Workshop on Tuesday to discuss Water Proposed Improvements and Associated Rate Efficiency

White Springs Town Council Workshop

Town Hall Conference Room Tuesday, April 9, 2019

6:00 p.m.

Agenda

  1. 1. Call to Order and Roll Call
  2. 2. Discussion of Utility Asset Management and Fiscal Sustainability Plan
  3. Adjourn
IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE TOWN COUNCIL, WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING, THAT PERSON WILL NEED A RECORD OF THE PROCEEDINGS, AND FOR SUCH PURPOSE THAT PERSON MAY NEED TO ENSURE THAT A VERBATIM RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT (ADA) PERSONS NEEDING A SPECIAL ACCOMMODATIONS TO PARTICIPATE IN THE COUNCIL PROCEEDINGS SHOULD CONTACT THE TOWN CLERK’S OFFICE NOT LATER THAN THREE DAYS PRIOR TO THE MEETING.

FLORIDA RURAL WATER ASSOCIATION

2970 WELLINGTON CIRCLE. TALLAHASSEE, FL 32309781

 (850) 668-2746

 

 

The Florida Rural Water Association is pleased to submit the following Drinking Water System Asset Management and Fiscal Sustainability (AMFS) plan to the Town of White Springs. FRWA prepared this Plan for the Town in partnership with the FDEP Drinking Water State Revolving Fund (DWSRF) Program to identify your water system’s most urgent and critical needs.
Please review the proposed AMFS plan thoroughly. We look forward to receiving your comments and discussing your water utility assets’ sustainability. We wish to finalize the report and present findings to the Council in a workshop setting

 

White Springs’s water and water systems represent critical infrastructure for the Town. These systems are designed to protect the public health and the environment. This report assesses the current conditions of your drinking water fixed capital assets (water treatment plant, distribution system, wells and pumping system) and more importantly provides recommendations, procedures, and tools to assist with long range asset protection and water utility reinvestment. FRWA will be available to support AMFS plan recommendations and implementation. The following report is considered a living document with tools for your use which must be updated at least annually (recommended quarterly updates) by the Town’s utility management. We provide electronic copies for your use and future modification. FRWA will remain available to assist in updating and revising the Town’s AMFS plan.

 

As a valued FRWA member, it is our goal to help make the most effective and efficient use of your limited resources. This tool is an unbiased, impartial, independent review and is solely intended for achievement of water system fiscal sustainability and maintaining your valuable water utility assets. Florida Rural Water Association has enjoyed serving you and wishes your water system the best.

 

 

Asset Management Plan

Executive Summary

1. AMP Defined

An Asset Management Plan (AMP) is the systematic process of maintaining critical assets at the lowest life cycle cost within a predetermined desired level of service (as determined by Utility Staff, Customer, Commissioners, Regulators, etc.). Lowest life cycle cost refers to the best appropriate cost for rehabilitating, repairing, or replacing an asset. Asset management is implemented through an asset management program and includes a written asset management plan.
  1. Benefits of an AMP

Implementing and maintaining an active Asset Management Plan will provide numerous benefits to the Utility and its Customers, such as:
  • Prolonging asset life and aiding in rehabilitation/repair/replacement decisions
Increased operational efficiencies Informed operational and management decisions Increased knowledge of which asset criticallity Meeting consumer demands with a focus on system sustainability and improved communication Setting rates based on sound operational and financial planning Budgeting by focusing on activities critical to sustained performance
Meeting system service expectations and regulatory requirements . Improving responses to emergencies
Improving security and safety of assets Capital improvement projects that meet the true needs of the system and community
FRWA is committed to provide the Town of White Springs with an AMFS plan that will make the process more efficient.

3. State Revolving Fund Requirement

An active Asset Management Plan (AMP) is a requirement for participation in the State Revolving Fund Program (SRF). Asset Management and Fiscal Sustainability (AMFS) program details are identified in the Florida Administrative Code (FAC) 62-503.700(7).
  1. AMP Development Stakeholders

The development of this AMFS plan involved the collective efforts of Town Management, Public Works/Utility Staff, Utility Consultant, the Florida Department of Environmental Protection State Revolving Fund (FDEP-SRF), Florida Rural Water Association (FRWA). FRWA resources include Engineers, Certified Operators and Rate Sufficiency Analysts.

Asset Management Plan

  1. Table of Critical Asset, Process, CAPEX, and OPEX Needs

The table below contains a listing of White Springs’s Critical Assets and Processes that were found to need Capital and/or Operational funding to operate as designed and within Regulatory Compliance. A five (5) year estimated cost for each activity is provided for consideration. Also provided is the associated rate sufficiency, per customer per year, for the proposed activity. The DW DWSRF to discuss the loan options for the Town. SRF loan repayment depicted below is one scenario, also depicted is a scenario the shows 100% grant for the project. Contact the

 

The CAPEX and OPEx Cost and assodated rate sufficienty shown above ore in cross of current utility activity. iFor SRF Loans, the minimum construction loan amount is $75,000. Groupine programs ls desirable to reduce overall cost assocated with funding applictions. Automatic re-occurring Annual Rate Increase based on the aument CPI is recommended to manage inflation of good and services assodated with delivery of water servle. Not A Cost of Uving rate in case was passed and adopted 10-13-15 Ordinina # 15-01. Rate Increase set to take effed oct. 1 of each ycer based on June Co.L Index (dass d size) Capital Improvement Program Recommended porcentajes arc Included in the chart above and depiled below for illustration purposes only. Reserves
L2 Water Treatment Plant Inspect and dean ground storage tanks ( already in budget) | 3 Distribution system Install auto-flushers and meters on existing flush valves (4)

 

The CAPEX and OPEX Cost and assodated rate sufficiency shown above are in excess of current utility activity. For SRF Loans, the minimum construction loan amount is $75,000. Grouping programs is desirable to reduce overall cost associated with funding applications. Automatic re-occurring Annual Rate Increase based on the current CPL is recommended to manage inflation of good and services associated with delivery of water service, A Cost of Living rate increase was passed and adopted 10-13-15 Ordinance # 15-01. Rate Increase set to take effect oct. 1 of each year based on June CO.Lindex (dass d size) Notes: Recommended percentages are included in the chart above and detailed below for illustration purposes only. Capital Improvement Program Reserves

 

Draft Wastewater Fiscal Sustainability Analysis & Asset Management Plan – Town of White Springs Hamilton County, Permit # FLA 116220

 

The Florida Rural Water Association is pleased to submit the following updated Wastewater System Asset Management and Fiscal Sustainability Plan (AMFS) to the Town of White Springs, FRWA prepared this Plan for the Town in partnership with the FDEP Clean Water State Revolving Fund (CWSRF) Program to identify your wastewater system’s most urgent and critical needs.

 

Please review the proposed AMFS thoroughly. We look forward to receiving your comments and discussing your wastewater utility assets’ sustainability. We wish to finalize the report and present findings to the Council in a workshop setting followed by a presentation at a regular meeting for adoption and implementation.

 

he current conditions of your wastewater fixed capital assets (wastewater treatment plant, collection system, and disposal system) and more importantly provides recommendations, procedures, and tools to assist with long range asset protection and wastewater utility reinvestment. FRWA will be available to support AMFS recommendations and implementation. The following report is considered a living document with tools for your use and must be updated at least annually (recommended quarterly updates) by the Town’s utility management. We provide electronic copies for your use and future modification. FRWA is available to assist in updating and revising the Town’s AMFS.

 

White Springs is a valued FRWA member and it is our goal to help make the most effective and efficient use of your limited resources. This tool is an unbiased, impartial, independent review and is solely intended for achievement of wastewater system fiscal sustainability and maintaining your valuable wastewater utility assets. Florida Rural Water Association has enjoyed serving you and wishes your wastewater system the best.

 

FRWA Utility Asset Management

  1. An Asset Management Plan (AMP) is the systematic process of maintaining critical assets at the lowest life cycle cost within a predetermined desired level of service (as determined by Utility Staff, Customer, Commissioners, Regulators, etc.). Lowest life cycle cost refers to the best appropriate cost for rehabilitating, repairing or replacing an asset. Asset management is implemented through an asset management program and includes a written asset management plan. A detailed description of an Asset Management Plan is found in Section 2.
  2. Benefits of an AMP
Implementing and maintaining an active Asset Management Plan will provide numerous benefits to the Utility and its Customers:
  • Prolonging asset life and aiding in rehabilitate/repair/replacement decisions through efficient and focused operations and maintenance,
Meeting consumer demands with a focus on system sustainability,
  • Setting rates based on sound operational and financial planning.
  • Budgeting focused on activities critical to sustained performance,
Meeting service expectations and regulatory requirements.
  • Improving response to emergencies.
  • Improving security and safety of assets. 3. State Revolving Fund Requirement
An active Asset Management Plan (AMP) is a requirement for participation in the State Revolving Fund Program (SRF). Asset Management and Fiscal Sustainability (AMFS) program details are identified in the Florida Administrative Code (FAC) 62-503.700(7).
  1. AMP Development Stakeholders
The development of this AMP involved the collective efforts of the Florida Department of Environmental Protection, State Revolving Fund (FDEP-SRF), Florida Rural Water Association (FRWA), and Utility Staff. Resources included Engineers (technical, and financial), Certified Operators, (operation and maintenance), Rate Sufficiency Analysist, and Utility staff (first-hand experience with the system).
  1. 5. Table of Critical Asset, Process, CAPEX, and OPEX Needs
The table below contains a listing of Critical Assets and Processes needing Capital and/or Operational funding to operate as designed and within Regulatory Compliance. A five (5) year estimated cost for each activity is provided for consideration. Also provided is the associated rate sufficiency, per customer per year, for the proposed activity.

 

Infiltration and In now Corrections (SRF WW22904) $3,628,950 original amount, $798,396   30 years in semi-annual payments of $13,306 starting 9-15-20

 

FINANCIALS

Begin CMMS Program (Diamond Maps and equipment Purchase hitch mounted crane lo service list station pumps Replace eyewash station at wastewater plant Begin deaning sludge drying beds Install canopy over gensel at WWTP See note below
Average 5-year increase
NOTE: The CAPEX and OPEX Cost and assoclaled rate sufsidency shown above are in excess of current utility aculvity. For SRF Loans, the minimum construiatlon loan amount is $75,000, Grouping programs is desirable to reduce overall cost associated with funding applications. Automatic re-occurring Annual Rale Increase of 1.5%, based on the current CPt is recommended to manage Inflation of good and services associated with delivery of water service. A Cost of Living rale increase was passed and adopted 10-13-15 Ordinance # 15-01, Rate increase sel to lake effed oct. 1 of each year based on June CO.L. Index (dass d size) Notes: Annual Reserve Funding_ Recommended percentages are included in the chart above and detailed below for illustration purposes only. Capital Improvement Program
$20,893  7.5% of Annual Expenses
5% of Annual Expenses $4,821 Based on 2018 budgeted wastewater operating expenses of: $278,567
  1. 6. Fiscal Strategy and AMP Process Recommendations.
Based on this asset management and fiscal sustainability study, specific recommended action items related to Capital Expenditures (CAPEX) and Operating Expenditures (OPEX) and over the next five years are as follows:
  1. Adopt this Asset Management and Fiscal Sustainability (AMFS) study in the form of a
Resolution (see Appendix A for an example AMFS Resolution at the end of this document) 2. Engage a Florida Registered Engineer to support the Utility in review, funding, planning,
design, permitting, and construction of critical CAPEX and OPEX as recommended in this
AMFS study. 3. When necessary, make funding applications to the following programs/agencies in support of Utility System Upgrades/improvements as recommended by this AMFS study (a synopsis of wastewater utility funding programs can be found here http://www.frwa.net/funding.html)
  1. FDEP-State Revolving Fund b. Water Management District C. Community Development Block Grant
  2. Community Budget Issues Request 4. Maintain a Utility rate structure that will ensure rate sufficiency as necessary to implement
capital improvements. 5. Begin using Diamond Maps or similar system for Asset Management Planning (AMP) and
Computerized Maintenance Management System (CMMS) 6. Continue to build your asset management program by:
  1. Collecting critical field data and attributes on assets any remaining assets b. Improving on processes which provide cost savings and improved service c. Implementing a checklist of routine maintenance measures d. Benchmarking critical processes, annually
Develop policies that will support funding improvements f. Develop manuals and guidelines for critical processes g. Identify responsible persons or groups to implement critical assets and processes h. Schedule FRWA provided asset management training; recommended annually.
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