P1 ENVIRONMENTAL SERVICES DEPARTMENT PROPOSED SERVICE PLAN 2019-2022 1. Mandate: Environmental Services (ENVS) provides leadership in environmental protection and sustainable service for the citizens of Red Deer and our Regional Partners in the areas of water treatment and distribution, collection and treatment of wastewater, collection and disposal of solid waste, collection of storm water runoff, and environmental initiatives. FTE 1 Table Year 2017 2018 2019 (proposed) # Budgeted FTE s 1 115.3 117.08 2 119.58 3 1 Calculation of the number of FTE positions is for budgeted positions based on 2019 budget guidelines 2 1.00 FTE (PFT) WWTP Lab Tech FAR; 1.93 FTE Green Cart Roll out FAR (Term); less 1.00 FTE Storm Water Position (OT); less 0.15 FTE for approved Personnel Information Update 3 The following are proposed through Funding Adjustment Requirements 1.00 FTE (OT) Stormwater Support person FAR less 1.00 FTE (OT) Stormwater FAR reversal 1.00 FTE (PFT) Water Distribution Operator FAR 1.00 FTE (OT) Corporate Environmental Sustainability Support Person (Grant FAR) 1.00 FTE (OT) Stormwater Utility Implementation FAR Less 0.5 FTE (OT) Green Cart Rollout FAR reversal 2. Department Priorities: 1. Environmental Master Plan Implementation The completion of the Environmental Master Plan (EMP) refresh is anticipated in early 2019. Once implementation priorities are established for the EMP, Environmental Services will work with other City Departments and stakeholders to see key priorities and action come to fruition. 2. Waste Management Master Plan Implementation The Cart collection program was launched in April 2018, starting with Green Carts. Single family households now receive automated weekly collection of food waste, pet waste and yard waste year round and the materials collected will be diverted for composting. Blue and Black Carts will be delivered to single family households in the spring of 2019 with collection starting at the beginning of May. At that time, every other week collection of Blue and Black Carts will be introduced, with Green Cart collection remaining weekly. 3. Stormwater Quality Improvements Based on the Stormwater Drainage Master Plan and the Storm Utility Feasibility Study, the establishment of a Storm Water Utility will help to address the needed repairs and maintenance to Red Deer s storm infrastructure. Currently Administration is compiling the implementation information including impact on customers. Should a Storm Water Utility be implemented a July 2021 launch in anticipated.
P2 Environmental Services The Storm Drainage Master Plan recommendations include: storm outfall rehabilitation, lift station improvements, storm sewer cleaning and inspection service level improvements. In alignment with these recommendations, a stormwater communications plan designed with the outcome to educate residents about these improvements will help to reduce the impacts from Stormwater drainage from the city of Red Deer to the Red Deer River. 4. Water Quality and Conservation Through implementation of the adopted Water Conservation, Efficiency and Productivity Plan (CEP), Environmental Services will provide leadership to the organization and the community regarding water conservation education, water efficiency programs, community engagement and planning focused on water conservation and protection of storm water quality. The City of Red Deer s Approval to Operate requires the City to look into options for the treatment and/or disposal of residuals from the WTP. The WTP Residuals Management Facility will be designed and constructed to remove residuals from the WTP waste stream before release into the Red Deer River. The Biosolids and Nutrient Recovery facility will allow for the removal and processing of the sludge produced by the WWTP Process as well as the recovery of nutrients - such as Phosphorous - from the wastewater stream prior to release into the Red Deer River. 5. Build the department s staffing and structure to establish a foundation that will: a. Maintain established service levels and continue to meet mandated requirements. b. Meet expectations for system reliability (after hours and emergency response). c. Adapt to changes in business processes which lead to efficiencies in delivering services. d. Take into account major upgrades and expansions to accommodate growth within Red Deer and the region. e. Monitor and address changes in Provincial policy direction as they impact core business. 3. Priority Categorizations: TITLE: Biosolids and Nutrient Recovery Facility Layer Cake & Description (please select one category) CHANGING ACCOMMODATING MAINTAINING Description: Currently the Wastewater Treatment Plant depends primarily on available farmland to dispose of the Plant s biosolids. A biosolids facility will allow the City to better manage the biosolids and reduce dependency on farmland. 2018 Design of a facility to manage biosolids generated at the Wastewater Treatment Plant (WWTP)
P3 Environmental Services 2019 Begin construction of the components required for biosolids management 2020 Complete construction of the components required to address biosolids management TIMELINE: (quarter and year) Start: Q3 2017 Complete: Q3 2022 FAR, FARpital, or Capital related to this request Phosphorus Recovery/Biosolids Management project in Wastewater TITLE: Residuals Management Facility (RMF) Layer Cake & Description (please select one category) CHANGING ACCOMMODATING MAINTAINING Description: As part of the Water Treatment Plant upgrade required by the City s Water Works Approval License and Provincial regulations, the City is continuing with design and construction of a Residuals Management Facility. This facility further cleans the discharge water that goes back into the river. This project commenced in 2017 with construction completion planned for 2020. TIMELINE: (quarter and year) Start: Q1 2017 Complete: Q2 2020 FAR, FARpital, or Capital related to this request Capital funding for construction of the RMF was approved in 2007; WTP Operations Foreperson FAR TITLE: Waste Water Treatment Plant (WWTP) Phase 5 Layer Cake & Description (please select one category) CHANGING ACCOMMODATING MAINTAINING
P4 Environmental Services Description: In order to accommodate the wastewater flows from the North Red Deer Regional Wastewater Services Commission and the Sylvan Lake Wastewater Services Commissions as well as future growth for the City of Red Deer, a further capacity expansion is required. This phase of the WWTP will accommodate growth to the year 2040. The timeline is as follows: 2022 Design of the Phase #5 WWTP 2023/2024 Construction of Phase #5 including Primary and Secondary Clarifiers, Bioreactors and DAF building. 2025 Construction Complete and facility operational TIMELINE: (quarter and year) Start: Q1, 2021 Complete: Q4, 2025 FAR, FARpital, or Capital related to this request TITLE: Storm Utility Implementation Layer Cake & Description (please select one category) CHANGING ACCOMMODATING MAINTAINING Description: Based on the Stormwater Drainage Master Plan and the Storm Utility Feasibility Study, the establishment of a Storm Water Utility will help to address the needed repairs and maintenance to Red Deer s stormwater infrastructure. Currently Administration is compiling the implementation information including impact on customers. Should a Storm Water Utility be implemented a July 2021 launch is anticipated. 2019 Subject to Council approval, a storm utility program (i.e. rate design, credit systems, property assessments, procedures, etc.) will be developed with a Public Communication Plan 2020/2021 Completion of the program development, public communications and implementation of the billing processes TIMELINE: (quarter and year) Start: Q2, 2019 Complete: Q4, 2021 FAR, FARpital, or Capital related to this request
P5 Environmental Services TITLE: Environmental Master Plan Layer Cake & Description (please select one category) CHANGING ACCOMMODATING MAINTAINING Description: The Environmental Master Plan provides a guide to continue to reduce Red Deer s environmental footprint. The speed of implementation of various programs will relate to funding approvals. Setting aside funding may also create opportunities to leverage additional resources (e.g. where matching grants exist) or result in cost savings over time as more efficient use is made of resources (e.g. investment in energy conservation). TIMELINE: (quarter and year) Start: Q1 2019 Complete: Q4 2023 FAR, FARpital, or Capital related to this request Refreshed EMP Implementation FAR; Corporate Sustainability EMP FAR
P6 Environmental Services TITLE: Blue and Black Cart Collection Layer Cake & Description (please select one category) CHANGING ACCOMMODATING MAINTAINING Description: After a two year pilot of Green, Black and Blue carts, the City began its community wide roll out in 2018. The first phase was delivering the Green Carts to over 29,000 residential properties. The next phase commences in 2019 with the delivery of the Black and Blue carts. 2019 City wide Blue and Black Cart roll out. Public spaces recycling pilot. 2020 Three cart system fully implemented. Implement public spaces recycling. 2021 Review regulatory options (e.g. mandatory recycling, disposal bans) as a mechanism to incent diversion. TIMELINE: (quarter and year) Start: Q2 2018 Complete: Q4 2020 FAR, FARpital, or Capital related to this request Cart Program Roll-Out FAR 4. Measures Please list the current measures you are using for the quarterly report to measure your current core service. If you would like to change these measures please identify those here. The benchmark project will be captured in a separate report. a. Water Utility: Water production efficiency: o operating cost divided by water production volume o 2018 Budget efficiency rate = $0.94 per m³ o 2019 Budget efficiency rate = $0.94 per m³ b. Wastewater Utility: Wastewater treatment efficiency: o operating cost divided by wastewater treatment volume o 2018 Budget efficiency rate = $0.81 per m³ o 2019 Budget efficiency rate = $0.81 per m³ c. Waste Management Utility: WMF operating efficiency:
P7 Environmental Services o operating cost divided by tonnes of waste landfilled and diverted o 2018 Budget efficiency rate = $51 per tonne o 2019 Budget efficiency rate = $51 per tonne Garbage and collection efficiency: o operating cost divided by tonnes of waste collected o 2018 Budget efficiency rate = $208 per tonne o 2019 Budget efficiency rate = $208 per tonne Recyclable collection efficiency: o operating cost divided by tonnes of recyclables collected o 2018 Budget efficiency rate = $500 per tonne o 2019 Budget efficiency rate = $500 per tonne
P8
P9 Environmental Services Department CHANGES IN BUDGET 2019 Budget Department Operating Budget Summary Total Council Approved Budget - 1,271,644 Total of All Reallocations (1,970) - Reallocated Budget (net $0 impact on City Budget) (1,970) 1,269,674 Budget Change to Base Prior Year Carry Forwards Reversals (330,120) - Subtotoal of Budget Changes to Base (330,120) 939,554 Changes within Submitted Budget Labour Reallocation/Adjustment (78,312) Internal Charges & Transfers Adjustment 568,506 Dept Changes within Submitted Budget (569,428) Subtotal of Dept. Changes within Submitted Budget (79,234) 860,320 EXPENDITURE 2017 Budget 2018 Budget 2019 Budget % Change Personnel 12,349,941 13,376,079 13,037,803 1.53% Fees, maintenance & Services 16,430,116 18,278,189 17,047,188 (6.73%) Materials, Supplies & Utilities 5,674,968 5,742,394 5,782,486 0.70% Other 24,333,981 25,728,057 25,728,757 0.00% SUB-TOTAL 58,789,006 63,124,719 61,596,234 (2.42%) Internal Charges & Transfers 38,323,439 20,629,056 21,747,201 5.42% TOTAL EXPENDITURE 97,112,445 83,753,774 83,343,435 3.00% Revenue 95,807,406 82,483,097 82,483,115 - NET TAX LEVY 1,305,039 1,270,677 860,320 (32.29%) Percentage Change - (2.63%) (32.29%) - BUDGET FULL TIME EQUIVALENT - - - -
P11 Section: Storm Sewer System (Sec-335) Department: Environmental Services Department CHANGES IN BUDGET 2019 Budget Section Operating Budget Summary Total Council Approved Budget 1,063,023 Total of All Reallocations (1,875) Reallocated Budget (net $0 impact on City Budget) (1,875) 1,061,148 Budget Change to Base Prior Year Carry Forwards Reversals (260,000) Subtotoal of Budget Changes to Base (260,000) 801,148 Changes within Submitted Budget Labour Reallocation/Adjustment (1,504) Internal Charges & Transfers Adjustment - Subtotal of Dept. Changes within Submitted Budget (1,504) 799,645 EXPENDITURE 2017 Budget 2018 Budget 2019 Budget % Change Personnel 502,625 399,083 311,239 24.18% Fees, maintenance & Services 199,400 182,641 55,591 (69.56%) Materials, Supplies & Utilities 61,003 74,788 37,482 (49.88%) Other 3,692,095 3,547,223 3,547,223 - SUB-TOTAL 4,455,123 4,203,735 3,951,535 (6.00%) Internal Charges & Transfers 662,388 (677,194) (684,994) 1.15% TOTAL EXPENDITURE 5,117,511 3,526,541 3,266,541 (4.85%) Revenue 4,079,445 2,466,896 2,466,896 - NET TAX LEVY 1,038,066 1,059,645 799,645 (24.54%) Percentage Change 2.08% (24.54%) BUDGET FULL TIME EQUIVALENT
P13 2019 Budget Section Operating Budget Summary Section: Environmental Services Admin Section (Sec-381) Department: Environmental Services Department CHANGES IN BUDGET Total Council Approved Budget 208,615 Total of All Reallocations (95) Reallocated Budget (net $0 impact on City Budget) (95) 208,520 Budget Change to Base Prior Year Carry Forwards Reversals (70,120) Subtotoal of Budget Changes to Base (70,120) 138,399 Changes within Submitted Budget Labour Reallocation/Adjustment (59,989) Internal Charges & Transfers Adjustment - Dept Changes within Submitted Budget 866 Subtotal of Dept. Changes within Submitted Budget (59,123) 79,277 EXPENDITURE 2017 Budget 2018 Budget 2019 Budget % Change Personnel 312,053 1,585,909 1,476,270 (1.61%) Fees, maintenance & Services 1,019,723 915,854 593,408 (35.21%) Materials, Supplies & Utilities 403,497 388,485 397,222 2.25% Other 62,026 55,603 55,603 - SUB-TOTAL 1,797,299 2,945,851 2,522,503 (14.37%) Internal Charges & Transfers (1,530,325) (2,715,993) (2,443,226) (10.04%) TOTAL EXPENDITURE 266,974 229,858 79,277 (24.41%) Revenue NET TAX LEVY 266,974 229,858 79,277 (65.51%) Percentage Change (13.90%) (65.51%) BUDGET FULL TIME EQUIVALENT
P14A Section: Water Utility Section (Sec-390) Department: Environmental Services Department CHANGES IN BUDGET 2019 Budget Section Operating Budget Summary Council Approved Budget 2 Total of All Reallocations - Reallocated Budget (net $0 impact on City Budget) - 2 Budget Change to Base Subtotoal of Budget Changes to Base 2 Changes within Submitted Budget Labour Reallocation/Adjustment (15,004) Internal Charges & Transfers Adjustment (503,074) Total Dept Changes within Submitted Budget 503,300 Subtotal of Dept. Changes within Submitted Budget (14,778) (14,776) EXPENDITURE Personnel Fees, maintenance & Services Materials, Supplies & Utilities Other SUB-TOTAL Internal Charges & Transfers TOTAL EXPENDITURE Revenue NET TAX LEVY Percentage Change BUDGET FULL TIME EQUIVALENT 2017 Budget 2018 Budget 2019 Budget % Change 5,518,715 4,854,553 4,854,553 2.69% 864,657 1,038,871 1,444,553 39.05% 3,223,751 3,125,867 3,125,350 (0.02%) 8,081,599 8,703,783 8,703,783-17,688,722 17,723,074 18,128,239 2.29% 16,734,009 11,810,672 11,405,755 (3.43%) 34,422,731 29,533,746 29,533,994 (1.14%) 34,422,732 29,548,753 29,548,770 - (1) (15,007) (14,776) (1.54%) (1.54%)
P14A Section: Wastewater Utility Section (Sec-415) Department: Environmental Services Department CHANGES IN BUDGET 2019 Budget Section Operating Budget Summary Council Approved Budget 1 Total of All Reallocations - Reallocated Budget (net $0 impact on City Budget) - 1 Budget Change to Base Subtotoal of Budget Changes to Base 1 Changes within Submitted Budget Labour Reallocation/Adjustment (1,825) Internal Charges & Transfers Adjustment 633,808 Total Dept Changes within Submitted Budget (635,809) Subtotal of Dept. Changes within Submitted Budget (3,826) (3,825) EXPENDITURE 2017 Budget 2018 Budget 2019 Budget % Change Personnel 5,022,126 5,366,081 5,368,061 (0.03%) Fees, maintenance & Services 1,945,062 2,484,960 1,614,085 (35.05%) Materials, Supplies & Utilities 1,923,969 2,087,190 2,156,368 3.31% Other 10,704,708 10,881,803 10,881,803 - SUB-TOTAL 19,595,865 20,820,034 20,020,317 (3.84%) Internal Charges & Transfers 17,697,296 9,352,519 10,152,233 8.55% TOTAL EXPENDITURE 37,293,161 30,172,553 30,172,550 4.71% Revenue 37,293,161 30,176,375 30,176,375 - NET TAX LEVY - (3,822) (3,825) 0.08% Percentage Change 0.08% BUDGET FULL TIME EQUIVALENT
P14B
P14C Section: Waste Mgmt Utility Section (Sec-460) Department: Environmental Services Department CHANGES IN BUDGET 2019 Budget Section Operating Budget Summary Council Approved Budget 4 Total of All Reallocations - Reallocated Budget (net $0 impact on City Budget) - 4 Budget Change to Base Prior Year Carry Forwards Reversals 0 Subtotoal of Budget Changes to Base 0 4 Changes within Submitted Budget Labour Reallocation/Adjustment 9 Internal Charges & Transfers Adjustment 437,772 Dept Changes within Submitted Budget (437,785) Subtotal of Dept. Changes within Submitted Budget (4) 0 Total EXPENDITURE 2017 Budget 2018 Budget 2019 Budget % Change Personnel 994,422 1,170,453 1,027,681 0.27% Fees, maintenance & Services 12,401,274 13,655,863 13,339,551 (2.32%) Materials, Supplies & Utilities 62,748 66,064 66,064 - Other 1,793,553 2,539,645 2,540,345 0.03% SUB-TOTAL 15,251,997 17,432,025 16,973,641 (2.63%) Internal Charges & Transfers 4,760,071 2,859,052 3,317,433 16.03% TOTAL EXPENDITURE 20,012,068 20,291,077 20,291,074 13.40% Revenue 20,012,068 20,291,073 20,291,074 - NET TAX LEVY - 4 0 (105.35%) Percentage Change (105.35%) BUDGET FULL TIME EQUIVALENT
P14D
P15 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400002 Item No. 45 Initiative Title: Stormwater Funding Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Maintain Service Levels B. This recommendation is related to: Maintenance and Modifications C. The financial impact of this recommendation is: $150,000 - D. Provide your business case: Brief Description including a rationale: A Stormwater Drainage Master Plan was completed in 2015 which identified additional work is needed to sustain a reliable stormwater drainage system. The City is exploring the establishment of a Stormwater Utility however in the interim the recommended funding will provide contracted services to improve service levels for prioritized projects. We need to fund some of the work on one-time basis to address the aging infrastructure For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? One-time funding was approved for 2 years, 2017 and 2018. This funding has ended. This request will ensure the stormwater work will continue. What other options did you consider to achieve the change? One option was, not proceeding with this request. However, that would decrease the amount of work being completed in stormwater system. Dedicated inspections would be decreased and response times to flooding will either be increased or overlooked as resources are dedicated to sanitary wastewater.
For a revenue FAR please answer the following: How you are increasing the revenue - increase in rates, increases in volumes, other mechanisms, or a combination. P16 If you are assuming a related expenditure please describe that briefly below. What other options did you consider to raise revenue without a related expenditure? E. Financial impact detail: 2019 2020 2021 2022 Revenue Funding - - - - Reserve Funding - New Ongoing - - - - Reserve Funding - New One time (150,000) - - - Request Funding (150,000) - - - Revenue Subtotal - - - - Total Labour Costs 93,760 - - - FTE One-time 1.00 - - - FTE Ongoing - - - - Fees, Maintenance and Services 20,000 - - - Materials & Supplies 28,440 - - - Other 7,800 - - - Internal Charges - - - - Internal Transfers - - - - Financial Impact 150,000 - - - Ongoing - - - - One-Time 150,000 - - - F. City Manager Comments Recommended support. This FAR represents a continuation of the program to upgrade the stormwater system following recommendations in the Stormwater Drainage Master Plan.
P17 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400003 Item No. 46 Initiative Title: Stormwater Detention Pond Maintenance Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Maintain Service Levels This financial impact of this recommendation is: $150,000 ongoing (maintenance) and $100,000 one-time funding (consultant) funded from Storm Pond deferred revenue B. This recommendation is related to: Maintenance and Modifications C. The financial impact of this recommendation is: $150,000 D. Provide your business case: Brief Description including a rationale: The City of Red Deer has approximately seventy stormwater pond areas which have never been cleaned. Stormwater pond maintenance requires r emov a l / pumping of the stormwater cleaning / dredging and eliminating invasive species (ex: goldfish). Stormwater ponds are designed to perform the following benefits: a. Control flooding by slowing surges and absorbing rainwater before it reaches waterways b. Filter pollutants Stormwater can contain: sediment nutrients bacteria trace metals oil and grease and pesticides/ herbicides. Proper maintenance allows the ponds to operate as intended. A consultant would be hired and a plan will be developed to assess all stormwater ponds. The work will be to cleaning two of the largest stormwater pond projects (Ackerman and Anders) in 2019. Additional ponds would be cleaned in future years based the Plan. For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? What other options did you consider to achieve the change? This is specialized maintenance work and options are limited. The ponds require cleaning.
For a revenue FAR please answer the following: How you are increasing the revenue - increase in rates, increases in volumes, other mechanisms, or a combination. P18 If you are assuming a related expenditure please describe that briefly below. What other options did you consider to raise revenue without a related expenditure? E. Financial impact detail: 2019 2020 2021 2022 Revenue Funding - - - - Reserve Funding - New Ongoing - - - - Reserve Funding - New One time (150,000) - - - Request Funding (150,000) - - - Revenue Subtotal (100,000) - - - Total Labour Costs - - - - FTE One-time - - - - FTE Ongoing - - - - Fees, Maintenance and Services 250,000 - - - Materials & Supplies - - - - Other - - - - Internal Charges - - - - Internal Transfers - - - - Financial Impact 150,000 - - - Ongoing - - - - One-Time 150,000 - - - F. City Manager Comments Recommend support. This FAR represents the development of a more comprehensive plan for the maintenance of stormwater ponds throughout the City. It includes the maintenance of two of the largest stormwater ponds, which require cleaning.
P19 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400001 Item No. 63 Initiative Title: Engineer in Training Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Maintain Service Levels B. This recommendation is related to: Changing Service C. The financial impact of this recommendation is: $0 - D. Provide your business case: Brief Description including a rationale: Based on current engineering consultant charge out rates it was determined that having the City of Red Deer Engineering Department complete the design would be the most cost effective approach. In order to facilitate this approach the City would need to be able to have an in house inspector available on demand to inspect the multiple linear projects. Environmental Services hired a temporary Engineer in Training to fulfill this role in 2016. Over the first two years of the position, The City has saved approximately $200,000 compared to hiring a consulting company to complete this work. This savings in budget has been applied to the projects to undertake additional capital construction work. Environmental Services is now requesting to continue with this position so that the City can continue addressing priority of projects and ensure that Environmental Services department is receiving capital projects of the highest quality. For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? Cost effective project management What other options did you consider to achieve the change? We could revert to hiring outside contractors, or see a decrease in annual work completed.
For a revenue FAR please answer the following: How you are increasing the revenue - increase in rates, increases in volumes, other mechanisms, or a combination. P20 If you are assuming a related expenditure please describe that briefly below. What other options did you consider to raise revenue without a related expenditure? E. Financial impact detail: 2019 2020 2021 2022 Revenue Funding - - - - Reserve Funding - New Ongoing - - - - Reserve Funding - New One time - - - - Request Funding - - - - Revenue Subtotal - - - - Total Labour Costs 96,006 - - - FTE One-time 1.00 - - - FTE Ongoing - - - - Fees, Maintenance and Services - - - - Materials & Supplies 500 - - - Other - - - - Internal Charges - - - - Internal Transfers (96,506) - - - Financial Impact 0 - - - Ongoing - - - - One-Time 0 - - - F. City Manager Comments Recommend support. This FAR represents an Engineer-in-training position to assist in supervising capital projects. This represents a cost savings in terms of inspecting multiple linear projects throughout the City
P21 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400006 Item No. 64 Initiative Title: Engineering Coop Students Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Maintain Service Levels B. This recommendation is related to: Changing Service C. The financial impact of this recommendation is: - D. Provide your business case: Brief Description including a rationale: Environmental Planning delivers a large number of projects for Environmental Services ranging from simple equipment rehabilitations to multimillion dollar treatment plant expansions. Generally each of the Environmental Planning Engineers has one large multimillion dollar project and roughly six to ten additional projects they are responsible for managing leaving a number of remaining projects requiring support or resulting in delays. The complexity of the multimillion dollar projects results in a significant amount of their attention on that project. Subsequently we are recommending the hiring of two engineering Co-op students on 8 month terms to provide project management support to the remaining projects. This initiative will also provide learning opportunities for engineering students and get them interested in employment opportunities with The City. It is more cost effective to hire Co-op Students to assist the Environmental Planning Engineers than it is to hire an additional Engineer fulltime. For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? What other options did you consider to achieve the change?
For a revenue FAR please answer the following: How you are increasing the revenue - increase in rates, increases in volumes, other mechanisms, or a combination. P22 If you are assuming a related expenditure please describe that briefly below. What other options did you consider to raise revenue without a related expenditure? E. Financial impact detail: 2019 2020 2021 2022 Revenue Funding - - - - Reserve Funding - New Ongoing - - - - Reserve Funding - New One time - - - - Request Funding - - - - Revenue Subtotal - - - - Total Labour Costs 71,500 - - - FTE One-time - - - - FTE Ongoing 1.00 - - - Fees, Maintenance and Services - - - - Materials & Supplies - - - - Other - - - - Internal Charges - - - - Internal Transfers (71,500) - - - Financial Impact - - - - Ongoing - - - - One-Time - - - - F. City Manager Comments Recommend support. This FAR represents the hiring of two engineering co-op students to provide project management support.
P23 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400043 Item No. 65 Initiative Title: Stormwater Utility Implementation Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Directed Service Level Increase B. This recommendation is related to: Changing Service C. The financial impact of this recommendation is: $380,000 D. Provide your business case: Brief Description including a rationale: In 2015 The Stormwater Utility Feasibility Study was prepared to determine the benefits and feasibility of moving to a utility system of funding operations maintenance and capital costs associated with the City's storm drainage system. The storm drainage system is currently funded from property taxes which bases its assessment on property value. Utility funding models similar to the water or wastewater utilities are generally based on the relative benefit that each user gets from the system and can therefore be seen to be more equitable. Another advantage of a utility based system is the ability to recognize/reward customers through credits or incentives for improving storm water quantity and/or quality characteristics at the source (i.e. within their property). This study will develop a proposed implementation plan and financial analysis for Council to consider in making a decision on a Storm Water Utility. For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? Council will have the necessary information to make a decision on Storm Water Utility. Utility funding models similar to the water and wastewater utilities are generally based on the relative benefit that each user gets from the system and can therefore be seen to be more equitable. Another advantage of a utility based system is the ability to recognize customers through credits or incentives for improving storm water quantity and/or quality characteristics at the source (i.e. within their property). What other options did you consider to achieve the change? Status quo
For a revenue FAR please answer the following: How you are increasing the revenue - increase in rates, increases in volumes, other mechanisms, or a combination. P24 If you are assuming a related expenditure please describe that briefly below. What other options did you consider to raise revenue without a related expenditure? E. Financial impact detail: 2019 2020 2021 2022 Revenue Funding - - - - Reserve Funding - New Ongoing - - - - Reserve Funding - New One time (155,833) (190,000) (34,167) - Request Funding (155,833) (190,000) (34,167) - Revenue Subtotal - - - - Total Labour Costs 92,457 110,949 18,491 - FTE One-time 1.00 1.00 1.00 - FTE Ongoing - - - - Fees, Maintenance and Services 43,376 54,051 10,676 - Materials & Supplies - - - - Other - - - - Internal Charges 20,000 25,000 5,000 - Internal Transfers - - - - Financial Impact 155,833 190,000 34,167 - Ongoing - - - - One-Time 155,833 190,000 34,167 - F. City Manager Comments Recommend support. This FAR represents the work that is needed to be undertaken for council to make a final decision on whether to move towards a stormwater utility. Most large cities in Canada have either adopted or are moving towards this system, which is considered "best practice".
P25 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400041 Item No. 113 Initiative Title: Implementation of the Refreshed Environmental Master Plan Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Directed Service Level Increase B. This recommendation is related to: Strategic and Sustainability Priorities C. The financial impact of this recommendation is: $80,000 D. Provide your business case: Brief Description including a rationale: In 2016 Council provided for a review of the EMP. The review looked at: the plan's metrics focus areas and actions. Following the completion of the EMP Refresh the next step is to implement the priority actions laid out in the plan and proactively address environment concerns. Depending on the final Plan's recommendations some of these actions will have associated implementation costs. The City of Red Deer has a long standing history of commitment to environmental action. The foundation for environmental leadership has been set with the EMP however to build on this base and to continue to move key priorities forward and to address new actions that were not envisioned 5 or 6 years ago; funding is required for implementation of the recently updated plan. As part of the process Council will have the ability to decide the priorities and timing of the recommended actions. The requested funds will be used to implement the priority actions from the refreshed Environmental Master Plan (EMP). These properties for implementation are determined on a regular basis. For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? The funding will mean the priority projects of the newly updated Environmental Master Plan will be implemented; resulting in continued environmental leadership and support of the Environmental Pillar of Red Deer's sustainability framework. What other options did you consider to achieve the change? Implementing the EMP priorities would be difficult.
P26 For a revenue FAR please answer the following: How you are increasing the revenue - increase in rates, increases in volumes, other mechanisms, or a combination. If you are assuming a related expenditure please describe that briefly below. What other options did you consider to raise revenue without a related expenditure? E. Financial impact detail: 2019 2020 2021 2022 Revenue Funding - - - - Reserve Funding - New Ongoing - - - - Reserve Funding - New One time (80,000) - - - Request Funding (80,000) - - - Revenue Subtotal - - - - Total Labour Costs - - - - FTE One-time - - - - FTE Ongoing - - - - Fees, Maintenance and Services 80,000 - - - Materials & Supplies - - - - Other - - - - Internal Charges - - - - Internal Transfers - - - - Financial Impact 80,000 - - - Ongoing - - - - One-Time 80,000 - - - F. City Manager Comments Recommended support. The implementation of the updated Environmental Master Plan (EMP). It is proposed that the use of these funds be conditional upon priority projects being identified and presented to Council for approval.
P27 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400025 Item No. 114 Initiative Title: Water base budget changes Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Maintain Service Levels B. This recommendation is related to: Base Budget Items C. The financial impact of this recommendation is: $26,022 - D. Provide your business case: Brief Description including a rationale: Base budget changes include changes to the budget as required as a result of the 2019 budget guidelines. These changes affect items such as fleet, parks, water meter recoveries from Wastewater; investment income; other revenue; insurance; natural gas; electricity; support cost allocations; and debenture principal and interest. These changes are influenced by external factors outside of Environmental Services control such as union agreements, consumer price adjustments, etc. For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? The change will provide for more accurate budgets. What other options did you consider to achieve the change? Another option would be to not adjust the budget and report the variances.
For a revenue FAR please answer the following: How you are increasing the revenue - increase in rates, increases in volumes, other mechanisms, or a combination. P28 If you are assuming a related expenditure please describe that briefly below. What other options did you consider to raise revenue without a related expenditure? E. Financial impact detail: 2019 2020 2021 2022 Revenue Funding (26,022) - - - Reserve Funding - New Ongoing - - - - Reserve Funding - New One time - - - - Request Funding (26,022) - - - Revenue Subtotal 215,956 - - - Total Labour Costs - - - - FTE One-time - - - - FTE Ongoing - - - - Fees, Maintenance and Services 12,959 - - - Materials & Supplies (217,124) - - - Other (230,525) - - - Internal Charges 658 - - - Internal Transfers 244,098 - - - Financial Impact 26,022 - - - Ongoing 26,022 - - - One-Time - - - - F. City Manager Comments Recommended support. This FAR represents the components of the changes to the water utility base budget.
P29 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400026 Item No. 115 Initiative Title: Water Personnel Provisions Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Contractual Obligations B. This recommendation is related to: Base Budget Items C. The financial impact of this recommendation is: $54,441 - D. Provide your business case: Brief Description including a rationale: To provide an estimated budget for compensation related cost changes such as contract settlements, position evaluations, market adjustments, and changes in benefit costs. The compensation related changes are due to primarily union and exempt contractual obligations. For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? Compensation related increases are required to help retain staff to create a stable and motivated/satisfied workforce. With less turnover there will be less recruitment and employee development related costs and organizational knowledge/memory is retained. What other options did you consider to achieve the change? None
For a revenue FAR please answer the following: How you are increasing the revenue - increase in rates, increases in volumes, other mechanisms, or a combination. P30 If you are assuming a related expenditure please describe that briefly below. What other options did you consider to raise revenue without a related expenditure? E. Financial impact detail: 2019 2020 2021 2022 Revenue Funding (54,441) - - - Reserve Funding - New Ongoing - - - - Reserve Funding - New One time - - - - Request Funding (54,441) - - - Revenue Subtotal - - - - Total Labour Costs 54,441 - - - FTE One-time - - - - FTE Ongoing - - - - Fees, Maintenance and Services - - - - Materials & Supplies - - - - Other - - - - Internal Charges - - - - Internal Transfers - - - - Financial Impact 54,441 - - - Ongoing 54,441 - - - One-Time - - - - F. City Manager Comments Recommended support. This FAR represents compensation related cost changes for the water utility.
P31 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400020 Item No. 116 Initiative Title: Water Reserve Transfers Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Maintain Service Levels B. This recommendation is related to: Maintenance and Modifications C. The financial impact of this recommendation is: $1,042,552 - D. Provide your business case: Brief Description including a rationale: The financial impact of this recommendation is: $495,873 Water maintains a capital reserve and an operating reserve as detailed in the Utility policy for asset replacement; asset rehabilitation; acquisition of future assets; maintain operations; manage unplanned changes in operating expenditures and revenues; and mitigate the impact of significant changes in revenue requirements on customer rates for any particular year. The Utility is increasing the net amount of the transfer to the reserve due to an overall increase in surplus in the amount of $495,873 over the previous year in order to fund future capital. For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? What other options did you consider to achieve the change?
For a revenue FAR please answer the following: How you are increasing the revenue - increase in rates, increases in volumes, other mechanisms, or a combination. P32 If you are assuming a related expenditure please describe that briefly below. What other options did you consider to raise revenue without a related expenditure? E. Financial impact detail: 2019 2020 2021 2022 Revenue Funding (1,042,552) - - - Reserve Funding - New Ongoing 1,042,552 - - - Reserve Funding - New One time - - - - Request Funding - - - - Revenue Subtotal - - - - Total Labour Costs - - - - FTE One-time - - - - FTE Ongoing - - - - Fees, Maintenance and Services - - - - Materials & Supplies - - - - Other - - - - Internal Charges - - - - Internal Transfers - - - - Financial Impact 1,042,552 - - - Ongoing 1,042,552 - - - One-Time - - - - F. City Manager Comments Recommended support. This FAR represents an increase to the net transfer to reserves for the water utility.
P33 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400037 Item No. 117 Initiative Title: WTP Operation Foreperson Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Operating Impact of Capital B. This recommendation is related to: Maintenance and Modifications C. The financial impact of this recommendation is: $115,830 D. Provide your business case: Brief Description including a rationale: Construction will begin in the fall of 2018 on a new Residuals Management Facility (RMF). This $30M project includes the demolition of the former treatment plant and design and construction of the new RMF plant. This facility has been designed to treat the waste streams generated by the Water Treatment Plant (WTP) processes before being released back into the river. With this added infrastructure and operation an additional operation foreperson is required. The WTP is operated twenty-four (24) hours a day three hundred and sixty-five (365) days of the year This additional staffing request is required as part of the efforts to properly manage the facility ensure For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? The ability to operate, maintain and monitor the RMF without impacting the service levels of the WTP, reservoirs and pumping stations. This monitoring is part of our Provincial Approval to Operate. What other options did you consider to achieve the change? The new construction of the RMF is the result of Alberta Environment and Parks (AEP) requirements and a comprehensive review of all alternative options to treat these ongoing process waste streams. Maintaining
For a revenue FAR please answer the following: How you are increasing the revenue - increase in rates, increases in volumes, other mechanisms, or a combination. P34 If you are assuming a related expenditure please describe that briefly below. What other options did you consider to raise revenue without a related expenditure? E. Financial impact detail: 2019 2020 2021 2022 Revenue Funding - - - - Reserve Funding - New Ongoing - - - - Reserve Funding - New One time - - - Request Funding - - - Revenue Subtotal - - - - Total Labour Costs - 85,221 28,409 - FTE One-time - - - - FTE Ongoing - 0.75 0.25 - Fees, Maintenance and Services - 1,600 - - Materials & Supplies - 5,600 - - Other - - - - Internal Charges - - - - Internal Transfers - (92,421) (28,410) 115,631 Financial Impact - (1) 115,631 Ongoing - 0 (1) 115,631 One-Time - - - F. City Manager Comments Recommended support. This FAR represents the approval of a new operation foreperson at the water treatment plant in 2020 as the new residuals management system begins operation. This new section of the plant will be under construction in 2019.
P35 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400023 Item No. 119 Initiative Title: Water Regional Revenue Change Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Revenue B. This recommendation is related to: Accommodating Growth C. The financial impact of this recommendation is: $(108,321) - D. Provide your business case: Brief Description including a rationale: The City of Red Deer has become a regional water treatment provider. The North Red Deer Regional Water Services Commission has been in operations for a number of years as well as the Red Deer County South Hills development. Based on the projected 2019 volumes, supplied by the commission, the increase in revenue has been calculated to be $108,321. Regional water rates are recommended to increase by 2.25% to ensure all costs are included. The financial impact is an increase in revenue of $(108,321). For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? What other options did you consider to achieve the change? For a revenue FAR please answer the following: How you are increasing the revenue - increase in rates, increases in volumes, other mechanisms, or a combination.
Increase in rates, increases in volumes, other mechanisms, or a combination. We are raising the rates to all customers including the regional customers P36 If you are assuming a related expenditure please describe that briefly below. What other options did you consider to raise revenue without a related expenditure? E. Financial impact detail: 2019 2020 2021 2022 Revenue Funding 108,321 - - - Reserve Funding - New Ongoing - - - - Reserve Funding - New One time - - - - Request Funding 108,321 - - - Revenue Subtotal (108,321) - - - Total Labour Costs - - - - FTE One-time - - - - FTE Ongoing - - - - Fees, Maintenance and Services - - - - Materials & Supplies - - - - Other - - - - Internal Charges - - - - Internal Transfers - - - - Financial Impact (108,321) - - - Ongoing (108,321) - - - One-Time - - - - F. City Manager Comments Recommend support. This FAR represents revenue from 2.25% increase in rates from regional customers in order to ensure full cost recovery.
P37 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400024 Item No. 120 Initiative Title: Water Growth Revenue Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Revenue B. This recommendation is related to: Accommodating Growth C. The financial impact of this recommendation is: $(312,377) - D. Provide your business case: Brief Description including a rationale: The City of Red Deer has become a regional water treatment provider. The North Red Deer Regional Water Services Commission has been in operations for a number of years as well as the Red Deer County South Hills development. Current usage modeling projects consistent in-city water consumption in 2018 but slightly higher regional water consumption. Based on the 2018 rates, this will result in a revenue increase of $312,377. For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? What other options did you consider to achieve the change?
For a revenue FAR please answer the following: How you are increasing the revenue - increase in rates, increases in volumes, other mechanisms, or a combination. P38 If you are assuming a related expenditure please describe that briefly below. What other options did you consider to raise revenue without a related expenditure? E. Financial impact detail: 2019 2020 2021 2022 Revenue Funding 312,377 - - - Reserve Funding - New Ongoing - - - - Reserve Funding - New One time - - - - Request Funding 312,377 - - - Revenue Subtotal (236,451) - - - Total Labour Costs - - - - FTE One-time - - - - FTE Ongoing - - - - Fees, Maintenance and Services - - - - Materials & Supplies - - - - Other - - - - Internal Charges (75,926) - - - Internal Transfers - - - - Financial Impact (312,377) - - - Ongoing (312,377) - - - One-Time - - - - F. City Manager Comments Recommend support. This FAR represents increased revenue for water consumption after a projected decline in 2018.
P39 THE CITY OF RED DEER - 2019 BUDGET FUNDING ADJUSTMENT RECOMMENDATION BRO-400030 Item No. 118 Initiative Title: Water meters - Drive by Readings Department Name & Reference #: Environmental Services A. This FAR is required based on the following criteria: Operating Impact of Capital B. This recommendation is related to: Changing Service C. The financial impact of this recommendation is: $(379,000) D. Provide your business case: Brief Description including a rationale: This initiative allows the City to gather water meter reads quickly and accurately while at the same time allowing the City employee to respond to read incorrectly as they occur thereby increasing efficiencies and reducing water bill adjustments in the future. In 2015 the City started the Automated Meter Reading (AMR) project which comprised of replacing all mechanical water meters within the city of Red Deer with AMR technology meters. This new technology allows the City to collect water consumption data by driving/walking around with a handheld or vehicle mounted device using radio waves to gather the data. The data is then uploaded electronically into the billing system verified by the Utilities department and billed to the customer monthly. The contractor spends 21 days (or every week day) per month collecting water meter data and each home/business is read once per month. There are approximately 30,000 residential meters and 1,700 commercial. Currently Environmental Services contracts out its meter reading work at an annual average cost of $504,000 (or $42,000 a month). Environmental Services proposes to eliminate the use an external contractor by 80% in 2019 and move the water meter reading work for all AMR installed meters in-house in the form of a new 1.0 FTE in Environmental Services. The total annual average cost for this is estimated to be $125,000 including equipment and software costs. In 2020 Environmental Services will eliminate the use of an external contractor completely and will be utilizing the new FTE. For an expenditure (only) FAR please answer the following: What change will we realize as a result (outcome)? This would realize a cost savings in 2019 of $278,000 ($403,000 meter reading contract savings less $125,000 in salary fleet and other costs) and an additional $101,000 (all meter reading contract savings) in 2020 for a total of $379,000 annually starting in 2020. In addition to the potential cost savings the following benefits could be achieved we will be able to respond billing and investigate discrepancies and meter failures. What other options did you consider to achieve the change? This would realize a cost savings in 2019 of $278,000 ($403,000 meter reading contract savings less $125,000 in salary fleet and other costs) and an additional $101,000 (all meter reading contract savings) in 2020 for a total of $379,000 annually starting in 2020. In addition to the potential cost savings the following benefits could be achieved we will be able to respond billing and investigate discrepancies and meter failures.