Wastewater Capacity Evaluation Update January 7, 2019
Future Wastewater Needs Decision Factors driving the decision Design-Permitting-Construction timeline Will take ±4 years to deliver a project Raleigh contract expiration Current commitments Impacts Actual Flow vs. Permitted Flow vs. Allocated Flow Delayed decision will require limits on development approvals
Considerations Community needs Best Value vs. Cost to Customers
Since the Last Update Re-evaluated projected flows based on most recent allocations made and requested to the Town 20-year planning period Explored options to extend need to have additional capacity (ongoing) Staff met with Johnston County, City of Raleigh, 3 rd Party Operators, Legislators Used Rate Model to determine impact of options explored on user rates (ongoing)
Variables in Options Considered Obtaining Additional Capacity in Clayton vs. JoCo ~45% in JoCo and 55% in Clayton ~20% in JoCo and 80% in Clayton All Flow Treated in Clayton Timing Raleigh Contract ends in 2027 vs. 2032 Maximizing Existing Resources Building one new facility vs. two facilities (maintaining Little Creek WRF and building smaller new facility) Phasing Is phasing a feasible option to spread out costs for each scenario considered?
Options Considered Raleigh Contract Expires 2027 Raleigh Contract Expires 2032 ~45% of ~20% of Flow ~20% of ~45% of Flow Treated in Flow Treated All Flow Flow Treated Treated in JoCo; 55% in JoCo; 80% Treated in JoCo; 55% JoCo; 80% All Flow Treated in Treated in in Treated in Treated in Treated in Clayton (A) Clayton (B) Clayton (All) Clayton (C) Clayton (D) Clayton (All) One New Facility 1A 1B 1BAll 1C 1D 1DAll Two facilities (Little Creek WRF and smaller new facility) 2A 2B 2BAll 2C 2D 2DAll This represents 20 options for consideration (including some options as phased)
Options Considered for Rate Study Of all the options considered, 5 options were supplied for the Rate Model 1B One Plant; ~20% of Flow Treated in JoCo; 80% Treated in Clayton 2B Same as 1B but running Two Plants 1C One Plant; ~45% of Flow Treated in JoCo; 55% Treated in Clayton 2C Same as 1C but running Two Plants 1DAll One Plant, Clayton treats all flows (no flow sent to Raleigh or JoCo by 2037)
Run Enterprise like a Business Multi-Year Financial Planning and Monitoring Multiple variable effort Maintenance of Expenses and Revenues Capital and Operating Drivers Sustainable Implementation User Rates, System Dev. Fees, and Other Revenues Sources SDF charges are now mandated by NC Legislation Maintenance of Financial Metrics Debt Service Coverage and Fund Balance (Cash)
Capital Improvement Plan (CIP) Water Capital Projects Projects: Project 1 $ - $ - $ - $ - $ - $ - AMR/AMI Meter System Recommendation 22,500 1,028,000 1,252,000 500 K Elevated Storage Construction Admin & Observation Water 142,416 Improvement 500 K Elevated Storage Design & Permitting 88,500 500 K Elevated Storage Tank (Clayton North) 1,702,800 Elevated Storage Tank Land Acquisition (Per Acre) 50,000 Elevated Storage Tank Easement (Per Acre) 15,000 Elevated Tank Mixer Replacement 15,000 15,500 17,036 18,724 20,580 Projects S O' Neil St. Blanche to Home 150,355 150,355 Blanche St. Fayetteville to Ellington 120,281 120,281 City Rd Stallings to Parkview 346,940 US 70 Hwy Bus W Olde Towne to Rose St. 97,412 FY 2015-16 remaining streets 195,640 Clayton Estates 354,469 365,812 Design for Projects (15% of Project Cost-Excludes Line 1 and Line 11) 42,845 67,282 52,041 2,555 $ 2,809 $ 53,170 $ 54,872 $ 3,087 Water System Capacity Purchases 2,535,000 1,237,500 1,237,500 990,000 990,000 990,000 $ 990,000 $ 990,000 $ 990,000 $ 990,000 FY 2019 $4,528,671 Regency Dr Credit Union to US Hwy 70 Bus W. 118,703 Water Needs Assessment 56,714 $ 70,704 FS# 2 Elevated Tank Riser Floor Installation (estimated 2015) 336,606 500 K Elevated Storage #2 Construction Admin & Observation 161,539 500 K Elevated Storage #2 Design & Permitting 100,383 500 K Elevated Storage Tank #2 1,931,445 Elevated Storage Tank #2 Land Acquisition (Per Acre) 56,714 Elevated Storage Tank #2 Easement (Per Acre) 17,015 5 MGD Surface Water Treatment Plant $ 22,040,699 $ 22,746,001 5 MGD Surface Water Treatment Plant Study, Permits & Design $ 4,565,996 $ 4,712,108 JoCo Interconnect Meter Installations ($100K each) 532,512 439,642 340,283 JoCo Line/Customer Acquisition Costs (estimate) 500,000 516,000 532,512 Water System Model 53,251 $ 62,334 HB 436 Update 13,313 $ 15,584 OPS Center Expansion 824,339 Church Street (estimated) 159,754 Future Line Replacement (estimated) 154,800 159,754 164,866 170,141 175,586 $ 181,205 $ 187,003 $ 192,987 $ 199,163 Hamby Line Replacement (825 LF @ $120/LF-2015) 115,886 Warehouse driveway and turn lane - 8,259 - - - - - - - - - Warehouse Improvements Phase II - - 8,259 - - - - - - - - 1500 4WD Chevrolet replace Unit # 83-4,441 - - - - - - - - - 18" Cold Planer for Unit # 817 - - 1,927 - - - - - - - - 2500HD 4WD Chevrolet Addl (New Employee) - 5,603 - - - - - - - - - 2500HD 4WD Chevrolet replace Unit #72-5,603 - - - - - - - - - 3500HD 4WD Chevrolet Addl (New Employee) - - 6,855 - - - - - - - - Addl portable CD103 Godwin pump & hose - - - 8,981 - - - - - - - CAT 430F2 4X4, Back Hoe, replace Unit # 800-22,714 - - - - - - - - - CAT BA118C Hydraulic Angle Broom 1,170 - - - - - - - - - - Diamond Wire Guillotine Pipe Saw - - 1,445 - - - - - - - - DJ Inspire 1 Drone Kit (Upgradable) - 379 - - - - - - - - - 0 - - - - - - - - - - - FY 2020 $4,893,608 FY 2021 $2,254,555 FY 2020 $1,685,175 FY 2023 $3,253,125 TOTAL $16,615,135 Subtotal Projects: $ 352,151 $ 4,528,671 $ 5,939,433 $ 3,585,197 $ 2,557,970 $ 3,253,125 $ 1,165,586 $ 6,191,121 $ 6,308,093 $ 23,349,262 $ 23,958,831 Total Water Capital Projects $ 352,151 $ 4,528,671 $ 5,939,433 $ 3,585,197 $ 2,557,970 $ 3,253,125 $ 1,165,586 $ 6,191,121 $ 6,308,093 $ 23,349,262 $ 23,958,831
Capital Improvement Plan (CIP) Wastewater Capital Projects Projects: Project 1 Raleigh Clayton Sewer Main 1,143,176 Sam's Branch Phase II 162,597 Rollingwood Sewer 724,530 ECIA Lift Station Project 600,000 4,115,787 457,310 Wastewater Central Lift Station Abandonment 549,206 New LCWRF 500,000 3,000,000 24,433,289 29,030,282 23,886,430 - - 15,000,000 15,000,000 - Improvement Fiber Connectivity for WWTP 73,117 Animal Hospital L/S Abandonment 295,914 Arbors L/S Abandonment- 2015 Feasibility Study 931,764 Blanche St Fayetteville to Ellington 161,725 62,328 City L/S Abandonment 2015 Feasibility Study 797,881 Projects Clayton Estates Street Project 459,174 473,868 Design for projects (15% of Project Cost-Excludes Line 29) 54,597 106,972 118,325 38,231 13,725 170,190 - FY 2015-16 remaining streets 273,947 Glen Haven L/S By-Pass Pump 170,141 Liberty L/S Abandonment 2015 Feasibility Study - 428,651 Little Creek Outfall Line NC 42 Hwy 306,444 Lombard St Second St to Little Creek Outfall 161,056 166,209 Manhole Rehab Project 83,250 85,914 88,663 91,500 94,428 97,450 100,569 103,787 107,108 110,535 Parshall Flume Modification 100,000 Peele S/D Main Replacement 702,916 Regency Dr Cemetery Outfall to Smith St. 126,397 S O'Neil St. Blanche to Home 202,255 97,054 Starmount L/S Abandon 2015 Feasibility Study 128,658 Starmount Sewer Line Rehab/replace 482,861 Walnut Creek Gravity Sewer-L/S Abandonment 4,082,592 Sewer System Capacity Purchases 1,600,000 1,640,000 1,681,000 1,723,025 1,766,101 - - - - - FY 2019 $8,313,914 FY 2020 $11,624,482 Warehouse driveway and turn lane - 51,741 - - - - - - - - - Warehouse Improvements Phase II - - 51,741 - - - - - - - - 1500 4WD Chevrolet replace Unit # 83-27,819 - - - - 18" Cold Planer for Unit # 817 - - 12,073 - - - - - - - - 2500HD 4WD Chevrolet Addl (New Employee) - 35,097 - - - - - - - - - 2500HD 4WD Chevrolet replace Unit #72-35,097 - - - - - - - - - 3500HD 4WD Chevrolet Addl (New Employee) - - 42,945 - - - - - - - - Addl portable CD103 Godwin pump & hose - - - 56,261 - - - - - - - CAT 430F2 4X4, Back Hoe, replace Unit # 800-142,286 - - - - - - - - - CAT BA118C Hydraulic Angle Broom 7,330 - - - - - - - - - - Diamond Wire Guillotine Pipe Saw - - 9,055 - - - - - - - - DJ Inspire 1 Drone Kit (Upgradable) - 2,371 - - - - - - - - - 0 - - - - - - - - - - - FY 2021 $27,845,876 FY 2020 $31,298,174 Forest Glen L/S Abandonment 25,000 W. Main L/S Abandonment 2015 Feasibility Study 773,140 Wal-Mart L/S Abandonment 1,313,406 Sewer Needs Assessment 56,714 70,704 Inflow & Infiltration Analysis 106,502 HB 436 Update 824,329 OPS Center Expansion 824,329 Grit Classifier 45,000 Church Street (estimated) 159,754 Rollingwood Sewer Service Rehab (90 @ $1500/ea-2015) 158,027 Future Line Replacement (estimated) 154,800 159,754 164,866 170,141 175,586 181,205 187,003 192,987 199,163 Hamby Line Replacement (825 LF @ $157/LF-2015) 151,619 Future L/S Rehab or Upgrade (estimated) 258,000 274,776 292,643 311,672 331,938 FY 2023 $26,570,150 TOTAL $105,652,596 Subtotal Projects: $ 3,056,210 $ 8,313,914 $ 11,624,482 $ 29,045,205 $ 32,096,055 $ 27,423,373 $ 565,679 $ 1,213,538 $ 17,375,042 $ 15,844,667 $ 641,636 Total Wastewater Capital Projects $ 3,056,210 $ 8,313,914 $ 11,624,482 $ 29,045,205 $ 32,096,055 $ 27,423,373 $ 565,679 $ 1,213,538 $ 17,375,042 $ 15,844,667 $ 641,636 Total $ 3,408,361 $ 12,842,585 $ 17,563,915 $ 32,630,402 $ 34,654,026 $ 30,676,498 $ 1,731,265 $ 7,404,658 $ 23,683,135 $ 39,193,929 $ 24,600,467
Run Enterprise like a Business Rate Comparison (Competitiveness) Growth alone will not cover system requirements Adequate and frequent stakeholder engagement
Run Enterprise like a Business **insert Rate comparison spreadsheet
Options Considered for Rate Study These 5 options require final review in the Rate Model 1B One Plant; ~20% of Flow Treated in JoCo; 80% Treated in Clayton 2B Same as 1B but running Two Plants 1C One Plant; ~45% of Flow Treated in JoCo; 55% Treated in Clayton 2C Same as 1C but running Two Plants 1DAll One Plant, Clayton treats all flows (no flow sent to Raleigh or JoCo by 2037)
What s next? Town Council Decision needed on February 18th Continue Public Hearing to the 18th (Action needed) Staff tasks in the short term: Solicit responses to RFQ for Design Services Negotiate contract with Consultant Final Approval of Contract by Town Council Additional information needed?