Utilities Division

October 29, 2015Study Session

Today’s Agenda

Utilities Budget Overview Rick Romero 5 Minutes

• Budget Summary, Personnel Impacts, Rate Review, 6-year Capital Program

Solid Waste Collection Scott Windsor15 Minutes

Solid Waste Disposal Chuck Conklin10 Minutes

Wastewater Chuck Conklin/Gary Kaesemeyer 15 Minutes

Water Dan Kegley 15 Minutes

• Department Budget Summary, 2015 Accomplishments, 2016 Projects, Performance Measures, Strategic Direction

2015Adopted

2016Program

2016Line-Item

% Change (‘15 /‘16)^

Wages & Benefits 54,394,424 55,626,208 55,482,099 2.0%

Supplies & Services 42,820,367 41,679,802 41,693,462 -2.7%

Interfund 34,089,313 33,950,491 34,444,886 1%

Intergov’tl Prof Srvs 37,649,595 38,886,140 38,940,168 3.3%

Other 12,166,372 10,776,467 10,861,046 -12.0%

Operating Expenses 181,120,071 180,919,108 181,421,611 0.2%

Capital 110,679,900 101,472,136 99,522,136 -11.2%

Debt Service 1,647,749 15,645,913 15,645,913 *89.5%

Total 293,447,720 298,037,157 296,589,710 1.1%

FTE# 602.50 602.50 605

Division Expense Budget Summary

* Revenue Bond Principal & Interest/ Nelson Center (Operating Transfer out from ICM to Debt Svcs)^ Difference between 2015 adopted and 2016 line-item budget.

2016 Personnel Impact

Water Solid Waste Disposal

Education Coor. (Full-Time) +0.5 Safety Coordinator +1

Inventory Control Specialist +1 Cash Acct. Clerk I +1

Wastewater Assist Plant Operator +2

Project Coordinator (Taylor) +1 Crane Operator -1

Principal Engineer (Hendron) +1 Ash Operator -1

Department Head (Arnold) -1 Maintenance Specialist -2

Clerk -1 Solid Waste Collections

Utilities Division Customer Service Manager

+1

Net Change +2.5

Service Base Charge Consumption Capital TOTALS68-gallon Garbage Cart

$28.42 $28.42

Wastewater $28.06 $28.06Water $14.92 $12.23* $27.15Stormwater $3.95 $3.95Integrated Capital $26.34 $26.34

TOTAL $113.92

*Assumes 15,000 gallons of usage.

2015 Average Monthly Utility Bill

2016 Average Monthly Utility Bill

Service Base Charge Consumption Capital TOTALS68-gallon Garbage Cart

$29.25 $29.25

Wastewater $28.87 $28.87Water $15.35 $12.59* $27.94Stormwater $4.07 $4.07Integrated Capital $27.11 $27.11

TOTAL $117.24

• Increase in average monthly bill for 2016 is $3.32.• Average bill in 2015 was $113.92.• Increase is 2.9%, as approved by Council in

November 2014.

*Assumes 15,000 gallons of usage.

Wastewater Credit/Discount

2015 2016Usage to qualify for credit*

11 units of water or less 11 units of water or less

Single-Family Residential Customers Lowest 20 percent of winter water users receive $60 annual credit/$5 per month

*Total usage over four winter months.

Multi-Family Residential Customers Discount per unit increases to $2/unit in 2016 and $3/unit in 2017.

Wastewater Charge 2015 2016 2017

Cost per add’l unit $27.32 $26.87 $26.71

Single Family Residential $28.06 $28.87 $29.71

Difference $0.74 $2.00 $3.00

Utilities Division represents Majority of Citywide CIP

Total Capital Program = $890.7 M

58.30%

14.99%

13.38%

5.90%

3.86% 2.03% 1.54%

UtilitiesStreetsParks & RecAsset MgmtITFirePolice

Scott Windsor, Director

2016 Budget Study Session

Solid Waste Collection

Solid Waste Collection Expense Budget Summary

2015Adopted

2016Program

2016 Line - Item

% Change (‘15 /‘16) ^

Wages & Benefits 9,825,285 10,106,582 10,045,391 2.2%

Supplies & Services 3,194,849 4,355,052 4,368,712 26.9%

Interfund 10,314,993 9,324,724 9,461,545 -9.0%

Intergov’tl Prof Srvs 8,594,927 8,940,006 8,940,006 3.9%

Other 11,158,827 9,618,922 9,693,922 -15.1%

Operating Expenses 43,088,881 42,345,286 42,509,576 -1.4%

Capital 2,150,000 2,150,000 *1,500,000 -43.3

Debt Service 0 0 0

Total 45,238,881 44,495,286 44,009,576 -2.8%

*Capital for Vehicles and Equipment^ Difference between 2015 adopted and 2016 line-item budget.

Solid Waste Collections2015 Accomplishments

• Consolidation of Fleet & Solid Waste Collections

• CNG Fueling Station

Spokane Central Service Center

• Began conversion of Fleet from diesel to CNG

20 trucks ( 16 Commercial, 4 Residential)

CNG Collection Vehicle Benefits:

20-30% reductions GHG

95% particulate reductions

Domestic supplyCost savings

compared to dieselReduced

maintenance

Solid Waste Collections2015 Accomplishments

• Waste Diverted from Landfills• Over 80% by weight of collection

stream is diverted from Landfill disposal - Materials collected curbside in the City

of Spokane through Yard Waste, Recycling and Refuse.

Solid Waste Collections2015 Accomplishments

Performance Measures – Waste stream diverted by Yard Waste & Recycling

Diverting refuse from the waste stream provides financial and environmental benefits.

Numbers reflect the seasonal nature of our yard waste service and the total percentage of waste diverted allows us to show the effects

of our recycling programs in meeting State and Federal goals for municipal waste management.

Performance Measures – Missed collections remedied same day

The goal is to make 70% of missed collections on the same business day. The average missed collection rate is less than 1/10 of a percent.

While misses can be due to a variety of issues, prompt collection of these results in our customers satisfaction. We attempt to do so in the same business day while the collection vehicles are in the area.

Performance Measures –Requests for cart services

Customers appreciate when changes to service are made promptly. The goal is to perform 99 percent of cart service requests before the

next collection day.

Customer requests for carts needing service, cart size changes, additional cart service, optional cart service and starting and

stopping service, it is important to follow through on their next collection day.

• Route Optimization • Continue process improvements• Continue fleet replacement with CNG

vehicles• Surplus vehicles as replaced• Participate in Utilities vehicle safety

program “SAFE” Safe,

Alert,Focus, Every time

Future Business and Management

Environmentally & Financially Responsible

Chuck Conklin, Director

2016 Budget Study Session

Solid Waste Disposal

Services: Disposal of Solid Waste

Waste to Energy Facility

Northside/Southside landfills

Solid Waste DisposalExpense Budget Summary

2015Adopted

2016Program

2016 Line - Item

% Change (‘15 /‘16) ^

Wages & Benefits 8,126,322 8,021,337 8,083,556 -0.5%

Supplies & Services 15,328,389 13,574,201 13,574,201 -12.9%

Interfund 1,146,714 2,314,457 2,301,373 50.2%

Intergov’tl Prof Srvs 464,757 498,229 498,229 6.7%

Other 0 0 0

Operating Expenses 25,066,182 24,408,224 24,457,359 -2.5%

Capital 2,300,000 3,700,000 *2,400,000 4.17%

Debt Service 0 0 0

Total 27,366,182 28,108,224 26,857,359 -1.9%

*Capital Projects moved to later years^ Difference between 2015 adopted and 2016 Program (Budget Planner)

• Safety– VPP Star Certification – Safety Record

• 1,532 days without an Injury (4.2 years)• 1,749 days without a LTA (4.8 years)

• Environmental – No NOV’s

• Balanced Budget• Transition

– Staffing, Procurement, etc.• Outage Completion

– No long-haul bypass, on-time, on-budget• 2015-2016 Silver Level Clean Air Award, for the City of

Spokane Northside Landfill, from the Spokane Regional Clean Air Agency

Solid Waste Disposal2015 Accomplishments

2016 Capital Program SummarySuperheater $1,800,000

A Superheater is a device within steam boilers that is used to convert wet, saturated steam into dry steam, by re-heating the steam.

This re-heated steam contains more usable energy increasing the overall efficiency of the cycle.

The 2016 Capital Plan includes the replacement of the Superheater in Unit #2. Given our current operations the Superheater should last 4 to 5 years. (Unit #1’s will be replaced in December of this year.)

2016 Capital Program Summary

VFD Replacements $500,000

Variable Frequency Drives – A speed control method for electrical motors.

• Induced Draft, Primary and Secondary Air Fans

• Boiler Feed Water Pumps

Reduces electrical usage allowing more electrical energy to be sold.

Performance Measures – Net Energy Generated

Energy generated in excess of what is used for the operation of the plant is sold to Avista.

Electricity sold to Avista is up from the previous quarter. Refuse receipts were up in the second quarter allowing the facility to operate

at increased loads.

Performance Measures – Unscheduled Outages

Unscheduled outages increase costs and reduces energy production and sales.

In Q2 of 2015, there was one minor unscheduled outage due to a fan motor bearing failure. Reliability and Predictability are of key

importance at the WTE Plant.

Performance Measures – Waste bypassed

Waste that must be bypassed increases disposal costs and reduces energy produced / sold.

The goal is to bypass fewer than 6000 tons per quarter.

The WTE Plant bypassed 1,960 tons. The WTE facility conducts periodic scheduled outages, during these outages waste must be bypassed as the

facility’s waste processing is reduced. In this case the waste was bypassed to our Northside Landfill thereby reducing bypass costs.

• Waste to Energy Facility operations– Outage Frequency– Tire Ordinance

• Ash Reuse– RFI / RFP– Avoided Costs

• Regional system in 2 years– New Revenue

• Marketing WTE Capacity• Tire Ordinance

• Southside Landfill– Bio-filter

• Northside Landfill – Operating Schedule

Future Business and Management

Environmentally & Financially Responsible

2016 Budget Study Session

Wastewater

Services

Riverside Park Water Reclamation FacilityThe Facility receives and recycles approximately 27 million gallons of wastewater per day (can handle peak flows over 100 million gallons per day) producing a high quality effluent for return to the Spokane River.

Wastewater MaintenanceResponsible for the maintenance of Wastewater infrastructure.

• 867 miles of sanitary sewer• 351 miles of storm sewer• 14 miles of force mains• 4 miles of siphon sewers

2015Adopted

2016Program

2016 Line - Item

% Change (‘15 /‘16) ^

Wages & Benefits 15,730,086 16,187,786 16,172,812 2.7%

Supplies & Services 8,620,669 9,229,232 9,229,232 6.6%

Interfund 8,118,464 7,356,591 7,414,720 -9.5%

Intergov’tl Prof Srvs 12,874,539 11,759,102 11,813,130 -9.0%

Other 400,000 550,000 550,000 27.3%

Operating Expenses 45,743,758 45,082,711 45,179,894 -1.2%

Capital 2,036,000 2,256,100 2,256,100 9.8%

Debt Service 672,749 687,579 687,579 2.2%

Total 48,452,507 48,026,390 48,123,573 -0.7%

WastewaterExpense Budget Summary

^ Difference between 2015 adopted and 2016 line-item budget.

• NLT membrane pilot system parallel testing• Ovivo drum screening system pilot• NLT GC/CM selection, MWH/Sladen/B&E• RPWRF parking lot LID project• Silo digester project

Riverside Park Water Reclamation Facility

Wastewater Maintenance• Reline 60” sanitary sewer for Martin Luther King

Jr. Way• Complete annual re-lining program (CIPP)• Removed and collected over 800 tons of catch

basin debris

Wastewater 2015 Accomplishments

Wastewater2016 Capital - Next Level of Treatment

The NLT Project Pilot is ongoing, comparing the Pall and GE technologies in side-by-side

operation.

GEPall

On schedule for completion in August

of 2016

Wastewater2016 Capital – Digester No. 3

Cured in Place Pipe Project for the new Martin Luther King Jr.

Way

Wastewater2016 Capital – CIPP

Wastewater Capital – CSO 6 Northwest Blvd

WastewaterCapital CSO 33-2 East Sprague

WastewaterCapital - CSO 21st Avenue & Ray Street

WastewaterCapital - CSO Underhill

Performance Measures – Basement Backups

Basement backups inconvenience customers and can be an indication of sewer problems.

The goal is to experience zero per year and Quarter 2 of 2015 has had zero backups.

Performance Measures – Number of CSO Events

Limiting the number of combined sewer overflow events helps to ensure the cleanliness and vitality of the Spokane River.

The goal is an average of fewer than one event per outfall location ( 20 total) per year over a 20-year period beginning in 2018.

Performance Measures – Wastewater Treatment

We are consistent with the number of samples taken and processed at the RPWRF in order to protect the Spokane River and

Aquifer.

The goal of 0 excursions was met in the 2nd quarter of 2015. An excursion may not amount to a violation subject to EPA action.

• Fully Meet NPDES Stormwater Permit Requirements

• Coordinate Positive Mission Accomplishments with the Water Department

• Continue to remove outfalls to the River

Future Business and Management

Environmentally & Financially Responsible

Dan Kegley, Director

2016 Budget Study Session

Water & Hydroelectric Services

Services

• Provide safe, reliable & affordable drinking water

• Provide ample fire protection • Provide opportunity for growth while managing

our resources through stewardship

2015Adopted

2016Program

2016 Line - Item

% Change (‘15 /‘16) ^

Wages & Benefits 13,578,922 13,956,018 13,876,219 2.1%

Supplies & Services 7,216,796 6,509,815 6,509,815 -10.9%

Interfund 5,965,922 5,701,966 5,732,931 -4.1%

Intergov’tl Prof Srvs 8,515,415 9,190,504 9,190,504 7.3%

Other 500,000 500,000 500,000 0%

Operating Expenses 35,777,055 35,858,303 35,809,469 0.1%

Capital 2,893,900 2,862,200 2,862,200 -1.1%

Debt Service 975,000 975,000 975,000

Total 39,645,955 39,695,503 39,646,669 0%

Water & Hydroelectric ServicesExpense Budget Summary

^ Difference between 2015 adopted and 2016 line-item budget.

Lincoln Heights Tank Relining• 55 gpm leak eliminated saving 28 million gallons annually

Garden Park Booster Station Upgrade

• Now able to meet demand in the High System

Five Mile Booster Station Upgrades• Consistent & reliable service to Five Mile

Customers

Partnership with Parks Department • Irrigation upgrades to Comstock & Franklin

Park

Water & Hydroelectric Services2015 Accomplishments

Water main installation• 1.3 miles of transmission main• 3.7 miles of distribution main replacement

SCADA System Upgrades• Increased operational and reporting

capabilities

Inventory Control Through CityWorks

• $1.45 million inventory off by less than $2,200

Water & Hydroelectric Services2015 Accomplishments

2016 Capital Program HighlightChlorine Injection Station

Provide a means to deliver water in a safe and reliable manner that meets water quality standards

2016 Capital Program HighlightsPlains and SIA Pressure System Connection

Defers the need for additional storage tanks in both pressure systems and allows for service without large consumption agreements

Performance Measures – Main Breaks

The Water Research Foundation reports the annual national average is approximately one break for every four miles of pipe. That

translates to 275 main breaks annually for a system our size. In order to address our distribution system loss, or water that is lost to leaking

pipes we set our goal of fewer than 25 main breaks per quarter.

Performance Measures – Water Quality Concerns

Customer Confidence is important to any water system. We strive to make sure our customer receive safe potable drinking water of high

quality.

Should we receive a complaint our water quality experts investigate usually on the same day.

Performance Measures – Off Peak Power Use

During the winter months when water system demand is low, the Upriver operators maximize the use of Upriver generation during off-peak hours so that more power is sold to Avista during peak hours. The goal is to use greater than 50% of Upriver generation during off-

peak times during times of low water system demand

Performance Measures – Coliform Monitoring

A robust coliform bacteria monitoring program is essential in delivering safe reliable water of high quality.

We routinely take more samples that the Department of Health requires to insure our monitoring program is representative of the

distribution system

Future Business and Management

• Water loss• Sustainability• Support targeted growth• Conservation & growth• Emerging technologies

Environmentally & Financially Responsible

Questions?