INTEROFFICE MEMORANDUM Date: October 4, 2012 To: Boise Public Works Commission From: Neal Oldemeyer, Director Subject: Sewer Regulatory Update Attached is a PowerPoint presentation that we recently gave to City Council, which we will also present for you. In general, it covers four topics: (1) a summary of our new permits and steps moving forward, (2) an update on our capital projects, (3) budget impacts, and (4) an updated cash flow projection with a recommended rate increase of 3%. You have been exposed to all of these elements, but we are now pulling them together for you in one presentation. The recommended rate increase is in alignment with the commission s previous recommendation. The cash flow projection has improved considerably, so we ll also be discussing the reasons behind the positive change. 1
NPDES Regulatory Update Sewer Regulatory Update October 11, 2012
Presentation Outline New Permit is in Effect Next Steps? Treatment Plant Improvements Current & Future Cost Implications and Interim Budget Changes Cash Flow and Rate Discussion
Lander Permit Requirements First Permit Cycle ph, Mercury, Ammonia August 2012 Dissolved Oxygen April 2013 Phosphorus (1,000 ug/l) May 2013 Lander Street Future December 2018 Second Permit Cycle Temperature May 2022 Phosphorus (70 ug/l) May 2022 Lander Rehab or Flow to West Boise May 2022
WB Permit Requirements First Permit Cycle Ammonia, Mercury May 2012 Phosphorus (Interim Limits) May 2016 Second Permit Cycle Temperature: Analysis Dec 2017; Schedule Dec 2018; Compliance Dec 2022 Phosphorus (70 ug/l) May 2022
Next Steps Reopener Language for West Boise Permit Public Event (Most Likely Early Fall) Obtain Dixie Drain Water Right Initiate Dixie Design/Approval Identify Temperature Treatment Alternatives & Offset Opportunities
Major Capital Projects First Permit Cycle (2012 to 2017) Lander Street Improvements $3.7 million Chemical Phosphorus Removal Dissolved Oxygen Treatment ph Adjustment
Major Capital Projects First Permit Cycle (2012 to 2017) West Boise Capacity Improvements Ultraviolet Disinfection $4.0 million Headworks & Clarifiers $2.1 million
Major Capital Projects First Permit Cycle (2012 to 2017) West Boise NPDES Improvements Struvite Production $4.0 million Phosphorus Removal (EBNR) $21.5 million Temperature Analysis $1.5 million
Major Capital Projects First Permit Cycle (2012 to 2017) Dixie Drain (assuming EPA approval) $6.7 million
Major Capital Projects Second Permit Cycle (2017 to 2022) Temperature Improvements West Boise Capacity Improvements West Boise Filtration Lander Street Rehab or Decommission? Other Food Waste-to-Energy 2014 Boise WaterShed Phase II 2015 Pipeline Improvements & Extensions Ongoing Major R&M (LS, WB, TMSF) Ongoing
Project Timelines
Short Term Budget Needs Capital: West Boise Phosphorus Add l $7.7 million Lander Street Phosphorus Add l $0.2 million Root Control Program $80,000 into O&M Equipment: Mercury Instrument $35,000 Ammonia Instrument $55,000
Short Term Budget Needs O&M: Dewatering Polymer $200,000 Biosolids Hauling Costs $50,000 Struvite $117,000 Lab Supplies $25,000 FTEs: Wastewater Technician $59,470 Temporary Equipment Operator $20,000 Lab Supervisor $87,970
Longer Term Budget Needs FY13 Budget Requests Still to be Developed Temperature Analysis Dixie Drain Temporary Sludge Dewatering (Contingency) Budget Requests in Outer Years Food Waste-to-Energy Project Boise WaterShed Temperature Improvements/Offsets Capacity Improvements or Lander Improvements
Sewer Fund Cash Flow Projection
Rate Comparison Location Qty (ft 3 ) Monthly Charge Comments Boise 658 $23.23 add l 3% - $23.93 NACWA - National Average (2011) Eagle Sewer District Flat rate $30.00 Garden City 658 $35.91 Nampa 658 $18.62 Meridian 658 $35.21 Caldwell 658 $26.27 N/A $34.11 2012 projected; 2011 actual was $32.50