3. Evergreen Sewer District Rate for FY2014-4v City of Kalispell
st 4
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7000 Fax - (406) 758-7758
MI TA1 °
REPORT TO: Doug Russell, City Manager
FROM: Rick Wills, Finance Director
SUBJECT: Evergreen Sewer Rate for Fiscal Year 2013/2014
MEETING DATE: September 16, 2013
BACKGROUND: Please find attached several sheets of information. This compilation is for the City of
Kalispell Wastewater Treatment Plant (WWTP) 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 2013. The WWTP operating expenses increased about 2% from the prior year. FY2012
expenses are included for comparison.
Evergreen Sewer District's FY2014 rate is based on our operational expenses for FY2013 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 down 7.18%, while the total plant usage is down 2.25%. As a result,
Evergreen's share of the total flows has decreased from 17.34% to 16.46%. This is not a percent of capacity
only a percent of flows treated at the plant. The percent of usage (16.46%) is applied to our operating expenses
and replacement fund requirements 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 $1.74 (up $0.07 from
FY2013) per thousand and is the new rate for FY2014. Due to the expansion of the plant, beginning in FYI
the district pays 12% of the debt service costs regardless of the usage. The Evergreen debt service expense for
FY14 is $13,970.41 per month, up from $10,973.38 for FYI 3. This debt service increase is the result of excess
principal payments related to the refinancing of debt in fiscal year 2013.
The current agreement calls for Evergreen to share in the equity of the WWTP Replacement Reserve account.
A reconciliation of the reserve account is included. The items for which replacement funds were used are listed
on the reconciliation page. The account earned $9,470 in interest. The equipment replacement schedule has
been adjusted and updated for the reconciliation of the reserve account. Evergreens total equity in the
replacement reserve account is $293,431.73.
RECOMMENDATION: It is recommended that the City Council move to adopt $1.74 per thousand
gallons and $13,970.41 per month as the FY2014 Evergreen Sewer District's sewage treatment rate and
service charge.
Rick Wills
Finance Director
Report compiled: September 11, 2013
2013
WWTP...FISCAL YEAR 2013
Prepared: 9/10/13
City Finance Office
Wages/fica/medt/wc/unemp.
$
452,005.00
Overtime
$
20,672.00
Health Ins.
$
79,034.00
PERD
$
29,489.00
Supplies & equipment
$
17,114.00
Non -capital equipment
$
906.00
Lab supplies
$
7,697.00
Chemicals
$
9,390.00
Gas & Oil
$
13,421.00
Postage & freight
$
308.00
Licenses & fees
$
12,630.00
Electricity
$
158,951.00
Water
$
6,115.00
Natural Gas
$
44,483.00
phone lease/charges/pagers/alarms
$
4,469.00
Auditing
$
2,500.00
Contract Serv-Glacier Gold
$
123,871.00
Other Contract Sery
$
39,656.00
Consultants
$
3,976.00
Misc. Maintenance
$
19,625.00
School & Training
$
6,187.00
Medical services/drug testing
$
586.00
Property & Liability Ins.
$
43,575.00
Central Garage
$
5,500.00
Admin. Transfer
$
126,734.00
Data Processing
$
20,899.00
Total Operating Expenses
$
1,249,793.00 x
0.1646 $ 205,735.74 $ 1.308 per thousand gallons
Replacement
$
411,598.48 x
0.1646 $ 67,755.63 $ 0.431 per thousand gallons
Annual cost to Evergreen
$ 273,491.37 $ 1.74 per thousand gallons
Debt service / Evergreen 12%
$ 167,644.92 annual
Evergreen Flows 157.261,967 16.46%
Total Kalispell Flows 955,327,000
$ 13,970.41 per month
2012
WWTP... FISCAL YEAR 2012
Prepared: 8/28/12
City Finance Office
Wages/fica/medt/wc/unemp.
$
440,701.00
Overtime
$
18,522.00
Health Ins.
$
74,964.00
PERD
$
28,673.00
Supplies & equipment
$
13,454.00
Non -capital equipment
$
1,696.00
Lab supplies
$
7,940.00
Alum
$
3,283.00
Chemicals
$
9,717.00
Gas & Oil
$
14,731.00
Postage & freight
$
298.00
Licenses & fees
$
7,325.00
Electricity
$
158,225.00
Water
$
5,603.00
Natural Gas
$
50,405.00
phone lease/charges/pagers/alarms
$
4,851.00
Auditing
$
2,750.00
Contract Serv-Glacier Gold
$
114,009.00
Other Contract Sery
$
42,560.00
Consultants
$
5,820.00
Misc. Maintenance
$
20,543.00
School & Training
$
6,235.00
Medical services/drug testing
$
196.00
Property & Liability Ins.
$
41,680.00
Central Garage
$
4,000.00
Admin. Transfer
$
122,598.00
Data Processing
$
18,705.00
Total Operating Expenses
$
1,219,484.00 x
0.1734 $ 211,408.19
$ 1.248 per thousand gallons
Replacement
$
411,598.48 x
0.1734 $ 71,354.19
$ 0.421 per thousand gallons
Annual cost to Evergreen
$ 282,762.37
$ 1.67 per thousand gallons
Debt service / Evergreen 12%
$
131,680.56 annual
$ 10,973.38
per month
Evergreen Flows
169,423,477
17.34%
Total Kalispell Flows
977,300,000
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CITY OF KALISPELL-WWTP REPLACEMENT EQUIPMENT SCHEDULE
Fiscal year ending 6l30: 2011 nELETES QII_ADD5 20i2 DELETES
2012 ADDS 2015 DELETES 2013 ADDS balance
Refrigerator sampler
$4 672.10
2005 GMC 314 TON PIU
$18 243.28
2005 GMC 314 TON PIU WI PLOW
$25,330.27
Interim Phosphorus equip
_ — $31,498.80
Equipment, etc. 1994 Plant:
_ _ _ $1,610,566.75
Misc. process equipment
$45,000,00
Mechanical Bar Screen
$184,751,55
Grit removal & dewatering
$135,765,95
Lift station pumps, motors & controls
$195,616.00
Prim. Clarifier sludge collecting equip
_ _ S147,168.87
Prim. Clarifier scum collecting equip
$30,876,12
Biorcaciur mechanical mixers
$828,985.62
Final clarifier Rim Drive, mechanism,etc.
$730,516.92
Dissolved Air floatation
$300,000.00
Belt filter press ---- -
- --- - $350,000.00
Chemical feed system
$125,612,27
Effluent filters
$400,000.00
UV Disinfection
$392,513.94
Process air equipment
$454,914.00
Fermenter mixers
W $393,12&00
Odor Control scrubber
$204,948.78
Slide and stop gates
$278,552.20
Emergency power generator
$45,000.00
Sludge belt conveyor
$64,090.05
Pumps -primary sludge, priETy & final scum
$15,000.00
Pumps-WAS,Fermenter Supernatant,RAS
$162,718,85
Pumps-DAF float,Digested sl_udge,_Fe_rme_nter recycle
$60,000.00
Pumps -filtrate waste return
$35,000.00
Pumps -non -potable water
$4,500,00
Pumps -anaerobic and Denitrification recycle
$280,605.60
Laboratory equipment
$60,646.33
Sludge haulin truck
T $30,385.00
Scum um s mo no pumps)-2
$23,200.81
Gas detection system
7.45
Gorman-Ru 4" trash pumpArailer
_$16,61
r� $14,334.95
John Deere tractor mower
$4,000.00
Gas Monitor
$15,048,00
Kenworth Sludge Truck _ _ _
$208,6I4, 80
Utility Tractor w160" mower/loader
$12,375.00
Programmable Logic Control Unit
$177,927.53
mist. _replacement equipment -71552 _71552 -96232 _ 96232 $25,502.30
mist. Equipment maintenance -44065 44065 -42635 r 42635 $0.00
$ S f115,617,001 S 115.617.90 S r138.867.001 S 138,967,00
$8,231,969.62 $8,231,969,62 $8,116,352.62 $8,231,969,62 $8,093,102,62 $8,231,969.62 $8,231,969.62
S 411.599.48 S 411,598.48 S
FY2013 Notes:
Nn additions, everything replaced worn out or obsolete equipment.
Prepared by: Rick Wills, Finance Director
9/11/2013
405,817.63 S 411.593 48 S 404,655.13 S 411,598.48