11

Department of Public Department of Public Works Works

and Engineeringand EngineeringFY11 Budget PresentationFY11 Budget Presentation

22

PWEPWEMISSION OVERVIEWMISSION OVERVIEW

We plan, design, construct, operate and maintain Houston's critical public infrastructure systems and administer the City’s building and development codes in a coordinated manner to provide excellent drinking water and wastewater collection and treatment, effective storm water drainage, safe buildings and streets; and we do so responsively, efficiently and in an environmentally responsible fashion.

33

Budget FY2010 Adopted

FY2010Current

FY2010 Estimate

FY2011Proposed

O&M $646.2M $639.3M $621.8M $629.9M

Debt Service

$421.7M $402.1M $401.7M $458.3M

Equipment $23.3M $18.8M $17.0M $23.1M

Revenue $854.4M $854.4M $824.6M $989.1M

FTEs 4,182.9 4,162.3 3,978.9 4,098.5

PWE BUDGETPWE BUDGETFY11 OVERVIEWFY11 OVERVIEW

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BUDGET REDUCTION IMPACTBUDGET REDUCTION IMPACTFUND 1000FUND 1000

PWE has two major General Fund operating divisions that were significantly impacted by the FY10 and FY11 budget reductions as follows:

• ROW Division ($1.1M):– Total concrete usage for repairs of base failures and buckles in streets

decreased from 326,000 cubic feet in FY10 to 262,000 in FY11. – Lane miles of Asphalt Overlay decreased from 185 in FY10 to 140 in

FY11. 185 lane miles was budgeted in FY10 but decreased to 165 as part of the FY10 budget reductions. Additional 25 miles is further reduced in FY11.

• T&T Division ($0.6M):– Sign installations decreased from 26,000 in FY10 to 20,000 in FY11.– New fabrication of street signs decreased from 21,000 in FY10 to

18,000 in FY11.

FY10 Adopted

FY10 Current

FY10 Estimate

FY11 Proposed

Variance from Adopted

BUDGET $50.5M $49.2M $48.8M $48.8M ($1.7M)

FTE’s 514.6 495.5 488.0 486.1 (28.5)

RIGHT OF WAY (ROW) and TRAFFIC & TRANSPORTATION (T&T) GENERAL FUND O&M

DIVISIONAL BUDGETS

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TRAFFIC & TRANSPORTATION TRAFFIC & TRANSPORTATION OVERVIEW FUNDS 1000, 1001, 2304 & OVERVIEW FUNDS 1000, 1001, 2304 &

24022402

• MAJOR PROGRAMS– Maintain over 1,000,000 street name and traffic control signs– Maintain traffic signals at over 2,400 intersections– Maintain over 1,650 school zone beacons– Monitor 140 railroad crossings– Manage permitting process for lane and sidewalk closures – Apply 4.2M linear feet of paint and 100,000 linear feet of

thermoplastic striping for pavement markings– Coordinate Mobility Response Team activities– Manage Neighborhood Traffic Management Program– Manage Houston TranStar

RESOURCES – O&M Budgets

FY10 Adopted

FY10 Current

FY10 Estimate FY11 Proposed

BUDGET $21.7M $21.3M $21.2M $22.3M

FTE’s 214.9 204.7 198.6 207.6

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RIGHT OF WAY (ROW) MAINTENANCERIGHT OF WAY (ROW) MAINTENANCEOVERVIEW- FUND 1000OVERVIEW- FUND 1000

RESOURCES – O&M BudgetsFY10

AdoptedFY10 Current FY10

EstimateFY11 Proposed

BUDGET $32.3M $31.5M $30.8M $31.2M

FTE’s 313.7 304.8 302.7 301.5

• MAJOR PROGRAMS- Maintain a total of 15,850 lane miles of streets by:

Applying 16,000 tons of asphalt to potholes and street skin patches

Overlaying 140 lane miles of streets Applying 262,000 cubic ft of concrete to repair failures

and buckles- Inspect and repair 1,350 bridges- Replace 8 bridges- Maintain 2,500 dead-end barricades

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ROW – FLEET MAINTENANCEROW – FLEET MAINTENANCEOVERVIEW – FUND 1005OVERVIEW – FUND 1005

RESOURCES – O&M BudgetsFY10

AdoptedFY10

CurrentFY10

EstimateFY11 Proposed

BUDGET $24.5M $24.5M $24.6M $25.8M

FTE’s 96.9 96.9 94.3 96.9

• MAJOR PROGRAMS– Revolving Fund used to service vehicles citywide– Maintain 4,700 (4,200 PWE) vehicles/equipment for

17 departments at 8 repair facilities located Citywide– Maintain a 95% vehicle availability rate– Maintain/operate 17 vehicle fuel sites, dispensing

2.6M gallons of unleaded and diesel fuel– Manage 30 contracts with outside vendors for

specialty vehicle repairs

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ROW - STORMWATER MAINTENANCEROW - STORMWATER MAINTENANCEOVERVIEW – FUND 2302OVERVIEW – FUND 2302

RESOURCES – O&M BudgetsFY10

AdoptedFY10

CurrentFY10

EstimateFY11

Proposed

BUDGET $32.7M $30.9M $30.8M $33.0M

FTE’s 374.3 374.3 375.6 378.6

• MAJOR PROGRAMS – Maintain 2,800 miles of roadside ditches– Maintain over 3,600 miles of storm sewer lines, 100,000 inlets

and 60,000 manholes– De-silt/re-grade 275 miles of roadside ditches– Inspect 60,000 unique inlets and/or manholes– Inspect 240 miles of storm sewer main lines – Mow off-road ditches (3 cycles)– Comply with requirements of National Pollutant Discharge

Elimination System permit (NPDES): 1,400 storm water investigations, sweep

21,500 miles of gutter, collect 8,500 cubic yards of litter and 650,000 lbs of household hazardous waste

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ENGINEERING & CONSTRUCTION ENGINEERING & CONSTRUCTION OVERVIEW – FUND 1001OVERVIEW – FUND 1001

• MAJOR PROGRAMS– Manage 343 design/construction projects currently in progress

78 water projects ($252 million) 77 wastewater projects ($104 million) 143 storm sewer projects ($203 million) 45 street/bridge projects ($97 million)

– Initiate $481 million in new projects for FY11 CIP

RESOURCES- O&M Budgets FY10 Adopted FY10

CurrentFY10

EstimateFY11

Proposed

BUDGET $24.3M $24.3M $22.9M $24.7M

FTE’s 254.5 254.5 235.6 252.4

1010

PLANNING & DEVELOPMENT SERVICES PLANNING & DEVELOPMENT SERVICES OVERVIEW – FUNDS 1000, 1001, 2301 OVERVIEW – FUNDS 1000, 1001, 2301

& 8300& 8300

• MAJOR PROGRAMS– Examine over 35,000 construction plans for compliance with

building code and ordinances; issue over 175,000 building permits and conduct over 496,000 building code inspections

– Provide over 1,300 engineering reviews for private development in the City; manage development in the flood plain; provide basis for FEMA flood insurance rating

– Plan for City’s future water/wastewater needs; issue 5,500 wastewater capacity reservations

– Provide Real Estate support for the annual CIP– Perform periodic inspections of multi-family properties (over

1,000 complexes)

RESOURCES – O&M BudgetsFY10 Adopted FY10 Current FY10

EstimateFY11

Proposed

BUDGET $61.2M $56.1M $53.0M $55.0M

FTE’s 641.6 637.6 613.9 597.7

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COMBINED UTILITY SYSTEM COMBINED UTILITY SYSTEM COST REDUCTIONSCOST REDUCTIONS

FY11 Major Cost Reductions

• -$8.7M Electricity reduction due to lower prices, implementing McKinsey recommendations to perform more preventative maintenance on pumps, less groundwater and more surface water pumping due to completion of the Metro Condition Assessment project.

• -$2.3M Natural Gas reduction due to lower prices, implementation of the McKinsey recommendation to utilize more than one centrifuge to a dryer which allows more solid waste to be treated for optimal results, as well as, utilizing high efficiency gas dryers at the Almeda Sims Treatment plant.

• -$2.5M Water Authority Contract Debt reduction due to paying down the principal on the Coastal Water Authority debt.

• $4.5M Personnel increased primarily due to HOPE, PFP and Health Benefit increases of $5.7M; however, through attrition and McKinsey efficiencies, the Department has been able to absorb $1.2M of these costs.

1212

PUBLIC UTILITIESPUBLIC UTILITIESOVERVIEW – FUND 8300OVERVIEW – FUND 8300

• MAJOR PROGRAMS– Operate/maintain 3 surface water and 89 ground water pump

stations, 174 groundwater wells, producing 142 billion gallons/year

– Operate/maintain 39 wastewater treatment plants and 420 lift stations, treating 90 billion gallons sewage/year

– Maintain 7,000 miles of water mains and over 6,700 miles of sanitary sewer collection lines, performing 13,000 repairs/year

– Maintain 54,000 fire hydrants and 182 water tanks/towers– Provide water and/or sewer service to approximately 2.8 million

regional residents

RESOURCES – O&M BudgetsFY10

AdoptedFY10 Current FY10

EstimateFY11

Proposed

BUDGET $303.2M $303.2M $295.8M $286.9M

FTE’s 1,504.7 1,504.7 1,442.8 1,504.0

1313

RESOURCE MANAGEMENTRESOURCE MANAGEMENTOVERVIEW – FUNDS 1000, 1001, 8300 OVERVIEW – FUNDS 1000, 1001, 8300

& 8305& 8305

• MAJOR PROGRAMS– Manage $16.0 billion in fixed assets– Bill and collect over $880 million annually in water & sewer

revenue and read and maintain over 465,000 meters.– Maintain/operate 9 warehouse facilities at 7 different

locations with 8,512 unique commodities available; provide inventory support to four departments.

– 4,600 construction, engineering and testing invoices processed

– Purchasing and receiving for 6,160 purchase orders, 130 active service contracts, 400 active project contracts, 154 active supply contracts and 330 P-Card users.

RESOURCES- O&M Budgets FY10

AdoptedFY10

CurrentFY10

EstimateFY11 Proposed

BUDGET $123.5M $124.6M $122.5M $120.2M

FTE’s 545.2 545.2 522.1 534.2

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OTHERSOTHERSHR, IT AND DIRECTOR’S OFFICEHR, IT AND DIRECTOR’S OFFICE

FUND 1000, 1001, 2301, 2302, & FUND 1000, 1001, 2301, 2302, & 83008300

FY10 Adopted

FY10 Current

FY10 Estimate

FY11 Proposed

BUDGET $23.1M $22.9M $20.2M $30.9M

FTE’s 236.6 236.6 193.3 225.6

RESOURCES – O&M Budgets

• MAJOR PROGRAMS– Manage Safety and Environmental programs– Provide HR services for approximately 4,000 PWE employees– Provide Security Management for PWE employees and facilities– Provide IT support for 80 Applications unique to PWE and

support 2,600 Users within PWE Department– Manage and support the Pay or Play (POP) Program– Perform 16 internal audits per year

1515

DEBT SERVICEDEBT SERVICEOVERVIEWOVERVIEW

• Water/Wastewater Debt Service - $449.3M, up $44.3M from the FY10 Adopted Budget ($405M)

• Pension Obligation Bonds Debt Service - $5.2M• Special Fleet Equipment Financing

– Fleet Equipment - $135 thousand– Fleet Equipment General Fund - $1.0M– Milling Machine Debt Service – $227 thousand

• Special Revenue Financed Equipment– ILMS Debt Service - $266 thousand– 1002 Washington Avenue Debt - $578 thousand– LED Retrofit Traffic Signal Upgrades – $1.7M

Total Outstanding Debt - $6.0 billion (All Funds)

1616

MAJOR REVENUE SOURCESMAJOR REVENUE SOURCESOVERVIEW FY 2011OVERVIEW FY 2011

• $441.5 million water sales (8300)

• $411.0 million sewer sales (8300)

• $9.3 million impact fees (8301)

• $35.4 million building and sign permits (2301)

• $1.0 million plan reviews (2301)

• $9.1 million sale of streets/land (1000/8300)

• $47.6 million METRO contributions (1000)

• $13.2 million Interest Income (All Funds)

• $21.0 million Other (All Funds)

• $989.1 million Total

1717

EfficienciesEfficiencies•Traffic

– Purchase of truck mounted thermoplastic applicator to replace paint application with thermoplastic material for road striping which results in an increase in life expectancy from 6 months to 3 years.

1818

EfficienciesEfficiencies• Resource Management

– Continue to implement McKinsey recommendations to increase consumer adaptation to web based payments and billings; thereby reducing paper billings and check processing.

– Continue to implement McKinsey recommendations to accelerate the installation of endpoints (76,900 for FY11), thereby improving the accuracy of the meter reads and revenue billings, as well as, minimizing operating costs.

• Planning & Development– Implementation of the Integrated Land Management System

web based program will enhance contractors’ ability to manage projects, permits, and inspections online; thereby improving the efficiency and quality of information exchanges.

– Co-location of 10 permitting departments from several locations citywide to the 1002 Washington Avenue Central Permit Facility; thereby increasing productivity and reducing operating costs. Grand opening targeted for July 2011.

1919

EfficienciesEfficiencies• Public Utilities

– Continue to optimize chemical dosage through improved sensor monitoring and training, as well as switching to less costly alternatives.

– Continue to implement McKinsey recommendation:Optimize electricity by performing more preventative

maintenance on pumps. Reduce natural gas consumption by utilizing high

efficient dryers at the Almeda Sims Treatment Plant, as well as, utilizing more than one centrifuge to a dryer which allows more cost effective operation.

Finalize roll out of reduction of crew size from three person to two person that will allow more time for preventive maintenance repairs in an effort to reduce corrective maintenance costs and extend equipment life.

2020

EfficienciesEfficiencies

• Information Technology– Continue to implement and support department wide

wireless WIMAX initiatives for automated water meter reading , traffic signal and SCADA communications.

– Continue to replace PWE legacy telephones with VOIP telephones, thereby allowing increased efficiency of the data circuits by utilizing less data lines.

• Engineering & Construction– Utilize manpower analysis as a basis for level of

effort required for CIP Cost Recovery and personnel levels.

– Continue coordination with divisions for overall asset inventory for proper planning and allocation between Capital and Operation & Maintenance expenditures.

2121

EfficienciesEfficiencies• Right of Way

– Continue to utilize the Data Collection Mobile Unit (DCMU) system that automatically detects and rates pavement distresses; thereby allowing the department to better target the utilization of limited resources, as well as, improving the efficiency and quality of data collection.

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PWE BUDGETPWE BUDGETFY11 OVERVIEWFY11 OVERVIEW

Funds included:– 1000 General Fund– 1001 CIP Cost Recovery Fund– 1005 Fleet Management Fund– 1800 Equipment Acquisition Fund– 2301 Building Inspection Fund– 2302 Storm Water Utility Fund– 2304 Mobility Response Fund– 2402 Houston TranStar Fund– 8300 Water and Sewer System Operating Fund– 8301 Combined Utility System Operating Fund– 8305 Combined Utility System General Purpose

Fund

2323

Department of Public Department of Public Works Works

and Engineeringand EngineeringFY11 Budget PresentationFY11 Budget Presentation