FY 15 Budget Review

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FY 15 Executive Management Team Budget Review December 4th 2013

FY 15 Budget Review Agenda

December 4, 2013 10:30 A.M

Meeting Facilitator: Nicole Brown/Ryan Adkison Attendees: Carman, TJ Lynch, Kenny Waldroup, Whit Wheeler, Robert Massengill, Jennifer Alford, Paulina Haro-Camm

Topics

Rate Model



a. FY 15 Proposed b. FY 14 Adopted

FY15 Summary Changes/Housekeeping



Reclassification Summary Operational Supplemental



Capital Supplemental



Funding Options



Pending Issues



FY 2015 Rate Model

FY15 Preliminary Sufficiency Sheet Highlights



FY 2013 o FY 2014 o FY 2015 o

Updated to match the CAFR audited results



Shows the Adopted Budget.



Includes the initial base budget.

o Revenues - Water/Sewer revenue has been updated with FY 2013 consumption, which is slightly less than FY 2012 consumption. o Line 27 – PAYGO for Nutrient Reduction /Watershed Protection increase to $1.5M to match the capital project expense. o Line 28- PAYGO for Infrastructure Replacement was added, which is the amount to keep the fund balance from exceeding 100% of the O&M. o Wake Forest revenue projected at a level which assumes they will have completed the merger in FY 2014.

Parity Coverage Ratios



FY 2013 o

Projected - 2.42x Actual - 2.65x

 Parity coverage for FY 2015 is currently at 2.25x  The last sufficiency from the FY 2014 rate process showed the parity coverage at 2.23x, this leaves room for an additional $1.15 million in operating expenses  The forecast from the bonds presented parity coverage at 2.16x in FY 2015; if this is our target we can add $4.5 million in operating expenses.

Proposed FY 15 Rate Model

City of Raleigh Department of Public Utilities Financial Planning Model Revenue Sufficiency & Rate Projections

FY 2013

FY 2014

FY 2015

FY 2016 Projected

FY 2017 Projected

FY 2018 Projected

Line No.

Total System Revenue

Actual

Budget

Raleigh/Garner User Charge Revenue

Water User Charges (1) Sewer User Charges (1)

66,976,257 66,712,743 133,689,000

71,115,600 77,712,227 148,827,827

75,409,474 83,408,657 158,818,131

80,214,055 88,737,001 168,951,056

85,737,268 94,865,762 180,603,030

89,012,570 98,412,991 187,425,561

1. 2. 3.

Subtotal: Raleigh/Garner User Charges

Miscellaneous Revenue

Merger Town Water User Charges Merger Town Sewer User Charges Merger Town Miscellaneous Revenue

10,128,685 11,238,448 8,211,443 23,400,957

8,934,325 10,117,520 4,022,000 19,490,316 793,440 1,631,700 44,989,301 193,817,128

9,009,724 10,185,545 3,022,000 19,524,886 823,200 1,631,700 44,197,055 203,015,186

9,086,253 10,254,591 3,022,000 19,560,666 1,030,000 1,631,700 44,585,210 213,536,266

9,163,931 10,324,672 3,022,000 19,597,698 1,110,000 1,631,700 44,850,001 225,453,031

9,242,773 10,395,805 3,022,000 19,636,026 1,110,000 1,631,700 45,038,304 232,463,865

4. 5. 6. 7. 8. 9.

Other Operating Income Acreage Fee Revenue

Interest Income Fund 315 Revenue

664,309 156,592

10.

Subtotal: Miscellaneous Revenue

$ $

53,800,433

$ $

11.

187,489,433

12. Total: System Revenue

General Water Rate Increase - Admin (2) General Water Rate Increase - Volume (2) General Sewer Rate Increase - Admin (2) General Sewer Rate Increase - Volume (2)

Approx. 10% Calculated

7.0% 7.0% 7.0% 7.0%

6.0% 6.0% 6.0% 6.0%

3.0% 3.0% 3.0% 3.0%

13. 14. 15. 16.

15% 15%

Calculated

14%

17. Total Operating Expenses

(89,197,234)

(98,198,924)

(98,665,501)

(101,790,349) $

(105,022,683) $

(108,373,897) $

18. Net: Revenue Available for Debt Service Current and Future Debt Funding Needs 19. Revenue Bonds & Parity Debt (3,4) Projected Refunding Savings (5) Subordinate Debt (SRF & GO Bonds) Other Indebtedness (Installment Fin., COPs) Transfer to General Fund for ERP Debt (6) 20. 21. 22. 23.

98,292,199

95,618,204

104,349,685

111,745,917

120,430,348

124,089,968

(37,062,626)

(42,188,681)

(46,398,778)

(51,057,095)

(45,149,175)

(50,656,098)

(2,225,650) (3,551,163) (1,776,039) (44,615,478) 53,676,721 (32,500,000) (1,416,000)

(3,537,970) (4,157,787) (1,608,684) (51,493,122) 44,125,082 (33,000,000) (1,416,000) (5,618,367)

(4,608,802) (3,052,296) (1,582,466) (55,642,342) 48,707,343 (33,000,000) (1,500,000) (7,536,766)

(7,623,841) (3,427,049) (1,637,852) (63,745,837) 48,000,080 (36,000,000) (1,500,000) (7,375,232)

(6,594,468) (2,864,767) (1,695,177) (56,303,587) 64,126,761 (38,000,000) (1,500,000) (8,693,552) 15,933,209

(6,424,959) (2,133,452) (1,754,508) (60,969,016) 63,120,952 (40,000,000) (1,500,000) (18,269,738)

24. Total: Debt All Sources

25. Annual Surplus/(Deficit)

CIP Planned PAYGO

26.

27. PAYGO For Nutrient Reduction/Watershed Protection

PAYGO for Infrastructure Renewal (7)

28.

29. Total Surplus/(Deficit) w/ PAYGO

19,760,721

4,090,715

6,670,577

3,124,848

3,351,214

Debt Service Coverage Parity Indebtedness (8)

2.65

2.27

2.25

2.19

2.67

2.45

30. 31. 32. 33. 34. 35. 36. 37. 38. 39.

Legal Covenant: 1.20

City Policy:

2.00

2.50

2.09

2.05

1.90

2.33

2.17

Parity, Subordinated, & G.O. Indebtedness

Legal Covenant: 1.00

City Policy:

1.25

2.20

1.86

1.88

1.75

2.14

2.04

All Sources

Legal Covenant: 1.00

City Policy:

1.00

Unrestricted Fund Balances

Beginning Balance (9)

79,738,433 19,760,721 (5,390,946) 94,108,209

94,108,209 4,090,715

98,198,924 6,670,577 (6,204,000) 98,665,501

98,665,501 3,124,848

101,790,349 15,933,209 (12,700,875) 105,022,683

105,022,683

Total Surplus/(Deficit) (Line 29) Transfers to CAPI Funds (10)

3,351,214

Ending Balance (9)

98,198,924

101,790,349

108,373,897

Ratio of Ending Balance to O&M (11)

105.5%

100.0%

40.

Minimum Target Balance (11)

44,598,617 49,509,592

49,099,462 49,099,462 3,128,672

49,332,751 49,332,751 3,128,671

50,895,174 50,895,174 3,238,174

52,511,341 52,511,341 3,351,511

54,186,948 54,186,948 3,468,813

41.

Ending Over/(Under) Target Balance

42.

Budgeted Non-Cash Reserve

43.

Typical Residential Customer Bill (12)

$ 48.89

$ 52.63

$ 56.31

$ 59.71

$ 63.35

$ 65.28

44. 45.

% Change

8.8%

7.6%

7.0%

6.0%

6.1%

3.1%

(1) Projected water and sewer user charge revenue is based on actual FY 2013 customer demand and assumes 1.5% annual growth in accounts beginning in FY 15. Consumption is projected to remain constant through FY 2016 and 0.50% annual growth is included beginning in FY 2017. (2) Water and Sewer Admin charges are calculated to recover costs related to billing, meter reading, utility administration, and a percentage of annual debt service requirements. Water and Sewer Volumetric rates increase based on percentages shown. Projected water and sewer rates are shown on the following page. (3) Increases in revenue bond debt are based on future debt issues in the amounts of $75, $77, $158, and $163 million for Series 2013, 2015, 2017 and 2019, respectively.

(4) Excludes liquidity/remarketing costs from 2008 A&B debt, which are included in operating expenses (line 17). (5) Used to present potential savings when considering refunding scenarios. No refunding is currently under consideration. (6) Represents a transfer to the General Fund that is used for payment of Utilities' portion of debt service relating to the City's ERP system.

(7) Ending fund balance above 100% of annual O&M is available for infrastructure renewal. (8) City Policy includes a Council endorsed 2.00x Parity Coverage beginning in FY 2012. (9) The balance shown in "Unrestricted Fund Balance" is for Operating and Debt Service Funds Only. See Appendix A for FY 13 reconciliation to financial statements. (10) In lieu of using bond proceeds, the City has elected to cash-finance the Capitalized Interest Funds. (11) City Policy includes a minimum target balance of 50% of annual O&M costs. (12) Monthly bill assuming a residential customer with a 5/8" meter and 6 ccf monthly usage and includes $0.45 per bill for Watershed Protection.

Raleigh Financial Planning Model FY15 Update v3

Draft

12/3/2013

City of Raleigh Department of Public Utilities Financial Planning Model Revenue Sufficiency & Rate Projections

FY 2012

FY 2013 Estimated

FY 2014

FY 2015 Projected

FY 2016 Projected

FY 2017 Projected

Line No.

Total System Revenue

Actual

Budget

Raleigh/Garner User Charge Revenue

Water User Charges (1) Sewer User Charges (1)

69,624,243 58,740,881 128,365,123

68,737,422 66,265,381 135,002,802

71,856,638 77,877,839 149,734,477

75,921,298 83,315,227 159,236,524

80,614,996 88,576,146 169,191,142

85,854,340 94,288,454 180,142,794

1. 2.

Subtotal: Raleigh/Garner User Charges

Miscellaneous Revenue

Merger Town Water User Charges Merger Town Sewer User Charges Merger Town Miscellaneous Revenue

9,307,890 10,138,835 4,133,740 18,558,347

10,156,325 11,179,767 5,735,118 21,255,320

8,934,325 10,117,520 4,022,000 19,490,316

9,068,340 10,269,283 4,022,000 19,524,886

9,204,365 10,423,322 4,022,000 19,560,666

9,342,430 10,579,672 4,022,000 19,597,698

4. 5. 6. 7. 8. 9.

Other Operating Income (2)

Acreage Fee Revenue

Interest Income

977,127

650,929

793,440

823,200

1,030,000 1,631,700

1,110,000 1,631,700

Fund 315 Revenue

1,883,956

1,631,700

10.

44,999,895

50,609,159

44,989,301

45,339,408

45,872,053

46,283,500

Subtotal: Miscellaneous Revenue

11.

173,365,019

185,611,961

194,723,778

204,575,933

215,063,194

226,426,294

Total: System Revenue

12.

General Water Rate Increase - Admin (3) General Water Rate Increase - Volume (3) General Sewer Rate Increase - Admin (3) General Sewer Rate Increase - Volume (3)

0% 0%

Approx. 10% Calculated

Calculated

13. 14. 15. 16.

20% 20%

15% 15%

Calculated

14%

17. Total Operating Expenses

(90,783,309)

(95,832,597)

(98,203,779)

(101,310,667) $

(104,531,494) $

(107,863,548) $

18. Net: Revenue Available for Debt Service Current and Future Debt Funding Needs 19. Revenue Bonds & Parity Debt (4,5) Projected Refunding Savings (6) Subordinate Debt (SRF & GO Bonds) Other Indebtedness (Installment Fin., COPs) Transfer to General Fund for ERP Debt (7) 20. 21. 22. 23.

82,581,710

89,779,364

96,519,999

103,265,266

110,531,701

118,562,746

(36,721,035)

(37,082,633)

(44,645,794) 2,457,114 (3,537,970) (4,157,787) (1,608,684)

(47,681,513) 1,282,736 (4,608,802) (3,052,296) (1,664,988)

(51,320,056)

(51,085,923)

262,961

1,748

(2,328,513) (8,719,635) (1,750,000)

(2,225,650) (3,551,163) (1,776,039)

(7,623,841) (3,427,049) (1,723,263)

(6,594,468) (2,864,767) (1,783,577)

(49,519,183)

(44,635,485)

(51,493,122)

(55,724,864)

(63,831,247)

(62,326,986)

Total: Debt All Sources

24.

25. Annual Surplus/(Deficit)

33,062,526

45,143,879

45,026,876

47,540,402

46,700,453

56,235,760

Total Annual PAYGO

(15,000,000) (1,276,999)

(32,500,000) (1,416,000)

(33,000,000) (1,416,000)

(36,000,000) (1,416,000)

(38,000,000) (1,416,000)

26.

27. PAYGO For Nutrient Reduction/Watershed Protection

28. Total Surplus/(Deficit) w/ PAYGO

16,785,527

11,227,879

10,610,876

13,124,402

9,284,453

16,819,760

Debt Service Coverage Parity Indebtedness (8)

2.25

2.42

2.29

2.23

2.16

2.32

29. 30. 31. 32. 33. 34.

Legal Covenant: 1.20

City Policy:

2.00

2.11

2.28

2.11

2.02

1.88

2.06

Parity, Subordinated, & G.O. Indebtedness

Legal Covenant: 1.00

City Policy:

1.25

1.67

2.01

1.87

1.85

1.73

1.90

All Sources

Legal Covenant: 1.00

City Policy:

1.00

Unrestricted Fund Balances

Beginning Balance (9)

62,952,906 16,785,527

79,738,433 11,227,879 (5,390,946) 85,575,367

85,575,367 10,610,876

96,186,243 13,124,402 (6,204,000) 103,106,645

103,106,645

112,391,099 16,819,760 (12,700,875) 116,509,983

35. 36. 37.

Total Surplus/(Deficit) (Line 28) Transfers to CAPI Funds (10)

9,284,453

Ending Balance (9)

79,738,433

96,186,243

112,391,099

38.

Ratio of Ending Balance to O&M (11)

87.8%

89.3%

97.9%

101.8%

107.5%

108.0%

39.

Minimum Target Balance (11)

45,391,655

47,916,298

49,101,890

50,655,333

52,265,747

53,931,774

40.

Ending Over/(Under) Target Balance

34,346,779

37,659,068

47,084,353

52,451,312

60,125,352

62,578,209

41.

Budgeted Non-Cash Reserve

3,128,672

3,238,175

3,351,511

3,468,814

42.

Typical Residential Customer Bill (12)

$ 44.92

$ 48.89

$ 52.63

$ 56.07

$ 59.38

$ 62.71

43. 44.

% Change

10.6%

8.8%

7.6%

6.5%

5.9%

5.6%

(1) Projected water and sewer user charge revenue is based on actual CY 2012 customer demand and assumes 1.5% annual growth in accounts beginning in FY 15. Consumption is projected to remain constant through FY 2016 and 0.50% annual growth is included beginning in FY 2017. (2) FY 12 Misc. Revenues include one-time revenue for: Garner Capacity Purchase ($3.04M); Equipment Fund 252 Transfer ($700,000); Knightdale capital funds return ($400,000). Excluding these one-time revenues, Parity Debt Coverage would be 2.14, and Parity, Subordinated, and GO Coverage would be 2.01. (3) Water and Sewer Admin charges are calculated to recover costs related to billing, meter reading, utility administration, and a percentage of annual debt service requirements. Water and Sewer Volumetric rates increase based on percentages shown. Projected water and sewer rates are shown on the following page. (4) Increases in revenue bond debt are based on future debt issues in the amounts of $75, $77, $158, and $163 million for Series 2013, 2015, 2017 and 2019, respectively. (5) Excludes liquidity/remarketing costs from 2008 A&B debt, which are included in operating expenses (line 17). (6) Includes annual debt service savings from the partial refunding of the Series 2005 and Series 2006A Revenue Bonds. (7) Represents a transfer to the General Fund that is used for payment of Utilities' portion of debt service relating to the City's ERP system. (8) City Policy includes a Council endorsed 2.00x Parity Coverage starting in FY 2012. (9) The balance shown in "Unrestricted Fund Balance" is for Operating and Debt Service Funds Only. See Appendix A for FY 12 reconciliation to financial statements. (10) In lieu of using bond proceeds, the City has elected to cash-finance the Capitalized Interest Funds. (11) City Policy includes a minimum target balance of 50% of annual O&M costs. (12) Monthly bill assuming a residential customer with a 5/8" meter and 6 ccf monthly usage and includes $0.45 per bill for Watershed Protection.

Raleigh Financial Planning Model v40 (Draft Final)

5/13/2013

FY 15 Budget Summary of Base Budget Changes

Adopted FY14

$199,092,071 454,268 $ 223,581 $ (122,661) $ 199,647,259 $ (37,633) $ 199,609,626 $ (3,788) $ (4,283) $ 199,601,555 $ 1,250,000 $ (600,000) $ 200,251,555 $ (20,181) $ (67,146) $ 200,164,228 $ (26,218) $ 112,059 $ 200,250,069 $ (92,400) $ 92,400 $ 200,250,069 $ 885,318 $ 201,135,387 $

Adjustments

Changes based on Personnel Snapshot

Post Employment Benefits

Unemployment

Base‐10/26

Adjustments

Updated uniform cost based on FY14 Actuals

Base‐10/27

Adjustments

Changes to 5210 Changes to 5270

Base‐10/27

Adjustments

Increase to Debt Service

Decrease to Debt Service from NR

Base‐11/1

Adjustments

Transfer to PW Engineering Transfer to Solid Waste Services

Base‐11/1

Adjustments

ERP Debt Service

IT Technology Projects

Base‐11/1

Adjustments

Tim Woody Error‐5230

Corrected Tim Woody Error‐5230

Base‐11/24

Adjustments

FY15 EUC Charges

Base 11/27

2,043,316 $

Year to Date Percentage Increase ‐ 1.02%

Year to Date Increase

Housekeeping Items FY 15 New Programs/Name Change

Comments Customer Service renamed to Billing Services

Division 5245 5215 5210 5250/5270

Program 635 630 637 638

New program for GIS New program for TAG

New program for Water/Sewer Joint Services

Changing all Revenue Dept. IDs from 0000 to 5210 Revenues

Line Item Changes

5220/5230 ‐ New account 704120 Fuel Account for Generators; Better Tracking of Fuel for Vehicles 5290 ‐ Split Out Existing Pay‐Go Transfers, 873206 ‐ To 320 Water Capital for Growth, 873256 ‐ To 325 Sewer Capital for Growth 5290 ‐ Combine Debt Service and Debt Service for Nutrient Reduction Into One Debt Service Transfer

5290 ‐ Increase Watershed Protection Fee Transfer to Fund 320 $1,416,000 to $1,500,000

FY 2015

Reclassification Summary 5215 ‐ Capital Improvement

Employee Name

Present Title Meter Reader

Current PG Current PRG

Proposed Title

Proposed PG Proposed PRG Position No.

FY 2015 Impact $ 16,890

GIS Programmer/Analyst

619

636 (New)

3676

Vacant

5220 ‐ Water Treatment Plant

Employee Name

Present Title

Current PG Current PRG

Proposed Title

Proposed PG Proposed PRG Position No.

FY 2015 Impact $ 4,420 $ 10,940

Vacant Vacant

Sr. Plant Maintenance Mechanic

32 26

604 602

Sr. Maintenance Analyst Industrial Electrician

34 32

604 602

3453 5227

Maintenance Worker II

5245 ‐ Utility Billing

Employee Name Talena Jeffreys

Present Title

Current PG Current PRG

Proposed Title

Proposed PG Proposed PRG Position No.

FY 2015 Impact $ 4,420

UB Customer Service Supervisor

635

Business Process Analyst

635

1530

5250 ‐ Sewer Maintenance

Employee Name

Present Title

Current PG Current PRG

Proposed Title Utility Technician Utility Supervisor I Utility Technician Equipment Operator I

Proposed PG Proposed PRG Position No.

FY 2015 Impact ‐ $ 5,070 $ 1,540 $ 2,850 $ FY 2015 Impact $ 15,320 $ 2,060 $ 2,060 $ 3,470 $ 2,060 $ 2,060 $ 4,380

Vacant Vacant Vacant Vacant

Senior Service Specialist Equipment Operator II Equipment Operator I

26 26 25 23

613 614 612 611

26 29 26 25

638 638 638 612

3604 4064 5388 5409

Service Specialist

5270 ‐ Water Distribution

Employee Name

Present Title

Current PG Current PRG

Proposed Title

Proposed PG Proposed PRG Position No.

Vacant

Service Specialist Utilities Supervisor II Utilities Supervisor II Utilities Supervisor II Utilities Supervisor II Service Specialist Lead Water Meter Mechanic

23 31 31 27 31 31 23

628 628 606 606 629 629 625

Utilites Supervisor III Utilities Supervisor III Utilities Supervisor III Utilities Supervisor I Utilities Supervisor III Utilities Supervisor III

32 32 32 29 32 32 26

628 610 606 606 630 629 625

3588 3607 3608 5264 5887 5888 3581

Larry Thomas

Homero Ramirez Manual Cook Kelly Phillips Jeremy Isgrigg

Vacant

Utility Technician

FY14 Adopted Position Count

FY15 Proposed Position Count

642

$77,540 FY 2015 Budget Impact

NCB/RA

FY 15 Operational Supplemental Request Summary Total Request $8,082,785 5210 Administration

1 TAG Operational Development ‐ Training, Travel, Licenses, etc.

25,000 337,500 46,405 27,000 50,000 $485,905

2 PUD Software Maintenance & Acquisition

3 OEP Conference Room Upgrades

4 City Works Implementation ‐ Mobile Access, Data Plan, etc.

5 City Works Phase II Implementation

Total

5230 Waste Water Treatment Plant

1 Pump Station Electrical Assessment, Inspection & Service

100,000 125,000 240,000 $465,000

2 ARC Flash Assessment, Labeling & Training

3 ARV Replacement Program

Total

5245 Utility Billing

50,000 50,380 488,500 $588,880

1 Credit Card/Web Portal Fees

2 IVR Enhancement

3 CC&B Upgrade & Maintenance

Total

5250 Sewer Maintenance

350,000 $350,000

1 Chemical Root Control

Total

5270 Water Distribution

1 Truck Radios

55,000 20,000 $75,000

2 Construction Equipment

Total

5285 Utilities Support

1 Travel & Training

8,000

2 Lawn & Ground Services

110,000 $118,000

Total

5290 Special Appropriations

1 Employee Leadership & Development

4,000,000 2,000,000 $6,000,000

2 Employee Compensation (i.e. merit pay, health insurance inc.)

Total

5210 Administration Total Request $485,905

$25,000

1 TAG Operational Development ‐ Training, Travel, Licenses, etc.

Travel to attend the CityWorks User Conference in Utah, CityWorks User Group, and training. Training lab curriculum and membership dues.

$337,500

2 PUD Software Maintenance & Acquisition

Asset MGMT for technology, safety, etc. ‐ $23,000.; Dispatching, routing and mobile CMMS ‐ $100,000; GIS ECM 6th floor ‐ $150,000; Reoccurring support/maintenance for Intelex and XC2 ‐ $17,000; Additional modules and user licenses for Intelex ‐ $30,000; Learning MGMT System ‐ $17,500.

$46,405

3 OEP Conference Room Upgrades

4 City Works Implementation ‐ Mobile Access, Data Plan, etc. 5 City Works Phase II Implementation $50,000 Preparation and evaluation for subsequent phases of CityWorks. We need to evaluate how the vertical assets would be included within our GIS for subsequent phases. Devices for mobile access to CityWorks ($3,000) and the annual reoccurring data plan ($24,000). This will allow field staff to execute and create work activity the benefit of using technology that is better suited to their mobile environment. In addition to minimizing the use of leased equipment and give better functionality. Enhancements to conf. rooms 1 & 2 ‐ new tables with data, power and AV connections; expansion board for the current Sharp Screens and AV infrastructure. This would place a larger Sharp Screen in conf. room 1, moving the current Sharp Screen to Lake Woodard. This would allow the conf. rooms to be more user friendly, reduce trip hazards and enhance the use of technology. In addition, the AV infrastructure would pave the way for future video conferencing. $27,000

5230 Waste Water Treatment Plant

Total Request $465,000

1 Pump Station Electrical Assessment, Inspection & Service

$100,000

Contract services to inspect, assess and service medium power electrical gear, cables and cabinets at seven critical pump and lift stations on an annual basis. IT is critical that we have knowledge of potential electrical issues with our major pump/lift station, that we correct any deficiencies and/or abnormalities and that we perform routine electrical predicative and preventive maintenance measures to ensure station(s) reliability.

2 ARC Flash Assessment, Labeling & Training

$125,000

An electrical coordination study and an ARC flash study, labeling and staff training project would ensure compliance with existing and future electrical safety requirements.

3 ARV Replacement Program

$240,000

Air Release Valve (ARV) inspection and maintenance program for the City's approximately 500‐600 ARVs along pump station force mains. The City has not invested the resources into an inspection, assessment, repair, replacement and preventive maintenance program since before 2008. Their exact location are largely unknown and they do not exist on a database map. If unserviced, they cause pumping and force main issues and extended pump runtimes.

Total Request $588,880 5245 Utility Billing

1 Credit Card/Web Portal Fees

$50,000

A 6.33% increase from FY1 4, this increase was calculated using the highest monthly expense and annualized this peak monthly amount to sufficiently budget a total of $790,300 for Utility Billing credit card fees.

2 IVR Enhancement

$50,380

$488,500 The enhancements to be performed include 1) modify IP‐IVR scripts to collect account number and 2) provide scree pop to Oracle CC&B. The UB IVR system saves significant money by automating the majority of high volume service calls. There are approximately only 41% of calls fully automated through the IVR. By investing in value added services to identify and authenticate callers UB will be able to improve customer service and the overall business process specifically by reducing call times and errors. This upgrade (Version 2.4) provides extensive benefits to the City in terms of upgraded functionality, more efficient and effective features, and ease of maintenance. Moreover, the current Extended Maintenance Support offered by Oracle on the City’s existing Version 2.2 is scheduled to end in Fiscal Year 2016. The City’s failure to upgrade the system by that time would likely result in higher costs for maintenance support as well as potentially exposing the City to risks associated with less active maintenance support from Oracle. Best practice technology support includes regular upgrades to ensure quality maintenance as well as to benefit from continued enhancements to the product.

3 CC&B Upgrade & Maintenance

5250 Sewer Maintenance Total Request $350,000

1 Chemical Root Control

$350,000

Renewed implementation of chemical root control treatment of sanitary sewer collections systems piping by a third‐party vendor. This service was discontinued in 2008 due to budgetary constraints. Staff has developed a (Hot List) of collections system piping in need of root control treatment and this piping totals 255,267 linear feet. It is proposed to perform half of this (125,000 linear feet) during this budget year.

5270 Water Distribution

Total Request 75,000

$55,000

1 Truck Radios

Truck radios to be used for communication during emergencies.

2 Construction Equipment

$20,000

To purchase needed construction equipment that has outlived it's useful life.

5285 Utilities Support Total Request 118,000

1 Travel & Training

$8,000

Additional funds to increase employee's ability to attend training, as emphasized by the Department's strategic plan.

2 Lawn & Ground Services

$110,000

Additional landscaped management to ensure compliance with City ordinances and state regulations. The existing contract, for $37,000, will not cover the scope required and recommended for the proper work to be done. This contract will need to be rebid to include Lake Woodard, North Raleigh, South Raleigh and East Raleigh.

FY 15 Capital Supplemental Request Summary

Total Request $2,889,000

5220 Water Treatment Plant

1 UV Equipment/EMJ Recycle

30,000 70,000 30,000 40,000 40,000 64,000 30,000 40,000 40,000 95,000 40,000 20,000 20,000 40,000

2 DEB Boiler Natural gas Conversion

3 UV Equipment/DEB

4 Low Voltage Electrical Panel Replacement

5 Filter Console Upgrades

6 Ozone Equipment Replacement 7 Zebulon Booster Pump # 3 Rebuild 8 Mt Herman Booster Pumps Rebuild 9 Wetsgate Booster Pumps Rebuild 10 Ion Chromatography System 11 EMJ Plant Entry Gate Upgrades 12 Filtrate Pump Control Panel

13 Gantry/Davit Crane

14 THM Analyzer

Total

$599,000

5230 Waste Water Treatment Plant

190,000 $190,000

1 NRWWTP Training Facility Parking Lot

Total

5250 Sewer Maintenance

40,000 25,000 $65,000

1 Valve Exerciser

2 Trenchless Point Repair System

Total

5280 Meters

1 Meter Replacements

2,000,000 $2,000,000

Total

5285 Utilities Support

1 Canopy Racks

35,000 $35,000

Total

FY 15 Funding Options

 Use 2.16x Parity Coverage Ratio-$4.5 million  Contingency Budget-$5.5 million  Toilet Rebate Program Ending-$500,000  Additional Options o Chemicals o Electricity o Residual Hauling Contract FY 15 Pending Issues  Training Amount Per Employee-See Attachment  Memberships-See Attachment  Bain Plant  Cityworks  Final Indirect Cost  COR Employee Compensation  COR Insurance Increases  $100,000 Loss of Biofuels Grant  Cost of Service Study  Wake Forest Proforma Pay Off  CC&B Upgrade Funding Mechanism  Asset Management Program  Debnam Property

Employee Training

FY15 Public Utilities Training Amount Per Employee

$375.28

$1,111.11

$438.84

$2,441.86

$618.18

$125.00

$271.84

$137.50

$307.69

5210 (43)

5215 (27)

5220 (89) 5280 (80)

5230 (112)

5245 (55)

5250 (120)

5270 (103)

5285 (13)

Memberships

5210 - FY 15 Membership Proposed Budget - $277,000

AWWA



WEF



NACWA AMWA



Water Resource Foundation



NC One Call



National Safety Council



WERF



AWWA Research Foundation



NCWQA



Jordan Lake Partnership



NRCA WRRI



5290 - FY 15 Membership Proposed Budget - $255,000

LNBA



UNBA



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