01-22-07 Item 2B, Five Year CIP Update

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CIP Discussion 1118/2007 Page 6 changes have been made to the schedule that was presented at the July work session. Staff will continually evaluate the condition of all pieces of equipment to prevent the purchase of equipment that does not yet need replacement. Enterprise Funds A utility rate study was performed in 2004, however, the information used in this study was incomplete, which, in turn, did not provide the most accurate results. Based on the factors described below, Council may want to consider updating the current utility rate study in 2007. Sanitarv Sewer Fund 1&1: The City was not aware of the surcharges Met Council would impose on cities that had an excess flow of inflow and infiltration at the time of the utility rate study. Staff will apply for credit for work to be done each year to avoid paying the surcharge to Met Council. However, the City will need to allocate at least $100,100 per year for the next five years until it is proven that 1&1 has been reduced to an acceptable level. Lift Stations and SCADA: These projects are still listed with the "unassigned" projects. The remaining four lift stations are still functioning and can be properly maintained until the fund is healthy enough to support these project costs. Roseville is meeting with potential vendors in the very near future to discuss the costs and technical logistics of incorporating Arden Hills into RoseviIle" s new SCADA system. Staffwill report information to Council as it becomes available. \ i Storm Sewer Fund This fund will continually be drawn down, even in "lighter" PMP years. The requirements imposed by the Rice Creek Watershed District and the MS4 permit (SWPPP) for treating stormwater runoff are constantly increasing. In turn, rising construction costs are making these requirements more expensive as well. Water Fund The O&M Department did some of the minor repairs listed in the water tower report, included the replacement of the screen on the overflow pipe and grading around the tank's foundation. The report recommends the rest of the repairs be completed within three years; therefore, these costs have been included in the project list for 2008. Roseville and St. Paul recently renegotiated their water contract. In turn, Roseville and Arden Hills renewed their contract as welL The rate increase that resulted from renegotiations was not incorporated into the 2004 rate study.