Board of Directors Agenda

Transcription

1 Board of Directors Agenda Friday, December 16, 2016, 10:00 a.m. District Board Meeting Room, 8000 NE 52 nd Court, Vancouver, WA Regular Meeting No Item Action/Info Presenter Time (minutes) 1. Call To Order 2. Flag Salute 3. Late Additions to the Agenda 4. Public Comment INFORMATION 5 This item is to provide an opportunity for citizen comment. 5. Consent Agenda ACTION 5 5a. 5b. 5c. Board of Directors Meeting Minutes of November 18, 2016 Audit of Accounts Resolution No Alliance Capital Asset Policy 6. Public Hearings HEARING 6a. 6b. Public Hearing Capital Plan Public Hearing Operating and Capital Budget and Regional Service Charges Peterson Andrews 7. Resolution No Capital Plan ACTION 7a. Resolution adopting the Capital Plan for the Alliance Peterson 5 8. Resolution No Operating and Capital Budget and Regional Service Charges 8a. Resolution adopting the Operating and Capital Budget and Regional Service Charges for the Alliance ACTION 9. Reports INFORMATION 9a. 9b. 9c. Operator: Clark County Third Quarter Report Operator: Ridgefield Third Quarter Report Administrative Lead Report 5 5 Andrews 5 Henderson Kast Peterson 8. Member Agency Staff Reports INFORMATION 5 9. Board of Directors Reports INFORMATION Adjourn Meeting Next Meeting: Friday, January 20, 2017, 10:00 a.m., Regular Business Meeting District Board Meeting Room, 8000 NE 52 nd Court, Vancouver, WA The Board provides reasonable accommodations to persons with disabilities. Please contact a staff member (by noon Thursday) if we can be of assistance. If you should experience difficulty hearing the proceedings, please bring this to the attention of the Board by raising your hand. Printed: 12/6/2016 G:\Alliance\1 EXEC-ADMIN\1 BOARD\Agendas\ Alliance Board of Directors Meeting Agenda.docx Page 1

2 Board of Directors Meeting MINUTES Friday, November 18, 2016, 10:00 a.m. District Board Meeting Room, 8000 NE 52 nd Court, Vancouver, WA Present: City of Battle Ground: Shane Bowman Clark County: Not Present City of Ridgefield: Ron Onslow Clark Regional Wastewater District: Norm Harker Director Julie Olson had an excused absence. Staff: Clark Regional Wastewater District: John Peterson; Clark County: Heath Henderson; City of Ridgefield: Bryan Kast. Audience: Clark Regional Wastewater District: Neil Kimsey, Denny Kiggins, Ken Andrews, Robin Krause, Kim Thur; Clark County: Travis Capson and Larry Frueh; Ridgefield: Lee Wells; and CH2M HILL: Brady Fuller. Business Meeting Call to order: Chair Norm Harker called the meeting to order at 10:00 a.m. 1. Late Additions to the Agenda Discussion: None. 2. Public Comment Discussion: None. 3. Consent Agenda Action: Shane Bowman moved, seconded by Ron Onslow, to approve the Consent Agenda, approving the October 21, 2016 meeting minutes; claim warrants # in the amount of $2,885,145.84; and authorizing the Board Chair to sign the Agreement for Legal Services with Foster Pepper, PLLC for Motion carried unanimously. 4. Quarterly Financial Report Discussion: Ken Andrews presented the staff report, covering sources (income) and uses (expenses) through the seventh quarter of the biennium budget. Mr. Andrews noted that actual revenues and expenditures are in line with budgeted amounts.

3 Meeting Minutes of November 18, 2016 Page 2 of 2 5. Draft Operating and Capital Budget and Regional Service Charges Discussion: Ken Andrews presented the draft Operating and Capital Budget. Following review, the Board directed staff to refer the draft Operating and Capital Budget for public hearing and adoption at the December 16 Board meeting. 6. Administrative Lead Report Discussion: John Peterson reviewed the current progress with public outreach processes related to the Salmon Creek Wastewater Treatment Plant, including reviewing the final draft of the Fact Sheet and the proposed web page to provide public access to information about the facilities. Mr. Peterson then reviewed an updated draft Capital Asset Policy with a new Betterments/Improvements section for Board consideration. The proposed policy will be presented for approval on the Consent Agenda at the December 16 Board meeting. Mr. Peterson provided the recent press release from the US Environmental Protection Agency announcing actions to update the limits for toxic pollutants in Washington s surface waters. Mr. Peterson also provided a World Toilet Day 2016 Fact Sheet for Board review and information. 7. Member Agency Staff Reports Discussion: Heath Henderson reported that the Salmon Creek Treatment Plant recently updated contracts for supply of polymer used in the solids handling portion of the plant. Mr. Henderson further reported that the Salmon Creek Treatment Plant will be receiving the 100% permit compliance award for 2015 at the plant site next week. Bryan Kast reported that the Ridgefield Treatment Plant is running well. 8. Board of Directors Reports None. The meeting was adjourned at 10:36 a.m. Prepared and edited by Alliance Administrative Lead staff. Approved by the Discovery Clean Water Alliance Board of Directors on: December 16, 2016 Julie Olson, Secretary g:\alliance\1 exec-admin\1 board\minutes\2016\ alliance board of directors minutes.docx

4

5

6

7

8

9 DISCOVERY CLEAN WATER ALLIANCE RESOLUTION NO A RESOLUTION OF DISCOVERY CLEAN WATER ALLIANCE, ADOPTING THE CAPITAL ASSET POLICY AND REPEALING RESOLUTION , FOR THE DISCOVERY CLEAN WATER ALLIANCE. WHEREAS, the Board of Directors has determined after various meetings that it is in the best interest of the Alliance to approve the Capital Asset Policy and repeal Resolution , as proposed; now, therefore BE IT RESOLVED by the Board of Directors of the Discovery Clean Water Alliance as follows: 1. The Capital Asset Policy attached to this Resolution is hereby approved and adopted. 2. Resolution is repealed. ADOPTED by the Board of Directors of Discovery Clean Water Alliance at a regular meeting held on December 16, DISCOVERY CLEAN WATER ALLIANCE Chair, Board of Directors Page 1 of 1

10 DISCOVERY CLEAN WATER ALLIANCE CAPITAL ASSET POLICY Resolution # Effective: 12/16/16 Purpose This policy establishes guidelines to ensure adequate stewardship over Discovery Clean Water Alliance (Alliance) resources through control and accountability of Capital Assets, and to collect, maintain and record complete and accurate Capital Assets information. The Alliance operates on an Accrual Basis, reporting Capital Assets and Depreciation on its Balance Sheet. The Alliance has a subsidiary Fixed Asset system and is required to track Capital Assets and reconcile them to the Balance Sheet. Definitions Betterment: An addition made to, or change made in, a Capital Asset, other than maintenance, to prolong its useful life or to increase its efficiency or capacity. The cost of the addition or change is added to the book value of the asset. The term improvement is preferred. Capital Assets: Land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and have initial useful lives extending beyond a single reporting period. Capitalization Threshold: The dollar value at which a government elects to capitalize tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. Impairment: An abrupt decrease of a fixed asset s fair value due to damage or deemed obsolescence. When impairment of a fixed asset occurs, a government is required to decrease its value on the balance sheet and recognize a loss on the income statement. Improvement: An addition to, or change made in, a Capital Asset, other than maintenance, to prolong its useful life or to increase its efficiency or capacity. The cost of the addition or change is added to the book value of the asset. Small & Attractive Assets: Assets valued at less than $5,000 that are at a high risk for theft and normally are not consumed within one year. These assets may have one or more of the following characteristics: 1. Are portable and marketable, either alone or as a component unit; 2. Can be utilized for personal gain; and/or 3. Are often reported as lost or stolen. Value: The purchase price or the construction cost of a Capital Asset, plus sales tax, as well as costs to acquire (shipping and handling), install, secure and prepare the asset for its intended use. 1

11 Requirements The State of Washington Office of State Auditor BARS (Budgeting, Accounting and Reporting System) Manual for Cities, Counties and Special Purpose Districts (GAAP) entities, Capital Assets System Requirements (Chapter 3) states, in part; The duty to make certain that public property is adequately protected and that its true use is properly managed is one of the fundamental responsibilities of public officials. Public officials have broad responsibilities with respect to Capital Assets; these are custody, insurance, maintenance and planning. Custody what is owned, where is it located, what condition is it in, how is it protected from improper or unauthorized use Insurance is adequate insurance provided Maintenance and repair the stewardship of public property Planning capital budgeting and utilization Alliance Capital Assets Policy The Alliance defines Capital Assets as real and personal property owned by the Alliance with a value of $5,000 or more that the Alliance intends to use or keep for more than one year. Capital Assets include (but are not limited to) the following, if meeting this definition all other criteria as detailed throughout the policy: Land Capitalized costs associated with construction-in-progress Improvements Infrastructure Buildings Furnishings and fixtures Sewer lines Pump stations Machinery Equipment Tools Vehicles Intangible assets (including software) Capitalization Threshold The Alliance shall capitalize all assets with a value of $5,000 or more with an expected useful life of one year or more as long as all other criteria are met. Timing The Alliance determines when a project should be capitalized based on physical completion forms. Physical completion forms are completed for all projects by a Capital Programs Engineer. These forms support that a constructed asset has been put into operation or is being utilized, even if the entire project is not yet deemed to be complete and/or retainage has not been released. 2 G:\Alliance\1 EXEC-ADMIN\1 BOARD\Agenda Packets\121616\5c Reso Alliance Capital Assets Policy Updated.docx

12 Repair and Maintenance Costs The Alliance expenses routine repair and maintenance costs. These costs are not capitalized. Betterments / Improvements When subsequent additions such as betterments or improvements occur (unlike routine repairs) the Alliance shall evaluate and record them in accordance with BARS guidance, as follows: If the project replaces an old component of a Capital Asset and the cost associated with the component replaced cannot easily be calculated and removed, outlays shall be expensed, not capitalized. If the project replaces an old component of a Capital Asset and the cost associated with the component replaced can easily be calculated and removed, the asset is adjusted for the remaining cost associated with the component replaced and the outlays associated with the replacement component shall be capitalized. If the distinction between replacement and betterment/improvement is not easily determinable, the Alliance shall expense the entire cost of the project. Depreciation Method and Expected Useful Life of Assets The Alliance uses the straight-line method of depreciation for all Capital Assets using IRS Publication 946 Table of Class Lives and Recovery Periods to determine the useful lives of acquired or constructed Capital Assets. The useful lives of Capital Assets are assigned as follows: Office equipment, electrical 5 years Office furniture, fixtures and equipment, non-electrical 10 years Pump station electrical and mechanical 20 years Pump station structures 50 years Shop tools 10 years Software 5 years Telemetry/SCADA 10 years Treatment plant electrical and mechanical 20 years Treatment plant structures 50 years Vehicles 10 years Wastewater cast iron, ductile iron and concrete interceptors and force mains 50 years Wastewater PVC interceptors and force mains 50 years Revision of Expected Useful Life The Alliance shall revise the useful life of some of its Capital Assets when necessary. The useful life shall be recalculated based on the remaining useful life at the time of the revision. The Alliance shall apply the new useful life in the present and future accounting periods. No changes shall be made to financial records of previous years. 3 G:\Alliance\1 EXEC-ADMIN\1 BOARD\Agenda Packets\121616\5c Reso Alliance Capital Assets Policy Updated.docx

13 New Capital Assets All Capital Assets or Small and Attractive Assets shall be recorded on asset listings maintained by the Alliance Treasurer. Asset listings shall include make, model, serial number or similar descriptions. Disposal of Surplus Items Before a Capital Asset or Small and Attractive Asset is sold or otherwise disposed, the Alliance shall first determine if the asset was originally purchased with grant monies. If this is the case, the Alliance shall review the grant agreement and follow prescribed procedures for disposition. The Board must first declare a Capital Asset or Small and Attractive Asset to be surplus before it can be sold or disposed in any manner. If the asset is to be sold, it shall be sold in accordance with applicable state law. If the asset is no longer in working order and cannot reasonably be repaired for re-sale, a Member staff, along with one other Member staff, shall properly dispose of the asset. The Member staff shall complete an Asset Disposition form, which shall be given to the Alliance Treasurer, who shall remove the asset from the Asset Tracking System. Lost, Stolen or Missing Property When suspected or known losses of Capital Assets or Small and Attractive Assets occur, the Administrative Lead staff shall be notified. The Member staff shall notify the Administrative Lead s General Manager and the Alliance Treasurer, and if it is determined that the asset has been stolen, the appropriate authorities shall be notified. Physical Inventory Plan The Alliance Treasurer shall coordinate with the Administrative Lead and the Contract Operators to complete a physical inventory of both Capital Assets and Small and Attractive Assets every two to four years. The currently effective physical inventory records shall be kept until the State Audit for the respective inventory years is complete. The records shall note the following information: 1. Assets have been physically located and verified 2. Missing assets have been noted and explained 3. Incorrect and/or incomplete information has been corrected 4. Any new items located but not on the list have been added, with proper serial numbers, locations, and other required information REVIEWED: 4 G:\Alliance\1 EXEC-ADMIN\1 BOARD\Agenda Packets\121616\5c Reso Alliance Capital Assets Policy Updated.docx

14 Staff Report Board Meeting of December 16, a. Public Hearing - Capital Plan STAFF CONTACTS PHONE John M. Peterson, P.E., District General Manager Robin Krause, P.E., District Engineer Tammy Lecomte, District Senior Administrative Assistant jpeterson@crwwd.com rkrause@crwwd.com tlecomte@crwwd.com PURPOSE: This staff report summarizes the development of the Alliance Capital Plan in support of a public hearing on the content of the Capital Plan and adoption of the Capital Plan by the Board of Directors. The Capital Plan itself is included as an attachment in a later agenda item, associated with the adopting resolution. As a regional wastewater transmission and treatment utility, the Alliance is fundamentally an owner, manager and operator of capital assets. The Capital Plan represents a critical roadmap outlining investments that need to be made over time to keep existing assets in good working order, and to construct new assets in response to system demand and anticipated regulatory requirements. The Board of Directors has reviewed the components of the Capital Plan in stages as the work has been produced. Presentations have been made at the February, May, June, July, and August public Board meetings, providing a five-touch approach to plan development, summarized as follows: 1. Alliance Overview and Capital Planning. An overview of the Alliance and the approach to updating the Capital Plan, including Section 1 Introduction and Appendix A, was presented at the February 2016 Board meeting as part of the Alliance Overview/New Board Member Welcome staff report. 2. Draft Capital Plan Introduction. At the May 2016 Board meeting, Sections 2.1, 2.2, and 2.3, addressing existing Regional Assets and explaining the approach needed to sustain the current infrastructure, were presented as part of the Administrative Lead Report. 3. Draft Capital Plan - Existing Regional Assets Review. Two key appendices, Appendix B and Appendix C addressing the specific work proposed for existing Regional Assets, were presented for Board review at the June 2016 Board meeting as part of the Administrative Lead Report. Page 1 of 2

15 Alliance Staff Report December 16, Draft Capital Plan New Infrastructure Review. Section 2.4 and Appendix D were provided at the July 2016 Board meeting to review information associated with constructing new infrastructure to provide capacity ahead of demand. The discussion focused primarily on the Salmon Creek Treatment Plant as the most critical Regional Asset, and also included capacity-related investments needed over the next 20 years for all Alliance Regional Assets. 5. Draft Capital Plan Review. The complete draft Capital Plan was presented at the August Board meeting as part of the Administrative Lead Report. In addition to the sections previously presented, the complete draft included summary Section 2.5 and 2.6, as well as Appendix E, which contemplates possible capital project needs beyond the 20-year planning period. The draft Capital Plan was then used as a basis for the budget development process in the third and fourth quarters of No formal requests for changes to the draft Capital Plan have been received during the budget development process. Therefore, the Capital Plan is now being presented as the topic of this public hearing and, pending Board support, for approval later in the meeting agenda. ACTION REQUESTED: Public comment and final policy direction from the Board regarding the Alliance Capital Plan. G:\Alliance\1 EXEC-ADMIN\1 BOARD\Agenda Packets\121616\6a HEARING Board Staff Report - Capital Plan.docx Printed: 12/7/ :21 AM Page 2 of 2

16 Staff Report Board Meeting of December 16, b. Public Hearing Operating and Capital Budget STAFF CONTACTS PHONE Ken Andrews, CPA, Alliance Treasurer John Peterson, P.E., District General Manager Tammy Lecomte, District Senior Administrative Assistant PURPOSE: This staff report summarizes development of the Operating and Capital Budget in support of the public hearing process. As a regional wastewater transmission and treatment utility, the Alliance is owner and operator of capital assets. The Operating and Capital Budget reflects costs to operating nine Regional Assets, including two wastewater treatment plants, to service debt on those Regional Assets, and to fund capital expenditures per the updated Capital Plan. The Board of Directors has reviewed the components of the budget in stages. The schedule for the development of the budget was: 1. First Touch of the Capital Budget. A draft Capital Budget (Section 4.3) was presented at the August 2016 Board meeting. 2. Second Touch of the Capital Budget. A second draft Capital Budget, including draft Regional Service Charges for funding that budget, was presented at the September 2016 Board meeting. 3. First Touch of the Operating Budget. A draft Operating Budget (Section 4.2) and draft Regional Service Charges to fund that budget was presented at the October 2016 Board meeting. 4. Draft Operating and Capital Budget. The combined draft Operating and Capital Budget and Regional Service Charges was presented at the November 2016 Board meeting and the Board directed staff to refer the budget for public hearing and adoption at the December Board meeting. Following today s public hearing on the Operating and Capital Budget, any final input will be considered prior to Board approval for budget adoption, currently scheduled later in the meeting agenda. ACTION REQUESTED: Public comment and final policy direction from the Board regarding the Operating and Capital Budget and Regional Service Charges. Page 1 of 1

17 Staff Report Board Meeting of December 16, a. Resolution No Capital Plan STAFF CONTACTS PHONE John M. Peterson, P.E., District General Manager PURPOSE: The Discovery Clean Water Alliance was incorporated on January 4, 2013 under the Joint Municipal Utility Services Act (JMUSA), RCW , as a result of several years of evaluation to determine the optimum long-term framework for delivery of regional wastewater transmission and treatment services to the urban growth areas in the central portion of Clark County Washington. Four Member agencies, the City of Battle Ground, Clark County, Clark Regional Wastewater District, and the City of Ridgefield, jointly own and jointly manage nine Regional Assets transferring to Alliance ownership as of January 1, The assets include two wastewater treatment plants, two pump stations, three pressurized force mains, and two large diameter gravity interceptors. The Capital Plan establishes the framework for the Alliance to meet its infrastructure obligations for management of the Regional Assets to deliver wastewater transmission and treatment services. Repair and replacement projects are identified to keep the existing assets in good working order, and infrastructure investments are identified to address system capacity or new regulatory obligations. The Capital Plan was developed over approximately the last one-year period, starting with Standing Committee engagement to review asset condition, related risks and to prioritize needed repairs and capacity investments. The Capital Plan also was reviewed by the Board of Directors in a five-touch process from February to August, After the presentation of the related budget documents in the summer and fall of 2016, a public hearing is scheduled for the December Board meeting prior to adoption. The purpose of this resolution is to present the final Capital Plan for adoption. Please note, due to the size of the document, only the Capital Plan table of contents is included as an attachment to the copy of the resolution in the Board agenda packet. The complete Capital Plan document is available on the Alliance website, and printed copies will be available at the December Board meeting. ACTION REQUESTED: Adoption of Resolution No , approving the Capital Plan. Page 1 of 1

18 DISCOVERY CLEAN WATER ALLIANCE RESOLUTION NO A RESOLUTION OF DISCOVERY CLEAN WATER ALLIANCE, ADOPTING THE CAPITAL PLAN FOR THE DISCOVERY CLEAN WATER ALLIANCE. WHEREAS, the Board of Directors has determined after various meetings and a public hearing that it is in the best interest of the Alliance to approve the Capital Plan as proposed; now, therefore BE IT RESOLVED by the Board of Directors of the Discovery Clean Water Alliance that the Capital Plan attached to this Resolution is hereby approved and adopted. ADOPTED by the Board of Directors of Discovery Clean Water Alliance at a regular meeting held on December 16, DISCOVERY CLEAN WATER ALLIANCE Chair, Board of Directors Page 1 of 1

19 ADD ENGINEER STAMP HERE 2016 CAPITAL PLAN Prepared in Support of the Capital Budget

20 Discovery Clean Water Alliance 2016 Capital Plan Core Values 1. Ensure reliable, predictable service for all customers 2. Manage resources responsibly, efficiently and equitably 3. Protect public and environmental health 4. Optimize use of existing facilities 5. Be financially transparent 6. Use new technologies to achieve system efficiencies and environmental protection 7. Provide a fair, positive and secure work environment for utility employees 8. Ensure capacity to support regional land use and economic development decisions 9. Invest in improvements that create system-wide benefits 10. Make business decisions collaboratively with all partners

21 Discovery Clean Water Alliance 2016 Capital Plan CONTENTS SECTION 1 Alliance Overview and Capital Plan Introduction ALLIANCE HISTORY AND FORMATION...3 FIGURE 1.1 ALLIANCE FORMATION TIMELINE... 4 FIGURE 1.2 REGIONAL UTILITY PARTNERSHIPS LOCATED IN OREGON AND WASHINGTON ALLIANCE NAME AND ORGANIZATIONAL STRUCTURE...7 FIGURE 1.3 ALLIANCE CONTRACTUAL AND COMMUNICATION FLOW CHART ALLIANCE CORE VALUES/CAPITAL PLANNING GUIDING PRINCIPLES TABLE 1.1 ALLIANCE CORE VALUES TABLE 1.2 ALLIANCE CAPITAL PLANNING GUIDING PRINCIPLES PURPOSE AND SCOPE OF CAPITAL PLAN DEFINITIONS ALLIANCE REGIONAL ASSETS TABLE 1.3 ALLIANCE REGIONAL ASSET DESCRIPTIONS FIGURE 1.4 REGIONAL ASSET OVERVIEW MAP GOVERNOR S 2013 SMART COMMUNITIES AWARD SECTION Capital Plan CAPITAL PLAN INTRODUCTION TABLE 2.1 ALLIANCE COST ESTIMATE CLASSIFICATION SYSTEM MEMBER AGENCY PLANNING DOCUMENT INCORPORATION BY REFERENCE TABLE 2.2 MEMBER AGENCY PLANNING DOCUMENTS ADOPTED BY ALLIANCE EXISTING REGIONAL ASSETS REPAIR AND REPLACEMENT PROGRAM NEW REGIONAL ASSETS CAPITAL PROJECTS SUMMARY FIGURE 2.1 SALMON CREEK TREATMENT PLANT CAPACITY ASSESSMENT INFLUENT FLOW FIGURE 2.2 SALMON CREEK TREATMENT PLANT CAPACITY ASSESSMENT INFLUENT WASTELOAD TABLE 2.3 SUMMARY OF SALMON CREEK TREATMENT PLANT CAPACITY ASSESSMENTS CHANGE IN ALLOCATED CAPACITY TABLE 2.4 SUMMARY OF DESIGN VENTILATION RATES FOR REGIONAL BIOFILTER TABLE 2.5 REGIONAL ASSETS AND CAPACITY ALLOCATIONS CAPITAL PLAN SUMMARY TABLE 2.6 CAPITAL PLAN SUMMARY APPENDIX A REGIONAL ASSETS LOCATION MAPS APPENDIX B PROJECTS IN CONSTRUCTION APPENDIX C EXISTING ASSETS REPAIR AND REPLACEMENT PROJECT PROFILES APPENDIX D NEW ASSETS CONSTRUCTION/ACQUISITION PROJECT PROFILES APPENDIX E LONG-RANGE PLANNING FUTURE PROJECT DEFINITION... 97

22 Discovery Clean Water Alliance 2016 Capital Plan

23 Staff Report Board Meeting of December 16, a. Resolution No Operating and Capital Budget and Regional Service Charges STAFF CONTACTS PHONE Ken Andrews, CPA, Alliance Treasurer PURPOSE: The Discovery Clean Water Alliance was incorporated in 2013 under the Joint Municipal Utility Services Act (JMUSA), RCW Nine Regional Assets transferred to the Alliance on January 1, The purpose of this resolution is to adopt the Operating and Capital Budget and set the Regional Service Charges (RSCs) to be billed by the Alliance to its Members BACKGROUND: As a regional wastewater transmission and treatment utility, the Alliance is owner and operator of capital assets, including two wastewater treatment plants, two pump stations, three force mains, and two large gravity interceptors. The Operating and Capital Budget reflects administrative services, operating costs of the nine Regional Assets, debt service and capital costs, all primarily funded from RSCs. The Board of Directors and Standing Committees have reviewed and approved the separate capital and operating components of the budget in stages and the overall combined budget. A public hearing is scheduled for the December Board meeting and, with no additional public comment, the Operating and Capital Budget and Regional Service Charges is presented for adoption. Please note, due to the size of the budget document, only the table of contents is included as an attachment to the copy of the resolution in the Board agenda packet. The complete Operating and Capital Budget document is available on the Alliance website, and printed copies will be available at the December Board meeting. ACTION REQUESTED: Adoption of Resolution No approving the Operating and Capital Budget and Regional Service Charges. Page 1 of 1

24 DISCOVERY CLEAN WATER ALLIANCE RESOLUTION NO A RESOLUTION OF DISCOVERY CLEAN WATER ALLIANCE, ADOPTING THE OPERATING AND CAPITAL BUDGET AND REGIONAL SERVICE CHARGES FOR THE DISCOVERY CLEAN WATER ALLIANCE. WHEREAS, the Board of Directors has determined after various meetings and a public hearing that it is in the best interest of the Alliance to approve the Operating and Capital Budget and Regional Service Charges as proposed; now, therefore BE IT RESOLVED by the Board of Directors of the Discovery Clean Water Alliance that the Operating and Capital Budget and Regional Service Charges attached to this Resolution is hereby approved and adopted. ADOPTED by the Board of Directors of Discovery Clean Water Alliance at a regular meeting held on December 16, DISCOVERY CLEAN WATER ALLIANCE Chair, Board of Directors Page 1 of 1

25 Discovery Clean Water Alliance Capital and Operating Budget

26

27 Discovery Clean Water Alliance Operating and Capital Budget DISCOVERY CLEAN WATER ALLIANCE Clark County, Washington Operating and Capital Budget For Biennium Period January 1, 2017 through December 31, 2018 Adopted by Resolution No Dated: December 16, 2016 Prepared by: Clark Regional Wastewater District, Administrative Lead i

28 Discovery Clean Water Alliance Operating and Capital Budget ii

29 Discovery Clean Water Alliance Operating and Capital Budget Table of Contents SECTION 1 - INTRODUCTION Directory of Officials Budget Message Budget in Brief Alliance History Alliance Organizational Structure Alliance Regional Assets SECTION 2 - PLANNING Core Values and Guiding Principles Fiscal Goals and Objectives SECTION 3 - BUDGET PROCESS Budget Process Budget Calendar SECTION 4 - ADOPTED BUDGET BY FUND Budget Summary Reserves Regional Service Charges Operating Budget Administrative Lead Services/Clark Regional Wastewater District Operator - Salmon Creek Wastewater Management System/Clark County Operator - Battle Ground Force Main/Clark County Operator - Ridgefield Wastewater Treatment Plant/Ridgefield Capital Budget Debt Service Fund Existing Assets Repair and Replacement Fund New Assets Capital Fund Fund Balance Summary Fund Balance Summary SECTION 5 - CAPITAL PROGRAM Twenty-Year Capital Plan Existing Assets R&R Projects Overview New Assets Capital Projects Overview SECTION 6 - APPENDIX Appendix A Glossary Appendix B Financial Policies Appendix C SCWMS/BGFM Operating Budget Appendix D RTPO Operating Budget Appendix E Outstanding Debt and Loans by Type Appendix F Debt and Loans Repayment Schedule Appendix G Limitations of Indebtedness iii

30 Discovery Clean Water Alliance Operating and Capital Budget iv

31 Staff Report Board Meeting of December 16, a. Operator Report - Clark County Third Quarter 2016 STAFF CONTACTS PHONE Heath Henderson, P.E ext Heath.Henderson@clark.wa.gov Clark County Public Works Director PURPOSE: This report covers the Salmon Creek Wastewater Treatment Plant operations through September 30, The attached monitoring report shows the monthly values for key process parameters that are tracked. The report shows data for the period ending September 30, No permit violations occurred during this reporting period. During the third quarter of 2016, the chemical supply for the solids thickening process was reviewed, and with vendor support a new, more readily available chemical was sourced that seems to be working as well as the previous uniquely blended polymer. The new polymer seems to be generating the same percent solids at a slight higher rate of consumption, but the cost difference between the two more than offsets the slight increase in consumption. Once the polymer has shown itself to be stable, with consistent results after a few months of testing, the County will put the polymer product out for bid. There was a process upset during August, attributed to the process tankage shifting and equipment failures. The aeration basins, which are the heart of the secondary biological process, were switched from one set of basins over to the old set of basins in order for the SCADA system PLC 35 work to be completed on the older basin blowers and controls. During the shift, one of the older basins had an air lateral failure, requiring staff to take it back down for repairs. Once back on line, there were several air flow control valves that were not functioning and required repairs or replacement. These changes affected the biosolids processing. During that time there were also issues with U.V. system functionality. Replacement equipment was ordered, and once installed, the project was quickly wrapped up. After getting the newer process tanks back in service at the conclusion of the project, the plant is back under control and has been working very well. On August 8 th the County started the annual short haul of stored biosolids to the Woodland farms. This season, the hauling was completed in less than six weeks. Page 1 of 2

32 Clark County Operator Report December 16, 2016 The #2 Belt Filter Press replacement components have been received and Maintenance staff are scheduled to repair the unit and return it to service. PLCs 47 and 55 were replaced as part of the ongoing updates to the SCADA system. The installation and programming work went well and there was little disruption to the facilities secondary process during the project. This can be attributed to the both the internal staff and contracted engineering team s thorough evaluation of potential process impacts and mitigation of those items prior to project start-up. The Salmon Creek facility received the Department of Ecology % permit compliance award. Ecology will schedule a time to stop by and present the award to the Salmon Creek staff in the near future. This is the ninth year in a row the facility has received this compliance award, attesting to the attention to detail that staff continually put into the facility. The attached financial documents include third quarter 2016 revenue and expense summaries for the operating fund (Fund 4580) and the repair and replacement fund (Fund 4583). Budgetversus-actuals reports are also attached. The overall operating fund is currently at 69.9% of actual expenditures versus budget for the seventh quarter of the biennium. The biennium is 87.5% complete and the fund is currently underspent by 17.6%. The breakdown of expenditures to budget by area is: Lab Maintenance Battle Ground Force Main Biosolids Operations General Administration 69.5% spent 84.6% spent 57.1% spent 74.1% spent 84.5% spent 35.4% spent The overall operating budget actual expenditures are expected end the year close to budgeted amounts. The Repair and Replacement fund is 98% expended through the seventh quarter of This is due to a large $1,800,000 payment out of reserves to the Alliance in Clark County expects to use the remainder on budgeted projects. The status of each project is noted in the comments column on the Repair and Replacement expense spreadsheet. ACTION REQUESTED: None, information item. Page 2 of 2

33 Salmon Creek WWTP Influent Flow 2015 Influent Flow, MGD Design Flow MGD Planning trigger 85% of Design flow MGD BOD, lbs/day Influent BOD loading Design limit 25,400 lbs/day Planning trigger - 85% of Design limit - 21,590 lbs/day Influent TSS loading 2015 TSS, lbs/day Design limit 28,200 lbs/day Planning trigger - 85% of Design limit - 23,970 lbs/day

34 Fecal Coliform Fecal Coliform, CFU/100ml Permit limit 200 CFU/100ml Influent Flow, MGD Influent BOD 5 Monthly average, lbs/day Influent TSS Monthly average, lbs/day Efflluent BOD 5 Monthly average, mg/l January February March April May June July August September October November December Efflluent TSS Monthly Fecal Coliform Monthly Total Ammonia Monthly average, mg/l average, CFU/100ml average, mg/l January February March April May June July August September October November December

35 Effluent BOD Permit limit 30 mg/l BOD, mg/l Effluent TSS Permit limit 30 mg/l TSS, mg/l Total Ammonia (as NH3-N) Permit limit 18.7 mg/l Total Ammonia, mg/l

36 CLARK COUNTY PUBLIC WORKS SALMON CREEK TREATMENT PLANT OPERATIONS AND MAINTENANCE - FUND 4580 REVENUE January 1, 2015 through September 30, 2016 DESCRIPTION BUDGET REVENUE REMAINING BUDGET Sale Of Merchandise $ - $ 4,170 $ (4,170) Sewer Flow Charges $ 7,346,616 $ 6,734,398 $ 612,218 Sewer- City of Ridgefield $ 100,000 $ 101,761 $ (1,761) Other Jurisdictions - Repair Services $ 30,000 $ 55,349 $ (25,349) Interest $ 5,000 $ 13,696 $ (8,696) TOTAL $7,481,616 $6,909,374 $572,242

37 CLARK COUNTY PUBLIC WORKS SALMON CREEK TREATMENT PLANT OPERATIONS AND MAINTENANCE - FUND 4580 EXPENSES January 1, 2015 through September 30, 2016 (87.50% of Biennium) % REMAINING % REMAINING BUDGET EXPENSES SPENT BUDGET BUDGET EXPENSES SPENT BUDGET Consolidated Fund 4580 Consolidated Fund 4580 by Controllables by Category Salaries and Benefits $ 2,979,727 $ 2,404, % $ 575,478 Laboratory $ 457,324 $ 317, % $ 139,362 Supplies $ 1,283,818 $ 878, % $ 404,963 Maintenance $ 1,654,081 $ 1,399, % $ 254,837 Services $ 3,064,420 $ 2,256, % $ 807,966 BG Force Main $ 340,102 $ 194, % $ 145,847 Intergovernmental $ 710,230 $ % $ 709,830 BioSolids $ 1,681,596 $ 1,245, % $ 436,307 Transfers out $ 182,518 $ 204, % $ (21,868) Operations $ 2,039,623 $ 1,723, % $ 316,311 General Administration $ 1,865,469 $ 659, % $ 1,205,573 Transfers out $ 182,518 $ 204, % $ (21,868) Total $8,220,713 $5,744, % $ 2,476,369 Total $8,220,713 $5,744, % $2,476,369 Laboratory BioSolids Salaries and Benefits $ 416,324 $ 268, % $ 147,930 Salaries and Benefits $ 396,596 $ 372, % $ 24,174 Supplies $ 30,000 $ 30, % $ (202) Supplies $ 494,700 $ 351, % $ 143,625 Services $ 11,000 $ 19, % $ (8,367) Services $ 790,300 $ 521, % $ 268,509 Intergovernmental $ - $ - 0.0% $ - Intergovernmental $ - $ - 0.0% $ - Total $457,324 $317, % $139,362 Total $1,681,596 $1,245, % $436,307 Maintenance Operations Salaries and Benefits $ 1,054,635 $ 1,065, % $ (10,991) Salaries and Benefits $ 620,679 $ 423, % $ 197,386 Supplies $ 352,418 $ 176, % $ 176,007 Supplies $ 116,100 $ 124, % $ (8,850) Services $ 247,028 $ 157, % $ 89,821 Services $ 1,302,844 $ 1,175, % $ 127,775 Intergovernmental $ - $ - 0.0% $ - Intergovernmental $ - $ - 0.0% $ - Total $1,654,081 $1,399, % 254,837 Total $2,039,623 $1,723, % $316,311 BG Force Main General Administration Salaries and Benefits $ 71,702 $ 13, % $ 57,837 Salaries and Benefits $ 419,791 $ 260, % $ 159,141 Supplies $ 266,600 $ 180, % $ 86,339 Supplies $ 24,000 $ 15, % $ 8,044 Services $ 1,800 $ % $ 1,671 Services $ 711,448 $ 382, % $ 328,558 Intergovernmental $ - $ - 0.0% $ - Intergovernmental $ 710,230 $ % $ 709,830 Total $340,102 $194, % 145,847 Total $1,865,469 $659, % $1,205,573

38 CLARK COUNTY PUBLIC WORKS SALMON CREEK TREATMENT PLANT REPAIR AND REPLACEMENT - FUND 4583 January 1, 2015 through September 30, 2016 DESCRIPTION OF EXPENSE REPORTING CATEGORY BUDGET EXPENSES REMAINING BUDGET COMMENTS Small Project Annual Allowance: Effluent Pump VFD $50,000 $28,791 $21,209 Purchased, being scheduled Gardner Denver Blowers VFD $33,000 $33,315 -$315 Purchased, being scheduled Ductless HVAC $14,500 $1,433 $13,067 Awarded scheduled 09/16 Misc. Small Repair/Replacement Projects $80,000 $69,651 $10,349 air comp./boiler/blower Transfer cash to DCWA not applicable $1,800,000 $1,800,000 $0 Transfer complete TOTAL EXPENSES $ 1,977,500 $ 1,933,190 $ 44,310 98% DESCRIPTION OF REVENUE BUDGET REVENUE REMAINING BUDGET COMMENTS Transfer in from Fund 4580 $ 177,500 $ 155,314 $ 22,186 Interest Earnings $ 10,000 $ 3,544 $ 6,456 TOTAL REVENUE $ 187,500 $ 158,858 $ 28,642 85%

39 Staff Report Board Meeting of December 16, b. Operator Report Ridgefield Seventh Quarter STAFF CONTACTS PHONE Bryan Kast, Public Works Director PURPOSE: This report covers the Ridgefield Wastewater Treatment Plant (WWTP) operations through September 30, The attached graphs show the monthly values for the key process parameters that are tracked per the Alliance s NPDES Permit for the WWTP. The report shows data for the period ending September 30, Routine operation of the WWTP occurred throughout the reporting period and the WWTP operated within all permit parameters. Over this quarter, staff worked with the plant s telemetry and control systems to improve accuracy of flows entering and leaving the plant and accuracy of measurement for dosing of chemicals necessary for the treatment process. This work will allow a reduction in chemical costs and more efficient use of staff time. The financial reports attached include the Ridgefield Treatment Plant Fund Budget and Expense Summary through September 30, 2016, or the seventh quarter of the biennial period of The operating expenses, including capital outlays and debt service payments for the sixth quarter, ended at $1,337,508 or 49% of actual expenditures versus budget. The seventh quarter biennium is 87.5% complete, therefore the fund is currently underspent, however budget includes $1.2 million to retire the general obligation bonds which will be due in December of Ridgefield staff would be happy to answer any questions the Board may have or provide additional information as requested. ACTION REQUESTED: Discussion regarding the operation of Alliance facilities. Page 1 of 1

40 Influent Flow, MGD Ridgefield WWTP Influent Flow Max Month Avg Flow 1.0 MGD Effluent BOD Monthly Average Permit limit 30 mg/l BOD, mg/l Effluent TSS Monthly Average Permit limit 30 mg/l TSS, mg/l

41 Fecal Coliform Monthly Average Permit limit 100 CFU/100ml 2016 Fecal Coliform, CFU/100ml Total Ammonia (as NH3-N) Monthly Average Permit limit 1.4 mg/l 2016 Total Ammonia, mg/l Influent Flow, Efflluent BOD 5 Monthly Efflluent TSS Monthly Fecal Coliform Monthly January February March April May June July August September October November December BOD 5 = Biochemical Oxygen Demand (5-Day) TSS = Total Suspended Solids Total Ammonia Monthly MGD average, mg/l average, mg/l average, CFU/100ml average, mg/l

42 Ridgefield Public Works Ridgefield Wastewater Treatment Plant Third Quarter 2016 Annual Operator Budget and Expense Summary WWTP Fund Description Budget % Budget Term Actual Expenses % Spent Remaining Budget Salaries and Benefits $ 243, % $ 114, % $ 129,668 Supplies $ 23, % $ 29, % $ (5,488) Utilities $ 37, % $ 18, % $ 18,016 Operations and Maintenance $ 32, % $ 14, % $ 17,742 Services $ 57, % $ 32, % $ 24,993 Intergovernmental $ 236, % $ 156, % $ 79,785 Capital Outlays $ % $ 41, % $ (41,664) WWTP Debt Service (P&I) $ 1,200, % $ 27, % $ 1,172,887 Total $ 1,831, % $435, % $ 1,395,939 Ridgefield Public Works Ridgefield Wastewater Treatment Plant Seventh Quarter Biennial Operating Budget and Expense Summary WWTP Fund Description Budget % Budget Term Actual Expenses % Spent Remaining Budget Salaries and Benefits $ 494, % $ 352, % $ 141,529 Supplies $ 48, % $ 63, % $ (14,889) Utilities $ 72, % $ 51, % $ 20,976 Operations and Maintenance $ 63, % $ 51, % $ 11,121 Services $ 117, % $ 103, % $ 14,226 Intergovernmental $ 450, % $ 373, % $ 77,262 Capital Outlays $ 130, % $ 158, % $ (28,359) WWTP Debt Service (P&I) $ 1,355, % $ 182, % $ 1,173,226 Total $ 2,732, % $1,337, % $ 1,395,092

43 Staff Report Board Meeting of December 16, c. Administrative Lead Report STAFF CONTACTS PHONE John M. Peterson, P.E., District General Manager Ken Andrews, CPA, Alliance Treasurer Robin Krause, P.E., District Engineer Tammy Lecomte, District Senior Admin Assistant PURPOSE: The Alliance is a fully formed regional wastewater transmission and treatment utility in its second year of operation in The goal of the Administrative Lead (AL) Report is to provide a monthly update for ongoing activities in the executive, financial and engineering areas of responsibility. In an effort to establish common expectations for 2016, AL staff has prepared a summary of the major work activities anticipated this year with updated status reporting noted throughout: Executive and Administrative Activities. 1. Administer Board and Standing Committee Processes. This item addresses the ongoing agenda setting, meeting packet development and schedule management responsibilities. To date, all activities are on schedule and on budget. 2. Provide executive and administrative services as needed. This item addresses policy, legal, insurance, and contracting needs as they arise. Insurance Update. AL staff is researching a possible enhancement to the Operator agreements concerning the manner in which liability insurance coverage and indemnification language work together to provide coverage for Alliance operations. Contracting Update. As Administrative Lead, the District is moving forward to enter into professional services and construction contracts as necessary to implement the services and projects depicted in the Operating and Capital Budget. These items include the following: o o o Professional services support for regulatory compliance activities Professional services support for capital plan development activities Professional services support and vendor/contractor construction contracts, as needed to implement approved capital projects Printed: 12/7/2016 G:\Alliance\1 EXEC-ADMIN\1 BOARD\Agenda Packets\121616\9c Board Staff Report - Administrative Lead Report.docx Page 1 of 3

44 Administrative Lead Report December 16, Provide Member agency and public engagement services as needed. This item addresses all activities related to implementation of internal or external Alliance public outreach and engagement, including website, communications materials, presentations and facilities tours. Website/Communications Update. AL staff is working to develop basic fact sheets and a dedicated web page that will provide engagement with the neighborhood surrounding the Salmon Creek Treatment Plant as more residents move into the area. Based on comments received, the website and fact sheet will be launched before year end. Financial and Treasury Activities. 1. Prepare Operating and Capital Budget Document. Final budget documents are presented for adoption at the December Board meeting. 2. Provide Ongoing Alliance Financial Management. This item addresses the ongoing processes related to accounts receivable and accounts payable functions, financial reporting, and debt and cash management. All activities are on schedule and on budget at this time. Engineering and Capital Program Activities. 1. Deliver Approved Repair and Replacement Projects. This year will see the following work activities: Projects in Construction. Two pipeline repair projects have been completed earlier this year and a third pipeline repair project will be completed in December. An emergency project to replace a failed water chiller serving the Operations Center was also delivered in mid A project that will change out older PLCs at the Salmon Creek Treatment Plant (SCTP) is also underway and will carry through To date, four PLC change-outs have been fully completed and the project is trending ahead of schedule. Projects in Development. Design and permitting for the 36 th Avenue Pump Station Pump Replacement and the Regional Biofilter projects will continue through year-end. New projects contemplated in the final draft Capital Budget will commence in January, pending final budget endorsement by the Board of Directors. 2. Develop the Engineering Report and Permitting Approach for the Columbia River Outfall and Effluent Pipeline Project. This year will see the development of specific alternatives to the project through the Engineering Report process. This work builds on the 2015 field investigations and will provide the pathway for the project to move forward into the regulatory approval process. Engineering Report. The Engineering Report work is in development at this time, based on preliminary engineering work equivalent to approximately a 10% complete design. The technical team is developing pipeline alternatives and evaluating construction methodologies for critical water and railroad crossings. This process will lead to a preferred alternative for the Engineering Report, which will also become the basis for the subsequent environmental review and permitting processes. AL staff will plan to provide a full briefing of the 2016 work completed to the Board in the first quarter of Page 2 of 3