05-05-2009 City Council Study Session PacketCity of Grand Island
Tuesday, May 05, 2009
Study Session Packet
City Council:Mayor:
Margaret Hornady
City Administrator:
Jeff Pederson
City Clerk:
RaNae Edwards
T
u
7:00:00 PM
Council Chambers - City Hall
100 East First Street
Larry Carney
Scott Dugan
John Gericke
Peg Gilbert
Chuck Haase
Robert Meyer
Mitchell Nickerson
Bob Niemann
Kirk Ramsey
Jose Zapata
Call to OrderCity of Grand Island City Council
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda
Items form located at the Information Booth. If the issue can be handled administratively without Council action,
notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak.
Please come forward, state your name and address, and the Agenda topic on which you will be speaking.
MAYOR COMMUNICATION
This is an opportunity for the Mayor to comment on current events, activities, and issues of interest to the community.
Call to Order
Pledge of Allegiance
Roll Call
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open Meetings Act
in conducting business. A copy of the Open Meetings Act is displayed in the back of this room as required by state
law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
City of Grand Island City Council
Item X
Presentation on Waste Water Capital Improvement Plan and Cost-
Of-Service based Rate Study
Tuesday, May 05, 2009
Study Session
City of Grand Island
Staff Contact: Steve Riehle, City Engineer/Public Works Director
City of Grand Island City Council
Council Agenda Memo
From: Steven P. Riehle, Public Works Directore
Meeting: May 5, 2009
Subject: Presentation on Waste Water Capital Improvement Plan
and Cost-Of-Service based Rate Study
Item #’s: 1
Presenter(s): Steven P. Riehle, Public Works Director
Background
Agreement with Black & Veatch for Digesters and Rate Study
An agreement with Black & Veatch of Kansas City, Missouri for engineering consulting
services related to a digester complex was approved by the council on August 26, 2008.
As preliminary engineering work on the digester complex progressed, it became apparent
that selection of the design and size of the digester complex would rely heavily on what
other capital improvement projects were needed in the near future and the impact on the
rates paid by sanitary sewer customers. An amendment to the agreement that added work
for a Cost-Of-Services based Rate Study with associated schedule changes was approved
by the council on December 16, 2008.
Waste Water Infrastructure
The sanitary sewer collection system has mains that have been in service for over a
century with some mains in the downtown area dating back to the 1890’s. The collection
system contains almost 230 miles of sanitary sewer mains, 17 sewage lift stations and a
waste water treatment plant that is averaging 12 million gallons per day of flow.
The division is a capital intensive operation because of the miles of pipeline to maintain
and the gallons of waste water to treat. While there have been substantial improvements
made at the plant over the years, there are still many improvements that are needed in the
future. Many parts of the plant date back to the original construction in 1964. It’s critical
that the plant has the capacity to accommodate growth in our community, a new or
expanded industry while continuing to meet environmental requirements for our
discharge. Replacements, upgrades and expansions at the plant will be a continuous and
on-going process.
Rate Study
The waste water division of the public works department is an enterprise fund with no
property tax dollars used to support the division. The entire budget comes from waste
water customers through sanitary sewer bills. The sewer bill for a residential customer is
based on usage and standard strength for residential sewage. The sewer bill for
commercial and industrial customers is based on usage plus an extra strength component.
A cost of service based rate study looks at all costs for the operation and allocates those
costs of service to the customer classes according to the costs of providing service. Then
rates are designed to equitably cover those costs. It’s important that each customer pay
their “fair” share of the costs for the city to own and operate the collection system and the
waste water treatment plant.
The last rate study was conducted in 1979 with rate increases since that time applied
uniformly across the board with rate increases since 1996 matching close to the
Consumer Price Index. The new rate stud y will recommend rates that match up with the
cost of providing the service.
Discussion
2009 through 2010 Capital Improvement Plan
Consultant Black & Veatch worked with city staff to put together a short term capital
improvement projects budget through 2013 for the collection system, lift stations and
waste water treatment plant. This list of capital improvement projects is part of the
PowerPoint for tonight council meeting. Long term capital improvement projects will be
part of the comprehensive plan being prepared by CH2MHill under an agreement that
was amended at the April 28, 2008 council meeting.
Major projects in the 2009 through 2010 Capital Improvement Plan
Digester Complex
A digester complex remains the best long term alternative for dealing with sludge
loadings at the plant. Black & Veatch engineers have studied the different designs
and sizes for a digester complex and will make a recommendation at the meeting.
Additional Final Clarifier
The treatment plant needs an additional final clarifier for the winter months to
accommodate current & future loadings, maintain a minimal reserve and maintain
compliance with the lower ammonia limits in the new discharge permit that took
effect on October 1, 2008.
Aeration Basin Improvements
Aeration basin improvements are needed for the summer months to accommodate
current & future ammonia loadings to maintain compliance with the lower
ammonia limits in the new discharge permit.
Replacement Projects for the Collection System
The sanitary sewer collection system is aging and it is imperative that adequate
funds are allocated to maintain the system. One only has to look at the age of the
infrastructure and the failures we’ve had to appreciate the need.
Rate Study
The standard strength for residential sewage is currently 300 mg/L for Biochemical
Oxygen Demand and Suspended Solids. Tests of normal sewage indicated that that
strength was closer to 250 mg/L which is reflected in the proposed rates presented in the
rate study. The rate study used the following parameters before the extra strength charges
are applicable.
Biochemical Oxygen Demand 250 mg/L
Suspended Solids 250 mg/L
Oil & Grease 100 mg/L
Ammonia 30 mg/L
The Cost-of-Service based Rate study will adjust the rates to the cost of providing the
service. The excess strength limit for Biochemical Oxygen Demand and Suspended
Solids has been reduced, the costs associated with the collection system have been
allocated to the appropriate users, and the costs to treat extra strength sewage have been
passed to the customers that generate the extra strength sewage. The average residential
customer, contributing 700 cubic feet of wastewater flow, will see a $0.56 per month
(before sales tax) or 3.1% increase in their monthly sanitary sewer bill beginning in
October 2009. For a listing of the typical sanitary sewer bills see table 20 of the rate
study.
Conclusion
Public Works staff will bring forward a resolution for council to approve a digester
option and a separate resolution to adopt the rate study at a future council meeting. The
adoption of sanitary sewer rates will happen with normal budget process this summer.
RATE STUDY TABLE May 1, 2009
Table 1City of Grand Island, NEWastewater UtilityHistorical and Projected Number of BillsHistoricalProjected_______________________________________ _________________________________________________2005 2006 2007 2008 2009 2010 2011 2012 2013________ ________ ________ ________ ________ ________ ________ ________ ________Residential144,957 144,698 146,834 148,449 149,549 150,649 151,749 152,849 153,949Residential - Suburb555 540 536 532 532 532 532 532 532Residential - Commercial6,460 6,413 6,496 6,653 6,703 6,753 6,803 6,853 6,903Interdepartmental - CommercialJB Swift12 12 12 12 12 12 12 12 12All Other19,219 22,585 22,704 22,705 22,715 22,725 22,735 22,745 22,755Commercial - Suburb108 108 64 48 48 48 48 48 48________ ________ ________ ________ ________ ________ ________ ________ ________ Total171,311 174,356 176,646 178,399 179,559 180,719 181,879 183,039 184,199Rate_Report_Tables (8)5/1/2009
Table 2
City of Grand Island, NE
Wastewater Utility
Existing Wastewater Rates
(Effective October 1, 2008)
Sewer Service Charge - $/month
All Customers 8.24
Volume Charge - $/Ccf
Low Strength Industrial Dischargers 0.4180
All Other Customers 1.3700
Excess Strength Surcharge - $/lb
BOD over 300 mg/l 0.2806
Suspended Solids over 300 mg/l 0.2180
Oil & Grease over 100 mg/l 0.0115
Low Strength Industrial Dischargers
BOD over 0 mg/l 0.2806
Suspended Solids over 0 mg/l 0.2180
Oil & Grease over 0 mg/l 0.0115
Ammonia over 30 mg/l 0.3729
Hydrogen Sulfide over 0 mg/l 0.1252
Hydrogen Sulfide Flat Fee - $/month 8,376.29
Ccf = Hundred Cubic Feet
BOD = Biochemical Oxygen Demand
Rate_Report_Tables (8)5/1/2009
Table 3City of Grand Island, NEWastewater UtilityHistorical and Projected Wastewater RevenueHistoricalProjected_________________________________________________ ____________________________________________________2004 2005 2006 2007 2008 2009 (a) 2010 2011 2012 2013________ ________ ________ ________ ________ ________ ________ ________ ________ ________$$$$$$$$$$Residential2,680,957 2,532,044 2,401,430 2,494,436 2,573,636 2,677,000 2,696,700 2,716,400 2,736,100 2,755,800Residential - Suburb8,233 9,345 9,419 9,673 9,851 10,200 10,200 10,200 10,200 10,200Residential - Commercial349,914 340,352 333,000 334,846 353,917 368,200 371,000 373,700 376,400 379,200Interdepartmental - Commercial (b)JB Swift (c)00006,003,361 2,089,600 2,089,600 2,089,600 2,089,600 2,089,600All Other4,748,158 5,789,243 6,133,695 7,389,492 1,750,843 1,407,400 1,408,000 1,408,700 1,409,300 1,409,900Commercial - Suburb2,032 2,376 2,634 2,272 2,571 2,700 2,700 2,700 2,700 2,700Excess Strength (b) (d)2,620,600 2,152,300 2,152,300 2,152,300 2,152,300________ ________ ________ ________ ________ ________ ________ ________ ________ ________ Total7,789,293 8,673,360 8,880,177 10,230,719 10,694,179 9,175,700 8,730,500 8,753,600 8,776,600 8,799,700(a) Reflects 3 percent revenue increase effective October 1, 2008.(b) Historical Interdepartmental revenue includes Excess Strength revenue.(c) JB Swift historical revenue included with Interdepartmental - Commercial All Other.(d) Excess Strength revenue assumes normal strength limit for Biochemical Oxygen Demand and Suspended Solids of 250 milligram per liter beginning in 2010.Rate_Report_Tables (8)5/1/2009
Table 4
City of Grand Island, NE
Wastewater Utility
Historical and Projected Miscellaneous Revenue
(1) (2) (3) (4) (5) (6) (7)
Sewer Other Co-pay Misc
Sewer Tap Inter- Health Surcharge Other
Assessments (a)Fees Gov. Insurance Revenue (b) Revenue (c) Total________ ________ ________ ________ ________ ________ ________
$$$$$$$
Historical
2004 821,975 0 0 20,359 N/A 52,835 895,169
2005 397,370 37,971 0 21,773 N/A 70,476 527,591
2006 764,445 170,892 0 31,076 N/A 86,548 1,052,962
2007 465,898 44,429 0 31,361 N/A 246,187 787,875
2008 394,316 17,261 0 36,476 181,500 193,062 822,615
Projected
2009 125,400 30,000 0 40,400 181,500 120,000 497,300
2010 199,000 30,000 0 40,400 181,500 120,000 570,900
2011 200,800 30,000 0 40,400 181,500 120,000 572,700
2012 183,100 30,000 0 40,400 181,500 120,000 555,000
2013 133,700 30,000 0 40,400 181,500 120,000 505,600
(a) Includes Interest Income on Sewer Assessments.
(b)
(c) Includes Other Revenue, Sale of Fixed Assets, and Trade-in-Allowance.
Includes Sample Analysis revenue and fees from JB Swift for discharge in excess of permit limits.
Rate_Report_Tables (8)5/1/2009
Table 5City of Grand Island, NEWastewater UtilityHistorical and Projected Operation and Maintenance ExpenseHistoricalProjected_______________________________________________________ ____________________________________________________2004 2005 2006 2007 2008 2009 2010 2011 2012 2013______ ______ ______ ______ ______ ______ ______ ______ ______ ______$$$$$$$$$$General Services 1,785,080 1,856,457 2,053,175 1,956,905 2,115,476 1,432,600 1,143,500 1,190,000 1,239,100 1,290,900Collection Services 449,015 632,164 646,693 637,107 902,240 841,400 869,900 900,100 931,300 963,600Wastewater Treatment 1,473,718 1,722,582 2,141,153 2,193,628 2,146,344 2,466,700 2,576,000 2,694,100 2,819,400 2,952,400Solids Handling (a)00000000616,200 690,000Compost Operations 288,077 634,959 1,255,917 1,466,880 1,983,889 1,862,300 1,976,900 2,106,4000 0Land Application (a)00000000910,000 962,400Sludge Injection (b) 304,267 194,381 1350000000________ ________ ________ ________ ________ ________ ________ ________ ________ ________ Total O&M Expense 4,300,156 5,040,544 6,097,073 6,254,520 7,147,949 6,603,000 6,566,300 6,890,600 6,516,000 6,859,300111111111(a) With the completion of the Digester project in 2012, Compost Operations will be replaced with Land Application and Solids Handling.(b) Sludge Injection was discontinued in 2006.Rate_Report_Tables (8)5/1/2009
Table 6City of Grand Island, NEWastewater UtilityProposed Capital Improvement ProgramLineNo.2009 2010 2011 2012 2013 Total____________ ________ ________ ________ ________ ________$$$$$$1 Sewer Mains1,250,000 600,000 1,600,000 600,000 1,600,000 5,650,0002 Liquid Oxygen0000003 Lift Stations411,400 265,2000 100,000 3,862,700 4,639,300Wastewater Treatment4 Raw Water Pumping0000005 Preliminary Treatment0 0 884,400 4,298,500 842,300 6,025,2006 Primary Sedimentation/Clarifiers 980,1000000980,1007 Aeration Basins0000008 Aeration Equipment0 1,100,000 1,200,000 2,298,4000 4,598,4009 Corrosion/Odor Control Facilities 108,9000 98,200 477,700 93,600 778,40010 Final Clarifers0 0 0 4,652,4000 4,652,40011 Disinfection00000012 Sludge Handling2,126,300 6,300,000 9,734,400 3,543,3000 21,704,00013 General Plant541,900 208,0000 0 0 749,90014Lab00000015 Vehicles00000016 Administration & General00000017 Land000000________ ________ ________ ________ ________ ________ 18 Total5,418,600 8,473,200 13,517,000 15,970,300 6,398,600 49,777,700Rate_Report_Tables (8)5/1/2009
Table 7City of Grand Island, NEWastewater UtilityCapital Improvement Program FinancingLineYear Ending September 30,_______________________________________________________________No. Description2009 2010 2011 2012 2013 Total____ _____________________________ ________ ________ ________ ________ ________ ________$$$$$$Sources of Funds1 Beginning of Year Balance5,247,900 128,300 120,200 196,500 122,400 5,247,9002 Revenue Bond Proceeds0 6,800,000 13,500,000 15,800,000 6,500,000 42,600,0003 Cash Financing of Construction200,000 2,200,000 1,200,000 1,400,000 400,000 5,400,0004 Grants/Developer Contributions0000005 Interest Income (a)99,000 61,100 76,600 81,100 58,900 376,700________ ________ ________ ________ ________ ________ 6 Total Funds Available5,546,900 9,189,400 14,896,800 17,477,600 7,081,300 53,624,600Application of Funds7 Major Capital Improvements5,418,600 8,473,200 13,517,000 15,970,300 6,398,600 49,777,7008 Issuance Costs0 102,000 202,500 237,000 97,500 639,0009 Bond Reserve Funds0 494,000 980,800 1,147,900 472,200 3,094,900________ ________ ________ ________ ________ ________ 10 Total Application of Funds5,418,600 9,069,200 14,700,300 17,355,200 6,968,300 53,511,60011 End of Year Fund Balance128,300 120,200 196,500 122,400 113,000 113,00012 Capital Reserve Balance1,500,000 1,500,000 1,500,000 1,500,000 1,500,000(a) Includes interest earnings on the capital reserve.Rate_Report_Tables (8)5/1/2009
Table 8
City of Grand Island, NE
Wastewater Utility
Comparison of Projected Revenue Under Existing
Rates With Projected Revenue Requirements
Line Year Ending September 30,_______________________________________________________
No. Description 2009 2010 2011 2012 2013____ _____________________________ ________ ________ ________ ________ ________
$$$$$
1 Revenue Under Existing Rates 9,175,700 8,730,500 8,753,600 8,776,600 8,799,700
Additional Revenue Required
Fiscal Revenue Months
Year Increase Effective________ ________ ________
2 2009 0.0% 3 00000
3 2010 7.0% 12 611,100 612,800 614,400 616,000
4 2011 6.0% 12 562,000 563,500 564,900
5 2012 6.0% 12 597,300 598,800
6 2013 6.0% 12 634,800________ ________ ________ ________ ________
7 Total Additional Revenue 0 611,100 1,174,800 1,775,200 2,414,500
8 Total Service Charge Revenue 9,175,700 9,341,600 9,928,400 10,551,800 11,214,200
9 Other Operating Revenue 497,300 570,900 572,700 555,000 505,600
10 Interest Income - Operations 12,200 14,400 6,000 5,700 6,100
11 Interest Income - Reserve Funds (a)118,100 126,600 155,800 199,000 238,200________ ________ ________ ________ ________
12 Total Revenue 9,803,300 10,053,500 10,662,900 11,311,500 11,964,100
13 Operation and Maintenance Expense 6,603,000 6,566,300 6,890,600 6,516,000 6,859,300________ ________ ________ ________ ________
14 Net Revenue 3,200,300 3,487,200 3,772,300 4,795,500 5,104,800
Debt Service
15 Existing Revenue Bonds 1,783,700 1,785,900 1,787,700 1,743,700 1,732,800
16 Proposed Revenue Bonds 0 0 494,000 1,474,800 2,622,700________ ________ ________ ________ ________
17 Total Debt Service 1,783,700 1,785,900 2,281,700 3,218,500 4,355,500
18 Routine Capital Additions (b)246,300 246,300 246,300 246,300 246,300
19 Cash Financing of Major Improvements 200,000 2,200,000 1,200,000 1,400,000 400,000
20 Additions to Operating Reserve 0 71,000 0 0 84,800
21 Net Annual Balance 970,300 (816,000) 44,300 (69,300) 18,200
22 Beginning of Year Balance 0 970,300 154,300 198,600 129,300
23 End of Year Balance 970,300 154,300 198,600 129,300 147,500
24 Operating Reserve Balance 1,628,100 1,699,100 1,699,100 1,699,100 1,783,900
(a) Includes interest earnings on the Principal and Interest Account, Bond Reserve Fund, and operating reserve.
(b) Cash financing of Machinery & Equipment and Vehicles.
Rate_Report_Tables (8)5/1/2009
Table 9City of Grand Island, NEWastewater UtilityCoverage RequirementsLineYear Ending September 30,_______________________________________________________No. 2009 2010 2011 2012 2013____ ________ ________ ________ ________ ________$$$$ $Rate Covenant Coverage1 Projected Net Revenues 3,200,300 3,487,200 3,772,300 4,795,500 5,104,8002 Annual Debt Service 1,783,700 1,785,900 2,281,700 3,218,500 4,355,5003 Projected Actual Net Revenue as aPercent of Debt Service (a) 1.79 x 1.95 x 1.65 x 1.49 x 1.17 x Additional Bond Coverage (b)4 Preceding Year Projected Net Revenues5,575,870 3,200,300 3,487,200 3,772,300 4,795,5005 Average Annual Debt Service 1,717,129 761,503 1,650,078 2,683,658 3,032,8366 Projected Actual Net Revenue as aPercent of Debt Service (c) 3.25 x 4.20 x 2.11 x 1.41 x 1.58 x 7 Ensuring Year Projected Net Revenues 3,200,300 3,487,200 3,772,300 4,795,500 5,104,8008 Average Annual Debt Service 1,717,129 761,503 1,650,078 2,683,658 3,032,8369 Projected Actual Net Revenue as aPercent of Debt Service (d) 1.86 x 4.58 x 2.29 x 1.79 x 1.68 x (a) The Bond Ordinance requires net revenue to equal or exceed 1.10x actual debt service.(b) The City shall comply with one or the other of the two additioanl bonds tests.(c) The Bond Ordinance requires net revenue to equal or exceed 1.25x actual debt service.(d) The Bond Ordinance requires net revenue to equal or exceed 1.25x actual debt service in each of the three full fiscsal years after the issuance of the proposed Additional Bonds.Rate_Report_Tables (8)5/1/2009
Table 10
City of Grand Island, NE
Wastewater Utility
Cost of Service
Test Year 2010
Line Operating Capital
No.Expense Cost Total____________________________
$$$
Revenue Requirements
1 Operation & Maintenance Expense 6,566,300 6,566,300
Debt Service Requirements
2 Existing Debt Service 1,785,900 1,785,900
3 Proposed Debt Service 0 0
4 Routine Capital Additions 246,300 246,300
5 Cash Financing of Major Improvements 2,200,000 2,200,000
6 Additions to the Operating Reserve 71,000 71,000_________ _________ _________
7 Total 6,637,300 4,232,200 10,869,500
Revenue Requirements Met from Other Sources
8 Other Operating Revenue 540,900 30,000 570,900
9 Interest Income 14,400 126,600 141,000
10 Change in Funds Available 498,300 317,700 816,000_________ _________ _________
11 Total 1,053,600 474,300 1,527,900_________ _________ _________
12 Net Costs to be Met from Charges 5,583,700 3,757,900 9,341,600
60% 40%
Operating Exp Capital Costs
Capital
Costs,
$3,757,900
Operating
Expense,
$5,583,700
Rate_Report_Tables (8)5/1/2009
Table 11
City of Grand Island, NE
Wastewater Utility
Allocation of Net Plant Investment
To Functional Cost Components
Test Year 2010
Common to All____________________________________________________________
Wastewater Strength__________________________________________________
No. Investment Volume BOD SS O&G NH3 H2S Volume____ _________ _________ _________ _________ _________ _________ _________ _________
$$$$$$$ $
1 Sewer Mains 19,627,400 19,627,400
2 Liquid Oxygen 18,500 18,500
3 Lift Stations 6,500 6,500
Wastewater Treatment
4 Raw Water Pumping 0 0
5 Preliminary Treatment 0 0 0
6 Primary Sedimentation/Clarifiers 71,800 71,800
7 Aeration Basins 3,792,200 2,528,100 1,264,100
8 Aeration Equipment 522,000 261,000 261,000
9 Corrosion/Odor Control Facilities 53,700 53,700
10 Final Clarifers 851,400 212,900 383,100 170,300 85,100
11 Disinfection 2,280,500 2,280,500
12 Sludge Handling 8,732,300 3,493,000 3,056,300 436,600 873,200 873,200
13 General Plant 1,480,400 232,900 605,200 293,000 39,600 225,500 84,200 0________ ________ ________ ________ ________ ________ ________ ________
14 Subtotal 17,784,300 2,798,100 7,270,400 3,519,600 476,200 2,708,900 1,011,100 0
15 Lab 13,600 6,600 3,500 1,800 1,200 500
16 Vehicles 147,700 10,900 28,700 13,900 1,900 10,700 4,100 77,500
17 Administration & General 239,600 18,000 46,500 22,500 3,000 17,300 6,600 125,700
18 Land 561,400 561,400________ ________ ________ ________ ________ ________ ________ ________
19 Total 38,399,000 3,388,400 7,352,200 3,559,500 482,900 2,738,100 1,040,800 19,837,100
20 Existing Debt Service to be Recovered 1,785,900 157,700 341,900 165,500 22,500 127,300 48,400 922,600
705,600 8.8% 48.5% 23.5% 3.2% 18.0% 6.9% 51.7%
CTA VolumeBOD SS O&G NH3 H2S City Collection
City
Collection
System UsersLine Net Plant
Allocation of Net Plant Investment
CTA Volume
6%
City Collection
System Users
Volume
32%
H2S
7%
NH3
18%
O&G
3%
SS
24%BOD
48%Strength
40%
Rate_Report_Tables (8)5/1/2009
Table 12
City of Grand Island, NE
Wastewater Utility
Allocation of Capital Improvements
To Functional Cost Components
Test Year 2010
Common to All_____________________________________________________________
Wastewater Strength__________________________________________________
No. Investment Volume BOD SS O&G NH3 H2S Volume____ _________ _________ _________ _________ _________ _________ _________ _________
$$$$$$$$
1 Sewer Mains 5,650,000 5,650,000
2 Liquid Oxygen 0 0
3 Lift Stations 4,639,300 4,639,300
Wastewater Treatment
4 Raw Water Pumping 0 0
5 Preliminary Treatment 6,025,200 4,217,600 1,807,600
6 Primary Sedimentation/Clarifiers 980,100 980,100
7 Aeration Basins 0 0 0
8 Aeration Equipment 4,598,400 4,598,400
9 Corrosion/Odor Control Facilities 778,400 778,400
10 Final Clarifers 4,652,400 1,163,100 2,093,600 930,500 465,200
11 Disinfection 0 0
12 Sludge Handling 21,704,000 8,681,600 7,596,400 1,085,200 2,170,400 2,170,400
13 General Plant 749,900 123,100 208,600 165,100 56,000 140,000 57,100 0________ ________ ________ ________ ________ ________ ________ ________
14 Subtotal 39,488,400 6,483,900 10,983,800 8,692,000 2,948,800 7,374,000 3,005,900 0
15Lab 0 00000
16 Vehicles 00000000
17 Administration & General 00000000
18 Land 0 0________ ________ ________ ________ ________ ________ ________ ________
19 Total 49,777,700 6,483,900 10,983,800 8,692,000 2,948,800 7,374,000 3,005,900 10,289,300
20 Capital Charges to be Recovered (a) 1,972,000 257,000 435,100 344,300 116,800 292,100 119,100 407,600
13.0% 22.1% 17.5% 5.9% 14.8% 6.0% 20.7%
(a) Excludes debt service on existing bonds.CTA VolumeBOD SS O&G NH3 H2S City Collectio
13.0% 33.3% 26.3% 8.9% 22.3% 9.1% 20.7%
1,307,400 CTA VolumeBOD SS O&G NH3 H2S City Collectio
City
Collection
System
UsersLine Net Plant
Allocation of Capital Improvements
CTA Volume
10%
City Collection
System Users
Volume
15%Strength
66%
BOD
34%
SS
26%
O&G
9%
NH3
22%H2S
9%
Rate_Report_Tables (8)5/1/2009
Table 13
City of Grand Island, NE
Wastewater Utility
Allocation of Operation & Maintenance Expense
To Functional Cost Components
Test Year 2010
Common to All______________________________________________________________________
Wastewater Strength__________________________________________________
No. Expenses Volume BOD SS O&G NH3 H2S Billing Volume_____________________________________________________________________________________
$$$$$$$$$
1 Collection Service 869,900 869,900
2 Liquid Oxygen 119,200 119,200
Wastewater Treatment
3 Raw Water Pumping 261,300 261,300
4 Preliminary Treatment 189,700 132,800 56,900
5 Primary Sedimentation/Clarifiers 112,100 112,100
6 Aeration Basins 70,300 46,900 23,400
7 Aeration Equipment 613,700 306,800 306,900
8 Corrosion/Odor Control Facilities 261,600 261,600
9 Final Clarifers 67,800 16,900 30,500 13,600 6,800
10 Disinfection 168,100 168,100
11 Sludge Handling 423,600 169,300 148,300 21,200 42,400 42,400
12 General Plant 185,300 29,100 75,800 36,700 5,000 28,200 10,500________ ________ ________ ________ ________ ________ ________ ________ ________
13 Subtotal 2,353,500 720,300 629,300 198,600 83,100 407,700 314,500 0 0
14 Lab 51,600 24,800 13,400 6,700 4,600 2,100
15 Compost Operations 1,976,900 1,284,800 692,100
16 Land Application 0 0 0
17 Solids Handling 0 00000
18 General Operations 1,195,200 129,600 407,100 199,600 16,500 58,300 58,000 118,800 207,300
19 Additions to the Operating Reserve 71,000 8,500 26,900 13,200 1,100 3,800 3,800 13,700________ ________ ________ ________ ________ ________ ________ ________ ________
20 Total O&M Expense 6,637,300 858,400 2,372,900 1,116,900 107,400 474,400 497,600 118,800 1,090,900
Less Offsetting Revenues
21 Other Operating Revenue 540,900 234,100 87,100 47,200 23,600 16,300 7,200 0 125,400
22 Interest Income 14,400 1,900 5,100 2,400 200 1,000 1,100 300 2,400
23 Change in Funds Available 498,300 64,400 178,100 83,900 8,100 35,600 37,400 8,900 81,900________ ________ ________ ________ ________ ________ ________ ________ ________
24 Total Offsetting Revenues 1,053,600 300,400 270,300 133,500 31,900 52,900 45,700 9,200 209,700
25 Net Operating Expenses to be Recovered 5,583,700 558,000 2,102,600 983,400 75,500 421,500 451,900 109,600 881,200
10.0% 52.1% 24.4% 1.9% 10.4% 11.2% 2.0% 15.8%
4,034,900 CTA VolumeBOD SS O&G NH3 H2S Bills City Collectio
City
Collection
System
UsersLine Operating
Allocation of Net Operating Expenses
Bills
2%H2S
11%
O&G
2%NH3
10%
SS
25%
City Collection
System Users
Volume
16%
CTA Volume
10%
BOD
52%
Strength
72%
Rate_Report_Tables (8)5/1/2009
Table 14City of Grand Island, NEWastewater UtilityUnits of ServiceTest Year 2010(1) (2) (3) (4) (5) (6) (7) (8) (9)Wastewater Volume Wastewater Strength________________________________ __________________________________________________Line Contributed Infiltration Suspended Oil &No. Volume /Inflow Total BOD Solids Grease NH3 H2S Customers____________________________________________________________________________Ccf Ccf Ccf Pounds Pounds Pounds Pounds Pounds Bills(1) + (2)1 Residential 1,062,300 1,962,300 3,024,600 2,070,000 2,715,200 448,700 221,800 0 150,6492 Residential - Suburb 4,200 7,100 11,300 8,000 10,300 1,700 800 0 5323 Residential - Commercial 230,200 161,600 391,800 366,300 423,900 72,500 31,600 0 6,753Interdepartmental - Commercial4 JB Swift 1,525,200 23,300 1,548,500 2,100,500 2,155,300 382,700 144,200 0 125 All Other 891,100 590,800 1,481,900 1,407,300 1,619,400 277,700 120,300 0 22,7256 Commercial - Suburb 1,600 1,100 2,700 2,500 2,900 500 200 0 48Surcharge7 JB Swift 3,331,000 951,700 190,300 999,300 1,427,6008 All Other 1,011,500 326,500 92,100 0 0________ ________ ________ ________ ________ ________ ________ ________ ________ 9 Total 3,714,600 2,746,200 6,460,800 10,297,100 8,205,200 1,466,200 1,518,200 1,427,600 180,719Ccf = Hundred Cubic FeetRate_Report_Tables (8)5/1/2009
Table 15City of Grand Island, NEWastewater UtilityUnit Costs of ServiceTest Year 2010Common to All______________________________________________________________________LineWastewater Strength__________________________________________________No.Total Volume BOD SS O&G NH3 H2S Billing Volume_____________ _________ _________ _________ _________ _________ _________ _________ _________Ccf Pounds Pounds Pounds Pounds Pounds Bills CcfUnits of Service1 City Collection System Users4,912,300 4,865,600 5,098,200 893,200 374,700 0 180,707 4,912,3002 JB Swift1,548,500 5,431,500 3,107,000 573,000 1,143,500 1,427,600 12 80,800________ ________ ________ ________ ________ ________ ________ ________ 3 Total6,460,800 10,297,100 8,205,200 1,466,200 1,518,200 1,427,600 180,719 4,993,100Costs of ServiceNet Operating Expense4 Total Cost - $5,583,700 558,000 2,102,600 983,400 75,500 421,500 451,900 109,600 881,2005 Unit Cost - $/unit0.08637 0.20419 0.11985 0.05149 0.27763 0.31655 0.60647 0.17648Existing Capital Costs6 Total Cost - $1,785,900 157,700 341,900 165,500 22,500 127,300 48,400922,6007 Unit Cost - $/unit0.02441 0.03320 0.02017 0.01535 0.08385 0.03390 0.00000 0.18477Proposed Capital Costs8 Total Cost - $1,972,000 257,000 435,100 344,300 116,800 292,100 119,100407,6009 Unit Cost - $/unit0.03978 0.04225 0.04196 0.07966 0.19240 0.08343 0.00000 0.0816310 Total Unit Cost of Service0.15055 0.27965 0.18198 0.14650 0.55388 0.43388 0.60647 0.44289Total Cost of Service11 City Collection System Users 5,651,700 739,600 1,360,700 927,800 130,900 207,500 0 109,600 2,175,60012 JB Swift3,689,900 233,100 1,518,900 565,400 83,900 633,400 619,400 0 35,800________ ________ ________ ________ ________ ________ ________ ________ ________ 13 Total9,341,600 972,700 2,879,600 1,493,200 214,800 840,900 619,400 109,600 2,211,400Ccf = Hundred Cubic FeetCity Collection System UsersRate_Report_Tables (8)5/1/2009
Table 16City of Grand Island, NEWastewater UtilityAllocated Costs of Service to Customer ClassesTest Year 2010Common to All______________________________________________________________________________LineWastewater Strength__________________________________________________No. Total Volume BOD SS O&G NH3 H2S Billing Volume____ _________ _________ _________ _________ _________ _________ _________ _________ _________Ccf Pounds Pounds Pounds Pounds Pounds Bills Ccf1 Unit Cost of Service - $/unit 0.15055 0.27965 0.18198 0.14650 0.55388 0.43388 0.60647 0.44289Residential2 Units of Service 3,024,600 2,070,000 2,715,200 448,700 221,800 150,649 3,024,6003 Allocated Cost - $ 3,148,200 455,300 578,900 494,200 65,800 123,000 91,400 1,339,600Residential - Suburb4 Units of Service 11,300 8,000 10,300 1,700 800 532 11,3005 Allocated Cost - $ 11,700 1,700 2,200 1,900 200 400 300 5,000Residential - Commercial6 Units of Service 391,800 366,300 423,900 72,500 31,600 6,753 391,8007 Allocated Cost - $ 444,200 59,000 102,400 77,100 10,600 17,500 4,100 173,500Interdepartmental - CommercialJB Swift8 Units of Service 1,548,500 2,100,500 2,155,300 382,700 144,200 12 80,8009 Allocated Cost - $ 1,384,400 233,200 587,400 392,200 56,000 79,800 0 35,800All Other10 Units of Service 1,481,900 1,407,300 1,619,400 277,700 120,300 22,725 1,481,90011 Allocated Cost - $ 1,688,800 223,100 393,600 294,700 40,700 66,600 13,800 656,300Commercial - Suburb12 Units of Service 2,700 2,500 2,900 500 200 48 2,70013 Allocated Cost - $ 3,000 400 700 500 100 100 0 1,200SurchargeJB Swift14 Units of Service 0 3,331,000 951,700 190,300 999,300 1,427,600 015 Allocated Cost - $ 2,305,500 0 931,500 173,200 27,900 553,500 619,400 0 0All Other16 Units of Service 0 1,011,500 326,500 92,100000017 Allocated Cost - $ 355,800 0 282,900 59,400 13,5000000________ ________ ________ ________ ________ ________ ________ ________ ________ 18 Total System 9,341,600 972,700 2,879,600 1,493,200 214,800 840,900 619,400 109,600 2,211,400Ccf = Hundred Cubic FeetCity Collection System UsersRate_Report_Tables (8)5/1/2009
Table 17
City of Grand Island, NE
Wastewater Utility
Comparison of Allocated Cost of Service
with Revenue Under Existing Rates
Test Year 2010
(1) (2) (3)
Revenue
Allocated Under Indicated
Line Cost of Existing Revenue
No. Service Rates Adjustment___________________________
$ $ (1) / (2) - 1
1 Residential 3,148,200 2,696,700 16.7%
2 Residential - Suburb 11,700 10,200 14.7%
3 Residential - Commercial 444,200 371,000 19.7%
Interdepartmental - Commercial
4 JB Swift 1,384,400 2,089,600 -33.7%
5 All Other 1,688,800 1,408,000 19.9%
6 Commercial - Suburb 3,000 2,700 11.1%
7 Surcharge 2,661,300 2,152,300 23.6%________ ________
8 Total 9,341,600 8,730,500 7.0%
Rate_Report_Tables (8)5/1/2009
Table 18
City of Grand Island, NE
Wastewater Utility
Proposed Rates
Charges to be Effective October 1,______________________________________________________
2009 2010 2011 2012 2013________ ________ ________ ________ ________
Sewer Service Charge - $/month
All Customers 8.24 8.24 8.24 8.24 8.24
Volume Charge - $/Ccf
Low Strength Industrial Dischargers 0.42 0.58 0.77 0.93 1.13
JB Swift (a) 1.37 1.29 1.20 1.11 1.02
All Other Customers 1.37 1.45 1.68 1.88 2.13
Excess Strength Surcharge - $/lb
BOD over 250 mg/l 0.2806 0.2797 0.3042 0.3143 0.3385
Suspended Solids over 250 mg/l 0.2180 0.2180 0.2180 0.2180 0.2180
Oil & Grease over 100 mg/l 0.0115 0.1465 0.1465 0.1944 0.2050
Low Strength Industrial Dischargers
BOD over 0 mg/l 0.2806 0.2797 0.3042 0.3143 0.3385
Suspended Solids over 0 mg/l 0.2180 0.2180 0.2180 0.2180 0.2180
Oil & Grease over 0 mg/l 0.0115 0.1465 0.1465 0.1944 0.2050
Ammonia over 30 mg/l 0.3729 0.5539 0.5701 0.6914 0.7256
Hydrogen Sulfide over 0 mg/l 0.1252 0.3569 0.3899 0.4558 0.4868
Hydrogen Sulfide Flat Fee - $/month 8,376.29 9,160.00 9,160.00 9,160.00 9,160.00
Ccf = Hundred Cubic Feet
BOD = Biochemical Oxygen Demand
mg/l = milligram per liter
(a) Applicable to flow discharged from JBS' pretreatment lagoons through their sewer main connecting to the
City's wastewater treatment plant.
Rate_Report_Tables (8)5/1/2009
Table 19City of Grand Island, NECity oWastewater UtilityWComparison of Revenue Under ProposedComparison oRates with Allocated Cost of ServiceRates with Test Year 2010T(1) (2) (3) (4) (5)Revenue Revenue As RevenueUnder Allocated A Percent Under IndicatedLine Proposed Cost of of Cost of Existing RevenueLineNo. Rates Service Service Rates AdjustmentNo.____ _________ _________ _________ _________ _____________$ $ (1) / (2) $ (1) / (4)1 Residential 2,781,700 3,148,200 88.4% 2,696,700 3.2%7% 1 Residential2 Residential - Suburb 10,500 11,700 89.7% 10,200 2.9%7% 2 Residential - Suburb3 Residential - Commercial 389,400 444,200 87.7% 371,000 5.0%7% 3 Residential - Commercial4 Interdepartmental - Commercial 3,456,100 3,073,200 112.5% 3,497,600 -1.2%7% 4 Interdepartmental - Commercial5 Commercial - Suburb 2,700 3,000 90.0% 2,700 0.0%7% 5 Commercial - Suburb6 Surcharge 2,707,600 2,661,300 101.7% 2,152,300 25.8%7% 6 Surcharge________ ________ ________ 7 Total 9,348,000 9,341,600 100.1% 8,730,500 7.1%7 TotalIndicated Revenue Adjustment By Class-5%0%5%10%15%20%25%30%Residential Residential - Suburb Residential - Commercial Interdepartmental -CommercialCommercial - Suburb SurchargeIndicated Revenue AdjustmentOverall Average Revenue IncreaseRate_Report_Tables (8)5/1/2009
Table 20
City of Grand Island, NE
Wastewater Utility
Typical Bills
Test Year 2010
Line Typical Wastewater Bills (a)____________________________________________________
No. Customer Class Volume Rates 2009 2010 2011 2012 2013_____________________________________________________________________________________
Ccf$$$$$$
Residential
1 Small 5 15.09 15.09 15.49 16.64 17.64 18.89
0.0% 2.7% 7.4% 6.0% 7.1%
2 Medium 7 17.83 17.83 18.39 20.00 21.40 23.15 0.56
0.0% 3.1% 8.8% 7.0% 8.2%
3 Large 15 28.79 28.79 29.99 33.44 36.44 40.19
0.0% 4.2% 11.5% 9.0% 10.3%
Commercial
4 Small 70 104.14 104.14 109.74 125.84 139.84 157.34
0.0% 5.4% 14.7% 11.1% 12.5%
5 Medium 100 145.24 145.24 153.24 176.24 196.24 221.24
0.0% 5.5% 15.0% 11.3% 12.7%
6 Large 160 227.44 227.44 240.24 277.04 309.04 349.04
0.0% 5.6% 15.3% 11.6% 12.9%
Industrial (b)
7 Small 50 141.22 141.22 148.62 163.94 176.77 193.32
0.0% 5.2% 10.3% 7.8% 9.4%
8 Medium 500 1,338.04 1,338.04 1,412.01 1,565.23 1,693.54 1,859.07
0.0% 5.5% 10.9% 8.2% 9.8%
9 Large 5,000 13,306.22 13,306.22 14,045.99 15,578.19 16,861.28 18,516.58
0.0% 5.6% 10.9% 8.2% 9.8%
10 JB Swift (c) 127,100 323,822.44 323,822.44 359,734.97 361,907.77 373,365.39 376,980.09
0.0% 11.1% 0.6% 3.2% 1.0%
(a) Percentage increase shown reflects change from previous year.
(b)
(c)
Residential - Small 2.7% 7.0%
Residential - Medium 3.1% 7.0%
Residential - Large 4.2% 7.0%
Commercial - Small 5.4% 7.0%
Commercial - Medium 5.5% 7.0%
Commercial - Large 5.6% 7.0%
Industrial - Small 5.2% 7.0%
Industrial - Medium 5.5% 7.0%
Industrial - Large 5.6% 7.0%
JBS 11.1% 7.0%
Billed
Wastewater Existing
Assumes biochemical oxygen demand excess strength of 500 mg/l, suspended solids excess strength of 300 mg/l, oil and grease
excess strength of 84 mg/l.
Assumes biochemical oxygen demand excess strength of 350 mg/l, suspended solids excess strength of 100 mg/l, oil and grease
excess strength of 20 mg/l, ammonia excess strength of 105 mg/l, and hydrogen sulfide strength of 150 mg/l.
Typical Bill Increase Comparison by Class
0%
2%
4%
6%
8%
10%
12%
Residential -
Small
Residential -
Medium
Residential -
Large
Commercial -
Small
Commercial -
Medium
Commercial -
Large
Industrial -
Small
Industrial -
Medium
Industrial -
Large
JBS
Typical Bill Increase Overall Average Revenue Increase
Rate_Report_Tables (8)5/1/2009