07/14/2021 (3) - Laserfiche WebLink

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Utilities The Department of Utility Services recommended budget is $61,175,212, reflecting an increase of $8,977,173 or 17.2% (page 51). As mentioned above, in order to comply with the increased reporting required under SB 712, an additional $1,482,716 is being requested in the FY 2021/22 proposed budget. These costs include four (4) additional employees, a Vac Truck, a TV Truck, and other miscellaneous equipment necessary to carry out the tasks required to comply with SB 712. These resources will assist in identifying problem areas and efficiently direct maintenance activities aimed to eliminate and prevent SSOs caused by I&I and other blockages. Two (2) additional FT positions including an Environmental Compliance Technician, a Staff Assistant I, and one (1) PT Customer Service Representative are also being proposed at a cost of $129,604. Due to the ever-increasing environmental compliance issues, and more stringent Department of Environmental Protection mandates, the addition of the Environmental Compliance Technician has become a necessity. A large portion of the proposed increase, approximately $1.9M, is due to the additional depreciation for the Automated Meter Reading (AMR) project. Various renewal and replacement projects are proposed for the upcoming fiscal year: $6M South RO Water Plant membrane retrofit project, $1.6M SCADA system improvements at North & South Water Treatments Plants, $1.1M in lift station replacements, $750,000 for large line ice pigging to clean the mains, $430,000 for the Oslo Road valve replacement and $380,000 for 58th Ave Water Treatment Plan and valves related to the ongoing road project, some of which are encompassed in the five-year deferred capital and maintenance plan. Funding to address deferred capital and maintenance projects is included in the FY 2021/22 budget for a total of $5,081,000. This is the third year of a five-year plan for the Department of Utility Services to catch up on deferred capital and maintenance projects that went unfunded during the economic downturn. It is anticipated that $3,828,360 in deferred capital and maintenance will be expended in the current fiscal year, which was year two of the five-year plan. Over the five-year period, the Department of Utility Services plans to spend approximately $18AM to address these deferred items in a continued effort to improve the Utility's infrastructure. As recommended in the Comprehensive Water, Wastewater, and Reclaimed Water Rate Study, an annual CPI adjustment is being recommended for the upcoming fiscal year. The CPI proposed is 3.0% and is expected to generate approximately $1 M in additional revenue. Although the CPI increase for April exceeded 3.0% (4.4%), the maximum adjustment recommended per the rate study is 3.0%. It is anticipated that these increases will be needed on an annual basis going forward. 17