HomeMy WebLinkAbout7 - Peer Review Costs for 2010 Budget Development
CITY OF BOULDER
WATER RESOURCES ADVISORY BOARD
AGENDA ITEM
MEETING DATE: April 20, 2009
AGENDA TITLE: Feedback on Peer Review Costs for 2010 Budget Development
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PRESENTER/S: Joanna Crean, Public Works Administrator
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EXECUTIVE SUMMARY
On October l7, 2008 the American Water Works Association (AWWA)/ Water Environment
Federation (WEF) peer review of the Utilities water and wastewater operations was completed.
A report was provided to WRAB and staff which identified both strengths and opportunities for
improvement. Staff has been working with WRAB on the guiding principles and prioritization
method for developing an implementation plan. An initial prioritization of the opportunities for
improvement was presented to WRAB at the Jan. 12, 2009 meeting. Feedback was incorporated
and a proposed implementation plan was distributed to City Council in a Weekly Information
Packet (WIP) memorandum on April 9, 2009 (see Appendix A). At the April 20, 2009 WRAB
meeting, staff will ask WRAB for input on the proposed implementation plan as outlined in the
W1P and feedback on the refined cost estimates for Tier 1 and Tier 2 items as summarized in
Appendix B. This information will be incorporated into the draft 2010 budget which will
initially be discussed at the May VI AB meeting.
SPECIFIC ITEMS FOR WRAB'S CONSIDERATION:
As WRAB reviews the prioritization information in Appendix A and B, please consider the
following questions:
1. Does WRAB need any additional information about the peer review?
2. Does WRAB have any questions related to how the peer review factors into the 2010
budget?
3. Does WRAB have any other ideas for funding options (as outlined in Appendix A)
beyond the 0 percent (reduce fiscally constrained), 3 percent (fiscally constrained) and 5
percent water/6 percent wastewater/ 3 percent stormwater (action plan)?
NEXT STEPS
Staff is currently in the process of further evaluating some of the opportunity for improvements
in order to determine the capital investment needed to implement some of the items. For
example, further automation of treatment plant operations to reduce ongoing costs and achieve a
reduction in staffing may require an investment in instrumentation and telecommunications
equipment. Once the financial impact is better understood, staff will complete the cost analysis to
determine the feasibility to move forward with these items. This information will be presented to
WRAB during the second quarter of 2009 as part of the 2010 budget discussions. Alternatives
AGENDA ITEM 4 7 PAGE ]
will be discussed with respect to funding, including future rate impacts, and the feedback will be
incorporated into the 2010 budget. Cost estimates for Tier 3 items are anticipated to be discussed
with WRAB in 2011 as part of the 2012 budget process.
ATTACHMENTS
• Appendix A: Weekly Information Item to City Council - Update on Utilities Peer Review
Implementation
o Attachment A: Fiscal Impacts and Community Sustainability Assessments
o Attachment B: Guiding Principles for Prioritizing Opportunities for Improvement
o Attachment C: List of Tier 1 Opportunities for Improvement Items
• Appendix B: Surnmary of Refined Cost Estimate of Prioritized Tier I and Tier 2
Opportunities for Improvement Items
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AGENDA ITEM # 7 PAGE 2
APPENDIX A:
WEEKLY INFORMATION PACKET MEMORANDUM
To: Mayor Appelbaum and City Council Members
From: Jane S. Brautigam, City Manager
Stephanie Grainger, Deputy City Manager
Maureen Rait, Executive Director of Public Works
Ned Williams, Director of Public Works for Utilities
Joanna Crean, Public Works Administrator
Date: April 9, 2009
Subject: Information Item: tJpdate on Utilities Peer Review Implementation
EXECUTIVE SiJMMARY:
In response to the recommendations of the Blue Ribbon. Commission, department and program
reviews are being conducted to comprehensively evaluate the use of public funds. A peer review
of the Public Works Department's Utilities Division (water and wastewater) was conducted by
the American Water Works Association (AWWA) / Water Environment Federation (WEF) and
completed in October 2008. The peer review report identified areas of strength and opportunities
for improvement. Staff and the Water Resource Advisory Board (WRAB) have been working
together to prioritize the opportunities for improvement to develop an implementation plan. The
prioritization information will be used with the Utilities business plan to develop the 2010
operating budget and capital improvement program. The intent is to minimize a utility rate
increase for 2010 and achieve ongoing savings. This may require additional one-time capital
investments combined with potential reductions in services and programs.
BACKGROUND:
AWWA/WEF (provided through QualServe) conducted a peer review of the Utilities Division
and submitted a final report to the city. (For the full report, visit www.boulderwater.net and click
on "What's new with Boulder Utilities.") The peer review of the water and wastewater operations
included a 420-question self-assessment survey that, in part, created the basis for a week-long
peer review of the water and wastewater utilities. The Peer Review Team, composed of four
volunteer utility professionals from across the country, toured the utility facilities, interviewed
staff, analyzed operations based upon their professional expertise, and generated a final report of
their experienced views. Prior to the on-site visit, each peer review professional spent 60 to 80
hours respectively reviewing documents provided by the utilities staff. Additional background
information including Fiscal Impacts and Community Sustainability is in Attachment A.
ANALYSIS:
The peer review report identifies areas of strength and opportunities for improvement. Some of
the opportunities for improvement identified by the peer review report are already being
implemented while others will take longer to implement. In order to prioritize the opportunities
for improvement and develop an implementation plan, Utilities staff. with input from WRAB,
developed guiding principles and compiled additional information related to resource needs,
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benefits and costs, internal and external impacts, and service levels. Based on these factors, each
opportunity for improvement was then grouped into one of three tiers (highest priority is Tier 1,
then Tier 2, and lowest priority is Tier 3). The tiers represent the implementation plan priority.
Attachment B provides more detail on the tiers, guiding principles for prioritization and
defmitions used in collecting the additional information.
After the initial prioritization, the Tier 1 items were further prioritized based on the following:
1. Savings that can be achieved with resources that are within the existing 2009 or draft
2010 budget (fiscally constrained with 3 percent rate increase)
2. No additional savings, but still valuable and worthwhile items and resources are within
existing 2009 or draft 2010 budget
3. Probably future savings, but additional resources needed in 2010 to evaluate and
implement
The Tier 2 items were also prioritized, but potentially for a 2010-2014 implementation
timeframe.
A summary of the Tier 1 and Tier 2 prioritization is provided in the tables below and a list of the
Tier 1 items is included in Attachment C. A majority of the Tier 1 items (26) are funded in the
existing 2009 budget or draft 2010 budget. These items include those that have savings. (9 items)
and those that do not have savings (17 items). The remaining Tier 1 items (4) are partially funded
through the existing 2009 budget or draft 2010 budget, but these items also requirf. additional
resources in order to evaluate and implement.
TABLE I: SUMMARY OF TIER 1 PRIORITIZATION (implementation 2009-2010)
Number Cost included Cost of Savings
Priority Level of Items within 2009 or Additional Reflected in
Draft 2010 Resources 2009 or Draft
Budget Needed 2010 Budget
1 - Savings achieved with resources 9 $194,240 $0 $400,500
within 2009 or draft 2010 budget _
2 - No additional savings, but 17 $81,820 $0 $0
worthwhile items
3 - Probable savings, but additional 4 $11,460 $219,800 $195,750
resources needed
TOTAL 30 $287,520 $219,800 $596,250
TABLE II: SUMMARY OF TIER 2 PRIORITIZATION (implementation 2010-2014
Number Cost included Cost of Savings
Priority Level of Items within 2010- Additional Reflected in
2014 Planning Resources 2010-2014
Period Needed Planning Period
1 - Savings achieved with resources 4 $28,800 $0 $37,000
within draft 2011-2014 budget
2 - No additional savings, but 28 $151,700 $2,500 $0
worthwhile items
3 -Probable savings, but additional 6 $66,180 $114,400 $174,000
resources needed
TOTAL 38 $246,680 $116,900 $211,000
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2010 BUDGET PROCESS:
The Tier 1 and Tier 2 opportunities for improvement that were identified in the peer review will
be further discussed and evaluated as part of the 2010 budget process by comparing these
"opportunity for improvement items" to other items such as capital improvement projects,
enhancements of existing programs, operating budget adjustment requests or regulatory
requirements- Three different revenue options (based on different rate increase alternatives) will
be evaluated in the 2010 budget process. Trade-off discussions and reallocation of funds will
occur for each of the different revenue options.
These revenue options (reduced fiscally constrained, fiscally constrained and action plan) are
summarized in Table III along with the potential impact to the opportunity for improvement
items. Based on the initial prioritization of the opportunities for improvement items, it is
anticipated that the Tier l items would continue to be funded in the fiscally constrained option (3
percent rate increase).
TABLE III:- RE, VENUE (UTILITY RATE INCREASE) OPTIONS & IMPACTS
"Reduced Fiscally "Fiscally Constrained" Revenue "Action Plan"
Constrained" Revenue (3% water, wastewater and Revenue
(0% water, wastewater and stormwater) (5% water, 6%
stormwater) wastewater, 3%
stormwater
0i1jectives of Continue to provide basic Intended to cover standard These rate increases
Revenue services while recognizing that inflationary increases in costs were projected in
Option no increase in revenue means related to personnel, insurance, the 2009 budget
reducing funding to projects and chemicals, power/energy and process and were
services in order to fund project construction costs. intended to expand
increased costs for personnel and enhance
(insurance, salaries) and materials services and/or
(chemicals, power). programs.
Potential No rate increase effectively Trade-off and reallocation of Additional capital
Overall means budget reductions to some priorities may result in fewer improvement
Impact current programs and capital capital improvement projects and/or projects could be
projects because of increased scale back or elimination of funded and
costs of personnel and materials. programs. Reallocation of finding programs/services
from discretionary or desirable could be expanded.
items in business plan. Additional
revenue from rate increase will be
allocated to costs related to
inflation,
Potential Some Tier 1 items may not Tier 1 items should be funded or Tier 1 and Tier 2
Impact to continue to be funded. Tier 1 receive the additional resources, items would be
"Opportunities items that require additional although it may require a longer funded. Tier 3
for resources may not be funded. timeframe. Tier 2 items would items would most
Improvement" Some Tier 2 items that are within likely be funded within the 2011- likely not begin
Items the draft 2010 budget may not be 2014 timeframe, although funding until
fi.inded depending on trade-off additional rate increase may be approximately
and reallocation discussions. required if a capital project requires 2015.
a revenue bond.
NEXT STEPS:
Staff is currently in the process of further evaluating some of the opportunity for improvements
in order to determine the capital investment needed to implement some of the items. For
example, further automation of treatment plant operations to reduce ongoing costs and achieve a
reduction in staffing may require an investment in instrumentation and telecommunications
equipment. Once the financial impact is better understood, staff will complete the cost analysis to
determine the feasibility to move forward with these items. This information will be presented to
WRAB during the second quarter of 2009 as part of the 2010 budget discussions. Alternatives
will be discussed with respect to funding, including future rate impacts, and the feedback will be
incorporated into the 2010 budget. Cost estimates for Tier 3 items are anticipated to be discussed
with WRAB in 2011 as part of the 2012 budget process.
If you have any questions regarding the peer review or would like specific cost information,
please contact Joanna Crean, project manager at (303) 441-3038 or creanj@bouldercolorado.gov.
ATTACHMENTS:
• Attachment A: Fiscal Impacts and Community Sustainability Assessments
• Attachment B: Guiding Principles for Prioritizing Opportunities for Improvement
• Attachment C. List of Tier I Opportunities for Improvement Items
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ATTACHMENT A:
FISCAL IMPACTS AND COMMUNITY SUSTAINABILITY ASSESSMENTS
FISCAL IMPACT:
Each of the 89 opportunity for improvement items identified in the peer review report was
grouped into one of three tiers (highest priority is Tier 1, then Tier 2, and lowest priority is Tier
3). The tiers represent the implementation plan priority. Out of the 30 Tier 1 items, a majority of
the items (26) can be implemented within the existing 2009 budget and draft 2010 budget. The
remaining items would require approximately $200,000 of additional resources to implement and
would require ongoing, annual costs of $40,000. However, these Tier I items require more
detailed evaluation to further determine the total amount of resources needed to implement as
well as the ongoing benefits (i.e., dollar savings). It is anticipated that ongoing savings related to
implementing the Tier 1 items that would not require additional resources would be
approximately $400,000 annually.
While there is a fiscal benefit to implementing the Tier I items that require additional resources
(4items), there is still a cost that needs to be balanced against the current projects and budget. As
the 2010 budget is developed, these Tier 1 items will be weighted against current projects and
funding. Trade offs will be made and/or some projects may be delayed in order to reallocate the
additional resources needed to implement these Tier 1 items.
COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS:
• Economic: By implementing some of the opportunities for improvement identified in the
peer review report, there is the potential to reduce water outages which impacts the business
community. Implementing other opportunities for improvement will support business needs
by more quickly alerting customers to potential water service disruptions. Depending on the
2010 budget discussions, there is the possibility of eliminating or minimizing a utility rate
increase.
• Environmental: Implementation of some opportunities for improvement related to repairing
pipelines has the potential to increase hydropower generation which will offset greenhouse
gases. An opportunity for improvement related to the Wastewater Treatment Plant has the
potential to provide ongoing power savings and reduce the city's electrical demands and
carbon footprint.
• Social: By implementing some of the opportunities for improvement there is the potential to
improve communications to a diverse range of customers. There is also the potential to
improve work relations and productivity.
ATTACHMENT B:
GUIDING PRINCIPLES FOR PRIORITIZING
"OPPORTUNITIES FOR IMPROVEMENT"
This document explains the guiding principles and additional information needed to help prioritize the
opportunities for improvement identified in the peer review report.
• BUSINESS CATEGORY The peer review report is divided into 26 business process categories.
The business process categories are common functions conducted at a utility, such as Engineering,
Customer Service, Water Treatment, etc. Each of the business process categories consists of many
"best practices" which are described as actual behaviors or work activities that are performed
consistently by employers at a high-achieving utility. While all business process categories are high
priority, each category consists of combinations of work activities (services) including essential,
desirable, and discretionary services as described in the Boulder Business Plan section below.
• OPPORTUNITY FOR IMPROVEMENT - Each opportunity for improvement is listed in the
draft prioritization spreadsheet in the same way that it appears in the peer review report (grouped
by business category). In summary, the opportunities for improvement may:
• Reduce cost without reducing a basic standard of service,
• Reduce cost with an acceptable reduction in service standard,
• Be a business or professional Best Management Practice (BMP), and/or
• Upgrade a service standard.
• NARRATIVE - This section explains staff s interpretation of the "opportunity for improvement"
related to the existing conditions. Also, noted in this section is how staff might implement the item.
• IMPLEMENTATION PLAN PRIORITY -Each opportunity for improvement is grouped by
tier as described below.
o Tier I - Items in the Tier I category will be acted upon beginning in 2009 and continuing
in 2010 (if they haven't already been started). Items are grouped as Tier 1 if they are a
considered a "quick win" or have a high fiscal benefit in comparison to resources needed to
accomplish. Tier 1 items are preferably considered "essential" but may be "desirable" or
"discretionary" services (as defined in the Boulder Business Plan and described below).
■ "Tier 1" includes opportunities for improvement that are:
• Preferably essential but may be desirable or discretionary services,
• "Quick wins" defined as within existing budget and accomplish in 2009,
• Fiscal benefits which are greater than resources needed to accomplish,
• Preferably short-term timeline to complete but may be moderate, long-term,
or on-going (note, that an item may need more evaluation and scope work
done initially), and/or
• Identified as having internal and external impacts,
o Tier 2 - Items in the Tier 2 category may be started in 2010 depending on resources and
progress made on Tier 1 items. It is anticipated that all Tier 2 items will be completed
between 2010 and 2014. Items are grouped as Tier 2 if they are a considered a "medium
win" or have an equal fiscal benefit in comparison to resources needed to accomplish. Tier
2 items are preferably considered "desirable" but may be "discretionary" or "essential"
services.
■ "Tier 2" includes opportunities for improvement that are:
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• Preferably desirable but may be discretionary or essential services,
• "Medium wins" defined as between 2 to 5 years to complete and moderate
resources needed to accomplish,
• Fiscal benefits which are equal to the resources needed to accomplish,
• Preferably moderate-term timeline to complete but may be short-term, long-
term, or on-going, and/or
• Preferably having internal and external impacts but may only have internal
impacts.
o Tier 3 - Items in the Tier 3 category will be acted upon beginning in 2015 (or sooner, if
Tier 1 and most of Tier 2 items are completed and resources are available). Items are
grouped as Tier 3 if they are a considered a "long win" or have a high resource need in
comparison to the fiscal benefit. Tier 3 items are preferably considered "discretionary" but
may be "desirable" or "essential" services.
■ "Tier 3" includes opportunities for improvement that are:
• Preferably discretionary but may be desirable or essential services,
• "Long wins" defined as over 5 years to accomplish and high resources
needed,
• Resource needs to accomplish which are greater than fiscal benefits,
• Preferably long-term timeline to complete but may be moderate, short-term,
or on-going, and/or
• Identified as only internal impacts.
• B USi NESS PLAN - INVESTMENT STRATEGY - The mission, ,f the UT ;1 i, ies Division is to
provide duality water services, as desired by the community, in a manner which emphasizes
efficient management of fiscal and natural resources, and protects human and environmental
health. In order to achieve this goal, the Utilities Division evaluates the current funding of services
based on the following investment strategy:
Essential Services include the operation, maintenance and administration of existing systems
that ensure highly reliable water and wastewater treatment/delivery and stormwater/flood
conveyance in a manner that meets federal and state regulatory criteria or industry standard levels
of best practice. These services ensure that customers and employees are in a safe environment,
that a basic "customer care" service standard (ie, responsiveness, financial or permits) is provided
with minimal disruptions. Maintaining quality of life is addressed as a result of these services.
These services ensure the health and safety of people and property and collect sufficient funds to
maintain these services-
Desirable Services include the expansion of the water and wastewater treatment and delivery
systems or the stormwater/flood conveyance systems that are intended to respond to impacts of
future growth or development, meet federal or state goals, or which support city council adopted
goals and values. These services might enhance quality of life by providing a lrigher level of
service or ability to access information than is routinely provided by regulatory criteria or industry
standards.
Discretionary Services - include enhancements of water and wastewater treatment or delivery
systems and stormwater/flood conveyance systems that enhance or help others (but not required to)
perform their business. These services may provide information to the industry for analysis and
comparisons in order to develop future regulations, or may include another way for customers to
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access information. These services may provide a special convenience to a small number of
customers.
Each opportunity for improvement was evaluated based on whether it was an essential, desirable or
discretionary service within the context of the business plan.
o Response to "Business Plan - Services" includes one of the following choices:
■ Essential
' Desirable
■ Discretionary
• WORK PLAN STATUS -The current work plan status for each opportunity for improvement is
identified in the spreadsheet. For improvements listed as already "in progressinformation related
to what percent is complete and when it is estimated to be complete is included.
o Response to "Work Plan Status" includes one of the following choices:
■ In progress
• % complete
• Estimated date of completion
■ Work has not begun but in work plan.
■ Work has not begun and not planned.
• TIMELINE TO COMPLETE - This is an estimate of how long it will take to complete an
Opportunity for improvement item, assuming that adequate resources would be provided to
mplete.
o Response to "Timeline to Complete" includes one of the following choices:
■ Short-term (0-2 years),
■ Moderate (2-5 years),
■ Long-term 5 years)
■ Ongoing
• RESOURCES NEEDED TO ACCOMPLISH -This is an estimate of the resources needed to
accomplish the identified opportunity for improvement. Resources include money and/or staff.
o Response to "Resources Needed to Accomplish" includes one of the following:
■ Additional Resources
• Minimal (less than $25,000)
• Moderate ($25,000 - $100,000)
• High $100,000)
Within existing budget
• SAVINGS - This identifies the potential resource savings (benefit) and whether it is already
reflected in the 2009 budget or whether it may be reflected in a future budget. The savings is-also
identified as one=time or ongoing.
• NON-FISCAL BENEFIT - This identifies the potential non-monetary benefit (e.g., risk
avoidance).
• INTERNAL AND EXTERNAL IMPACTS - This identifies if the opportunity for improvement
item would have an internal and/or external impact.
o Response to "Internal Impacts" includes one of the following choices:
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■ Workgroup
• Multiple Workgroups (1-2 workgroups)
■ Utility Wide (+3 workgroups)
o Response to "External Impacts" includes one of the following choices: (more details
related to determining community sustainability impacts can be found at
httt~:,lintralveb.ci.boulder•.co.rrs:'ctnncler'k% 'omnrrcriitrStrscaitaalailitt,rl,ssEss~tuntTools.htr~r)
■ Economic - defined as the overall economic impacts on the business community
which could impact city revenues; promotes a diverse and sustainable economy that
supports needs of all segments of the community; may also include
intergovernmental relations or issues.
■ Environmental defined as the overall impacts based on environmental concerns
such as transportation, climate, energy, greenhouse gas emissions, recycling;
considers balance of renewable and non-renewable -resources; may also include
intergovernmental relations or issues
Social - defined as the overall impacts on the needs of diverse communities (e.g.,
different ethnicities and cultures, abilities, age, income, family demographics,
W.ul,.,r-i opresented residents); engaged broad segments of cuni, aunty for input; may
also include intergovernmental relations or issues.
r
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ATTACHMENT C:
LIST OF TIER 1 OPPORTUNITIES FOR IMPROVEMENT ITEMS
Listed below is each Tier 1 "opportunity for improvement" item identified in the peer review
final report. The numbering of each item below is not reflective of a particular order but rather it
provides a way to identify each item for discussion purposes.
1. Full staff meetings are held annually with upper inanagement. It may be of value to all
employees to attend full staff meetings semi-annually.
2. The roles and responsibilities for WRAB and utility staff need to be better defined. The
WRAB should perform at a policy level and staff at the technical detail oriented level. Both
the WRAB and staff needs to be mindful of the WRAB's need for information that is
necessary to make policy decisions.
3. Expand use of employee development plan within the evaluation system.
4. Enact policy to adopt "near OSHA" standards.
5. Improve safety & health program within all divisions.
6. Supervisors need to observe practices of subordinates.
7. Senior management needs to actively promote a safety culture.
8. Trainers need to be well versed and experienced in their subjects. Topics should be varied to
ensure all aspects of safety requirements are covered.
9. Flexibility in replacement of lines should be used to establish priorities.
10. 1ligh pressure pipeline right-of-ways not regularly inspected & maintained.
11. Produce as-built drawings in a timelier manner so GIS maps can be accurately updated with
new facilities. This will provide the information to field crews and allow them to work more
efficiently.
12. Digitize project records to ensure information is not lost and provide methods to easily access
this information.
13. Develop and implement procedure to ensure management and the public information office is
informed of shut-off, SSOs, breaks and other emergency problems so they may be properly
informed.
14. Develop and implement procedure to ensure management and the public information office is
informed of shut-offs, SSOs, breaks and other emergency problems that impact customers.
15. Provide a system to include field collected data into the analysis and prioritization of line
replacement or rehabilitation.
16. Consider conducting an energy audit to review new electrical demands as well as review
current sources and uses of energy.
17. Integration of work groups will provide greater effectiveness in operating the plant.
18. Plant management is working to establish goals and a mission statement for the plant.
19. Management needs to make a business case for purchasing of environmental lab equipment
and continue to review analytical request to ensure only necessary and relevant work is
completed.
20. Reallocation of staffing must be considered in order to operate the process economically and
effectively.
21. Limited communication between maintenance staff and operations management.
22. Maintenance Computerized Maintenance Management System (CMMS) not happening.
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23. Operations staff appears heavy. 24/7 monitoring of distribution system by a dedicated
operator seems excessive.
24. Business case for night monitoring of distribution system, and both plants from Betasso
should be developed.
25. Field's new GIS is slow, hard to read and not accurate. The older system is static and very
accurate.
26. Corrosion resistant bolts not always used on buried applications.
27. Field reports not recorded in electronic records/maps.
28. Group needs to objectively analyze existing work load as to what needs to be accomplished
and what is desirable to be done.
29. Group needs to objectively make a business case for new programs/projects.
30. Some work groups consistently over-run their budgets. Some years this may be unavoidable
but it is suggested these work groups be required to stay in budgeted amounts or provide
written justification on why the budget must be exceeded.
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APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item Opportunity for Narrative Tier Priority Total Costs 'T'otal Savings
4 Improvement Level Within 2009 Costs Reflected
Budget or Additional in 2009 or
Draft 2010 Resources Future
I3ud ;et Butlgct
16 ConSide: conducting ar'i Construction completed at 1,1'WTP in June 2008 1 1 - Savings $38,000 $0 $13.000
energy audit to review new and have yet to optimize process of certain achieved
electrical demands as well major electrical loads such as aeration blowers with
as review current sources and centrifuges. An energy audit is warranted resources
and uses of energy. and will likely result in some recommendations within 2009
that could provide ongoing power savings. or draft
2010
budget
23 Operations staff appears At Betasso WTP, one operator monitors the 1 1 - Savings $2,400 $0 $80,000
heavy. 24/7 monitoring of SCADA system which includes the plant achieved
distribution system by a functions, hydro operations and pressure zones with
dedicated operator seems for the water distribution system. A second resources
excessive operator regulates and/or adjusts raw water within 2009
sources, water treatment process (chemicals, or draft
sedimentation process, filtration process, 2010
residuals recovery, chemical feeders, pumps budget
and valves to control liquid stream) and solids
treatment processes. Operators also walk the
facilities/campus to check for abnormal
conditions to identify, locate, and resolve
treatment problems and respond to
emergencies. An evaluation will be conducted
to staff levels could be reduced through remote
monitoring/operations, or by relying upon less
coverage. Comparisons with other water
agencies will be evaluated. (related to R24)
24 Business case for night Betasso VVTP has two operators on duty per 12 1 1 Savings $39,100 $0 $80,000
monitoring of distribution hr shift, 24/7. The 63rd St WTP has one achieved
system, and both plants operator on duty per 12 ltr shift, 24/7. All with
from Betasso should be operators are available for emergencies and are resources
developed alert to security of treatment plants, distribution within 2009
reservoirs, pump and valve stations, and hydro- or draft
electric stations. Staff will evaluate the use of 2010
more automated and remote operations and budget
what if any, equipment, instrumentation and
communication devices may be required in
order to rely less on human operations and
more on equipment. (Related to #23)
4/8/2009 1
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER I AND 2 ITEMS
Item Opportunity for Narrative Tier Priority 'total Costs 'hotal Savings
4 Improvement Level Within 2009 Costs Renected
Budget or Additional in 2009 or
Draft Ht110 Resources Future
Budget Budget
q rlcxibility in replacericn: T;nc c:tv uses a dafa based decision tool to 11e1p 1 1 - Savings S20,000 SO $40,000
of lines should be used to with the prioritization of waterline replacement achieved
establish priorities. projects. Factors include pipe age, material with
type, diameter and soil type. The decision tool resources
is one of many factors used to prioritize within 2009
replacement projects and the judgment of or draft
engineering, operations and maintenance staff 2010
continues to play an import ant role in any final budget
decisions. A recent review-of the decision tool
provided several recommendations for
improvement that staff intends to implement.
The CIP process provides flexibility in re-
evaluating and prioritizing projects on an
annual basis.
11 Produce as-built drawings The topic is being discussed by staff and 1 1 - Savings $37,500 $0 $50,000
in a timelier manner so sev,.ral ideas to help with the tirnclier achieved
GIS maps can be development of as-built drawings and updating with
accurately updated with of GIS maps have been put forward. There is a resources
new facilities. This will lag time between the construction of facilities within 2009
provide the information to and the development of as-built drawings and or draft
field crews and allow them updating of GIS maps. For this reason, design 2010
to work more efficiently drawings and the development of a budget
corresponding "work-in-progress" layer has
been discussed. It is anticipated that further
consideration and a decision regarding this
issue will be made during the I"quarter of
2009.
12 Digitize project records to A project tracking database and procedures for 1 1 - Savings $32,500 $0 $50,000
ensure information is not scanning and archiving of electronic files has achieved
lost and provide methods been implemented to capture critical with
to easily access this information and provide easy access to and resources
information. query of these records. within 2009
or draft
2010
budget
19 Management needs to Currently, the Laboratory conducts all metals 1 I - Savings $1,440 $0 $80,000
make a business case for analysis to support WWTF liquid stream and achieved
purchasing of biosolids monitoring (both compliance and non- with
environmental lab compliance monitoring) and some drinking resources
equipment and continue to water metals analysis. A "business case within 2009
review analytical request evaluation" process will be conducted to or draft
to ensure only necessary evaluate the possible cost/benefit of the metals 2010
and relevant work is analysis work to see if this activity should be budget
completed. conducted in-house or outsourced.
4/8/2009 2
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item Opportunity for Narrative Tier Priority Total Costs Total Savings
# Improvement Level 1Yithin 2009 Costs Reflected
Budget or Additional in 2009 or
Draft 2010 Resources Furnre
Budget Budget
Maintenance A CLAIMS system has been purchase bV NVdter 1 l - Savin-s 51 ?;700 $0 55.000
Computerized Treatment in 2008 and is called "last achieved
Maintenance and Maintenance." Staff is currently entering data with
Management System into the system and started to use the system in resources
(CMMS) not happening December 2008. WTP staff will maintain the within 2009
CMMS. (related to 462 and #63) or draft
2010
budget
26 Corrosion resistant bolts In 2008, anti-corrosion bolts were purchased I I - Savings $10,600 SO 52,500
not always used on buried and used while making repairs. The city's achieved
applications. design standards need to be edited so that new with
installations have this requirement. Will work resources
with Planning and Development Services' staff within 2009
to revise design standards so that anti-corrosion or draft
bolts are used during routine installations and 2010
construction of watermains. budget
1 Full staff meetings are The Directors of Public Works (Maureen Rait, 1 2 -No 5480 $0 $0
held annually with upper Ned Williams and Tracy Winfrce) hold full additional
management. It may be of work group meetings at each Public Works site savings, but
value to all employees to on an annual basis. Expand to semi-annual worthwhile
attend full staff meetings meetings. items
semi-annually.
2 The roles and WRAB roles and responsibilities (as are all city 1 2 - No $1,200 $0 $0
responsibilities for WRAB boards and commissions) are defined in the city additional
and utility staff need to be code. City staff is working with city council to savings, but
better defined. The WRAB improve board member orientation, training and worthwhile
should perform at a policy selection processes in order to improve the items
level and staff at the effectiveness for all city boards. Consider
technical detail oriented reviewing the city code responsibilities with
level. Both the WRAB and WRAB/staff in 2009 as to appropriate scope
staff needs to be mindful and balance of board activities in order to
of the 'vVRAB's need for further define and clarify the relationship
information that is between WRAB and staff.
necessary to make policy
decisions.
3 Expand use of employee Each supervisor/employee should detail a 1 2 -No $1,200 $0 510
development plan within development plan in the employee's 2009 additional
the evaluation system. annual Performance Evaluation. savings, but
worthwhile
items
41612009 3
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item Opportunity for Narrative 'T'ier T'riority Total Costs "T'otat Savings
t€ Improvement Level, Within 2009 Costs Reflected
Budget or Additional in 2009 or
Draft2010 Resources Future
Budt.;et Budget
b Supervisors need to Currently, supervisors actively spend time in 1 - No $17,250 $0 $0
observe practices of the field as well as attend safety trainings additional
subordinates alongside staff: Improper safety practices are savings, but
captured and debriefed with staff. If necessary, worthwhile
training is modified or requested to prevent items
incidents. All supervisors need to have a front-
line role in safety and lead by example. All
employees are expected to play a role in safety
and it should be a uniform category in
performance evaluations. If injury losses
increase in the future, may need to consider
increasing resources for this Health and Safety
program.
13 Develop and implement if emergency occurs during work hours, a 1 2 -No $1,200 $0 $0
procedure to ensure " eater info" e-mail goes out which includes additional
management and the Public Works' Communications staff. If it's a savings, but
public information office large main break, Communications staff is worthwhile
is informed of shut-off, contacted directly by a supervisor. Off-hours, items
sanitary sewer overflows Communications will get phone call only if
(SSOs), breaks and other something really significant happens, and a
emergency problems so water info e-mail may or may not go out the
they may be properly next day. Week-end responses are not
informed. consistent. Currently no set standard for the
division on communication procedures
(including creek spills, power outages at the
plant, main breaks, etc.) Staff will establish
procedures for communicating
urgent/emergency issues and write a Utilities
Division policy. This would be distributed and
supervisors would train staff. (related to #14)
15 Provide a system to Field observations for gravity mains (storm and 1 2 - No $7,400 $0 $0
include field collected data sewer) and manholes is currently recorded in additional
into the analysis and Utilities Maintenance and Management System savings, but
prioritization of line (UMMS.) Observations come from TV-ing worthwhile
replacement or mains and manhole observations. In addition, items
rehabilitation. the condition of hydrants is recorded during
hydrant inspections and main breaks and break
causes are tracked and entered in UMMS. The
Utilities Planning and Project Management
workgroup is going to implement a separate
asset management system for which Utilities
Maintenance workgroup will provide UMMS
data for inclusion in making
replacement/rehabilitation decisions. The field
reports will be modified to capture pipe and
manhole condition, then the UMMS system
will be modified to capture and sort by
maintenance need priority in order to prioritize
maintenance work.
418/2009 4
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item Opportunity for Narrative Tier Prioritv Total Costs Total Savings
# Improvement Level Within 2009 Costs Reflected
Budget or Additional in 2009 or
Draft 2010 Resources Future
Budget Budget
17 integration of work groups This is an exirenick lnipur.am but loin-teen 1 2 - Nu $17.000 $0 $0
will provide greater Goal of the WWTP. The four workgroups at additional
effectiveness in operating W WTP (Operations, Maintenance, Resource savings, but
the plant. Recovery, and Admin) often work worthwhile
independently. More cooperation and items
collaboration between workgroups would
provide a consistently high performing IN'WTP.
Will consider teambuilding skills and training
and cross-workgroup collaboration.
18 Plant management is Goals and mission statement were in progress 1 2 -No $960 $0 $0
working to establish goals during Peer Review week. Since that time, additional
and a mission statement mission, goals, values, and expectations have savings, but
for the plant. been finalized in a document by Coordinator worthwhile
and Supervisors. Consistent and regular follow items
up to sue how well the goals and mission
statement are being utilized is needed.
Performance reviews should include many of
the elements listed in the document.
t
21 Limited communication Daily meetings are held each morning at both 1 2-No $U $0 $0
between maintenance staff plants that include mechanics, e-tecbs, additional
and operations operators, supervisors and SCADA savings, but
management. Administrator (Hydro at Betasso) staff to worthwhile
discuss plant issues and needs. Management items
walks site and checks in with staff. Quarterly
meetings are held with maintenance to
prioritize projects and to check-in about what
may be needed for each project. Reviews are
held every six months with each individual.
Additional meetings are held as needed.
Consider the need for communication training
and additional resources, if warranted. May
also need to consider a separate Maintenance
Supervisor position that is separate from a
Treatment Operations Supervisor.
25 Field's new G1S is slow, Mobile computers were deployed in the second 1 2 - No $2,400 $o $0
hard to read and not and fourth quarter of 2008. The computerized additional
accurate. The older system mapping is the most up to date and accurate savings, but
is static and very accurate. utilities mapping that exists in the city. The worthwhile
maintenance crews must complete "utility field items
reports" whenever they notice mapping
inaccuracies. This, along with better
dissemination of as-builts, are the only way the
mapping will improve. Staff will evaluate ways
to improve speed and readability of the system.
4/5/2009 5
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Itern Opportunity for Narrative 'T'ier Priority 'T'otal Costs `total savintrs
# Improvement Level Within 2404) Costs ltefleetcd
Budget or Addilianal in 20119 or
1)raft 2010 Resources Future
Budd-et Budget
27 Field reports not recorded June 2008, the Utilities Program Planner started 1 2 - No $2,400 $0 $0,
in electronic records/maps to scan all submitted "utility field reports." The additional
scanned field reports are hotlinked to a field savings, but
report tracking database created and worthwhile
administered by the Program Planner. This items
database can be made available to other city
employees upon requesting access from the
Program Planner.
28 Group needs to objectively The program is responsible for required 1 2 - No $7,200 $0 $0
analyze existing work load compliance programs and reporting and non- additional
as to what needs to be regulatory monitoring--both used in supporting savings, but
accomplished and what is water treatment and operations. The group worthwhile
desirable to be done. needs to prioritize required programs with other items
program needs and evaluate shared
responsibilities and resources. Through WQES,
the program will be developing a work plan in
2009 to assist with these decisions.
29 Group needs to objectively The Drinking Water Quality program is a 1 2 - No $4,800 $0 $0
make a business case for support group to water resources, engineering, additional
now programs/projects treatment and operations and has the savings, but
opportunity for involvement at many levels. worthwhile
Staff plans to interact more with the other items
groups to better define how the program can
provide support and help prioritize
programs/projects and leverage resources for
projects. In doing so, staff will conduct a
cost/benefit analysis to determine if work
activities are more appropriately done in house
(may need to purchase equipment) or out-
sourced. An analysis is currently being done
with respect to source water nutrient analysis.
(related to #19)
4 Enact policy to adopt Comment is primarily related to treatment 1 2 -No $2,400 $0 $0
"near OSHA" standards plants, water distribution, and wastewater additional
collection staff. OSHA standards should be savings, but
applied for activities such as confined space worthwhile
entry, excavations/trenches, lock/out tag/out, items
chemical handling, traffic safety, etc. Currently,
in the water distribution and waste water
collection maintenance workgroups, most
OSHA regulations are being followed.
Treatment plants are following many OSHA
standards. It is proposed that the city adopt a
written policy that states utilities establish a
goal of conforming to all OSHA standards and
do an inventory and assessment of facilities and
practices to identify and correct any
deficiencies.
41812009 6
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER I AND 2 ITEMS
Item Opportunity for Narrative Tier Priority Total Costs Total Savings
y Improvement Level Within 2009 Costs Reflected
Budget or Additional in 2009 or
Draft 2010 Resources Future
Bud-et Budget
20 Reallocation of staffing Since 2003, staff responsibilities have shifted 1 2 - No $15,000 $0 $0
must be considered in from driving city trucks to land apply biosolids additional
order to operate the to operational responsibilities inside the WWTP savings, but
process economically and (with contract track hauling.) As of June 2008, worthwhile
effectively. the dewatering system has been expanded with items
on-site, high performance centrifuges as wel I as
more complex support systems such as
biosolids screening, centrate return, and odor
control. Staffing needs/levels will be evaluated
in 2009-2010 to determine an optimal staffing
level for the Resources Recovery functions with
the idea that staffing will be redistributed either
via work-sharing or reallocation.
4 3 Some work groups Some work groups go over budget and it is 1 2 - No S900 $0 $0
consistently over-run their handled in one of the following ways: 1) try to additional
budgets. Some years this cover the overage from some other area with savings, but
may be unavoidable but it their workgroup, 2) talk to another coordinator worthwhile
is suggested these work looking for coverage, and 3) communicate the items
groups be required to stay overage to Ned and/or Carol to develop a plan
in budgeted amounts or for coverage at the fund level. Staff will
pro-ide written develop a procedure in 2009 for reporting
justification on why the budget status and projected year-end status.
budget must be exceeded.
The justification in writing
should occur between the
second and third quarter of
the fiscal year.
14 Develop and implement Public Works Communications group is alerted 1 2-No S0 $0 $0
procedure to ensure for all urgent situations such as water main additional
management and the breaks and sewer main backups. Otherwise, it's savings, but
public information office a case-by-case judgment to alert the PIOs. Need worthwhile
is informed of shut-offs, to keep the CMO aware of emerging situations items
SSOs, breaks and other and possible press-related issues. Staff will
emergency problems that establish procedures for communicating
impact customers. urgent/emergency issues and write a Utilities
Division policy. (related to 413)
5 Improve safety & health Safety and health are essential and part of the 1 3 - $4,800 $50,000 SO
program within all 'oh description of almost all utility staff. Probable
divisions Stewart Ellenberg, the risk manager for the city savings, but
of Boulder, is working with his staff to schedule additional
training opportunities for specific workgroups. resources
If injury losses increase in the future, may need needed
to consider increasing resources for this Health
and Safety program.
41312GC9 7
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item Opportunity for- N,,, ~ ative Tier Priority 'I`utal Costs Total Savings
t' Improvement Level Within 2009 (.:nsts Rellecled
I1ud-et or Additional in 2009 or
Draft 2010 Resourecs Future
Budget Budget
7 Senior management needs Currently, supervisors actively spend time in 1 - $5,760 $20,000 $0
to actively promote a the field as well as attend safety trainings Probable
safety culture alongside staff. Improper safety practices are savings, but
captured and debriefed with staff. If necessary, additional
training is modified or requested to prevent resources
incidents. If injury losses increase in the future, needed
may need to consider increasing resources to
this Health and Safety program and hold
conferences, seminars, and workshops to more
actively promote a safety culture.
10 High pressure pipeline High pressure transmission pipelines have two 1 3 - $900 $149,800 $195,750
right-of-ways not regularly categories--raw water and treated water. Raw Probable
inspected & maintained. water pipeline right-of-ways are regularly savings, but
inspected, at least annually. Treated water additional
transmission line inspection and maintenwice is resources
not assigned to any one work group, so needed
attention to these pipelines varies and is done
on an "as needed" basis by Water Treatment,
Hydro, Utilities Maintenance or Project
Management. Consider a more organized and
frequent inspection program of treated water
transmission pipelines and more inspections of
valves on the raw water pipelines. These
functions could be combined into a single
program under a single work group (see Item
No_ 69). Maintenance of the water
transmission pipelines should be specifically
assigned to one group and resources provided.
An O&M plan for treated water transmission
pipelines should be developed.
8 Trainers need to be well Kevin Krayna, risk managers office, works 1 3 - $0 $0
versed and experienced in closely with supervisors to ensure that proper Probable
their subjects. Topics and effective safety training is being provided. savings, but
should be varied to ensure Kevin also attends the training for quality additional
al l aspects of safety control purposes. Need to ensure that all resources
requirements are covered. training is done in a professional manner and needed
need to continue to update the list of available
trainers on a pre-qualified vendor list to call.
TIER 1 TOTAL $287,520 $219,800 $596,250
32 Develop objectives and Currently rely upon on-the-job training and 2 1 - Savings $2,400 $0 $10,000
methods for knowledge working along-side of out-going employee for a achieved
sharing including a job short time. There has also been a large effort to with
succession plan for critical move all hard copy documents to storage in resources
areas of the utility. digital files. Some work groups are developing within draft
Standard Operating Procedures (SOPs). 2011-2014
Utilities Division completed a "pilot" program budget
in 2008 for succession planning awareness.
4/8/2009 8
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item Opportunity for Narrative Tier Priority Total Costs 'T'otal Savings
Pr Improvement Level Within 2009 Costs Reflected
Budget or Additional in 2009 ur
Draft 2010 Resources Future
Budget Buthet
34 Need to track efforts, set Goals and expectations are communicated in 2 1 - Savings S2,400 $0 5-2,000
goals and determine annual Performance Evaluations. Various work achieved
expectations. This will performance data are reported in the annual with
help set the course for all Utilities Report. The annual report is posted on resources
employees. the intraweb and shared with staff. within draft
2011-2014
budget
46 Continued expansion of' The city's enterprise GIS system is fully 2 1 - Savings $24,000 $0 $25.000
GIS enterprise system with integrated with the maintenance (UNIMS) achieved
integration of maintenance database. Each active asset in UMMS has a with
management system will hotlink to the Utilities Viewer ArclMS website resources
improve work place enabling users to view the mapped location and within draft
efficiency. GIS data behind all assets. Plans are in place to 2011-2014
continue and improve this integration with the budget
roll-out of an ArcServer application. Plans for
the future expansion of this integration include
mapping of'multi-point and multi-line
maintenance types (valve operations, sewL:r and
storm line cleaning, hydrant inspection; hydrant
repair, etc) and mapping of maintenance based
on structured queries (i.e. over selected date
ranges etc.). Currently, staff is in the early
stages of creating a utilities GIS server solution
to implement these expansions. It is in the 2009
work plan to begin.
63 There are 4 industrial Use of the CMMS called "Past Maintenance" 2 1 - Savings $0 $0 $0
mechanics (including load started in December 2008. Routine tasks and achieved
mechanic) working on equipment projects are considered for with
plant maintenance, new outsourcing as budgets allow. Outsourcing now resources
and replacement projects, includes HVAC, painting, pumps and motors, within draft
regulators, cleaning tasks, pipe valve replacement, electrical work, doors, 2011-2014
residuals handling and windows, and locks, paving, janitorial, roofing, budget
developing the CIvIMS. sludge cleaning and hauling. (Related to 1122
Routine tasks and and 462)
equipmen, )rojects might
be cousidered for
outsourcing so that the
CMMS can be fully
developed, priorities can
he clearly identified and
the right tasks performed
per plan.
33 Develop procedures and!or City policies and department policies are on the 2 2 - No $1,200 $U $0
training to ensure policies intraweb. 44'ork group policies, if any, are additional
are enforced fairly across available at each work site. savings, but
the utility. Coordinators/supervisors may initiate contact worthwhile
with other supervisors/coordinators to assess items
consistency across work groups.
4/8/2009 9
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item Opportunity for :Narrative 'T'ier Priority Total Costs 'total Savings
4 Improvement Level Within 2009 Costs Reflected
Budget or Additional in 2009 or
Draft 2010 Resources Future
Budget Budget
36 Crack or review the plan Annual flood drills and exercises are debriefed 2 2 -No $ ".400 $0 $o
for goals & improvements. and plans and procedures are modified additional
accordingly. Employee rosters are updated savings, but
annually. Areas for improvement are assigned worthwhile
accordingly (ex: paging system improvement). items
37 Extend strengths to all In house "experts" arc available to train others 2 2 - No S3,400 $0 $0
sections of utility. within utilities. Key responders within the additional
division routinely take part in emergency drills, savings, but
exercises and training. A more comprehensive worthwhile
and formal training program for all employees items
could be developed in the future, if warranted.
44 Have approved vendor list Annual Pricing and Contract Agreement 2 2-No $1,200 $0 $0
include those services that Catalog does not currently include vendors that additional
may be required at supply metering pumps, motors or other savings, but
treatment plants. maintenance equipment that is needed at the worthwhile
treatment plants. The pricing and contract items
agreement catalog is updated annually and staff
will make sure treatment plants have input to
vendors included in annual contracts. Only
vendors reasonably expected to be used each
year should be included in the annual contracts.
An alternative is for the treatment plants to
maintain a list of vendors who can supply the
appropriate parts to simplify identifying them
when needed.
45 Shorten the lead time Annual Pricing and Contract Agreement 2 2-No $0 s0 $0
required for purchasing Catalog does not currently include vendors that additional
equipment costing greater supply metering pumps, motors or other savings, but
than $50,000. maintenance equipment that is needed at the worthwhile
treatment plants. Finance is working with the items
attorney's office to consolidate contracts (for
material purchases) into the PO to streamline
the purchasing process for materials. Finance is
also considering developing a checklist in 2009
for bid packets.
4/8/2009 10
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item Opportunity for Narrative Tier Priority Total Costs Total Savings
# Improvement Level Within 2009 Casts Reflected
Bucket or Additional in 2000 or
Draft 2010 Resources Future.
Budact Bucket
47 Updating UN/E\AS program The maintenance database, called UIVIMS 2 2 - No $14,800 $0 $0
to include work order (Utilities Maintenance Management System), additional
system within presently has a functioning work order system. savings, but
maintenance must be However, work orders are only created for worthwhile
implemented to improve hydrant and valve maintenance activities. The items
not only management of current work order function is too limited for
work but provide better it's use in the day-to-day maintenance of the
access to data for capital sewer mains because it is missing other pipe
improvement decisions. reliabilitation methods (e.g., slip lining,,
chemical treatment, etc.). UMMS
administrators and the database developer are
aware the work order system needs
improvement. This task is already on the work
plan for a future release of UMMS, anticipated
by the end of 2009.
48 Reinforce that information The installation of fiber optic cable to the 2 2 -No $600 $0 $0
technology infrastructure Betasso WTP and 75th St. W WTP will be additional
is a critical operation of completed in the first quarter of 2009. This will savings, but
the utility and that the greatly improve the information technological worthwhile
appropr=iate level of support to these facilities. Discussions will be items
response time must be scheduled with the city's IT Department to
maintained. further discuss and clarify lead and support
roles.
50 Implement E-care to The current priority for the billing office has 2 2 -No $28,000 $0 $0
provide customers on-line been implementing the 2008 water budget additional
access to their accounts. changes and processing customer credits. The savings, but
June 2008 changes should be programmed into worthwhile
CIS and credits processed by the end of 2008. items
Staff will work with the billing vendor to
schedule E-care for the first half of 2009. This
will allow customers on-line access to their
accounts and to be able to pay bills online.
Staff will work with Advanced Utility Systems
to implement the e-care module.
4/8/2009 11
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER I AND 2 ITEMS
Item Opportunity for Narrative Tier Priority Tutai Costs Total Savings
H Improvement Level Within 2009 Costs Reflected
Budget or Additional in 2009 or
Draft 21110 Resources Future
Budget Budget
52 Develop procedures to The meter reading software is called 2 2 -No $360 $0 $0
ensure any software or CONNECT and it is currently located at the additional
hardware changes will not yards. CONNECT reads a file generated by the savings, but
interfere with data utility billing system (CIS) which contains the worthwhile
exchange between billing meters "to be" read and creates a file with the items
and meter reading systems. meters reads which is uploaded into CIS and
used to generate bills. In the past software or
hardware changes to CONNECT have occurred
and interrupted (either miscalculated or omitted
reads) the data used to genet ate bills, The
changes are not always communicated to the
billing office and they become aware as billing
issues surface. Utility billing staff, IT staff and
Meter Reading staff will meet and agree to
implementation control procedures and
coordinate all future changes between the two
groups.
5$ May need to improve Control of accidental releases and reporting are 2 2-No $2,400 $0 $0
communication with SIU's of primary importance to Pretreatment additional
for response to accidental staff. Significant Industrial Users (SIUs) are savings, but
releases. required by permit, local, and federal worthwhile
regulations to prevent unauthorized releases to items
the sanitary sewer and to establish spill control
and reporting plans. Annually, pretreatment
staff review during site inspections the potential
for spills to the sanitary sewer. This review also
includes a check of the SIU spill control
plan. During this annual inspection,
Pretreatment staff will also review the
communication plan with each SIU and
emphasis the requirement of quick notification
and response.
61 Boulder Canyon hydro A feasibility study of options for Boulder 2 2-No $37,700 $0 $Q
needs to be evaluated to Canyon Hydra was completed in 2005. It was additional
determine if it should be detennined that it would be cost-effective to savings, but
upgraded or abandoned. replace the existing turbine with a 4.9 MW unit. worthwhile
No further analysis can be completed until the items
FERC exemption from licensing process is
complete in 2009 for the Boulder Canyon
Hydro Project and a new power sales agreement
is negotiated with Xcel. Work can proceed on a
final determination of whether or not to install a
new turbine at Boulder Canyon Hydro in 2010.
4/8/2009 12
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item Opportunity for Narrative Tier Priority Total Costs Total Saving's
Improvement Level Within 2009 Costs Reflected
Budoct or Additional in 2009 or
Draft 2010 Resources Future
Budget Bud-et
6 Ivl~rintcnancc staff pullckl 'I he two plants and pump slations use 4 2 2 -No 9;>,040 $0 $0
in too many directions. mechanics, 2 E-techs, and a SCADA additional
administrator. Daily meetings are held each savings, but
morning at both plants that include mechanics, worthwhile
c-techs, operators, supervisors, SCADA items
Administrator ( I lydro at Betasso) to discuss
plants issues and needs. Quarterly maintenance
meetings are held. Supervisors and the
workgroup decide what would be the best
action plan to accomplish the work. which may
include outsourcing. Coordinator/supervisors
may need to better define work priorities and
schedules for maintenance activities, along with
providing some communications training. The
recently implemented Computerized
Maintenance Management System (CMMS),
called "Fast Maintenance", will also allow for
planning and prioritization of maintenance
activities. (related to 422 and il6 _3)
64 Changes in procedures or Continual improvement, training, meeting and 2 2 -No $0 $0 $0
standard practices need to field visits between supervisors and staff are additional
be fully cc ardinated with currently underway to discuss and savings, but
all work groups involved. communicate changes in procedures and worthwhile
practices. Monthly "all employee workgroup" items
meetings are held and staff are allowed to
provide feedback on all operations in order to
become more effective and efficient.
65 Management has Administrative functions have increased and 2 2 -No 5600 SO S0
decreased interface with field time is at a premium. Past practice and additional
field crews. preference of crews was to NOT ]rave the savings, but
supervisor in the field as much. Finding the worthwhile
"middle road" is possible and items
coordinator/supervisors need to evaluate how
best to interface and communicate with field
crews.
66 Thrust restraint methods New methods will be investigated and 2 2-No $11,£00 $0 S0
used by field crews arc associated costs considered for this operation. additional
outdated. The city's design standards will also be savings, but
reviewed and edited by the Utilities worthwhile
Planning/Project Management, Maintenance items
and P&DS work groups for new irstallations.
4/8/2009 13
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item )Irpriittar~tvfor '.Narrative Tier Priority 'rota costs Total Savings
# Improvement Level Within 2009 (:osts Reflected
Budget or Additional in 21109 or
Draft 2010 Resourecs Future
Bud"et Budget
67 Cathodic protection Utilities Planning/Project Management staff are 2 2 -No $2,600 $0 $0
practices not employed evaluating existing steel pipelines (recent and additional
(attachment of anodes older). With assistance from a cathodic savings, but
when opportunity exists, protection/corrosion control consultant, a worthwhile
isolation, bonding, etc.), program is being developed to replace anodes items
and test stations on older pipelines and to
implement monitoring of all test stations into
O&M practices for all large diameter steel
pipelines.
30 Management staff needs to The Directors of Public Works (Maureen Rait, 2 2 - No $1,800 `o(} $0
improve their visibility Ned Williams and Tracy Winfree) hold full additional
amongst the maintenance work group meetings at each Public Works site savings, but
and operations staff. Field on an-annual basis. Other staff meet with worthwhile
visits and possibly operations and maintenance staff on a project or items
quarterly meetings are program specific basis. In 2009, upper Utility
recommended. management staff (Director, Coordinators) will
get out in the field more often.
4l Financial training & Currently, the Utilities Financial Manager 2 2-No ~ ,200 s0 _ $(i
communication with meets with new coordinators and gives them an additional
employees may help work overview of the utilities budget and the city's savings, but
groups stay within their budget process. The Utilities Financial Manager worthwhile
budget. also meets with new supervisors and items
workgroups as requested, sends out monthly
budget status reports to coordinators and
provides updates as part of the annual budget
process. Accountability for staying within
budgets is addressed through performance
evaluations.
42 The outstanding debt is Outstanding debt: Water - $47M paid off in 2 2-No $16,200 $0 $0
rather high (-$85 million). 2021; Sewer - $42M paid off in 2025; Flood - additional
Boulder should look for $SM paid off in 2018. "Pay as you go" would savings, but
more ways to "pay as you require 1) additional revenues and/or 2) reduced worthwhile
go" until bond retirement expenditures from the current budget, Money items
dates are nearer. from any option would go to fund balance until
enough was saved for the next large CIP
project. Projected bonds: Water - $36M in
2014; Sewer - $12M in 2010; Flood - $5M in
2011. Utilities is reevaluating it's debt level
with the city's finance director and private
financial advisor. The Utilities' current debt
obligation meets all landing requirements and
satisfies the city's designated reserve
requirements. Bond rating agencies have
provided a fairly high (AA+, Aa2) rating for the
revenue bonds. (Related to -974
4/8/2009 14
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item Oppnrtunit* for Narrative Tier Priority Total Costs Total SavincZs
# Improvement Level 1't ithin 2009 Costs Reflected
Budget or Additional in 2009 or
Draft 2010 Ronurres Future
Budget Budget
41) Develop hro.hurc to orient lnfonnatior. B 1%ailaHe 1_):~ the v;eh rc2ardin~ 2 3 - No $67200 $0 $0
ne~~ custornerti utility billing, water budgets and payment additional
options. In 2009, Communications and TJTB savings, but
staff will work together to create an appropriate worthwhile
custorer friendly brochure that could be items
mailed to new customers. (Related to #51)
53 Chanucs to the water Changes to water budgets have been made in 2 2-No $1,200 $0 so
budget billing criteria response to customer concerns and have been additional
should be minimized until approved by WRAB and council. The June savings, but
the effect of these rates 2005 changes were programmed into CIS and worthwhile
have on revenues is filly credits processed at the end of 2005. items
realize
54 iVfav need to improve Currently, contact key customers when there is 2 2 - No Sl ,200 $0 $0
outreach to managers of an urgent situation (water service outage or additional
key customers. water quality problem) that involves the savings, but
customer. Will initiate contact with key worthwhile
customers or groups (like the Chamber of items
Commerce) when performing studies (PIF,
- - monthly rates, TPT, etc) that affect them.
69 No air-vac valvr: Responsibility for maintenance of the air-vac 2 2 - No $2,400 $0 $0
maintenance. valves has not been clearly defined. Multiple additional
wort: groups have performed maintenance on savings, but
air-vac valves in the past. Need to evaluate if worthwhile
the responsibility should be with the pressure items
system maintenance staff simply based upon
where the valves are located, or with another
work group and more clearly and formally
designate maintenance responsibilities.
(Related to 4110)
57 Geo-assigning of work A planned overhaul of the l?MMS work order 2 2 - No $2,400 52,500 $0
orders once integrated system includes tasks that will allow the additional
with GIs will improve utilities maintenance supervisors/other staff to savings, but
effectiveness of work. generate a work order for an asset/s by worthwhile
interactively selecting that assets from a GIs items
mapping application. This will not be possible
until the ArcGIS Server (server-based GIS
platform) is deployed. Server GIS provides
users with live access to GIs Data and a set of
customized GIS tools that will enable users to
interact with real-time GIS datasets via the web.
However, the deployment of'a server GIs
product is estimated to he done by the end of
2009 or early 2010.
4/8/2009 5
I
APPENDIX E: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item Opportunity for Narrative "Pier Priority `T'otal costs `rot.o Savings
# Improvement Level Within 2009 Costs Reflected
Budget or Additional in 2009 or
Draft 2010 Resources future
Midget Budget
39 Develop an executive It is envisioned that master plans will be 2 2 - No $0 $0
summary of all master developed for each enterprise utility. The additional
plans that prioritizes master plan will provide an executive summary savings, but
projects. This could assist of priority projects, programs and needs. The worthwhile
in formulating and first such master plan will be for the items
communicating the Wastewater Utility and it is anticipated this will
utility's CIP. be presented to the WR,413 in spring 2009.
40 Utility should establish The Utilities Division has a mission statement 2 2 - No $0 $0
vision, values and goals to and guiding principles. It is appropriate that additional
guide employees in mission and values (guiding principles) be savings, but
improving the utility's reviewed periodically and that all employees worthwhile
performance. Employees are provided an opportunity to participate. items
should be involved in the Goals are typically developed through the
establishment of the master planning process. Master plans will be
utility's vision, values, and updated on a regular (5-10 year cycle) basis and
goals. Milestones should milestones will be set through the annual
be set to monitor progress budget process. Work groups arc also
in accomplishing the goals encouraged to develop mission statements and
to implerieru 'e utility's gc ils specific to their activities.
vision.
~51 Consider a brochure to Information is available on the web regarding 2 2 -No $0 SO $0
welcome new customers utility billing, water budgets and payment additional
and inform th:m of options. In 2009, Communications and UTl3 savings, but
utility's billing and staff will work together to create an appropriate worthwhile
payment options with customer friendly brochure that could be items
contact information. mailed to new customers. (Related to #49)
55 An enhanced work order The UMMS 2008 work plan included tasks to 2 2 -No $0 $0 $0
system within the utility enhance the work order functions and process. additional
maintenance program will The goal is to complete the enhancements by savings, but
improve the effectiveness the end of 2009, depending on contractor worthwhile
of work. availability. items
31 Considering the succession Some supervisory training available through 2 3- $1,200 $31;200 $50,000
plan, efforts should be Human Resources (HR). More training could Probable
nade to pm ide internal bo developed to focus on developing cmployees savings, but
leadership and sup(,rvtsory for promotional opportunities and hiring-for- additional
training. success practices. resources
needed
35 Implement a program to A general, city-wide orientation is performed 2 3- $0 $31,200 $'1,000
orient employees to all the for all new employees during their first week at Probable
aspects of utility work. Then, each work group provides an on- savings, but
operations. This will help the-job orientation. A more focused "Utility additional
employees understand the Division" orientation could be formally resources
L relatiotisliii) of their work developed and implemented. needed
to the overall mission of
the utility.
4/8/2009 16
APPENDIX B: SUMMARY OF REFINED COST ESTIMATE AND PRIORITIZATION OF TIER 1 AND 2 ITEMS
Item Opportunity for Narrative Tier Priority Total Costs Total Savint's
# Improvement Level Within 2009 Costs Reflected
Budget or Additional in 2009 or
Draft 2010 Resources Future
Budget Iludhel
'I lie utility should consider- It is envisioned that master plans will be 2 ; $50,000 $25,000 8100,000
developing an executive developed for each enterprise utility. The Probahle
summary of all master master plan will provide an executive summary savings, but
plans that prioritize of priority projects, programs and needs. The additional
projects. This could assist first such master plan will be for the resources
in formulating and Wastewater Utility and it is anticipated this will needed
communicating the be presented to the WRAB in spring 2009.
utility's CIP.
56 Upgrading camera The workgmup is currently in the process of 2 3 - $500 $2,000 $10,000
equipment will provide for acquiring Granite XP software in order to Probable
better collection and further evaluate, categorize and characterize the savings, but
analysis of data. conditions of the sewer mains. This system will additional
provide a more uniform analysis of the pipe resources
conditions. It is anticipated that the new needed
software will be installed and usea'?le by staff
by Jul), 2009.
59 Continue to work with Since 2002, the city has been part of 2 3- 52.880 55,000 $12,000
researchers on projects cooperative studies with CU Boulder and the Probable
that effect water quality in USGS on emerging contaminants in savings, but
the city. wastewater. The studies have focused on additional
emerging contaminant removal in the 75th resources
Street WWTF and emerging contaminant needed
impact to aquatic life in Boulder Creek. To
date; the city's support has been in-kind and
focused on site access, power for the research
trailer and staff support for sampling and field
work. These efforts are anticipated to continue
through at least 2010. Results from this
research will help the city address possible
future regulatory requirements for emerging
contaminants.
68 Aging wort: force. Utilities Division completed a succession plan 2 3 $6,300 520,000 $0
"pilot" project in 2008 related to an aging work Probable
force and possible retirements. One response savings, but
has been that Joe Cowan has taken a leadership additional
role in developing a program with the BVSD resources
and AWWA to teach and train local vo-tech needed
students about skills and abilities for jobs in the
utilities maintenance field.
TIER 2 TOTAL $246,680 $116,900 S2]11()00
TIER I AND TIER 2 TOTAL $534,200 $336,700 $807,250
4/8/2009 17