r1// Water t--r:nterpris e Fund City of Seward Water and Wastewater Enterprise Funds Water-related cash Water Cash History Water Enterprise Fund = $1.4M cash (10/12) Water Enterprise Fund-Cash Balance Balance at December31,20XX versus assets of $9.1M HC; $4M fully depreciated Cash Balance reflects 3rd Ave Water Loan Water Fund MRRF $584K paid in 2012 Cash Cash Total Water MRRF = $4,019 2005 2,826,951 4,019 2,830,970 2006 3,052,766 4,019 3,056,785 ❑ Water Capital (grant) Projects = $70,232 2007 3,152,291 4,019 3,156,310 2008 1,320,497 4,019 1,324,516 ❑ Projected ending cash at end 2013 is $1.2M; with 2009 1,564,108 4,019 1,568,127 MRRF balance $212K 2012 and $411K 2013 2010 1,604,281 4,019 1,608,300 2011 1,850,743 4,019 1,854,762 Oct-12 1,356,073 212,546 1,568,619 est. 2013 1,290,000 411,429 1,701,429 HC = historic cost $1.973 M cash held by GF in bond reserve to be reimbursed to Water Fund Water Cash History Water-related debt 3,500,000 --- Third Avenue Water Line loan balance ■MRRF 3,000,000 II Water $2,650,946 owed 1/1/2013; repay over 20 years at $155K; payoff 4/2027 7 - - 2,500,000 I 2,000,000 Water storage tank project ($4.5M) largely funded through grants t50"°° 1111111111111 500,00011n1111111 ,,000,000II I ' ' , ' ' ' Future loan related to reimbursement of Lowell Canyon water storage tank ($575K) = $33.4K/yr 500°D0 over 20 years at 1.5% 2005 2006 2007 2008 2009 2010 2011 Oct-12 est. 2013 Water Projects funded with no debt ` ` Highlights $397K - Waterline construction GW/FA $95K - Water Storage tank and line extension $74K - Fire hydrant upgrades/replacements 4 Rate increase 2013 (6%) = $59K $100K - Drinking water regulations grant • Avg. bill increase $39.89 to $42.28 = $2.39/mo. $25K - Water distribution system analysis ❑ Increase estimated utilities $60K $427K - Water storage tank and pumping facility ❑ Increase health insurance (7%) $4,300 $1.5M - ARRV dolphins @ SMC (managed by PW) Total = $1.12M Water System plus $1.5M dolphins = 0 Add cola ($2,985) $2.62 million in grants managed ❑ Annual debt payments $196K; assumes 2013: no new debt $1.99M Water storage tank designated legislative grant plus $2.5M DEC grant Hi hli hts, p.2 Water Rate History g g E. Credit card fees added by RESO $4,500 2010 rate review showed need for 25% r Includes no infrastructure investment in rate increase operating budget • 2010 = 4.8% (5-year avg. CPI + 2%) Transfer funds to MRRF to begin to fund • 2011 = 5.1% (5-year avg CPI + 2%) critical and high-risk infrastructure needs • 2012 = 4.0% (5-year avg CPI + 1.2%) ($208K in 2012 and $199K in 2013) • 2013 = 6.0% (5-year avg CPI + 3.4%) • CPI increased since then: 2010 1.8%; 2011 3.2%; 2012 2.6% est.; 2013 2.6% est. = 10.2% • Still behind by (25% - 19.9% + 10.2% cpi) = 15.3% but have made up nearly 1/2 of the shortfall over the past four years. Why the focus on capital needs and rates? Status of depreciation reserves • Need cash to leverage matching grants, pay ■ Water = $212K in MRRF vs assets of for capital needs, and qualify for loans $9.1 million*; $4.0 million end of useful • Annual operating deficits make borrowing life problematic without current cash levels and • MRRF increased $208,527 in 2012 and sustainable operating budget • Major capital investments needed to replace will increase by additional $198,883 in aging water system (water storage tanks, 2013; from $4,019 to $411,429 in two refurbish existing storage tanks, water lines) years • Estimated cost to replace 114,701 linear feet of pipe is approximately $34.5 M; 1/3 of system is near end of useful life 12 -,--;,:: Water Capital Needs ,A ,,,,,,, ..?:,/,>.4 Water Ente rise 'P Fund-Capital Needs Critical Hi -Risk Critical Ca.ital Needs 20 _ 2012 2,431,000 Moderate-Risk Total 1 3—20 1:7 2013 875,000 1,150,000- 30,000 461,000 Likely to Fail in the Next 5 years,must be accomplished 2014 1,860,000 575,000 30,000 2,055,000 2016 _ 800,000 80,000 2,515,000«1Water Storage Tank: $2,061,000 2016 - 1,000000 1��000 Refurbish #4 Production Well: .,iji $85,000 3,000,000 ---------- — 1 •.1 1.� Refurbish f u r b i s h ''' Lowell Canyon Tanks: 3,00z500.000 -- •M este-Risk Mobile Generation for Water Wells: ■High-Risk $285,000 2'°°a°°° + Gateway Tank Roof: — $300,000 1,500,000 i.: Replace 10" and 14" AC water line between Phoenix and Sea Lion: $1,860,000 1,000,000 500,000 Total = $5,166,000 Total grant/loan funding = $2,636,000 2012 Total funding 2013 2014 2015 2016 13 g needed = $2,530,000 14 Water Storage Tanks ' ' Well Houses 22OK Gallon Tank 4O0K Gallon Tank Well House 2 Well House 4 ,r is ; --,-. , Received low interest loan in the amount of Scheduled to be taken out of service $ ,000 to refurbish 11166 Annual Replacement of Critical Infrastr tore Annual Replacement of Critical Infrastiture Planning for Depreciation and It<placement_2013-2032 Continued Ductile Iron Pipe (DIP) r Replacing 5% of waterlines annually • DIP systems could have a life expectancy of • A total of 73,119 linear ft of A.C., Cast Iron over 100 years, but the harsh climate of and Wood Stave pipe needs to be replaced Seward could reduce that considerably • Replacement cost is approximately $300 per • After all of the A.C., Cast Iron and Wood Stave linear foot pipe is replaced with DIP, the replacement • This would require approximately $1 M in schedule for pipe should be on at least a 50 additional funding annually year cycle or 1.25% of the total 122,232 linear • Developing, funding and implementing a feet of pipe depreciation plan is critical to the success of • This would require approximately $500K in the water system additional funding annually 21 22 Wastewater-related cash Wastewater Enterprise Fund Wastewater Enterprise Fund = $583K (10/12) versus assets of $12M HC; $7M fully depreciated Wastewater MRRF = $112K i Projected ending cash is $630K 2012 and $724K 2013, with no contributions to MRRF HC = historic cost Ilkill1. Wastewater Cash History Wastewater Cash History W ,, 900,000 Wastewater Enterprise Fund-Cash Balance •MRRF Balance at December 31,20XX 800,000 ■Wastewater 700,000 Furl. _..__ Wastewater Fund MRRF 600,000 Cash Cash Total 2005 76,203 163,938 240,141 500,000 2006 387,284 163,938 551,222 2007 517,133 163,938 681,071 400,000 - 2008 356,104 163,938 520,042 2009 395,033 163,938 558,971 300,000 2010 396,006 112,115 508,121 200,000 2011 580,247 112,115 692,362 Oct-12 582,586 112,115 694,701 100,000 est.2013 724,000 112,115 836,115 2005 2006 2007 2008 2009 2010 2011 Oct-12 est. 2013 Wastewater-related debt Wastewater Projects funded with no debt $57K - backup generator 1995 Dairy Hill Sewer loan = $2,665 (matures 7/2014) $278K - Lift Station #3 1994 Lowell Point loan = $59,689 (matures 11/2013) Total = $335,000 in wastewater grants being managed *GF loan to repay 1990 debt = $1,219,150 Total: $1,281,504 * Wastewater Fund has not been making $76,840 annual payments to GF due to cash shortfalls Highlights 111 Wastewater Rate History ❑ Rate increase 2013 (6%)( ° ) = $59K 2010 rate review showed need for 30% • Avg. bill increase $50.33 to $53.35 = rate increase $3.02/mo. ■ 2010 = 4.8% o Annual debt payments $84K; assumes no new • 2011 = 5.1% debt — c No infrastructure costs in operating budget • 2012 = 6.0% c Credit card fees $5,500 added back to budget in • 2013 = 6.0% 2012 RESO • CPI increased since then: c Increase utility costs $60K o 2010 1.8%; 2011 3.2%; 2012 2.6% est.; 2013 2.6% est. = 10.2% o Increase health insurance (7%) $2,956 • We are still behind by (30% - 21.9% + 10.2% c Add cola 3% $2,985 cpi) = 18.3% but havemade up 55% of the c. No funding for MRRF shortfall over the past four years Status of depreciation reserves Capital Infrastructure Needs • Wastewater = $ 112K in MRRF vs assets of $12 million*; $7. 1 million I Was tewaterEnterpriseFund-Capital Needs fully depreciated • Critical Hi: -Risk Moderate-Risk Total ■ estimated cost to replace 21 miles 2012 242,000 - 55,000 297,000 of under round sewer lines I S 2013 712,000 300,000 180,000 1,192,000 9 2014 240,000 120,000 150,000 2015I 510,000 $44 M I 2016 _ 150,000 150,000 I - 150,000 150,000 $ 1,194,000 $ 420,000 $ 685,000 $ 2,299,000 31 32 , Capital Infrastructure Needs h Critical Capital Needs 2012-2017 s Likely to Fail in the Next 5 years,must be accomplished 1,400,000 — ❑ Forest Acres Lift Station: $92K engineering ■Moderate-Risk ❑ Double wall fuel tanks: 150K (funding$ ( initially approved by AES but approval later rescinded) 1,200,000 ■High-Risk ■Critical ❑ SMIC bypass valve: $72K 1,000,000 Cl #1 Stand-by generator: $150K 800,000 o Manhole refurbishment: $120K ❑ Macerator for Lift Station4: $30K 000,000 ❑ Secure Spruce Creek sewer: $90K 400,000 o Sewer sludge removal: $490K 200,000 II MI ■ 2012 2013 2014 2015 2016 TOTAL = $1,194,000 33 Lowell Point Sewer Lowell Point Sewer SMIC Wastewater SMIC Wastewater Pond Treatment Plant Treatment Plant Pond v- ., ` -% - Lift Station 1 Lift Station 2 Lift Station 3 Lift Statior A. s tom, `- ' W i. � � . e 'fir..... — �� „' 1.1.1 _., - , . .,Jr - If 1 t iw : ii— N - _ High Risk _ital eeds 20130 Likely to fail.within 5-10 years ❑ SMIC Lower Lift Station (engineering ii • , i The backend of the only): $250K " cube van that has - Replace blowers at Lowell Pt �' been transformed wastewater treatment plant: $120K :d a_ into a mobile work ..... station. Money well SMIC piping for bypass (engineering spent!!! and design) : $50K Total = $420,000 Capital Needs 2013-ZO Annual Replacement of Critical Infr 4 us IACCCaSlp� COgt LO NI:IIRta1R$C � er`�'t� ' Plannvi�;tier Depreciation and Rcpla cc�nent�+nt^,n,,,, ast to L r� L4 =G�_�� i '� n of depreciated infrastructure= 75K Yr. Y �o o� of collection system: $75K/yr. Replacing 2% of sewer pipes annually G ■ A total of 125,505 linear ft pipe that needs to �� Ge P be inspected and systematically replaced over I��,a 45?30� apo the next 50 years ��� so--1 ` disposal: $25K • Replacement cost is approximately $300 per 9e linear foot ♦ d ■ This would require approximately $600K in �D,�a� _ $685,000 additional funding annually ■ Developing, funding and implementing a N --+ infrastructure depreciation plan is critical to the success of yes6o0K/Yr over 10 for infrastructure past useful life Still lea ful life Depreciation planthe sewer system past use 41 42 The End 2-- iv _r- ♦ r L 1 l Water Enterprise Fund City of Seward Water and Wastewater Enterprise Funds ..0Water-related cash ® '' Water Cash History Water Enterprise Fund = $1.4M cash (10/12) Water Enterprise Fund-Cash Balance Balance at December31,20XX versus assets of$9.1M HC; $4M fully depreciated Cash Balance reflects 3rd Ave Water Loan $584K paid in 2012 Water MRRF = $4,019 Water Fund MRRF Cash Cash Total 2005 2,826,951 4,019 2,830,970 2006 3,052,766 4,019 3,056,785 Water Capital (grant) Projects = $70,232 Projected ending cash at end 2013 is $1.2M; with 2007 3,152291 4,019 3,156,310 2008 1,320,497 4,019 1,324,516 2009 1,564,108 4,019 1.568.127 MRRF balance $212K 2012 and $411K 2013 2010 1,604,281 4,019 1,608,300 1,850,743 4,019 1,854,762 Oct-12 1,356,073 212,546 1,568,619 411,429 1,701,429 est.2013 1,290,000 HC= historic cost $1.973 M cash held by GF in bond reserve to be reimbursed to Water Fund C. \etio. . 7.. , Y')\ C 's(-7 c,,Q,Ck) I 1 0 1 Water Cash History Water-related d t X500°°° .MMF ' )< , pl Third Avenue Water Line loan balance 3000,000 .w,1.1Fu.a $2,650,946 owed 1 /2013; repay over 20 years at$155K; payoff 4 202 12.50000 ,•�•� Water storage tank project ($4.5M) largely funded throughgrants 1500.000 '\ rn Vv 1,000,000 Future loan related to reimbursement of Lowell Canyon water storage tank ($575K) = $33.4K/yr 500000 over 20 years at 1.5% 2005 2006 200- 2008 2009 2010 2011 0,1.12 1.t. ' IL ' 2013 Water Projects funded with no debt Highlights ,, j $397K-Waterline construction GW/FA $95K- Water Storage tank and line extension $74K-Fire hydrant upgrades/replacements Rate increase 2013 (6%) = $59K $100K- Drinking water regulations grant • Avg. bill increase$39.89 to$42.28 = $2.39/mo. $25K-Water distribution system analysis - Increase estimated utilities $60K $427K-Water storage tank and pumping facility Increase health insurance (7%) $4,300 $1.5M-ARRV dolphins©SMC(managed by PW) Total = $1.12M Water System plus$1.5M dolphins = Add cola ($2,985) $2.62 million in grants managed Annual debt payments $196K; sumer 2013: no new debt $1.99M Water storage tank designated legislative grant U plus$2.5M DEC grant \c:( P ', U ` I Highlights, p.2 IR Water Rate History ❑ Credit card fees added by RESO $4,500 r- 2010 rate review showed need for 25% r Includes no infrastructure investment in rate increase operating budget • 2010 = 4.8% (5 year avg. CPI + 2%) r Transfer funds to MRRF to begin to fund • 2011 = 5.1% (5 year avg CPI + 2%) critical and high-risk infrastructure needs • 2012 = 4.0% (5 year avg CPI + 1.2%) ($208K in 2012 and $199K in 2013) ■ 2013 = 6.0% (5-year avg CPI + 3.4%) • CPI increased since then: 2010 1.8%; 2011 3.2%; 2012 2.6%est.; 2013 2.6% est. = 10.2% • Still behind by (25% - 19.9% + 10.2% cpi) _ 15.3% but have made up nearly 1/2 of the shortfall over the past four years. k 0j40'.--\9::'(-9.1\ r \k/ I b y\ \10 Why the focus on capital needs and rates? I t.s,Status of depreciation reserves ` - ■ Need cash to leverage matching grants, pay •Water = $212K in MRRF vs assets of for capital needs, and qualify for loans $9.1 million*; $4.0 million end of useful • Annual operating deficits make borrowing life problematic without current cash levels and • MRRF increased $208,527 in 2012 and sustainable operating budget • Major capital investments needed to replace will increase by additional $198,883 in aging water system (water storage tanks, 2013; from $4,019 to $411,429 in two refurbish existing storage tanks, water lines) years • Estimated cost to replace 114,701 linear feet of pipe is approximately $34.5 M; 1/3 of system is near end of useful life 12 1 As Water Capital Needs0 Water Enterprise Fund-Capital Need, Critical Capital Needs 2013-20 ..,.,. Crical High-Risk Moderate-Risk Total Likely to Fad In the\ext i years,must be accomplished 2012 2,431,000 - 30,000 2,461,000 2013 s7soao 1,150,000 moo 2,055,o0o Water Storage Tank: $2,061,000 2014 1,60,000 575,000 80,000 215,000 2015 aa0000 sooaoo Refurbish #4 Production Well: $85,000 CM' ' �w 4114 2016 - - 1,000,000 1,000,000 13 - 111 rrr r 111 ., IM Refurbish Lowell Canyon Tank;: $575,000 Mobile Generation for Water ells: $285,000 ;"w a° Gateway Tank Roof: $300,000 it •C"" eplace 10"and 14"AC water line betweenp Phoenix and Sea Lion: $1860,0001\1 p" 2004000 J.JOaeep - r Total = $5,166,000 , Total grant/loan funding = $2,636,000 1.004.0 Sq;eOe Total funding needed = $2,530,000 ��/(\ 2012 2011 IDN 2015 2016 .... .-\,0...3Q....4) (V�\'/� A Water Storage Tanks ® Well Houses ' , 220K Gallon Tank 400K Gallon Tank Well House 2 Well House 4 yi 4,.c rl 11,4 t. 11 ;r.. I irk I hi ...._ .. Received low Interest loan In the amount of $575,000 to refurbish Scheduled to be taken out of service 1 O, C„ �Y�, Well House 5 Well House 6 M ,. , ..._ Needs roof replaced .... . .. , , Gateway Water Tank WWU Houses High Risk Capital Needs 2013 3 1 Moderate Risk Capital Needs 2013-2022 I_ikcic to Cad within',AO years Continuous Increasing Cost to Maintain&Operate ❑Abandon Wells at Fort Raymond: $575,000 Facility Control Upgrades: $80,000 ❑ Distribution Piping Upgrades: $500,000 7 New Production Well: $650,000 GIS: $30,000 Formal rate study of Water utility: $30,000 Replace and Relocate 6"and 8"water mains in Port area: $800,000 Replace 5% of water lines per depreciation plan: $1,000,000/yr. Total = $2,525,000 Total- $1,140,000 9 20 .11111 I Annual Replacement of Critical Infrarc Annual Replacement of Critical Infra9 Pimping Depad.noc aner,„dni mumu ., ' rc Continued ill Ductile Iron Pipe (DIP) Replacing 5% of waterlines annually . DIP systems could have a life expectancy of • A total of 73,119 linear ft of A.C., Cast Iron over 100 years, but the harsh climate of and Wood Stave pipe needs to be replaced Seward could reduce that considerably • Replacement cost is approximately $300 per • After all of the A.C., Cast Iron and Wood Stave linear foot pipe is replaced with DIP, the replacement • This would require approximately $1 M in schedule for pipe should be on at least a 50 additional funding annually year cycle or 1.25% of the total 122,232 linear • Developing, funding and implementing a feet of pipe depreciation plan is critical to the success of • This would require approximately $500K in the water system additional funding annually 31 22 ILWastewater-related cash AN, Wastewater Enterprise Fund Wastewater Enterprise Fund = $583K (10/12) versus assets of$12M HC; $7M fully depreciated Wastewater MRRF = $112K Projected ending cash is $630K 2012 and $724K 2013, with no contributions to MRRF He= historic cost • L..-,,] Wastewater Cash HistoryWastewater Cash History , -, gr 900,000 fg * - - Wastewater Enterprise Fund-Cash Balance Balance at December 31,20X0 800000 ■MRRf a Washwala 700,000 --..- _ ---— Wastewater Fuld MRRF 600,000 Cash Cash Total 2005 76,203 163,938 240,141 500,000 2006 387 84 163,938 551,222 2007517,133 163,938 681,071 ,0002008 356,104163,938 520,042 2009 395,033163.938 558,971 -2010 396,000112,115 508,121 2011 580,247112.115 692,362200' II , , IIOct-1258286112,115 694,701100,000 est 2013 724,000 112,115 836,115 2005 2006 2007 2008 2009 2010 2011 Oct-12 at 2013 Wastewater-related debt Wastewater Projects Pro' s f sunded with no dem,, 1 $57K- backup generator 1995 Dairy Hill Sewer loan = $2,665 (me[ures7/2014) 0, payments $278K- Lift Station #3 1994 Lowell Point loan = $59,689 (matures t�. Total = $335,000 in wastewater grants being managed *GF loan to repay 1990 debt = $1,219,150 (\ Total: $1,281,504 �1' *Wastewater Fund has not been making$76,840 annual payments to GF due to cash shortfalls -rd 6Y(A-i`-'1`., I VVI,c.i +e J , oAe_ otrt abA) l.L 6tro/.. ./2,.0/..." 0-u bk., 1 C / 7.1?,Q i t b-c t i w u l/� t I ac6 [ 01 "J4.t, ► :ti �i w‘ 1 • 1 / N lc-7 k)t, `a (?' 4 . ,\,- \ ,)1 _. c1 C)--- Highlights Wastewater Rate History Rate increase 2013 (6%) = $59K 2010 rate review showed need for 30% • Avg. bill increase $50.33 to $53.35 = rate increase $3.02/mo. • 2010 = 4.8% Annual debt payments $84K; assumes no new ■ 2011 = 5.1% debt • 2012 = 6.0% No infrastructure costs in operating budget • 2013 = 6.0% Credit card fees $5,500 added back to budget in • CPI increased since then: 2012 RESO 2010 1.8%; 2011 3.2%; 2012 2.6%est.; 2013 2.6% Increase utility costs $60K est. = 10.2% Increase health insurance (7%) $2,956 • We are still behind by (30% - 21.9% + 10.2% Add cola 3% $2,985 cpi) = 18.3% but have made up 55% of the No funding for MRRF kgc,c, ,� 66 �L(- shortfall over the past four years �"*b c dr., Sy-tr p Capital Infrastructure Needs • Status of de reciation reserves � , ■Wastewater = $112K in MRRF vs assets of $12 million*; $7.1 million awastewaterEntetptiseFund-Capital Needs fully depreciated II Critical High-Risk Moderate-Risk Total •estimated cost to replace 21 miles II 2012 242,000 - 55,000 297,000 III 2013 712,000 300,000 180,000 1,192,000 of underground sewer lines is 2014 240,000 120,000 150,000 510,000 $44 M I 2015 - - 150,000 150,000 2016 - - 150,000 150,000 II $ 1,194,000 $ 420,000 $ 685,000 $ 2,299,000 " 32 i • ' ' 4 4 '7' ' Capital Infrastructure Needs Critical Capital Needs 2012-2017'illi Likely to Fail mthe\esti Dears,must be accomplished 1.400.000 -- ❑ Forest Acres Lift Station: $92K engineering ■Moderate-Risk r] Double wall fuel tanks: $150K (funding initially approved by 1.I00, -- -- - - - ------ AES but approval later rescinded) .mac„ ❑ SMIC bypass valve: $72K ir_o ❑ #1 Stand-by generator: $150K �aaoo ❑ Manhole refurbishment: $120K o Macerator for Lift Station4: $3OK— 830,000 — o Secure Spruce Creek sewer: $90K--- od, u kfa ❑ Sewer sludge removal: $490K-\ � � � 400,000 /) 2p12 IM!r1l tV�� �ooaao f IIII 2012 2013 2014 •te l3 V:• TOTAL= $1,194,000 /��//)�� G�q /� 3{ `L'- ‘- &v 6 Lowell Point Sewer Lowell Point Sewer SMIC Wastewater SMIC Wastewater Pond Treatment Plant Treatment Plant Pond , ,,Te N 3 • -..c.„--, / r cr i _i (-----4 cr?cst V p ,,,,,,,,,,IT : 74, - ,c. - 46 0 Lift Station 1 Lift Station 2 Lift Station 3 Lift Station 4 - = 1,11 • 1 ® , , I ,, ,,\,,, , _33-,/ „ ,,,) , ,,,,, , ,,, , I/ 7....,v er cr ,, ,,,,,,,, \ vf c..._) -----...c-P Y i '----)6 ,,\--i (7)-' ,,,__ ,_ A, , High Risk Capital Needs 2013-202 Likely to fail within 5-10 nears ❑ SMIC Lower Lift Station (engineering �+'” The backend of the only): $250K ;,� x cube can that has ❑ Replace blowers at Lowell Pt been transformed wastewater treatment plant: $120K into a mobile work P - a station. Money well ❑ SMIC piping for bypass (engineering spent!!! and design): $50K h <•Total = $420,000 00 . A . i Moderate Risk Capital Needs 2013-207 I Annual Replacement of Critical Infra�triturc Moderate Risk-Continuous Increasing Cost to Maintain&Operate plug for Depamuon and R10103121121 2012-2062 Replace portion of depreciated infrastructure: $75K/yr. • Replace portion of collection system: $75K/yr. Replacing 2% of sewer pipes annually o GIS: $30K • A total of 125,505 linear ft pipe that needs to L. Rate study: $30K be inspected and systematically replaced over Sludge pile disposal: $25K the next 50 years • Replacement cost is approximately $300 per linear foot • This would require approximately $600K in •:.Total = $685,000 additional funding annually • Developing, funding and implementing a Still leaves$600K/yr. over 10 years needed to replace infrastructure depreciation plan is critical to the success of past useful life Depreciation plan for infrastructure past useful life the sewer system 01 13 16, The End II • No 2013 funding source identified for capital 2013 Mid-Cycle Budget budget items • RES pending to request$25K add in 2012 Adjustments (one-time project mgmt fees) • Leaves funding in 2013 for carpet ($95K), General Capital Items - = �' police radios ($70K), campground pay stations ($42K), fire hall siding ($70K) �\ • Following are additions or updated costs to the CIP list but are not funded trj Dump truck in motor pool Fire Dept. updates to capital budget • 2012 budget includes $75K for used dump • High risk: relocate/replace electric meter base, truck; 2013 budget includes $75K for used rewire control device,security $65K dump truck • Low risk: upgrade fluorescent lights, replace exterior lights/sensors,abate asbestos,floor • Unable to find suitable used dump for$75K repair-$38K • Request rolling 2012 funding to 2013 to fund • pdate Satellite fire station in Forest Acres cost to dump truck O $3,128,000 based on more recent KPB cost experience • • Update Satellite fire station at SMIC cost to $1,407,600 Nip `� Other additions to capital budget • $2.7M road improvements requiring$300K match • $40K ADA improvements to City Hall • $95K—request to move 2012 appropriation to 2013 for City Hall carpet replacement • $40K City Hall fire alarm system upgrade • $ roof repairs at City Hall 2013 Mid-Cycle Budget Adjustments General Capital Items • No 2013 funding source identified for capital budget items • RES pending to request $25K add in 2012 (one-time project mgmt fees) • Leaves funding in 2013 for carpet ($95K), police radios ($70K), campground pay stations ($42K), fire hall siding ($70K) • Following are additions or updated costs to the CIP list but are not funded . Dump truck in motor pool • 2012 budget includes $75K for used dump truck; 2013 budget includes $75K for used dump truck • Unable to find suitable used dump for $75K • Request rolling 2012 funding to 2013 to fund dump truck Fire Dept. updates to capital budget • High risk: relocate/replace electric meter base, rewire control device, security - $65K • Low risk: upgrade fluorescent lights, replace exterior lights/sensors, abate asbestos, floor repair - $38K • Update Satellite fire station in Forest Acres cost to $3,128,000 based on more recent KPB cost experience • Update Satellite fire station at SMIC cost to $1,407,600 Other additions to capital budget • $2.7M road improvements requiring $300K match • $40K ADA improvements to City Hall • $95K — request to move 2012 appropriation to 2013 for City Hall carpet replacement • $40K City Hall fire alarm system upgrade • $ roof repairs at City Hall . . City of Seward Outsourced Services Outsourced Services • Animal control • Legal services • Electric meter reading • Some snow removal and road maintenance • Software programming (laserfiche, accounting, utility billing) • Professional services such as property appraisals, project management, engineering, officiating, diving, environmental services • Collections • GIS services for community development, public works • Electrical, plumbing, heating work Outsourced Services, contd. ■ Marketing and economic development (Chamber of Commerce) • Hospital management • Shiplift facility ■ Engineering and construction services • Lobbying • Audit ■ Elevator maintenance • Restroom maintenance in harbor, parks • Custodial services at TYC and AVTEC ■ Community schools classes Outsourced Services, contd. ■ Small engine repair • Some vehicle repairs and maintenance • Refuse collection and disposal ■ Quarry operations periodically ■ Summer bus transportation services • Portable toilets ■ Leased office space . Other options considered • -. City shop • -. Snow removal • Some areas are contracted out • Significant costs associated with damage to guardrails,hydrants, etc. • -. Campgrounds • Have bid in the past; no offers would guarantee the current return to the taxpayers • -. Parking • Council has asked to review prior to next budget process • -. Harbor operations • Public harbor/funding makes this problematic • -. Lease vs. purchase motor pool fleet • -. Residential building inspections Other options considered • -. Cleaning/maintenance • -. Accounting • -. Cemetery maintenance • -. Parks maintenance • -. Summer garden maintenance • Seasonal help paid for in part by garden donations • -. Sale of electric utility sassep sloops nliununuo3 ■ 3]IAV Pug JAI sao!.uas Fe!polsn3 ■ s'aud•aogang uI aaunualuieul ulooaisaj ■ aaunualuiutu lolu.ka f ■ zeds aaij;o pasnai ■ lipnv ■ slapol aignUod • n'un.Cggo-j ■ sa3!.uas uofnUodsuRn snq aatuums • saaiAaas uoIlan.usuoa pun Suiaaauniu3 ■ .Ciino!po!aad suonnaado:clink) • insodsip pue uoilaalloa asnjos • Clyiae{ 1!dS0) . s ■ aaunualtnutu pun saiudaa apnpA atuos • waula nuuw� u (aaaatuuuloj nedaa aulaua tinuts • ;o aaqutuq j)luauldoptap aituouoaa pun liunaxanw ■ •pjuoa 'saa!Aaas paaanos3np •p;uoa 'saa!Aaas paaanos3np nuueaq'1uiqum(d'imulaal_.( ■ clJON\:1tl(.1nti•luoutdopAap scpunanuoa ua;saa1A.Ias sl!) ■ suouaallo,) ■ mauls Ieluauantht t..) -;utyip ugr.taij}o'Rulaaaurua•luauw3r.itrut sopp las paaanospn0 lx kud sjrsi1uddr..kuadoad sr yans sa,t.uas leuotssaloiti ■ (Sugpii iulnn•5uiIt mm-ay 1pasta) iunuumafioad veNios ■ aJurualu!T.tu pCUa put,ilt:%utu,a Mous auto . p.11Mas Jo utpraaaalautauhil•l ■ saai.uas It?4. ■ foaluon Iruuuv ■ saa!Aaas paaanos3np /GIL 1 � Other options considered Other options considered • - Cin shop . -. Cleaning/maintenance • -. Sii remos al ■ -. Accounting . Sonic areas are contracted out ■ -. Cemetery maintenance ■ Significant costs associated with damage to guardrails,hydrants.etc. • -. Parks maintenance • -. Campgmunds ■ -. Summer garden maintenance ■ Have hid in the past;no offers would guarantee the current return to the • Seasonal help paid for in part by garden donations taxpayers • -. Parking ■ -. Sale of electric utility • Council has asked to review prior to next budget process • -. Harbor operations • Public harborfundiug stakes this problematic • -. I case vs.purchase motor pool fleet t •, • -. Residential building inspections