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Home My WebLink About02/11/2016 Council Work Session February 11,2016 Time indicated below Harold E. Getty Council Chambers Roll Call. Approval of Agenda, as proposed or amended. 5:00 p.m. Discussion of FY2017 Budget-Central Garage 530 p.m. Discussion of FY2017 Budget-Traffic 6:00 p.m. Discussion of FY2017 Budget-Waste Management Services ADJOURNMENT Suzy Schares, CMC City Clerk/Human Resource Director �y CITY OF WATERLOO, IOWA WASTE MANAGEMENT SERVICES DEPARTMENT 11111m 3505 Easton Ave. • Waterloo, IA 50702 • (319) 291-4553 c)rerloo `off MEMORANDUM To: Mayor Quentin Hart & City Council Members From: John Lapointe, Interim Wastewater Supt. / Brian Rath, Treatment Operations Supervisor Date: February 11, 2016 Re: Highlights of Proposed FY 2017 Budget Waste Management Services Department This memorandum provides highlights of the proposed FY 2017 Budget for Waste Management Services Department(WMSD). Highlights are broken down into the following categories: • Wastewater Revenues • Wastewater Salaries & Benefits Expenses • Wastewater Contractual Services Expenses • Wastewater Commodity Expenses • Wastewater Capital Outlay Expenses • Storm Sewer Revenues & Expenses Wastewater Revenues A. 3433 - Sewer User Fee Increase The sewer usage rate increase implemented July 1, 2015 is expected to increase sewer revenue by $1,500,000 resulting in estimated total revenue of$12,145,000 from sewer fees in FY 2017. B. 3431 -Vault Dumping Fee (FOG disposal into the city's anaerobic lagoon system.) The FOG program being run by WMSD has resulted in an increase in the revenue obtained from waste haulers dumping FOG into the city's anaerobic lagoon. C. 3493—Sale of Waste Gas (Generated by the city's anaerobic lagoon system.) Methane gas production by the anaerobic lagoon system has been trending upward. This could be due to recent repairs of the lagoon's cover, or a change in the wastewater sent to the lagoon from Tyson Foods, or"global warming". (Anaerobic bacteria work better in warmer temperatures!) II. Wastewater Salaries & Benefits Expenses Base level is an increase of 4.7%from FY 2016 budget. The Additional Request of one (1) more Lab Technician results in an additional 2.7% increase from the 2017 Base Level Budget. An additional lab technician will be needed in FY 2017 to accommodate an increase in the required frequency of sampling (from 7 times a week versus the current 3 times per week) to be included in the new NPDES Permit to be issued soon by Iowa DNR. Note that the proposed FY 2017 Base Budget includes salary expenses for the position of Maintenance Supervisor. That position is currently vacant. CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer MEMORANDUM ON FY 2017 BUDGET (Page 2) III. Wastewater Contractual Services Expenses The difference between the 2017 Mayor-Staff Revision Round 1 budgeted amount for Contractual Services and the 2016 Adopted Budget for that expense category is $1,988,127.00- $1,876,052.00 = $112,075.00. The following two (2) expense categories are primarily responsible for the budgeted increase: A. 1341 —Contract Carriers (Budget increase of$40,000.00.) This expense item covers hauling Class A biosolids (aka sludge)from the wastewater treatment plant for disposal via land-application. In recent years the annual budget for sludge hauling has been exceeded, so it's time to adjust the budget accordingly. The good news is that the WWTF does a very good job of removing solids from the wastewater stream. The bad news is that the more solids removed, the higher the sludge hauling costs. B. 1400— Utility Service (Budget increase of$70,000.00.) In recent years the annual budget for electrical usage (Mid American) has been exceeded, so it's time to adjust the budget accordingly. Recent overages on this budget items were primarily due to the June 2013 start-up of the ultraviolet (UV) disinfection system and an electrical usage rate increase. Most of the other changes between the FY 2016 Adopted Budget and the 2017 Mayor-Staff Revisions Round 1 budgeted amounts are the result of a "shuffling" of the line items, including one notable shuffling between the cost of 1312 - Engineering/Planning/Consulting Services and 1313— Legal Services. With the execution of the EPA Consent Decree behind us, there should be less need for legal services, but fulfilling the requirements of the Consent Decree will likely result in more consulting engineering services. IV. Wastewater Commodity Expenses The difference between the 2017 Mayor-Staff Revision Round 1 budgeted amount for Commodities and the 2016 Adopted Budget for that expense category is$1,166,075.00 - $839,675.00 = $326,400.00. The following four(4) expense categories are primarily responsible for the budgeted increase: A. 1513—Chemicals & Gases (Budget increase of$125,000.00) Magnesium hydroxide is used to raise the pH of the wastewater so that micro-organisms within the aeration basins perform as desired. Keeping the proper pH in the discharged wastewater is also a requirement of the IDNR NPDES Permit. In recent years magnesium hydroxide has not been purchased due to budgetary concerns. On October 13, 2015 the pH of the WWTF discharge was in violation of the provisions of the NPDES Permit. Most of the Chemicals&Gases budget increase is for purchasing magnesium hydroxide, on an as-needed basis, to prevent discharge pH level violations and to keep the pH of the wastewater in the desired range for the activated sludge treatment process. A smaller portion of the budget increase is for polymers which are needed in the sludge dewatering process. B. 1522 —Light Bulbs (New budget item costing $67,100.) The new UV disinfection system installed in 2013 consists of two (2) banks of high intensity UV bulbs. Some of the bulbs are at the end of their useful life and need to be replaced to keep the WWTF discharge in compliance with the provisions of the IDNR NPDES Permit. C. 1551 — Lab Supplies (Budget increase of$18,500.) Some of the testing equipment at the WWTF lab is worn out and needs to be replaced. Also, the new NPDES Permit expected soon from Iowa DNR will contain increase testing requirements. D. 1571 —Machinery& Equipment Replacement Parts (Budget increase of$100,000.00.) The mechanical components of the WWTF which were installed in 2000 are starting to need repair and replacement. In recent years the annual budget for replacement parts has been exceeded, so it's time to adjust the budget accordingly. CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer MEMORANDUM ON FY 2017 BUDGET (Page 3) V. Wastewater Capital Outlay Expenses The difference between the 2017 Mayor-Staff Revision Round 1 budgeted amount for Capital Outlay and the 2016 Adopted Budget for that expense category is $1,072,059.00-$1,440,000.00=($367,941.00). Some of the budget changes are the result of a"reshuffling" of line items. Other budget changes are for new projects. Each category in the Capital Outlay section of the WMSD operating budget is reviewed below. A. 2103—Engineering &Consulting The budgeted amount of$500,000 for FY 2017 covers engineering services for various projects, most of which are related to the EPA Consent Decree or the requirements of the new NPDES Permit. B. 2117—Motor Vehicles& Equipment Proposed vehicle purchases for WMSD in FY 2017 include some combination of one (1) or two(2) 1- ton dump trucks and one (1) backhoe. C. 2119—Plant Equipment A portion (50%) of this budget item was moved to Line Item 1571 —Machinery& Equipment Replacement Parts. D. 2152—Building Improvements The majority of this line item is for rehabilitation of the covers on the anaerobic digesters at the WWTF. E. 2163—Sanitary Sewers This budget item covers the anticipated cost of sewer rehabilitation or replacement conducted as part of the 2017 Street Reconstruction Program administered by the City Engineering Department. VI. Storm Sewer Revenues & Expenses Except for a 1.92% increase due to salaries and benefits, and a re-shuffling of line item budgets, the Storm Sewer FY 2017 Mayor-Staff Revisions Round 1 budget is nearly the same as the FY 2016 Adopted Budget. CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer