water treatment open house documents (2)

8/12/2019 Water Treatment Open House Documents (2)

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City of Minnetrista, Minnesota

Water TreatmentInformational Open House

18, 2014

Project History

7, 2011 C

(B)

20 (2030)

17, 2013 (B)

E

2030 . = 3,490

1,500 2018


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Project History

F. 17 C

E ,

F. 26 28 E

3 E

C

17 E C

26 C F

F

Project History

A 7 C B &

F

5

F C

19 C

2 A /


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Drinking Water Quality

2A (C)

.

F C

.

A .

2A, 4, 5

.

Population Projections B C

C


4/29

Evaluation of Alternatives

, C, .

C

.


5/29

A 4.3

Capital Costs - Summary

&

C D

$20,721,445 $24,655,528

$6,757,564 $7,773,989


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O&M Costs

,

C

AC

2015

D C

$139,446 $94,974

$239,640 $186,274

Present Worth Analysis

D C

$24,655,528 $20,721,445

& $1,605,996 $1,093,815

$26,261,524 $21,815,260

D C


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RO Savings

(80,000 /.)

(130,000 /.)

(250,000 /.)

$83.95 $138.70 $270.10

$20.96 $34.05 $66.70

$104.91 $172.75 $336.80

Decentralized Gravity Filtration A

G ( )

D

.

&


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Centralized Gravity Filtration A

G ( )

C (

)

&

C

D

Decentralized Gravity Filtration

w/Reverse Osmosis A

H ( , , ,

)

(100 /)

.

D


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Centralized Gravity Filtrationw/Reverse Osmosis A

H ( , ,

)

(100 /)

.

C ( )

&

C

D

H & C H AC

How Will City Finance the Project?

F

A (FA) 20 (. 2%)

C

Are People with Private Wells Going

to Pay for the WTP?


10/29

What are the Proposed Rates?

(Medium User Shown)

2015 2020

$528.92 $132.32 $539.42 $134.86

D $570.62 $142.66 $846.40 $211.60

D A

C $39.42 $9.85 $344.82 $86.21

C $559.52 $139.88 $700.26 $175.07

C A C

$37.58 $9.40 $358.00 $89.50

Can the Project be Constructed in

Phases?

. . C

.

.


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What is the Economy of Costs for aCentralized WTP?

(44%)

144 sq. ft.100 sq. ft.

10

10

12

12

Could Original Proposed

Improvements be Implemented? .

.

D . .

Would More than One WTP Provide

M R d d ?


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Can RO be Added in the Future?

. .

H,

C .

Is a Centralized FacilityExpandable?

. C

.

City of Minnetrista, Minnesota

Water Treatment

Informational Open House


13/29


14/29


15/29

Option 1 Decentralized - Gravity FiltrationAdvantages

Greatly improves water quality (removal of iron and manganese)

Disadvantages Provides no barrier for emerging contaminants

Separated distribution systems do not provide redundancy to other areas.

Multiple facilities to maintain --- increased O&M costs

Higher capital costs than centralized option

Steel filter for Central system will require rehabilitation after 15-20 years.

Requires use of home water softeners for hardness removal

Option 2 Decentralized Reverse OsmosisAdvantages

Highest quality of water (removal of iron, manganese, hardness, dissolved

solids and other water constituents)

RO provides a positive barrier to contaminants and the highest water quality

possible with a single treatment process

Reduced hardness (100 mg/l) water may lead to removal of home water

softeners or decreased usage of water softeners.

Disadvantages Separated distribution systems do not provide redundancy to other areas.

Multiple facilities to maintain --- increased O&M costs

Higher capital costs than any other option

Steel filter for Central system will require rehabilitation after 15-20 years.

Higher SAC fees due to RO reject


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Option 3 Centralized Gravity FiltrationAdvantages

Greatly improves water quality (removal of iron and manganese)

One treatment facility to maintain

Centralized system provides economy of scale (fewer wells needed) Lower capital and O&M costs compared to decentralized system

Concrete filter construction has longer design life

Disadvantages Provides no barrier for emerging contaminants

Requires use of home water softeners for hardness removal

Option 4 Centralized Reverse OsmosisAdvantages

Highest quality of water (removal of iron, manganese, hardness and other

items)

RO provides a positive barrier to contaminants and the highest water quality

possible with a single treatment process

Reduced hardness (100 mg/l) water may lead to removal of home water

softeners or decreased usage of water softeners.

One treatment facility to maintain

Centralized system provides economy of scale (fewer wells needed)

Lower capital and O&M costs compared to decentralized system RO option

Concrete filter construction has longer design life

Disadvantages

Higher capital and O&M costs than Centralized gravity option Higher SAC fees due to RO reject


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(

) (

) (

)

$ $ $

$ $ $

$ $ $


18/29

Financial Information for four options

75 units a year through 2030

(more conservative estimate)OptionI

Decentralized

Gravity

ProjectedRateIncrease% 15%annuallynext4years

Projected

Annual

Cost

(2015) 602.62$

(mediumuser)

ProjectedQuarterlyCost(2015) averagedyearlyamount 150.66$

(medium

user)

ProjectedAnnualCost(2020) 1,057.60$

(mediumuser)


(medium

user)

ProjectedPrincipal&Interest(CityDebtService) $1,481,799

(annual

payments

for

20

years)

OptionII

Decentralized

ROFiltration


ProjectedAnnual

Cost

(2015) 659.50$

(medium

user)


(mediumuser)


(medium

user)


(mediumuser)


(annual

payments

for

20

years)


19/29

OptionIII

Centralized

Gravity

ProjectedRate

Increase

% 12%

annually

next

4

years(mostcosteffective)

ProjectedAnnualCost(2015) 586.60$

(medium

user)


(medium

user)


(mediumuser)


(medium

user)


(annualpaymentsfor20years)

OptionIV

Centralized

ROFiltration

ProjectedRateIncrease% 19.5%annuallynext5years


(medium

user)


(mediumuser)


(medium

user)ProjectedQuarterlyCost(2020) averagedyearlyamount 334.92$

(mediumuser)


(annual

payments

for

20

years)

Note: - The projects all have significant impacts financially to the City of Minnetrista.

City staff is using more conservative estimates for future growth/new home connections

than what Met Council has projected. We are looking at 75 homes per year on average

as an estimate in this projection. Using Met Council original 2030 population estimates would equate clos

to 160 new homes per year. The last 3 years in Minnetrista has seen 30,33 and 40 new homes

built within the City. One of the biggest factors in City staff expecting an uptick in new homes

from the previous few years is the projected activity in the Woodland Cove Development.


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Financial Information for no water treatment option

OptionV

NoWaterTreatment

(justwells,towers,otherinfrastructure)

ProjectedRateIncrease% 1%annuallyeveryotheryear


(mediumuser)

ProjectedQuarterly

Cost

(2015)

averaged

yearly

amount 132.23$

(mediumuser)


(mediumuser)


(mediumuser)

ProjectedPrincipal&Interest(CityDebtService) $128,294 startingin2017

Note: -In the option of not doing any water treatment, the projected growth

for the most part covers any wells/towers that would be needed.

That is why only a real minimal increase would be needed every other year

Our rate increase for 2014 t had water treatment expenses already included. This plays a part

as well as any operational expenses related to water treatment going away in this option

The above projected rates are examples of residential property rates


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Financial Information for four options

OptionI

DecentralizedGravity



(medium

user)


(medium

user)

ProjectedAnnual

Cost

(2020) 846.40$

(medium

user)


(medium

user)


(annual

payments

for

20

years)

OptionII

DecentralizedROFiltration

ProjectedRateIncrease% 16.5%annuallynext5years


(mediumuser)


(medium

user)


(mediumuser)


(medium

user)


(annualpaymentsfor20years)


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City of Minnetrista

Utility Rate Study

Water Treatment Plant Optio n Summary

2015 2016 2017 2018 2019 2020

OptionI ConstructionCost(infl) 1,069,108 23,126,923 0 828,845 0 648,223

Decentralized

Gravity Rate

Increase

% 9.00% 9.00% 9.00% 9.00% 9.00% 5.00%

Rates

Base

Rate 24.53

26.73

29.14

31.76

34.62

36.35

Tier

1

Usage

Rate 3.16

3.45

3.76

4.09

4.46

4.69

Tier

2

Usage

Rate 3.95

4.31

4.69

5.12

5.58

5.86

Tier

3

Usage

Rate 5.06

5.51

6.01

6.55

7.14

7.50

CashBalances

WaterFund 1,436,739 1,005,023 730,164 520,172 638,995 516,650

WaterImprovementFd 1,528,845 2,758,339 2,288,911 1,434,340 1,114,983 1,296,142

OptionII ConstructionCost(infl) 1,415,532 30,620,767 0 1,428,163 0 0

Decentralized

RO

Filtration Rate

Increase

% 16.50% 16.50% 16.50% 16.50% 16.50% 6.00%

Rates

Base

Rate 26.21

30.54

35.58

41.45

48.28

51.18

Tier

1

Usage

Rate 3.38

3.94

4.59

5.34

6.22

6.60

Tier2UsageRate 4.22 4.92 5.73 6.68 7.78 8.25

Tier

3

Usage

Rate 5.41

6.30

7.34

8.55

9.96

10.55

CashBalances

WaterFund 1,357,450 1,612,381 929,415 446,179 479,505 861,851

Water

Improvement

Fd 1,182,421 1,735,607 1,273,502 1,255,207 824,498 1,041,415

OptionIII ConstructionCost(infl) 876,226 18,954,521 0 956,359 0 0

Centralized

Gravity Rate

Increase

% 7.00% 7.00% 7.00% 7.00% 1.00% 1.00%

Rates

Base

Rate 24.08

25.76

27.56

29.49

29.79

30.09

Tier1UsageRate 3.10 3.32 3.55 3.80 3.84 3.88

Tier2UsageRate 3.88 4.15 4.44 4.75 4.80 4.85

Tier

3

Usage

Rate 4.96

5.31

5.68

6.08

6.14

6.20

CashBalances

Water

Fund 1,435,505 1,084,328 866,238 681,464 709,231 713,859

Water

Improvement

Fd 1,721,727 2,825,551 2,526,214 1,715,919 1,568,796 2,272,135

OptionIV ConstructionCost(infl) 1,174,165 25,788,918 0 950,510 0 0

Centralized


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Low User (80,000 gallons) annually

77%

$286.61

$658.11

$371.50

$ 325.65

Cent

RO

25%

$87.39

$435.61

$348.22

$ 325.65

Cent

Gravity

$305.36

$31.22

n/a

$ range/varianceprojects

70%$740.97$526.452020Projected

$361.53$171.582015-2020 $change

95%48%2015-2020 %

change

9%$ 379.44$ 354.87

2015 -projected

n/a$ 325.65$ 325.65

2014Rates(baseline)

%

variance

Decent

RO

Decent

Gravity


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Medium User (130,000 gallons) - annually

77%

$461.16

$1,058.26

$ 597.10

$ 523.70

Cent

RO

25%

$140.34

$700.26

$ 559.92

$ 523.70

Cent

Gravity

$490.96

$50.12

n/a


$581.18$275.782015-2020$ change

70%$ 1,191.22$ 846.402020Projected

95%48%2015-2020% change

9%$ 610.04$ 570.62

2015 -

projected

n/a$ 523.70$ 523.70

2014

Rates(baseline)

%

variance

Decent

RO

Decent

Gravity


26/29

High User (250,000 gallons) - annually

77%

$903.36

2072.46

1,169.10

$1,025.50

CentRO

25%

$274.54

$ 1,370.86

$1,096.32

$1,025.50

CentGravity

$961.36

$98.52

N/A


70%$ 2,332.22$1,657.402020Projected

$1,137.38$539.782015-2020$ change

95%48%2015-2020% change

9%$1,194.84$1,117.62

2015 -projected

N/A$1,025.50$1,025.50

2014 Rates(baseline)

%variance

DecentRO

DecentGravity

Minnetrista, MN

Debt Service - Centralized


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Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

WTF $9,270,000 $9,270,000

Wells $470,000 $470,000 $470,000 $1,410,000

Tower $750,000 $750,000

Watermain $7,580,500 $7,580,500

Engineering, etc. $842,525 $674,020 $67,500 $42,300 $42,300 $42,300 $1,710,945

Yearly Total $842,525 $17,524,520 $0 $817,500 $0 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0 $512,300 $0 $0 $0

$20,721,445

Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

WTF $9,270,000 $9,270,000

RO $5,729,600 $5,729,600

Wells $470,000 $470,000 $470,000 $470,000 $1,880,000

Tower $750,000 $750,000

Watermain $7,580,500 $7,580,500

Engineering, etc. $1,129,005 $903,204 $67,500 $42,300 $42,300 $42,300 $42,300 $2,268,909

Yearly Total $1,129,005 $23,483,304 $0 $817,500 $0 $0 $512,300 $0 $0 $0 $512,300 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0

$27,479,009

Gravity Option Only

Gravity Option with RO

Minnetrista, MN

Debt Service - Decentralized


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Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

WTF $16,141,250 $16,141,250

Wells $1,410,000 $470,000 $470,000 $470,000 $2,820,000

Tower $650,000 $650,000 $1,300,000

Watermain $2,358,500 $2,358,500

Engineering, etc. $1,027,988 $822,390 $58,500 $42,300 $42,300 $42,300 $2,035,778

Yearly Total $1,027,988 $21,382,140 $0 $708,500 $0 $512,300 $0 $0 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0

$24,655,528

Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

WTF $16,141,250 $16,141,250

RO $6,662,000 $6,662,000

Wells $1,410,000 $470,000 $470,000 $470,000 $470,000 $3,290,000

Tower $650,000 $650,000 $1,300,000

Watermain $2,358,500 $2,358,500

Engineering, etc. $1,361,088 $1,088,870 $100,800 $42,300 $42,300 $42,300 $2,677,658

Yearly Total $1,361,088 $28,310,620 $0 $1,220,800 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0

$32,429,408

Gravity Option Only

Gravity Option with RO


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