Minutes 08/10/2011 6 Cc_ (Y)-
DRAFT Minutes 3I )3) a 1(,-1
Productivity Committee's
Subcommittee
Public Utilities Capital Projects Review
August 10, 2011
9:30am
1. Call to Order-Janet Vasey at 9:30 am
Subcommittee members:
Janet Vasey
Vlad Ryziw
Jim Gibson
Gina Downs
Doug Fee
Leslie Prizant - not present
Collier County Public Utilities Division Staff:
Tom Wides, Director, Operations Support
Dan Rodriguez, Director, Solid Waste
Tom Chmelik, Director, Planning & Project Management
Steve Messner, Interim Director, Wastewater
Paul Mattausch, Director, Water
Bala Sridhar, Sr. Operations Manager
Sheree Mediavilla, Administrative Assistant
Jon Pratt, Plant Manager, Wastewater
Margie Hapke - Operations Analyst/PIO
Documents provided to productivity subcommittee prior to the
meeting:
1. Utilities Capital - Responses to Questions
2. FY12 - FY20 Collier County Water-Sewer District (CCWSD)
Capital Improvement Projects and Letter from Greenly &
Hanson
3. Master Pump Station 302 - Photographs
4. Fitch Rating Surveillance and CCWSD Financial Summary
5. Level 2 Compliance Maintenance - Water Department
6. Level 2 Compliance Maintenance - Wastewater Department
7. BIC Flowchart and Funds 408, 411-415 Flowchart
8. Breakdown Reserve Type, Unrestricted Reserve Depletion,
and Rational for Adequate Reserves - Charts
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Documents shown during the meeting:
1. Fund 411 and 413 - 2009 to 2016 Sources and Uses
2. Rate Changes
3. February 14, 2011, Nabors Giblin & Nickerson Impact Fee
Study
4. NACWA 2010 Service Charge Index
Documents emailed to Subcommittee members 08/10/11:
1. Fund 411 and 413 - 2009 to 2016 Sources and Uses
2. Impact Fee Discussion
3. Letter to Tom Wides - February 14, 2011, Nabors Giblin &
Nickerson Impact Fee Study
4. May 16, 2006, de la Parte Impact Fee Studies
Documents available online at www.colliergov.net/ppmd:
1. The Utilities Standards Manual for Collier County
2. 2008 Wastewater Master Plan Update
2. Safety Comments - Jon Pratt
Initially, we tried to have a tour of the North County Water
Treatment Facility, but were not able due to safety reasons.
Instead, we have produced a video that will give you a visual
tour of our plant and pump stations. In the event of a fire,
please use the stairs and we will meet at the front gate.
3. Plant Presentation - Wastewater 101 - Jon Pratt
The committee was shown an aerial photograph of what the
facility looked like a while ago and a recent aerial photograph.
Notice all the additions and changes we have put into this facility
to keep us in compliance. This plant treats 24.1 million gallons
daily (MGD).
Tom Wides - See where we are located. There are residential
communities (Stonebridge and Pelican Marsh south of us with
Bay Colony across Goodlette Road north of us) where the ponds
are. North Naples Community Hospital is 1/4 mile down the road.
We are good neighbors and do not have issues with odor control.
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Ms. Downs questioned who was here first and Tom responded
that the County was.
Jon Pratt - Discussed how this facility works and discussed the
Utilities Stardards Manual. A copy of this manual will be
provided to the Subcommittee members.
Wastewater service in the North and South Service Areas is
provided by a network of gravity sewers, pumping stations, force
mains, and water reclamation facilities. There are a total of 748
pumping stations, of which, 22 are master pumping stations
serving the North and South Service Areas. Currently,
wastewater is treated at the North County Water Reclamation
Facility (NCWRF) and the South County Water Reclamation
Facility (SCWRF).
The present permitted capacity of the NCWRF is 24.1 MGD Max
Month Daily Flow (MGD MMDF). The primary means of effluent
disposal is by distribution of irrigation quality water to customers
for irrigation. In addition, all stored water is pretreated to meet
primary drinking water standards.
Biosolids are currently dewatered and trucked out of the CCWSD
for disposal at the Okeechobee landfill. Biosolids at the NCWRF
and the SCWRF are dewatered using belt filter presses.
Dan Rodriguez - The Board of County Commissioners approved
a 10-year contract with Waste Management and the Okeechobee
landfill. The good news is we have a guaranteed rate for 10
years.
4. Wastewater Rules & Regulations - Present and Future
Jon Pratt - Wastewater customers expect a high level of service
in exchange for the rates that are paid. This is service without
disruption, odor problems or operating problems such as noise,
and in full compliance with all requirements for the protection of
public health.
Referring to the aerial photographs once again, in the 1970's this
plant produced one million gallons per day. The tank next to the
two white tanks was all that we had. A liquid stream expansion
was completed in November 2001, and a solids stream
expansion was completed in September 2002. This increased
the facility's capacity by 6.5-mgd to 17.55-mgd. In 2006, a
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subsequent expansion increased the facility's capacity to 24.1-
mgd.
In the Wastewater Department, our number one priority is to
protect the public health. The biggest concerns we have are due
to Florida Department of Environmental Protection (FDEP) Rules
and Regulations that we comply with for our permit. We have
400 pump stations that supply this facility.
Gina Downs - If there is a power failure, how many generators
would we need?
Jon Pratt - All 20 Master Pump Stations have generator power.
We have permanent generators in some of the sub-master and
lift stations. We utilize portable generators for those stations
that do not have a permanent generator.
Tom Chmelik - We are able to view the system through the
SCADA monitors and know if a system is down. Then we deploy
pumper trucks to the lift stations and truck the wastewater to a
master or sub-master lift station. Ms. Downs asked if all the
master and sub-master stations would have generators during a
hurricane or storm event and Tom responded, yes.
Tom Chmelik - In Lee County, 10 percent of the stations have
permanent generators. That is 75 out of 750 and we have 30 -
40 portable generators. Ms. Downs questioned if we are
satisfied with that.
Tom Wides - Generators are not at the top of the priority list.
However, during Tropical Storm Fay the significant part of our
expenses were 1) labor, 2) generators, and 3) vac trucks. We
have used generators 19 times in the past 9 days. Florida Power
& Light (FP&L) is not a stable power source.
Tom Chmelik - The SCADA system provides information by radio
waves and we monitor FP&L lines. We know when power goes
down and are able to quickly move generators to these stations.
Doug Fee: How long are you able to maintain power on a
generator? Tom Chmelik - We have a fuel source for 48 hours.
Jon Pratt - During a hurricane or severe weather event, we use
the "spider web network." We deploy generators to the areas
that have the higher level of flows and pumper trucks will move
the wastewater to one of the Master Lift Stations. We are also
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involved in the Florida Warn System and agencies will deploy
equipment and personnel to assist us - and, we do the same.
During Hurricane Wilma, we had assistance from Orange, Pasco,
and Hernando Counties and the City of Tampa.
Dan Rodriguez - We have a contract with AshBritt and they are
able to provide equipment on a huge scale. They responded to
Hurricane Katrina and were highly involved in the clean up
process. They are a great partnership.
Jon Pratt - We have issues with the collection and transmission
of wastewater to the facilities. It is a harsh environment. Raw
wastewater generates hydrogen sulfide. The H2S has the ability
to eat concrete and turn it into a paste - it is very corrosive.
Grit and sugar sand also get into the system and corrodes the
pumps and pipes. You will see examples of this during the
video.
Average raw sewage is 99.9% water and we have to treat .1%.
If it is not treated, we could experience a severe health epidemic
of cholera if we have a raw sewage overflow. As of four years
ago, it is a regulation by FDEP that you have no overflows at lift
stations.
Tom Wides - If a lift station goes down and we have an overflow
of sewage on the street we will be fined. Spilling Irrigation
Quality (IQ) water is also a consent order.
Jon Pratt - Sarasota County experienced an overflow that went
into the Gulf and they were fined $10,000 per day.
Gina Downs - Has this facility now, or in the past, come close to
this?
Jon Pratt - Yes, in 2001. We had a capacity issue and an old
treatment process that was not in the shape to handle high
strength. Tom Wides - Grease matter is a tremendous battle for
the North Plant. There are more restaurants in this area than
the South, but they are catching up. Think about what you do at
home. The amount of grease sent down a garbage disposal is
much higher than anyone thinks.
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5. CIP discussion focusing on Wastewater
Tom Wides - The main goals of the wastewater master planning
process are to develop a countywide plan that will guide
implementation of the wastewater utility system for the next 20
years to ensure regulatory compliance and meet public health
wastewater service needs. The video we are about to see will
outline the Wastewater Capital Improvement Program.
6. Video Presentation The Productivity Subcommittee was shown
the Wastewater Cycle Video.
Shot Description
Four photos of After wastewater leaves a customer, it travels through a network
damaged/open of pipes and pumps until it reaches one of two water reclamation
clean outs with facilities. The dividing line between the customer and the utility
smoke testing. is usually what is called the "cleanout," an access point to the
pipe underground. There are over 50,000 cleanouts throughout
Photo of the water-sewer district. These are occasionally damaged, or
deteriorated even removed to provide drainage. This misuse causes excess
manhole, water to enter the treatment system, increasing pumping and
before/after processing costs throughout the collections system and at the
treatment facilities. Smoke testing is often used to identify
openings in the system. Recently, in the south service area,
several capital projects were implemented to "tighten up"the
underground system. Prior to this, 1-inch of rain would generate
approximately 1,000,000 gallons of flow to the south facility.
After these projects, this quantity was reduced by 30% to about
700,000 gallons. This needs to be an ongoing program to help
contain our operating costs.
In FY12, there is $1.46 million in project:
70043 Gravity Systems Technical Support Program for similar
work in other areas. In addition to the cleanouts, there are
approximately 16,000 manholes and 685 miles of pipe that
require similar repairs.
Photos of pump This is pump station 310.01. It is one of 750 similar stations
station exterior, that pump wastewater from homes to the plants. Collier County
and interior of is very flat, so a chain of pump stations are required to move the
wet well wastewater from one location to another. All of these stations
need to be kept compliant with the Florida Department of
Environmental Protection or FDEP regulations. Further, critical
stations that serve hospitals, nursing homes, and shelters require
power when FPL service is lost. Lightning protection is required
by the National Fire Protection Association Article 780, and
compliance must be maintained. If a pump station were
rendered inoperable due to a lightning strike or equipment
failure, sanitary sewer overflows could occur, especially at the
larger master and sub-master stations. Failure of the pump
station could cause sewage to back-up into homes and cause
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catastrophic environmental impacts, such a dumping raw sewage
into residential streets and drainage ways. Florida statute
requires "all collection/transmission systems to be operated and
maintained so as to provide uninterrupted service...." Waiting for
a part to fail can result in noncompliance with law and can create
environmental and health hazards. Fines and consent orders
from the FDEP could also result.
Photo of hole in
pipe, MPS 302 This is an example of a pipe that was excavated last year during
the rehabilitation of MPS 302. Unbeknown to the team, this pipe
was found to be deteriorated to the point where leaking was
about to occur. It is only 23 years old, and we have the potential
for this occurring elsewhere in the system. Unfortunately, many
of the largest, most critical pipes cannot be shut down long
enough for inspection and repair because there is no alternate
route. Where it is possible, a program of inspecting and
videotaping pipes is used, but it takes ten years to shut down
and view 400 miles of such pipe. Similar pipes are being
replaced on a "worst-first" basis that considers visual
observation, age, pipe material, and soil type with priority placed
on those that are old and near tidal areas of the county. Tidal
areas can have brackish water which quickly deteriorates old cast
and ductile iron piping.
There are several capital projects that are used to support this
large effort:
70046 Lift Station Tech Support
70044 Force Main Transmission Systems Tech Support
70051 Collections Power Systems Tech Support
73922 Collections Telemetry/SCADA
70064 Collections Lightning Protection Tech Support
These total $4.5 million in FY12. All together, this program
supports 750 pump stations, 409 miles of pressurized pipe, and
over 700 air release valves.
Video of MPS The wastewater flow from 750 pump stations is divided in 20
310.00 located at basins. Each basin flows to one of twenty master pump stations
Foxfire which in turn pump to the treatment facilities. This is master
pump station 310 located off of Radio Road. It contains three
pumps in two wells. The building contains backup generators,
electrical gear, and instrumentation.
Shot inside wet Master Pump Stations are structurally, mechanically, and
well showing electrically intensive, complex facilities that require careful
high flow design, construction and operation. Part of the expense of
rehabilitation is the harsh corrosive environment, and the
Shot inside compliant bypass operation required to keep the Master Pump
building Station in operation while being reconstructed. Waiting until
failure can cause catastrophic environmental impacts such
dumping raw sewage into our estuaries, and could result in
mandatory beach closings. In other areas, sanitary sewer
overflows can lead to fines and consent orders from FDEP.
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There is $3.4 million in FY12 under project 70050 Master Pump
Station Technical Support which will be used to address similar
deteriorating conditions at MPS 308.
Video of NCWRF The North County Water Reclamation Facility is one of two final
Shot of gate treatment locations within the water-sewer district, processing
about 60 percent of all wastewater flows. It covers 76 acres,
contains about 3000 components, and treats about 3 billion
gallons of wastewater per year. It is called a water reclamation
facility because it treats the wastewater to drinking water
standards which allows it to be distributed and sold as irrigation
quality water that can be used to water residential lawns, golf
courses, and medians. This facility reclaims 99 percent of water
treated, and together with the south treatment facility, they
provide one third of the total pumped water supply within the
Collier County Water-Sewer District. These facilities must
maintain Class 1 reliability as required by Federal Environmental
Protection Agency.
Let's take a top-level look at the major parts of this process:
Shot of
headworks/inflow First, the incoming flow from the master pump stations comes
channel showing into the headworks where sand and debris are removed. Then,
flow the raw wastewater is directed to the aeration basins where the
biological process starts. The flows come here 24/7, 365 days a
year. It never shuts down.
Shot of odor
control system These large boxes and ductwork are the odor control system that
allows us to be compliant with the No Offsite Odors portion of the
Good Neighborhood Policy. Modifications were made this year to
ensure that the system meets these objectives at all times at the
lowest possible operating cost.
Shots of aeration
basin number 2 This is aeration basin number 2 built in the 1980s. These
showing flow rotating discs mix air into the water to accelerate the biological
process that breaks down and consumes the waste. Four years
ago, the drives did not function, and were replaced on three
basins. Two years ago, this basin was out of operation until
temporary crack repairs were made. This year, it was found that
the biological process was slowed because the discs were worn or
broken, so the discs, shafts, and bearings were replaced. In the
next two years, we know a structural repair will be required on
Shot of aeration this basin, and similar repairs are planned for basins one and
basin number 3 three.
with missing
discs After aeration, the flow can be seen here before it goes to
clarifiers which separate most of the solids from the liquid.
Shot of splitter
box The solids, called sludge, are sent to belt presses that remove
excess water, and then the sludge is hauled off site. Three years
ago, the drives on clarifiers 8 and 9 failed and were replaced.
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Two years ago, the mechanical portion of these clarifiers 2 and 3
Shot of clarifiers were rebuilt entirely: however,
2 and 3 (on top)
Underneath in this pump room, structural repairs are still
required.
Shot of clarifiers This year, the drives on clarifiers 6 and 7 are near failure, and
2 and 3 (below) will be replaced.
Shot of clarifiers The water from the clarifiers is sent to the filters and then to the
6 and 7 (on top) chlorine contact chambers, built in 1982 and 1989. The filters
remove any remaining particles, and the chlorine contact
Shots of chambers disinfect the water. The filters have been repaired
deteriorating year after year, to the point where they need replacement.
filter 2
Structural deficiencies also need to be addressed here.
The resulting water, our product, is stored in one of three
Filter 1 storage ponds, where it is then pumped to our customers for
irrigation use. The third pond was recently added to allow more
Shot of ponds water to be stored and provided to our users. With it, we
recently achieved a peak day of delivering 20 million gallons. If
equipment is not maintained, and we cannot meet the strict FDEP
requirements for reuse water, it cannot be shipped. Instead,
potentially one-third of the county's water supply would be
pumped 2,800 feet underground, and other, more costly sources
would be used.
Most rehabilitation projects are covered under these projects:
73968 NCWRF Tech Support
Pan the site 70053 NCWRF Power Systems Tech Support
70091 NCWRF Sludge Holding Tank Replacement totaling $5
million in FY12.
Video of IQ The reuse water that was in the ponds at the north treatment
assembly at facility gets pumped to facilities like this. The water is stored in
Foxfire this tank, and eventually pumped to golf courses. This electrical
equipment and associated meters, valves, and communication
devices are aging and becoming unreliable. If failures occur,
water may not be measured accurately, or it may not reach the
customer at all. This year, there is a project here that will
ensure that the exact meter readings are transmitted to our
billing system, and the bill will match the meter. Without
accurate and precise measurement at remote reuse water sites,
there is risk of not meeting customer contractual obligations, and
not complying with FDEP requirements.
To reduce the risk of non-compliance at ten other sites, $2.9
million is budgeted in the following FY12 projects:
70062 IQ System SCADA Technical Support
74401 IQ Water System Technical Support
70056 IQ Power Systems Technical Support
70080 IQ Water Lightning Protection.
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Photo or video of This completes the cycle of receiving wastewater from homes
a lawn or golf and returning it as reuse water for irrigation. Unless we remain
course being fully compliant with all regulations and standards, this would not
watered be possible on a sustainable basis.
TBD These examples illustrate that our capital improvement program
is focused on protecting public health, sustaining compliance, and
preserving the integrity of the infrastructure while undertaking a
reasonable level or risk. We believe we have the right program
at the right time that avoids more costly breakdown and repair
which would have a greater impact on our community.
7. Tour of control room
Jon Pratt — The committee members were able to view the
SCADA system that is a tool for system-wide communications
and management. SCADA can provide the CCWSD with total
asset visibility.
The CCWSD has been expanding the telemetry program, which
expands capabilities and provides a real-time, reliable and
efficient means of data acquisition. Real-time information is
available from telemetry systems associated with pumping
stations.
8. Public Utilities Impact Fee and Reclaimed Water
Tom Wides - Collier County is required by an Ordinance to
review the capital plan and to conduct an Impact Fee study
every three years at a minimum. Impact fees will be reviewed
every three years or more frequently during periods of changes
in growth patterns.
Bala Sridhar provided a spreadsheet for Fund 411 and 413 for
the years 2009 through 2016 Sources and Uses. The
subcommittee commented this is exactly what they are looking
for. Bala also produced the NACWA 2010 Service Charge Index
stating other utilities are increasing rates and we are not this
year or next year. A 2.4% inflation rate is built in year after
year. This eliminates rate spikes. The CCWSDistrict is different
as we do not have an ad valorem tax. The Fitch study looked at
our reserves and cash.
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Tom Wides - The primary goal is to stay in compliance with the
bond covenants and other regulatory requirements and to
posture the financial position of the utility to obtain a favorable
credit rating in the market place.
Tom provided the committee a copy of an Impact Fee study from
2001 that outlined what qualifies a project to be paid for with
impact fees. This document included a Request for Legal
Services with a specific question about the Utility Department
spending impact fee monies for the relocation of pipes.
The Nabors Giblin & Nickerson study dated February 14, 2011,
gave the opinion that impact fees can be used if the project
provided additional capacity or enhanced existing capacity.
The Sources and Uses spreadsheet provided by Bala Sridhar was
again discussed. In FY09 and FY10, transfers were made to
Fund 411 Water-Impact Fee from low interest State Revolving
Fund (SRF) loans on pre-authorized line of credit as a
reimbursement to capital expenses paid already in prior periods.
We don't want to go there any more. By the end of FY11, we
will be spending $11 million in user fee funds to pay off impact
fee fund debt.
Vlad Ryziw requested clarification in the Project-Spent vs.
Project Budgeted line items on this spreadsheet. Tom Wides
explained that FY09 and FY10 are actuals and FY11 through
FY16 are projections. Mr. Ryziw further asked how we would
fund capital projects after FY16. The answer was to raise
revenue through impact and user fees.
Janet Vasey - Collier County relied on impact fees much more
than other counties. If the state legislature cuts out impact fees,
you will have to fall back on ad valorem to pay. Growth pays for
growth and everyone who lives here pays for growth. Senator
Bennett is pushing to reduce impact fees. He is the primary
source of this in the legislature.
Tom Wides - Marco Island is an upside down utility. They raised
rates another 6% on top of a 10.5% increase. They want to
assess a connection charge to all lots on Marco Island that have
no homes on them as a onetime fee and put that money into the
operating program.
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Vlad Ryziw - Questioned financing the CIP many years down the
line. In FY16 and FY17 there is a need for additional revenue.
Also, the potential impact fee reduction legislation. How does it
relate to debt?
Jim Gibson - Debt won't decline; however, principle is coming
down. More interest is being paid. It is a level of debt serviced,
it is not a decline.
Vlad Ryziw - Referred to the chart and commented that the
2006 Revenue Bond matures in 25 years and the SRF comes due
in 13 year. In 16 years we will have just the revenue bond.
Bala Sridhar - Negative numbers are not a static thing. We will
find appropriate sources to fund these projects. Tom Wides -
We cannot afford to let our AA+ rating slip.
Janet Vasey - We will talk about the reserve analysis at our next
meeting.
This has been a fantastic meeting and the information provided
is just what we are looking for. The next video will be at the
South Plant and I would like Vlad to attend this taping.
I would like to thank everyone on the staff side and also, John
Torre and the video team.
9. Public Comment - No public comment.
10. Adjourn - This meeting was adjourned at 12:20 p.m.
11. Minutes - Sheree Mediavilla, Administrative Assistant Public
Utilities Operations Department.
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