E/17. Evergreen Sewer Rate ApprovalC.
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City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 -Telephone (406)758-7700 Fax(406)758-7758
REPORT TO: Mayor Boharski and City Council Members
FROM: Amy Robertson, Finance Director
Chris Kukulski, City Manager
SUBJECT: Evergreen Sewer Rate
MEETING DATE: August 6, 2001
BACKGROUND: Included in the packet are documents compiled by the Finance Office
analyzing the charges to be levied by the City on the Flathead County
Water & Sewer District 41 - Evergreen for treatment of sewage by
the City's wastewater treatment plant. The charge is made pursuant
to an Interlocal Agreement between the City and the District dated
July 25, 1990 and a subsequent Addendum, dated June 24, 1996.
Sewer rate adjustments for flows contributed by the District are
adjusted yearly retroactive to July 1 st of the calendar year.
Documentation for the rate is attached. The rate for M&O and
replacement is $1.59 per thousand gallons, $.02 less than last year.
The debt service amount is $10,089.07 per month an increase of
$11.91 per month based on actual debt service schedules.
RECOMMENDATION: A motion to approve the rate by the Council.
FISCAL EFFECTS: Evergreen Sewer District is our largest customer generating
$193,791.02 toward maintenance & operations, $70,074.84 for
replacement and $121,068.84 toward debt service for a total
of $ 384,934.70.
ALTERNATIVES: As suggested by Council.
Amy Ff Robertson
Finance Director
Report compiled: August 1, 2001
�A,
Chris A. Kukulski
City Manager
Attachments: 5 pages- including the current rate calculation and the prior year, flows spreadsheet,
and schedule of Evergreens cash equity in the replacement fund and explanatory memo.
City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758
DATE: August 1, 2001
TO: Chris Kukulski, City Manager
Mayor Boharski & City Council Members
FROM: Amy Robertson, Finance Director
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RE: Evergreen Sewer Rate for Fiscal Year 2002
Please find attached several sheets of information. This compilation is for the Wastewater
Treatment Plant operations only and does not include the billing costs, bad debt expense,
depreciation or sanitary sewer expenses. The first sheet is a compilation of the expenses of the
WWTP for the fiscal year 2001. Our operating expenses have increased by 5.7% from the prior
year. FY2000 expenses are included for comparison purposes only.
Evergreen Sewer District's FY2002 rate is based on our operational expenses for FY2001
prorated at the percent of usage based on meter readings at the lift station and the plant. A page
is attached with the meter readings and usage. Evergreen's usage is only slightly up 2.8% while
the total plant usage is up 5.5%. As a result, Evergreen's share of the total flows has decreased
from 23.3137% to 22.7220%. This is not a percent of capacity only a percent of flows treated at
the plant. The percent of usage (22.72%) is applied to our expenses and replacement amounts to
arrive at the total cost for treating Evergreen's sewage. The cost is then divided by their gallons
of usage to arrive at the rate per thousand. This calculates to $1.59 per thousand and is the new
rate for FY2002. The district pays 22% of the debt service costs regardless of the usage. The
total Evergreen rate is down $ .02 per thousand from last year.
The amended Evergreen agreement calls for Evergreen to share in the equity of the replacement
reserve account. A reconciliation of the reserve account is included. The only funds used from
the replacement account were for the head -works grit removal pump - $11,232. The account
earned $130,872 in interest.
There were no additions or deletions to the Equipment Replacement Schedule.
2001
WWTP... FISCAL YEAR 2001
Prepared: 8/2/01
City Finance Office
Wages/fica/medt/wc/unemp.
$
216,186.00
Overtime
$
11,332.00
Health Ins.
$
29,761.00
pERD
$
14,165.00
Office Supplies
$
539.00
Small office equip
$
1,475.00
Computer supplies
$
1,199.00
Computer Equip
$
1,516.00
Safety equip
$
2,156.00
Lab supplies
$
3,437.00
Janitorial Supplies
$
529.00
Alum
S
2,493.00
Chemicals
$
11,244.00
Other supplies
$
4,055.00
Gas & Oil
$
6,608.00
Consumable tools
$
3,039.00
Postage & freight
$
470.00
Memberships & dues
$
469.00
Licenses & fees
S
3,856.00
Electricity
$
146,574.00
Water
$
2,120.00
Natural Gas
$
36,858.00
phone lease/charges/pagers/alarms
$
3,227.00
Lab Services
$
3,147.00
Auditing
$
1,800.00
Contract Serv-Glacier Gold
$
102,966.00
Contract Serv-Gravity Thickener
$
5,656.00
Maint. & Repair
$
5,317.00
Equipment Maintenance
$
106,140.00
Radio maint.
$
1,124.00
Building maint.
$
3,500.00
School & Training
$
5,937.00
Medical services/drug testing
$
197.00
Property & Liability Ins.
$
24,102.00
Central Garage
$
4,000.00
Admin. Transfer
$
80,411.00
Data Processing
$
5,273.00
Total Operating Expenses
$
852,878.00 x 0.227220 S 193,791,02 $ 1.16 per thousand gallons
Replacement
$
3087400.73 x 0.227220 $ 70,074.84 $ 0.42 per thousand gallons
Annual cost to Evergreen
$ 263,8 55686 $ 1.59 per thousand gallons
Debt service / Evergreen 22% $ 121,068.86 annual $ 10,089.07 per month
Evergreen Flows 166,355,804 22.7220%
Total Kalispell Flows 732,135,100
2000
WWTP... FISCAL YEAR 2000
Wages/fica/medt/wc/unemp $
Overtime $
Health Ins. $
PERD S
Office Supplies $
Computer supplies $
Computer Equip $
Safety equip $
Lab supplies $
Janitorial Supplies . $
Alum S
Chemicals $
Other supplies $
GAS & OIL $
Consumable tools $
Postage & freight $
Memberships & dues $
Licenses & fees $
Electricity $
Water $
Natural Gas $
phone lease/charges/pagers/ $
Lab Services $
Auditing $
Contract Serv-Glacier Gold $
Maint. & Repair $
Consultants -NW automatio $
Grounds maint. $
Building maint. $
School & Training $
Medical services/drug testin $
Property & Liability Ins. $
Central Garage $
Admin. Transfer $
Data Processing $
Total Operating Expenses $
212,515.00
13,243.00
28,252.00
13,773.00
496.00
733.00
380.00
1,073.00
3,703.00
58.00
2,044.00
10,888.00
3,048.00
5,988.00
1,519.00
513.00
600.00
3,605.00
147,702.00
2,476.00
30,655.00
3,033.00
3,949.00
1,800.00
94,295.00
80,736.00
1,047.00
4,662.00
6,628.00
3,992.00
367.00
27,524.00
4,000.00
87,450.00
4,425.00
807,072.00
Replacement $ 308,400.73
Annual cost to Evergreen
Debt service / Evergreen 22 $
Prepared: 8/2/00
City Finance Office
x 0.233137 $188,158.47 $
z 0.233137 S 71,899.67 $
120,925.86 annual
Evergreen Flows 161,776,200 23.3137%
Total Kalispell Flows 693,910,000
1.16 per thousand gallons
0.44 per thousand gallons
5260,058.13 $ 1.61 per thousand gallons
$ 10,077.16 per month
Date
06/30/2000
08/01/2000
09/01 /2000
10/02/2000
11 /01 /2000
12/01/2000
01/02/2001
02/01/2001
03/01 /2001
04/02/2001
05/01/2001
06/01/2001
07/02/2001
KALISPELL WASTEWATER TREATMENT PLANT
EVERGREEN
Outflow Meter Reading
at the Evergreen
Main Lift Station
12,929,800
25,857,900
38,040,300
50,232,300
63,589,200
75,798,300
87,233,300
100,232,100
111,967,600
124,474,500
137,070,000
Evergreen's Usage
forthe
Preceedinq Period
13,949,050
14,900,850
13,365,704
12,928,100
12,182,400
12,192,000
13,356,900
12,209,100
11,435,000
12,998,800
11, 735, 500
12,506,900
12,595,500
166,355,804
Evergreen's Annual % of total flows = 22.72%
* New meter installed 3/7 R 3/8/2001. 3/1 to 3/9 old meter
3/9 to 4/2 new meter
FLOW DATA FY01
Average Daily Use
for the Influent Meter Reading
Preceedinq Period
481,002
465,652
431.152
417,035
406,080
406,400
417,403
406,970
408,393
406,213
404,672
403,448
406,306
at the WWTP (gal)
4,930,079,000
4,998,758,000
5,057,210,000
5,110,685, 000
5,162,355, 000
5,209,012,000
5,261,418,000
5,309,615,000
5,354,949,000
55,603,800
135,657,800
211,907,400
294, 041,100
5,368,173,000 3/9 reading
5,354,949,000 3/1 reading
13,224,000
55,603,800 4/2 reading
0 3/9 reading
55,603,800
13,224,000 + 55,603,800 = 68,827,800
WWTP
Influent (gal)
68,679,000
58,452,000
53,475,000
51,670,000
46,657,000
52,406,000
48,197, 000
45,334,000
68,827,800
80,054,000
76,249,600
82,133,700
732,135,100
WWTP EQUIPMENT REPLACEMENT ACCOUNT -CITY & EVERGREEN FUNDS
Cash
YEAREND
%FLOWS
EVERGREEN's
DATE
ADDITIONS
(SPENT)
BALANCE
EQUITY
12/31/94
$150,000.00
$150,000.00
8.86766%
$26,085.00
12/31/95
$300,000.00
$450,000.00
16.84724%
$64,350.00
6/30/96
$150,000.00
($91,113.77)
$508:886.23
17.39000%
$14,103.25
6/30/97
$333,387.13
($5,190.98)
$837,082.38
21.45%
$70,398.07
6/30/98
$354,574.38
$
(66,485.84)
$1,125,170.92
23.95%
$68,997.21
6/30/99
$370,106.34
S
(405,397.00)
SL089,880.26
24.66%
($8,702.68)
6130/00
$377,442.66
$
(19,802.49)
$1.447,520.43
23.31%
$83,365.92
6/30/01
$439,273.83
$
(11,232.36)
$1,875,561.90
22.72%
$97,251.02
subtotal
$415,847.80
Evergreen's
Total Equity as
of 6/30/01
$415.847.80
Additions include:
$ 308,401.00 from operating revenue
$ 130,872.83 interest earnings
$ 439,273.83
Funds Spent:
Headworks/Grit removal pump
Total
$ 11,232.36
$ 11,232.36
2001
WWTP... FISCAL YEAR 2001
Wages/fica/medt/wc/unemp.
$
216,186.00
Overtime
$
11,332.00
Health Ins.
$
29,761.00
PERD
$
14,165.00
Office Supplies
$
539.00
Small office equip
$
1,475.00
Computer supplies
$
1,199.00
Computer Equip
S
1,516.00
Safety equip
$
2,156.00
Lab supplies
$
3,437.00
Janitorial Supplies
$
529.00
Alum
$
27493.00
Chemicals
$
11,244.00
Other supplies
$
4,055.00
Gas & Oil
$
6,608.00
Consumable tools
$
3,039.00
Postage & freight
$
470.00
Memberships & dues
$
469.00
Licenses & fees
$
3,856.00
Electricity
$
146,574.00
Water
$
2,120.00
Natural Gas
$
36,858.00
phone lease/charges/pagers/alarms
$
3,227.00
Lab Services
$
3,147.00
Auditing
$
1,800.00
Contract Serv-Glacier Gold
$
102,966.00
Contract Serv-Gravity Thickener
$
5,656.00
Maint. & Repair
$
5,317.00
Equipment Maintenance
$
106,140.00
Radio maint.
$
1,124.00
Building maint.
$
3,500.00
School & Training
$
5,937.00
Medical services/drug testing
$
197.00
Property & Liability Ins.
$
24,102.00
Central Garage
$
4,000.00
Admin. Transfer
$
80,411.00
Data Processing
$
5,273.00
Total Operating Expenses $ 852,878.00 x
Replacement S 308,400.73 x
Annual cost to Evergreen
Debt service / Evergreen 22% $ 121,068.86 annual
Evergreen Flows 166.355,804
Total Kalispell Flows 732,135,100
Prepared: 8/2/01
City Finance Office
0.227220 $ 193,791.02 $ 1.16 per thousand gallons
0.227220 $ 70,074.84 $ 0.42 per thousand gallons
22.7220%
$ 263,855.86 $ 1.59 per thousand gallons
$ 10,089.07 per month
011111
W WTP...FISCAL YEAR 2000
Wages/fica/medt/wc/unemp $ 212,515.00
Overtime
$
13,243.00
Health Ins.
$
28,252.00
PERD
$
13,773.00
Office Supplies
$
496.00
Computer supplies
$
733.00
Computer Equip
$
380.00
Safety equip
$
1,073.00
Lab supplies
$
3,703.00
Janitorial Supplies
$
58.00
Alum
$
2,044.00
Chemicals
$
10,888.00
Other supplies
$
3,048.00
GAS & OIL
$
5,988.00
Consumable tools
$
1,519.00
Postage & freight
$
513.00
Memberships & dues
$
600.00
Licenses & fees
$
3,605.00
Electricity
S
147,702.00
Water
S
2,476.00
Natural Gas
$
30,655.00
phone lease/charges/pagers/
$ .
3,033.00
Lab Services
$
3,849.00
Auditing
$
1,800.00
Contract Serv-Glacier Gold
S
94,295.00
Maint. & Repair
$
80,736.00
Consultants -NW automatio
$
1,047.00
Grounds maint.
$
4,662.00
Building maint.
$
6,628.00
School & Training
$
3,992.00
Medical services/drug testin
$
367.00
Property & Liability Ins.
$
27,524.00
Central Garage
$
4,000.00
Admin. Transfer
$
87,450.00
Data Processing
$
4,425.00
Total Operating Expenses S 807,072.00
Replacement $ 308,400.73
Annual cost to Evergreen
Debt service / Evergreen 22 $
Evergreen Flows
Total Kalispell Flows
Prepared: 8/2/00
City Finance Office
x 0.233137 $188,159.47 $ 1.16 per thousand gallons
z 0.233137 S 71,899.67 $ 0.44 per thousand gallons
120,925.86 annual
161.776.200
693,910,000
23.3137%
$260,058.13 $ 1.61 per thousand gallons
$ 10,077.16 per month