HomeMy WebLinkAboutPACKET Public Works, Utilities and Public Safety 2012-10-11Preparation date: October 1, 2012
* Revision date: 10/04/12
NOTE: The Public Safety, Utilities and Public Works Committee reserves the right to consider other appropriate
items not available at the time the agenda was prepared.
AGENDA
TOWN OF ESTES PARK
PUBLIC SAFETY, UTILITIES & PUBLIC WORKS COMMITTEE
October 11, 2012
8:00 a.m.
Board Room, Town Hall
1. PUBLIC COMMENT
2. PUBLIC SAFETY
a) RECOMMENDATIONS TO THE TOWN BOARD
i) None.
b) REPORTS
i) Verbal Updates and Committee Questions.
3. UTILITIES
a) RECOMMENDATIONS TO THE TOWN BOARD
i) Enterprise Fund Large Maintenance Expense Policy. Dir. Bergsten & Supt. Boles.
ii) Conditional Waiver of Monthly Base/Minimum Charge Policy. Dir. Bergsten.
b) REPORTS
i) Conditional Waiver of Monthly Base/Minimum Charge Policy. Dir. Bergsten.
ii) Accountable Water. Director Bergsten & Superintendent Boles.
iii) Light & Power Capital Project Update (Verbal). Supt. Steichen.
iv) Verbal Updates and Committee Questions.
4. PUBLIC WORKS
a) RECOMMENDATIONS TO THE TOWN BOARD
i) None.
b) REPORTS.
i) Stanley Fairgrounds Sanitary Sewer Civil Site Work Update. Dir. Zurn.
ii) Bond Park Phases I & III and Phase V Construction Update. Dir. Zurn.
iii) Verbal Updates and Committee Questions.
5. ADJOURN
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UTILITIES DEPARTMENT Memo
To: Public Safety, Utilities & Public Works (PUP) Committee
Town Administrator Lancaster
From: Utilities Director Bergsten
Finance Officer McFarland
Water Superintendent Boles
Date: October 11, 2012
RE: Enterprise Fund Large Maintenance Expense Policy
Background:
Historically, the largest operations and maintenance (O&M) cost incurred by the Utilities
Department was the replacement of the filter media at Glacier Water Treatment Plant
(~$150,000). Marys Lake Water Treatment Plant uses membrane treatment technology. The
membrane replacement costs are estimated to be $900,000. A good financial practice would be
to plan for these expenses by saving funds every year leading up to the actual large
maintenance activity. Doing so addresses two important items: rate stabilization and
compliance with our bond rate covenant.
Finance Officer McFarland has worked with the Town's auditor and Platte River Power Authority
(PRPA) to craft an implementation of Governmental Accounting Standards Board (GASB)
Statement 62. This standard allows for the accrual of funds for future operations and
maintenance costs.
The Town is required to approve a policy which adopts the practice of accruing funds for the use
of planned major maintenance costs based on GASB Statement 62. Attached to this memo is
staff's recommended policy.
Budget: $117,000 per year.
Recommendation:
Staff recommends approval of the adoption the attached Accrual of Major Maintenance Costs
Policy to the Town Board, to be included on the Town Board agenda as an Action Item for
October 23, 2012.
TOWN OF ESTES PARK, COLORADO
ACCRUAL OF MAJOR MAINTENANCE COSTS POLICY
Policy
This policy applies to all future major maintenance costs at enterprise fund utility facilities
wholly owned by the Town of Estes Park that have estimated costs in excess of $150,000
(referred to as a “major maintenance cost”). Major maintenance costs are defined as overtime
wages, materials, contracted labor and supplies related to major maintenance activities. Ninety
percent of the total estimated major maintenance costs will be accrued on an annual basis as
follows:
The accrual period will begin with the first year after the last major maintenance
activity and continue through the year of the next major maintenance activity.
The amount charged to the large maintenance account each year will be based on
the projected major maintenance costs divided by the number of years in the
accrual period.
Background
The Marys Lake and Glacier Water Treatment Plants are wholly owned by the Town of Estes
Park. Each plant faces major maintenance costs. For Marys Lake the manufacturer recommends
the membranes be replaced every ten years. Glacier's filter media has historically required
replacement every fifteen years. The next major maintenance is planned for 2017 at Glacier.
This major maintenance involves removal and replacement of filter media and various
inspections, maintenance of pumps, instruments, basins and other maintenance work with total
estimated costs generally in excess of $150,000. The next major maintenance at Mays Lake is
planned for 2022. This major maintenance involves removal and replacement of membranes
and various inspections, maintenance of pumps, instruments, basins and other maintenance
work with total estimated costs expected to be $900,000.
In order to match the appropriate expenses with the revenues received, the accrual method of
expensing major maintenance costs will be implemented. Governmental Accounting Standards
Board Statement No. 62 - Codification of Accounting and Financial Reporting Guidance (formerly
FAS Statement No. 71 – Accounting for the Effects of Certain Types of Regulation) recognizes and
provides for accrual or deferral of expenses or revenues and states regulators sometimes
include costs in allowable costs in a period other than the period in which the costs would be
charged to expense by an unregulated enterprise. This accounting treatment has been approved
by the Town's auditors.
Accounting Treatment
To assure expenses are not overstated prior to the large maintenance activity, 90% of the
reasonably estimated overtime wages, materials and supplies, and replacement power costs are
accrued. Regular labor costs will be paid in any period regardless of the activity and, therefore,
are not included in the accrual calculation. Any difference between the actual costs incurred for
the large maintenance activity and the accrued liability is charged or credited to expense at the
time that the major maintenance costs occur. The accrual estimate for future years will be
adjusted, if necessary, to reflect increases or decreases in large maintenance costs.
Prior to the Major Maintenance:
A separate maintenance expense account is charged at the beginning of each year during the
accrual period for the major maintenance activity. The annual charge is calculated using 90% of
the total estimated cost (overtime wages, materials, contracted labor and supply costs) of the
major maintenance activity divided by the number of years in the accrual period.
During the Major Maintenance:
Actual maintenance charges will be coded to the normal accounts set up for the maintenance
work. In the year when the major maintenance takes place, the major maintenance accrual will
be transferred to those accounts being used to pay for the actual major maintenance charges.
This policy is effective November 1, 2012.
UTILITIES DEPARTMENT Report
To: Public Safety, Utilities & Public Works Committee
Town Administrator Lancaster
From: Director Bergsten
Superintendent Boles
Date: October 11, 2012
RE: Conditional Waiver of Monthly Base/Minimum Charge Policy
Background:
The Utilities Department charges fixed monthly minimums to cover a number of fixed
costs (e.g. meter reading, tree trimming, laboratory analysis…). It has been the practice
of the Utilities Department to require payment of applicable monthly minimum charges
to keep the account active. There are no exceptions to this practice. This practice is
being reviewed in light of the loss of homes in the Woodlands Heights fire.
The Utilities Department has been asked to consider a conditional waiver of monthly
base/minimum charges in cases where customers have a personal disaster resulting in
the temporary loss of service. The following tables display all related costs for such
situations:
Electrical Service, Residential
(October 2012) Rates
1 Monthly minimum $ 10.00
2 Monthly Customer Charge $ 6.35
3 Overhead Connection Fee $ 290.00
4 Construction Temporary $ 50.00
5 Underground connection fee $ 190.00
6 New meter charge
(standard/time of use) $ 80 / $320
7 Deposit (depending on history) $ 100.00
Water Service, Residential‐3/4"
(October 2012) Rural Rates
1 Monthly Customer Charge $ 31.97
2 Connection Charge (materials,
Labor and equipment, 3/4") $ 250.00
3 Water Meter 3/4" $ 345.00
4 System development fees $ 5,263.00
5 Water rights fees $ 5,450.00
Electric Utility Current Practice
By paying the monthly minimum charges, electric customers do not incur any charges
associated with reconnecting their service. This also grandfathers the use of overhead
electric service lines. If the customer chooses to not pay monthly minimum charges, the
service account is closed and reactivation of the service location is treated like every
new service. Their service must be underground and all charges 4 through 7 above
apply.
Water Utility Current Practice
By paying the monthly minimum charges, water customers retain their "Tap" (charges 4
and 5 above: system development fees and water rights fees). Water service charges 2
and 3 above must be reviewed on a case by case basis. If the customer chooses to
close the water service account and not pay monthly minimum charges, reactivation of
the service location is treated like every new service. Charges 4 and 5 will apply.
Charges 2 and 3 must be reviewed on a case by case basis.
If the Town Board would like to consider a different practice, the Utility Department
would recommend the following:
Qualifying Customers - any utility customer unable to use the Town's utility service due
to the loss of the use of their building and the Town's utility service in a natural disaster.
Electric Utility Conditional Waiver of Monthly Base/Minimum Charges
Upon request and approval, a customer's monthly minimum, base and/or customer
charge may be waived for a period not to exceed nine (9) months or when service is
restored, whichever comes first. Electric customers will not incur any charges
associated with reconnecting their service. Any previously existing overhead electric
service lines will remain as a viable option. If the customer does not restore service after
nine (9) months, all monthly minimum, base and/or customer charges will be restarted.
If these charges are not paid, the service account will be considered voluntarily closed
under the guidelines of the utility billing department. Reactivation will be treated the
same as a new service account i.e., their service must be underground and applicable
charges 3 through 7 will apply.
Water Utility Conditional Waiver of Monthly Base/Minimum Charges
Upon request and approval, a customer's monthly minimum, base and/or customer
charge may be waived for a period not to exceed nine (9) months or when service is
restored, whichever comes first. These water customers will retain their "Tap" (system
development fees, water rights fees). Meter and connection charges must be reviewed
on a case by case basis. If the customer does not restore service after nine (9) months,
all monthly minimum, base and/or customer charges will be restarted. If these charges
are not paid, the service account will be considered voluntarily closed under the
guidelines of the utility billing department. Reactivation will be treated the same as a
new service account. A new "Tap" must be purchased (system development fees and
water rights fees). Meter and connection charges must be reviewed on a case by case
basis.
UTILITIES DEPARTMENT Report
To: Public Safety, Utilities & Public Works (PUP) Committee
Town Administrator Lancaster
From: Water Superintendent Boles
Utilities Director Bergsten
Date: October 11, 2012
RE: Accountable Water
In response to Trustee Blackhurst’s request, we are providing information regarding
accountable water.
Background:
Accounting for the loss of water in the distribution system is standard practice for water utilities.
Losses can be categorized in three ways:
• metered losses
• estimated losses
• unaccounted losses
The Water Department places a value on these losses with the marginal cost of treatment. The
latest marginal cost was included in the Town’s Water Conservation Plan. The marginal cost of
water was calculated to be $0.77 per 1,000 gallons (see attached page 40 of the plan).
Metered losses include water continuously discharged to maintain water quality in pipes that
would otherwise result in stale water, i.e. "bleeders".
Metered Water Losses for July
Description Gallons Value ($)
Bleeders metered, not billed 635,070
Plant Analyzers/Sample Pumps 669,600
Plant Sewer 533,192
Total July Metered, not billed 1,837,862 $ 1,415
Estimated losses include water drawn from fire hydrants for use by the Fire Department or water
released from fire hydrants during annual flushing.
Estimated Water Losses for July
Meter adjustment @ 2% 1,387,273
Hydrant Use, Larimer County 900
Main Leak, Driftwood Avenue 6,500
Fire, High Drive 600,000
Main Flushing ‐ Tunnel Road 17,600
Main Flushing ‐ Lexington Lane 15,900
Main Flushing ‐ Pine Knoll
Drive 2,900
Total July Estimated 2,031,073 $ 1,564
Unaccounted losses include losses from leaks in the distribution system.
Unaccounted Water Losses for July
Total July Unaccounted 3,490,162 $ 2,687
In water distribution systems, bleeders are installed at the end of dead-end mains to
intentionally discharge water to prevent stagnation thus maintaining water quality. They are also
used seasonally to prevent shallow water lines from freezing.
The Town of Estes Park has four bleeders used for water quality. Other bleeders are activated
between December and April to prevent freezing. The preferred application of bleeders would
be along the distribution system where the water can be discharged into the sewer system. This
can happen inside a private residence. In such cases the customer is not charged for
consumption. Only the monthly base charge is collected. The monthly cost increase from
bleeders used for freeze protection is approximately $1,219.
Metered Water Losses February vs. July
Description Feb. Gallons Feb. Value ($) July Gallons July Value ($)
Bleeders metered, not billed 2,217,595 $1,708 635,070 $489
The annual figures are below.
Total Water Treated in 2011: 507,021,281 GAL Marginal value
85% accounted for 430,968,089
15% unaccounted for 76,053,192 $ 58,560.96
Annual bleeders not billed 11,173,284 $ 8,603.43
Water Conservation Plan
40
The cost of water supply only applies to the MWTP and covers a “carriage cost” and “power
interruption cost” associated with the Town’s water rights through the Bureau of Reclamation. The cost
of treatment is comprised of the operation and maintenance costs at the Town’s two water plants, which
includes chemicals, power, and sewer discharge. The O&M costs do not include staff time because
regardless of the number of gallons of water treated, the same equipment must be operated and
maintained. No savings in staff time will be realized by conservation measures. Table 7-3 summarizes
the cost components described above.
Table 7-3 Estimated Cost to Supply Treated Water to Town
Treated Water
O&M Cost Item
Cost per 1,000
Gallons of Treated
Water
Chemicals $0.33
Power $0.11
Sewer Discharge $0.048
Water Supply $0.28
Total $0.77
Notes:
(1) Total treated water produced at GWTP and MWTP in 2011 was 537.43 million gallons.
For the purposes of this evaluation, it is assumed that the Town will continue to operate
the plants the same time periods during any given year.
(2) Total chemical cost at GWTP and MWTP in 2011 was $178,000.
(3) Total power cost for GWTP and MWTP in 2011 was $60,000.
(4) Total sewer discharge cost at MWTP in 2011 was $26,000. GWTP does not have any
costs associated with sewer discharge. The MWTP sewer discharge cost was divided by
the total treated water production at both plants.
(5) The cost of water supply at MWTP includes a "carriage cost" and "power interruption
cost". The total water supply cost for MWTP in 2011 was $150,000.
As shown in Table 7-3, the estimated cost to supply treated water to the Town is $0.77 per 1,000
gallons. To evaluate the cost effectiveness of the Town’s Conservation Program components, this cost
was compared to the cost to “save the water” using the various conservation efforts identified. The cost
to save the water was estimated by dividing the net present value (NPV) of each program component by
the total water savings generated over the life span of the program component. The NPV calculation
includes both the initial capital cost as well as the operation and maintenance costs over the life span of
the program (see Table 7-1), discounted at a 4% interest rate. A copy of the NPV calculations is
provided in Appendix D.
A “cost effectiveness” number was generated by subtracting the cost to save the water from the cost to
treat the water, with a positive result indicating that the conservation effort is cost effective and a
negative result indicating that the conservation effort is not cost effective. Table 7-4 summarizes the
cost effectiveness calculations described above. These calculations were only performed on the program
components where an estimate of the potential water savings was available. Note, the cost of Third
Stage Treatment will be addressed using a different calculation since this conservation effort is related to
the cost to discharge water to the sewer in addition to the cost to retreat the water at the plant after the
third stage process.
ENGINEERING Re
port
To: Public Safety, Utilities and Public Works Committee
Town Administrator Lancaster
From: Scott Zurn, PE, CFM, Public Works Director
Date: October 3, 2012
RE: Stanley Fairgrounds Sanitary Sewer Civil Site Work Update
Update:
The Public Works Department has been working with the design team of the Stall Barn
to prepare the civil site and new sewer main at the Stanley Park Fairgrounds.
As directed by the Town Board, Public Works is proceeding with the bidding of the
MPEC and Stall Barn projects for completion as early as May of 2013. Consequently,
staff is proceeding with the bidding of civil and site work of leveling and filling the areas
that the two buildings will be constructed on and the sewer main which will serve these
buildings. Public Works is moving forward on the civil package in order to get the
ground related improvements done prior to frost conditions this winter.
Please see the attached drawings for reference.
OWNER:
DATE:
SHEET TITLE:
SHEET NUMBER:CHECKED BY:DRAWN BY:AT STANLEY PARK FAIRGROUNDSESTES PARK, COTOWN OF ESTES PARK
170 MACGREGOR AVE.
PO BOX 1200
ESTES PARK, CO 80517
STANLEY PARK
FAIRGROUNDS
MULTI-USE STALL BARN | BID DOCUMENTS
MULTI-USE STALL BARN
OWNER:
DATE:
SHEET TITLE:
SHEET NUMBER:CHECKED BY:DRAWN BY:AT STANLEY PARK FAIRGROUNDSESTES PARK, COTOWN OF ESTES PARK
170 MACGREGOR AVE.
PO BOX 1200
ESTES PARK, CO 80517
STANLEY PARK
FAIRGROUNDS
MULTI-USE STALL BARN | BID DOCUMENTS
MULTI-USE STALL BARN
OWNER:
DATE:
SHEET TITLE:
SHEET NUMBER:CHECKED BY:DRAWN BY:AT STANLEY PARK FAIRGROUNDSESTES PARK, COTOWN OF ESTES PARK
170 MACGREGOR AVE.
PO BOX 1200
ESTES PARK, CO 80517
STANLEY PARK
FAIRGROUNDS
MULTI-USE STALL BARN | BID DOCUMENTS
MULTI-USE STALL BARN
ENGINEERING Report
To: Public Safety, Utilities and Public Works Committee
Town Administrator Lancaster
From: Scott Zurn, PE, Public Works Director
Kevin Ash, PE, Public Works Civil Engineer
Date: October 11, 2012
RE: Bond Park Phases I & III – MacGregor Avenue Paver Repair
Bond Park Phase V Improvements
Update:
Construction activities are underway in Bond Park. On Monday, October 1st both
Cornerstone Construction and Taylor Kohrs mobilized crews and began their respective
projects.
Bond Park Phases I & III – MacGregor Avenue Paver Repair
Public Works has formalized a Change Order with Cornerstone that modifies the
existing contract and extends the completion of the project to November 21, 2012. A
construction schedule has been delivered that defines the details on how this will be
achieved. The original project design and specifications will remain in place. The only
addition will be the installation of a geogrid fabric between the subgrade and base
material layers. Terracon will remain as the geotechnical materials testing company.
Public Works has hired the Farnsworth
Group to provide Construction
Observation services during the
construction schedule.
On October 1, Cornerstone began
placing orange construction fence arou
the perimeter of the MacGregor Aven
roadway and sidewalk. A crew of 7
pulled up pavers and stacked them in
piles about 10 high across the roadway.
This effort was completed by the end of
day Tuesday (10/2). On Wednesday,
pavers were cleaned, stacked on pallets
and set off the roadway onto the adjacent
sidewalk areas. Cornerstone’s schedule has them continuing this de-construction effort
through the end of next week (10/12). This includes removal and disposal of existing
sand, base material and substandard subgrade material.
nd
ue
the
Bond Park Phase V Improvements
On October 1, Taylor Kohrs began placing chain link security fence around the project
perimeter. Signs were placed along Elkhorn Avenue to re-direct pedestrian traffic
around the construction zone. For the staging of materials and equipment, Taylor Kohrs
is using the bus turnout and the parking spaces along the south side of Bond Park.
Demolition activity came along quickly, and by the end of day Tuesday, removal of the
sidewalk along Elkhorn, the pavers,
drinking fountain, streetlights, trees and
memorial plaques, irrigation, drinking
fountain and sod were all complete.
Bond Park Phase V has a 2–Phase
construction schedule. Phase 1 has an
end date of November 21 and focuses
on the installation of underground
utilities. Taylor Kohrs has committed to
delivering an 8’ wide sidewalk prior to
the Thanksgiving parade and festivities.
Similar to the MacGregor Avenue paver
repair project, Public Works has
contracted with the Farnsworth Group to
provide Construction Observation services and Terracon to provide geotechnical
materials testing services. Phase 2 of construction will commence in the spring and will
be completed by Memorial Day 2013.