Utility Board Agenda. Agenda topics. For Meeting of September 20, :00 PM to 9:00 PM Mercer Room, Mercer Island Community & Event Center

Transcription

1 Utility Board Agenda For Meeting of September 20, :00 PM to 9:00 PM Mercer Room, Mercer Island Community & Event Center Board Members: Council Liaison: Staff: Kwan Wong, Chairman, Tim O Connell, Vice Chairman, Tom DeBoer, Mary Grady, Stephen Milton, William Pokorny and Brian Thomas Council Member David Wisenteiner Jason Kintner, Public Works Director Chip Corder, Finance Director Francie Lake, Deputy Finance Director Patrick Yamashita, City Engineer Anne Tonella-Howe, Assistant City Engineer Brian McDaniel, Utilities Operations Manager Asea Sandine, Recording Secretary Agenda topics 7:00 PM Approve Minutes: May 9, 2017 July 11, 2017 EMS Rates Stormwater Rates All Francie Lake Francie Lake 2017 Work Plan All Transmitted via Agenda Meeting Minutes Work Plan Next Meeting: October 10, 2017

2 UTILITY BOARD REGULAR MEETING MINUTES MAY 9, 2017 CALL TO ORDER: Chairman Kwan Wong called the regular meeting of the Utility Board to order at 7:01 p.m. in the Council Chambers Room at City Hall, 9611 SE 36th Street, Mercer Island, WA. ROLL CALL: Chairman Kwan Wong, Vice Chair Tim O Connell, Susan Kaltenbach, Will Pokorny, Stephen Milton Brian Thomas, and Tom DeBoer were present. David Wisenteiner was absent. City Staff: Jason Kintner, Public Works Director, Anne Tonella-Howe, Assistant City Engineer, Brian McDaniel, Utilities Operation Manager, and Asea Sandine, Recording Secretary were present. REGULAR BUSINESS: Motion: O Connell moved to approve the minutes from the March 14, 2017 meeting. DeBoer seconded the motion. The Board unanimously approved the minutes. Motion: O Connell moved to recognize and thank Susan Kaltenbach for serving on the Utility Board for the last four years. DeBoer seconded the motion. The motion carried unanimously by the Board. ENTERPRISE ASSET MANGEMENT (EAM) AND CAPITAL IMPROVEMENT PROJECT (CIP) UPDATE Kintner shared that following the completion of the performance audit in 2016, the City started the qualification and needs search of companies to better manage city assets such as roadways, facilities, trees, surface water, wastewater systems, water utilities, and parks. The City selected Cityworks Management System with configuration and implementation being completed by Woolpert. He noted that implementation is underway with an anticipated go live date anticipated in the second quarter of He and the staff are looking to improve planning by using the data to set goals targeted on performance standards and bench marking. Glenhome Kintner stated that this project has been budgeted. However; it is complicated due to the fact the water main runs underneath private property and requires the acquisition of new easements to proceed. He noted that the City will hold multiple public meetings prior to June 1, 2017 to determine if this project will move forward in this biennium. Phase 3 Air Vac Upgrades & Booster Chlorination Kintner commented that these two projects are action items from the Water Advisory Action plan. He shared that the Air Vac design is to set to begin in June with construction scheduled for fall of He shared the Booster Chlorination Station is designed to reduce the risk of contamination and that the design was required by Department of Health as an element of the Water Advisory Action Plan. Project construction is anticipated in2018, but requires Council authorization prior to bid. He highlighted that Mercer Island Utility Board Meeting Minutes 1

3 the City hopes to have the Boil Water Advisory Action items from the event completed by the end of Scada Master Plan Kintner advised this is the alarm system that serves water and waste water and is the primary defense for monitoring utilities. This has been identified within the General Sewer Plan as an area of improvement. He shared a qualifications (RFQ) process is underway. The City is in search of a firm to develop a master plan and recommendations with a targeted completion of fourth quarter Mc Daniel added that this ties into the Booster Chlorination Station project, portions of Scada equipment need to be upgraded before other equipment can be implemented. General Sewer Plan Update Kintner shared that this is scheduled for preliminary review by Council in April. After that the plan will then be submitted to the agency for review and scheduled for final adoption first quarter Board Member Thomas referenced a blog on next door regarding paying the price for aging infrastructure and advised that the cities messaging will be important for this project. Sewer Catch Basin Retrofits Kintner concluded his updates by advising that operations have been busy with modifying existing special catch basins and annual cleaning. Special catch basins provide the last line of defense before the lakeline (sewer line). Tonella Howe shared that Sub Basin 49B and Sub Basin 51 are slated for design in Both projects require permitting from Department of Fish and Wildlife and Army Corp of Engineers which she explained can take some time. Therefore, staff anticipate construction will begin next year (2018). She also noted that the water capital is wrapping up the 3800 BLK West Mercer Way project. She added the City has hired a contractor for the 2016 Hydrant Replacement project. Staff hopes to have that project wrapped up by the end of May WORK PLAN Board Member O Connell proposed an update later in the year on EAM system. Kintner suggested November. Porkony inquired about follow up discussion that was tabled regarding the King County North Mercer Way Interceptor memo. The Board requested staff recirculate the memo. NEW BUSINESS: ADJOURNMENT: 8:00 PM Asea Sandine Recording Secretary Mercer Island Utility Board Meeting Minutes 2

4 UTILITY BOARD REGULAR MEETING MINUTES JULY 11, 2017 CALL TO ORDER: Chairman Kwan Wong called the regular meeting of the Utility Board to order at 7:06 p.m. in the Council Chambers Room at City Hall, 9611 SE 36th Street, Mercer Island, WA. ROLL CALL: Chairman Kwan Wong, Vice Chair Tim O Connell, Mary Grady, Brian Thomas and Will Pokorny Stephen Milton. Wisenteiner was absent. City Staff: Jason Kintner, Public Works Director, Engineer, Anne Tonella-Howe, Assistant City Engineer, Brian McDaniel, Utilities Operation Manager, Rona Lin, Water Utilities Engineer and Asea Sandine, Recording Secretary were present. REGULAR BUSINESS: BOARD ELECTIONS Chairman Wong introduced new Board Member Mary Grady. Staff and the Board introduced themselves to Board Member Grady. Staff conducted an election for Chair and Vice Chair. Board Member O Connell nominated Wong for Chair. Board Member Deboer seconded the motion. The motion carried unanimously. Board Member Wong accepted the nomination and was elected Chair. Board Member Thomas nominated O Connell for Vice Chair. Board Member Wong seconded the motion. The motion carried unanimously. Board Member O Connell accepted the nomination and was elected Vice Chair. BOOSTER CHLORINATION PROJECT UPDATE Kintner shared that a lot of work has taken place as the result of the Water Advisory Event. Staff are optimistic that the City will conclude the Event Action Plan soon. He advised this project was budgeted for and is currently at sixty percent design. Staff will seek authorization from Council for construction in Kintner noted some departmental accomplishments within the water utility include: data collection has tripled; the department is implementing an Enterprise Asset Management system to make better decisions regarding operations; the department is working towards improved strategies for avoiding system contamination and improved operations. The strategies include: maintaining positive pressure, maintaining adequate disinfectant residuals and preventing cross connections. McDaniel added that in an emergency such as a precautionary Boil Water Notice, this booster project aids in the efficient and adequate introduction of disinfectant to be distributed evenly to the entire distribution system. NORTH MERCER WAY INTERCEPTOR PROJECT. Tonella-Howe shared that she had not received anything further from King County other than noted they are preparing their thirty percent design which should be out for review in the fourth quarter She shared that King County continued with their preferred alternative of running pipe as outlined and did not re-evaluate the path along Luther Burbank Park or going into park. Board Member Thomas voiced his continued concern of mitigating roadway impacts for residents and hopes this concern does go not unnoticed. Mercer Island Utility Board Meeting Minutes 1

5 WORK PLAN: Thomas shared that he has been privy to social media angst regarding how far behind the City is in infrastructure maintenance. He is interested in how much catch up is needed and shared that messaging will be critical for the rate discussion. Board Member Grady suggested a comparison in relationship a select sample jurisdiction. ADJOURNMENT: 8:30 PM Asea Sandine Recording Secretary Mercer Island Utility Board Meeting Minutes 2

6 Memo Finance Department To: Utility Board Members From: Francie Lake, Deputy Finance Director Date: September 13, 2017 Re: EMS Rate Update 2018 Rates Background Total Emergency Medical Service (EMS) utility revenues are directly tied to the estimated current salary and benefit costs, excluding overtime, of four firefighters hired back in 1996 to provide capacity to handle simultaneous EMS calls. This constitutes the annual revenue requirement to the General Fund. In 2015, the City contracted with FCS Group for an update of the City s EMS rate model, which encompassed the following changes: Actual calls for service for the two year period January 1, 2013 through December 31, 2014; 2015 customer account data; and Current number of beds and Medicaid eligible residents associated with each Residential Board & Care and 24 Hour Nursing account. Simply put, the biennial model update is intended to adjust the rates charged to the various customer classes primarily based on the most recent two year call history and current customer account data. The current EMS utility rate structure was significantly impacted by the Council s decision, during its Budget deliberations, to institute a BLS ambulance transport fee to help balance the budget. This action had an unintended consequence, driven entirely by Washington State law, of replacing the long standing variable EMS rate structure, which had different rates for each customer class based on actual historical experience, with the same flat rate (per equivalent service unit) for each customer class. Calculation of 2018 Revenue Requirement To determine the 2018 revenue requirement, staff utilized the methodology implemented in 2013 where the 2018 rates are tied to the current year s (i.e. 2017) average, budgeted costs for four firefighters, which equals $570,661 excluding the Fire Chief, Deputy Fire Chief, and Fire Marshal). Compared to the 2017 EMS rates (adopted in 2016), this represents an overall increase of 2.93%. Page 1

7 Proposed 2018 EMS Utility Rates Following is a comparison of the proposed 2018 vs. the adopted 2017 bi-monthly rates by customer class: Bi-Monthly Charge $ % Change Change Single Family Residential $8.88 $9.14 $ % Multi-Family Residential $8.88 $9.14 $ % Public Schools $8.88 $9.14 $ % Public/Other $8.88 $9.14 $ % Residential Board & Care: Covenant Shores $ $ $ % Island House Retirement $ $ $ % Sunrise Retirement $ $ $ % Aljoya House $ $ $ % In-Home Care $44.40 $45.70 $ % 24 Hour Nursing: Customer Class Covenant Shores (Skilled Nursing) $ $ $ % A comparison of the total annual revenue by customer class generated by the proposed 2018 vs. the adopted 2017 EMS rates follows: Total Annual Revenue $ % Change Change Single Family Residential $381,112 $392,271 $11, % Multi-Family Residential $155,151 $159,694 $4, % Commercial $6,660 $6,855 $ % Public Schools $373 $384 $ % Public/Other $1,066 $1,097 $ % Residential Board & Care: Covenant Shores $2,504 $2,577 $ % Island House Retirement $959 $987 $ % Sunrise Retirement $2,664 $2,742 $ % Aljoya House $1,652 $1,700 $ % In-Home Care $266 $274 $8 2.93% 24 Hour Nursing: Customer Class Covenant Shores (Skilled Nursing) $1,971 $2,029 $ % Totals $554,378 $570,610 $16, % Page 2

8 Rounding error accounts for the difference between the 2018 calculated revenue requirement of $570,661 and the total annual revenue associated with the proposed 2018 EMS rates of $570,610. Staff recommends that EMS rates by increased 2.93% for Staff will seek the Utility Board s concurrence with this recommendation. Staff will be available on Wednesday night to answer questions about the proposed EMS rate recommendation. The 2018 EMS utility rate resolution is scheduled to go before the Council on November 21, Page 3

9 Memo Finance Department To: Utility Board Members From: Francie Lake, Deputy Finance Director Date: September 13, 2017 Re: Storm Water Rate Update 2018 Rates Attached is information about the Storm Water Fund for the 2018 rate discussion. At the September 13, 2016 meeting, the Utility Board reviewed the preliminary biennial budget for the Storm Water Fund and recommended that Storm Water rates be increased by 3.8% in 2017 and 2018, with the understanding that the Board would revisit the 2018 rate recommendation in the fall of Council adopted the budget and passed Resolution 1524 with the 2017 storm water rates recommended by the Utility Board. For a preview, a summary table comparing rates from last year s rate study (for ) and one proposed rate option (for 2018) is presented below: Rate Study Council Adopted Rates 3.8% 3.8% 3.8% 3.8% 3.8% 3.8% 2018 Rate Update 3.8% 1.5% 1.5% 1.5% 1.5% 1.5% Review of past year decisions which impacted the rate recommendation: The modest rate increase of 3.8% per year (2017 and 2018) was primarily driven by the following: 1) addition of Closed Circuit Television (CCTV) inspections of Storm Water pipes to the operations and maintenance of the Storm Water Fund; and 2) planned watercourse stabilization, drainage system extension, and culvert replacement projects. Proposed rate option for 2018: The 2018 Storm Water Rate Update has been revised from last year s study to reflect actual revenues and expenditures for 2016 and a net budget carryover of $400,854 from 2016 to The net carryover of $400,854 included: 1) $363,354 to complete work on 3 capital projects (Sub-Basin 27a Watercourse Repair, which was delayed by permit review by the Army Corps of Engineers, Drainage System Video Inspections (CCTV), and the Storm Water Fund s portion of Maintenance Building repairs and the Enterprise Asset Management System; 2) $25,000 for Phase 2 NPDES (National Pollutant Discharge Elimination System) work. Note that this budget carryover is offset by grant revenue from the Department of Ecology; and 3) $12,500 for a space reconfiguration in Public Works. The cash position (beginning working capital) of the Storm Water Fund starting 2018 is about $1.1 million better than forecast, excluding the $400,854 carryover. The driving Page 1

10 factors behind this are operating expenses were about $90,000 less than forecast and capital project expenses were about $1.0 million less than forecast, due to the following: 1) Completed projects were $489,625 less than budget, including $139,125 for spot repairs which are done on an as needed basis; 2) Sub-Basin 14 Drainage Extension for $114,933 is on hold until private development is complete; and 3) Two projects which were double budgeted (Sub-Basins 49b and 51a) for $421,624. This improved the beginning cash position for the Storm Water Fund. The Capital Plan for has been updated to reflect the following: 1) Addition of $150,000 for unplanned repairs to Freeman Avenue slide and 8410 West Mercer Way slide, both projects which include storm water infrastructure repair; 2) Completion of Sub-Basin 40b Drainage System Extension ($50,000) in 2017, instead of 2018; and 3) Delay of the following three projects to 2018: Sub-Basin 49b ($292,000), Sub-Basin 51a ($197,000) and Sub-Basin 6 ($205,000) due to permitting and the need for computer-aided architectural design (CAAD) which must be outsourced. A revised copy of the Capital Plan for Storm Water, which was used as the basis for the 2018 Storm Water Rate Study, is attached as Exhibit 1. To facilitate your review, a copy of the original Capital Plan presented for the Storm Water Rate Study is attached as Exhibit 2. For all of the Utilities, significant delays in capital reinvestment work have been experienced in 2017 due to unplanned and unexpected circumstances. Staff will discuss this further at the Utility Board meeting. Forecasted operating expenses were updated based on the next phase of NPDES requirements and grant opportunities. Operating expense changes include the following: 1) NPDES program expenses for public outreach and staff training of $25,000 per year starting in 2017 (with associated grant funding in ); and 2) Catch basin inspections (an increased frequency of inspections is required by the NPDES Permit) and illicit discharge monitoring of $50,000 per year starting in Rate Scenario Discussion: Staff prepared one storm water rate scenario for the Board s consideration on Wednesday night. Exhibit 3 reflects a smoothed rate increase of 1.5% for This increase is significantly less than the 3.8% anticipated during last year s rate study. To facilitate your review, a copy of the Storm Water Rate Study, which was the basis of the Utility Board s recommendation of a 3.8% rate increase in 2017 and 2018, is attached as Exhibit 4. Staff will be available on Wednesday night to answer questions about the proposed Storm Water Rate scenario. Staff will seek a recommendation from the Board on 2018 rates for the Storm Water Utility. Page 2

11 Exhibit 1 STORM WATER FUND Six Year Capital Plan Revised for 2018 Rate Update Description Storm Water Basin Improvements / Water Quality 530 Watercourse Condition Assessments 0 15,000 25,000 15,000 25,000 15,000 25,000 Watercourse Minor Repairs/Maintenance 48,173 20,000 20,000 20,000 20,000 25,000 25,000 East Seattle Storm Improvements 3,235 Sub-Basin 27a Watercourse + Culvert (carried over from 2016) 118, ,384 Sub-Basin 49b.4 8, ,000 Sub-Basin 52.1 & 51a.1 7, ,000 Sub-Basin 3b.4 15, ,000 Sub-Basin , ,000 Sub-Basin 42.1/42.1a 25, ,000 Sub-Basin , ,000 Sub-Basin 45b.1 262,000 Sub-Basin ,000 Sub-Basin 27a.10 10,000 92,000 Sub-Basin 50b.4E 5,000 39,000 Sub-Basin 25b.2 179,000 Other Water Quality Treatment Sub-Basin 10 & 32b Dissolved Metals Source ID 46,135 40,000 40,000 Water Quality Treatment Improvements 56,598 75,000 75,000 75,000 Conveyance System New and Extensions Neighborhood Spot Drainage Improvements 28,379 90,000 90,000 95,000 95, , ,000 Street Related Drainage Improvements 2, , , , , , ,000 Drainage System Video Inspection Program (carried over fr 2016) 1,168 42,230 Sub-Basin 6 (Madrona Crest W) Drainage System Extension 205,000 Sub-Basin 40b Drainage System Extension 50,000 Repairs - Freeman Avenue and 8410 West Mercer Way (NEW) 150,000 Basin 6 Drainage System Extension 103,924 Basin 18c Drainage System Extension 172,546 Drainage System Extensions ( ) 130, , , ,000 Conveyance System Replacements Basin 27a Culvert Repalcement ICW Drainage System Replacements ( ) 130, , , ,000 Drainage System Emergency Repairs 30,001 20,000 20,000 20,000 20,000 20,000 20,000 ` Subtotal Storm Water CIP 627, ,614 1,029, , ,000 1,034, ,000 Capital Project Management 52, , , , , , ,760 IFT - Maintenance Building 1,800 11,850 10,350 14,850 14,850 29,400 8,100 IFT - Technology Projects / MMS / Watercourse GIS Layer 12,069 75,000 62,000 11,250 30, IFT (carried over from 2016) 32,740 Total $ 694,232 $ 1,114,117 $ 1,208,516 $ 1,004,160 $ 1,149,128 $ 1,189,239 $ 1,085,860

12 Exhibit 2 STORM WATER FUND Six Year Capital Plan Description Storm Water Basin Improvements / Water Quality 500 Watercourse Condition Assessments 39,848 15,000 25,000 15,000 25,000 15,000 25,000 Watercourse Minor Repairs/Maintenance 102,783 20,000 20,000 20,000 20,000 25,000 25,000 East Seattle Storm Improvements 45,000 Sub-Basin 27a Watercourse + Culvert 464,650 Sub-Basin 49b.4 255, ,000 Sub-Basin 52.1 & 51a.1 182, ,000 Sub-Basin 3b.4 15, ,000 Sub-Basin , ,000 Sub-Basin 42.1/42.1a 25, ,000 Sub-Basin , ,000 Sub-Basin 45b.1 262,000 Sub-Basin ,000 Sub-Basin 27a.10 10,000 92,000 Sub-Basin 50b.4E 5,000 39,000 Sub-Basin 25b.2 179,000 Other Water Quality Treatment Sub-Basin 10 & 32b Dissolved Metals Source ID 50,608 40,000 40,000 Water Quality Treatment Improvements 75,000 75,000 75,000 75,000 Conveyance System New and Extensions Neighborhood Spot Drainage Improvements 167,504 90,000 90,000 95,000 95, , ,000 Street Related Drainage Improvements 53, , , , , , ,000 Drainage System Video Inspection Program 45,890 Sub-Basin 40b Drainage System Extension 50,000 Sub-Basin 6 (Madrona Crest W) Drainage System Extension ,000 Basin 6 Drainage System Extension 139,456 Basin 14 Drainage System Extension 114,933 Basin 18c Drainage System Extension 175,000 Drainage System Extensions ( ) 130, , , ,000 Conveyance System Replacements ` Basin 27a Culvert Repalcement ICW Drainage System Replacements ( ) 130, , , ,000 Drainage System Emergency Repairs 40,000 20,000 20,000 20,000 20,000 20,000 20,000 Subtotal Storm Water CIP 1,952,989 1,054, , , ,000 1,034, ,000 Capital Project Management 86, , , , , , ,760 IFT - Maintenance Building 16,000 11,850 10,350 14,850 14,850 29,400 8,100 IFT - Technology Projects / MMS / Watercourse GIS Layer 7,813 75,000 62,000 11,250 30, Total $ 2,063,475 $ 1,244,763 $ 564,516 $ 1,004,160 $ 1,149,128 $ 1,189,239 $ 1,085,860

13 EXHIBIT Storm Water Rate Update Rates Smoothed CATEGORY Actual Forecast Forecast Forecast Forecast Forecast Forecast OPERATING REVENUES $ 1,805,123 $ 1,864,465 $ 1,892,432 $ 1,920,818 $ 1,949,631 $ 1,978,875 $ 2,008,558 GRANT - NPDES PHASE 2 PROGRAM / KC-FCD - 25,000 25,000 25, TOTAL REVENUES $ 1,805,123 $ 1,889,465 $ 1,917,432 $ 1,945,818 $ 1,949,631 $ 1,978,875 $ 2,008,558 OPERATING EXPENSES $ 1,135,155 $ 1,267,049 $ 1,295,439 $ 1,360,211 $ 1,428,221 $ 1,499,633 $ 1,574,614 CCTV Stormwater Pipe Inspections - 75,000 75,000 78,750 82,688 86,822 91,163 Catch Basin Inspection/Illicit Discharge Monitoring ,000 50,000 50,000 50,000 NPDES PHASE 2 PROGRAM DEVELOPMENT - 25,000 25,000 25,000 25,000 25,000 25,000 TOTAL EXPENSES $ 1,135,155 $ 1,367,049 $ 1,395,439 $ 1,513,961 $ 1,585,909 $ 1,661,454 $ 1,740,777 OPERATING INCOME $ 669,968 $ 522,416 $ 521,993 $ 431,858 $ 363,722 $ 317,421 $ 267,781 OTHER FINANCIAL SOURCES (USES) FEE IN LIEU PAYMENTS 195, , ,000 90,000 90,000 90,000 90,000 INTEREST 22,768 16,060 14,256 17,797 13,601 12,844 5,598 CAPITAL CONTRIB - BUILDINGS/TECHNOLOGY (13,869) (119,590) (72,350) (60,000) (60,000) (60,000) (60,000) CAPITAL PM and OVERHEAD (52,915) (103,913) (107,166) (113,060) (119,278) (125,839) (132,760) CAPITAL PROJECTS (627,448) (890,614) (1,029,000) (865,000) (985,000) (1,034,000) (945,000) TOTAL FINANCIAL SOURCES (USES) $ (475,622) $ (998,057) $ (1,094,260) $ (930,263) $ (1,060,677) $ (1,116,995) $ (1,042,162) NET INCREASE (DECREASE) IN WORKING CAPITAL $ 194,347 $ (475,641) $ (572,267) $ (498,405) $ (696,956) $ (799,574) $ (774,380) BEGINNING WORKING CAPITAL $ 3,776,945 $ 3,971,292 $ 3,495,651 $ 2,923,384 $ 2,424,979 $ 1,728,023 $ 928,449 NET INC. (DEC.) IN WK.CAP. 194,347 (475,641) (572,267) (498,405) (696,956) (799,574) (774,380) ENDING WORKING CAPITAL $ 3,971,292 $ 3,495,651 $ 2,923,384 $ 2,424,979 $ 1,728,023 $ 928,449 $ 154,068 LESS: FISCAL POLICY RESERVE (102,080) (113,921) (116,287) (126,163) (132,159) (138,455) (145,065) LESS: BASIN IMPROVEMENT RESERVE (84,247) WORKING CAPITAL AVAILABLE $ 3,784,965 $ 3,381,730 $ 2,807,097 $ 2,298,815 $ 1,595,864 $ 789,994 $ 9,003 ACTUAL / FORECASTED RATE INCREASE 1.30% 3.80% 1.50% 1.50% 1.50% 1.50% 1.50% BI-MONTHLY RATE $ $ $ $ $ $ $ BI-MONTHLY INCREASE $ 0.41 $ 1.21 $ 0.50 $ 0.50 $ 0.51 $ 0.52 $ 0.53 MONTHLY INCREASE $ 0.20 $ 0.61 $ 0.25 $ 0.25 $ 0.26 $ 0.26 $ 0.26

14 EXHIBIT Adopted Storm Water Rates Storm Water Rate Study (with CCTV Storm Pipe inspections) Rates Smoothed CATEGORY Budget Forecast Forecast Forecast Forecast Forecast Forecast OPERATING REVENUES $ 1,796,209 $ 1,864,465 $ 1,935,314 $ 2,008,856 $ 2,085,193 $ 2,164,430 $ 2,246,678 IF TRSF FR CAP RES (in lieu of rate adj) GRANT - NPDES PHASE 2 PROGRAM / KC-FCD 50, TOTAL REVENUES $ 1,846,209 $ 1,864,465 $ 1,935,314 $ 2,008,856 $ 2,085,193 $ 2,164,430 $ 2,246,678 OPERATING EXPENSES $ 1,224,964 $ 1,254,549 $ 1,295,439 $ 1,360,211 $ 1,428,221 $ 1,499,633 $ 1,574,614 CCTV Stormwater Pipe Inspections $ 75,000 $ 75,000 $ 78,750 $ 82,688 $ 86,822 $ 91,163 NPDES PHASE 2 PROGRAM DEVELOPMENT 50, TOTAL EXPENSES $ 1,274,964 $ 1,329,549 $ 1,370,439 $ 1,438,961 $ 1,510,909 $ 1,586,454 $ 1,665,777 OPERATING INCOME $ 571,245 $ 534,916 $ 564,875 $ 569,895 $ 574,284 $ 577,976 $ 580,901 OTHER FINANCIAL SOURCES (USES) FEE IN LIEU PAYMENTS 150, , ,000 90,000 90,000 90,000 90,000 INTEREST 20,206 16,060 14,256 17,797 13,601 12,844 5,598 CAPITAL CONTRIB - BUILDINGS/TECHNOLOGY (23,813) (86,850) (72,350) (60,000) (60,000) (60,000) (60,000) CAPITAL PM and OVERHEAD (86,673) (103,913) (107,166) (113,060) (119,278) (125,839) (132,760) CAPITAL PROJECTS (1,952,989) (1,054,000) (385,000) (865,000) (985,000) (1,034,000) (945,000) TOTAL FINANCIAL SOURCES (USES) $ (1,893,269) $ (1,128,703) $ (450,260) $ (930,263) $ (1,060,677) $ (1,116,995) $ (1,042,162) NET INCREASE (DECREASE) IN WORKING CAPITAL $ (1,322,024) $ (593,787) $ 114,615 $ (360,367) $ (486,394) $ (539,020) $ (461,260) BEGINNING WORKING CAPITAL $ 3,776,945 $ 2,454,921 $ 1,861,134 $ 1,975,749 $ 1,615,382 $ 1,128,988 $ 589,968 NET INC. (DEC.) IN WK.CAP. (1,322,024) (593,787) 114,615 (360,367) (486,394) (539,020) (461,260) ENDING WORKING CAPITAL $ 2,454,921 $ 1,861,134 $ 1,975,749 $ 1,615,382 $ 1,128,988 $ 589,968 $ 128,708 LESS: FISCAL POLICY RESERVE (102,080) (110,796) (114,203) (119,913) (125,909) (132,205) (138,815) LESS: BASIN IMPROVEMENT RESERVE (71,529) WORKING CAPITAL AVAILABLE $ 2,281,312 $ 1,750,338 $ 1,861,546 $ 1,495,468 $ 1,003,079 $ 457,764 $ (10,107) ACTUAL / FORECASTED RATE INCREASE 1.30% 3.80% 3.80% 3.80% 3.80% 3.80% 3.80% BI-MONTHLY RATE $ $ $ $ $ $ $ BI-MONTHLY INCREASE $ 0.41 $ 1.21 $ 1.26 $ 1.31 $ 1.35 $ 1.41 $ 1.46 MONTHLY INCREASE $ 0.20 $ 0.61 $ 0.63 $ 0.65 $ 0.68 $ 0.70 $ 0.73

15 Utility Board 2017 Work Plan Meeting Date January 10 February 28 March 14 Agenda Item National Pollutant Discharge Elimination System (NPDES) Ordinance Update 2017 Work Plan General Sewer Plan April 11 May 9 June 13 July 11 August 8 September 20 October 10 November 14 December 12 EAM System & Project Updates Meeting Canceled Board Elections Booster Chlorination Project Update Recess EMS Rates (Lake) Stormwater Budget & Rates (Lake) Water Budget & Rates (Lake) Sewer Budget & Rates (Lake) EAM System Implementation Update Recess To Be Scheduled SCADA Plan Water Quality Metrics & CIP Classification Solid Waste Contract Review