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6A - Summary of 2003-2008 Utilities CIPSUMMARY OF THE 2003-2008 • UTILITIES CAPITAL IMPROVEMENT PROGRAM July 15, 2002 Overview The overall program and funding priorities are reflected in the staging and timing of projects over the 6 year CIP time period. The following primary factors were considered in determining the overall program and funding priorities: Water Utilitv 1. Reliability of water treatment and delivery 2. Drinking water quality and other environmental regulations 3. Worker health and safety 4. Opportunity to collaborate with other city projects, i.e., transportation 5. Potential for operation and maintenance cost savings 6. Accommodating new growth and development Wastewater Utilitv 1. Reliability of wastewater collection and treaCment 2. Water quality and other environmental regulations • 3. Worker health and safety 4. Opportunity to collaborate with other city projects, i.e., transportation 5. Potential for operation and maintenance cost savings 6. Accommodating new growth and development Flood Control Utilitv 1. Property damage or safety hazard mitigation 2. Water quality and other environmental regulations 3. Worker health and safety 4. Opportunity to collaborate with other city projects, i.e., transportation 5. Potentia] for operation and maintenance cost savings 6. Accommodating new growth and development No effort has been made in developing the CIP to target improvements in a certain geographic area. Policy Issues There are no policy issues related to the CIP this year. • Highlights Highlights of the proposed CIP are as follows: • Water Utilitv Continued emphasis on the rehabilitation and improvement of the City's existing water system infrastructure continues, especially in the area of the City's deteriorated water distribution system. This is reflected in funding for the Con•oded Waterline Rehabilitation project. 2. Water from the Northem Colorado Water Conservancy District (Colorado Big-Thompson project) is anticipated to play an increasingly important role in the City's overall water system deliveries. For this reason construction funding for several projects is included: • Boulder Reservoir WTP Rehabilitations/Improvements • Cherryvale Pump Station • I~~is Pump Station • Zone 1 Transmission Facilities • Zone 2 Transmission Facilities • Boulder Feeder Canal 3. Significant repairs to the Barker water system, recenUy acquired by the City from Xcel Energy, are needed. Repairs to this water system are necessary to assure safe and reliable • water deliveries to the Betasso Water Treatment Plant (WTP). Wastewater Utilitv 1. Although the actual budgetary impact is unknown, construction funding has been projected for 2004 for potential costs associated with renewal of the City's WWTP discharge permit, including a potential conveision from chlorine disinfection to ultraviolet light disinfection. 2. Construction funding has been included in the 2003 budget for anticipated improvements to the biosolids handling and dewatering process and for a biosolids composting facility. Flood Control Utilitv ].. Money is budgeted for flood mitigation along Fourmile Canyon Creek. The money would be used for on-going study, property acquisition and limited construction projects until decisions are reached through the on-going flood mitigation planning process. 2. The evaluation and planning effort for 5outh Boulder Creek is continuing. These efforts include (1) Risk Analysis; (2) Flood Preparedness; (3) Mitigation; and (4) Study Process. A forma] Hydrology Advisory Panel (HAP) has been convened to outline a detailed scope of work to develop and complete an updated hydrology for South Boulder Creek. Conclusions • regarding the appropriate flood mitigation have not been reached. Therefore, a relatively • small amount of city funding ($3.0 million) has been included in the CIP for year 2004. Additional funds for this project would require reprioritization oE other capital improvement projects, a higher rate increase in 2004 or beyond, or both. 3. Money is budgeted for Crossroads Redevelopment The existing site is impacted by the 100- year floodplain and flood proofing of any new structures will be required. Projects Recommended for the CEAP Process Projects recommended for the Community and Environmental Assessment Process (CBAP) in the year 20Q3 are: • Biosolids Composting • Fourmile Canyon Creek • Wonderland Creek - Diagonal Highway Underpass Projects for which Specific Approval is Requested In accordance with the project pianning and approval process, specific approval and allocation of design and construction funding for the following projects is requested. These projects are considered minor in nature, with the opportunity for public review and comment provided • through the 2003 CII' budget process. Based on this approval, staff will proceed with the design and construction of these projects in 2003 with no additional pubtic process for puipose, need or funding, although construction coordination and other site specific activities will be discussed with adjacent property owners if appropriate. WATF.R FUND • Betasso WTP Rehabilitation/Improvements • Boulder Reservoir WTP Rehabilitation/Improvements • Cherryvale Pump Station • Iris Pump Station • Corroded Waterline Rehabilitation • Zone 1 Transmission Facilities • Zone 2 Transmission Facilities • Barker Gravity Pipeline Repair • Barker Hydro System Integration • Barker Relicensing • Green Lake 2 Reconstruction • Boulder Feeder Canal Rehabilitation • Distribution System Water Quatity Improvements • WASTEWATER FUND • WWTP Secondary Clarifier Rehabiiitation • • Biosolids Handling & Dewatering • Interceptor Sewer Rehabilitation • Collector Sewer Rehabilitation • Manhole Rehabilitation FLOOD MANAGEMENT FUND • Preflood Acquisition • Broadway Storm Sewer • Transportation Coordination • Crossroads Redevelopment Master Planning Master Planning is an element of the decision malcing process for proposed CIP Projects. Historically, these master plans focused on service area growth and its impact on related utility infrastructure needs. At t6is point in time, growth is not as important an issue as the need to rehabilitate and address deficiencies in the existing infrastructure. Identification of these issues occurs on an on-going basis and are documented in the Utilities Division Annual Reports as well as on-going studies and reports. • Master plan summaries are provided in the Boulder Valley Comprehensive Plan and were recently updated. At this point in time axisting master plans provide an adequate basis from which to formulate the CIP in conjunction with other information. Updates to the Wastewater Collection System, Wastewater Treatment and Stormwater and Flood Management are currently being developed. The relationship of each CIP project to the inaster plans and studies is presented in the detailed project descriptions. It may be necessary to revise current master plans depending on the extent of changes to the Boulder Valley Comprehensive Plan including land use designations. For this reason, anticipated projects in th~ years 2004-2008 are preliminary and are based on the judgement of Utilities Division staff. Financing Funding for the City's Utilities capital improvement projects is derived from general utility faes and special external agency grants. The primary revenue sources are Plant Investment Fees (PIFs) from new customers, monthly water sales to customers and hydroelectric sales Xcel Energy. Water sales are relatively stable and reflect the overall growth of the service area and yearly weather fluctuations. • 4 • Other revenue sources include the Colorado Department of Public Health and the Environment construction revolving loans (none anticipated at this time) for the Wastewater Utility; and the Urban Drainage & Flood Control District reimbursement grants for the Flood Control Utility. These revenues are project specific and are highly variable depending on the external agency's funding situation and priorities. Currently, the following projects are anticipated to qualify for such revenues: • Flood Coutrol Utility, Fourmile Canyon Creek • Flood Control Utility, Preflood Acquisition Another possible source of funds are special assessment districts and assessments levied as part of annexation agreements. These types of funding mechanisms are anticipated for the Water and Wastewater System Expansion projects. If the above mentioned funds are insufficient, projects will be funded from new revenue bond issues with debt service financed by general utility charges. For the year 2003-2008 CII', it is anticipated that bonds will be issued for the following projects: • Water Utility - Betasso WTP Rehabilitation/Improvements • Water Utility - Boulder Reservoir WTP Improvements/Expansion • Wastewater Utility - WWTP/CPDES Improvements • • Wastewater Utility - Biosolids Composting • Wastewater Utility - Biosolids Handling & Dewatering • Flood Control Utility - South Boulder Creek Also, it is anticipated that projects related to the Barker Water System will be funded from the proceeds of the Windy Gap water sale. Staff will complete the evaluation of the proposed CIP on rates in conjunction with the development of the 2003 operating budget. Rate increases are currently projected as follows: • Water Utility: 2003 - 3 percent • Wastewater Utility: 2003 - 12 percent • Flood Control: 2003 - 6 percent Public Process The CIP was discussed at the Water Resource Advisory Boazd (WRAB) on April 15, 2002. A public hearing before the WRAB concerning the CIP was held on June 17, 2002. The WRAB recommended approval of the proposed Utilities Division 2003-2008 Capital Lnprovement Program (CIl') including the preliminary year 2003 operating budget, monthly utility rates and plant investment fees to the Planning Board and City Council. • 5