City of PolsonApril 5, 2010April 5, 2010

PUBLIC HEARING PUBLIC HEARING

Water System ImprovementsWater System ImprovementsPRESENTATION ON PRELIMINARY PRESENTATION ON PRELIMINARY

ENGINEERING REPORT ENGINEERING REPORT

Project Scope Prepare Preliminary Engineering Report

(PER)Address Short and Long-Term Water System

Problems Incorporate Results from Hydraulic Modeling

Performed by Thomas, Dean and HoskinsDevelop Financial Plan Pursue Financial AssistanceKeep the Public Informed

What is a PER??Analysis of the Existing Water System Identification of System Deficiencies,

Current and Future Regulatory IssuesEvaluate Viable Solutions, Develop Costs Identify the Most Cost-effective OptionDevelop a Workable Financial PlanAssess Environmental Impacts Implementation Strategy

Preliminary Engineering ReportsKeys to Success

•Document Need!!•Comply with PER Outline•Reasonable Capital and O&M Costs•Address Existing and Future Regulations•Workable Financial Plan •Encourage Public Involvement

2010 Water System PER                 City of Polson     Existing   ProjectedExisting and Projected Water Use 2005 2006 2007 2008 2009 2010 2020 2030                                 ADD (Average Daily Demand in GPD) 765831 817957 760813 718456 749012 776440 1043560 1402380ADD (GPM) 531.8 568.0 528.3 498.9 520.1 539.2 724.7 973.9Estimated Population* 4,849 4,985 5,089 5,228 5,385 5,546 7,454 10,017GPCD (ADD/Population) 158 164 150 137 139 140 140 140Population/2.32 Household = EDU 2090 2149 2194 2253 2321 2391 3213 4318Est. Commercial/Inst. EDU's 497 512 527 543 559 576 774 1041Total EDUs 2587 2661 2721 2796 2880 2967 3987 5359Use/EDU (GPD) 296.0 307.4 279.7 256.9 260.1 261.7 261.7 261.7ADD with 10% Reserve Capacity (GPM)           593.1 797.2 1071.3                 MDD (Max. Daily Demand) = ADD X 2.2 = GPD           1878985 2525415 3393760MDD (GPM)           1305 1754 2357PHD (Peak Hourly Demand)= 2.5 X MDD = GPM           3262 4384 5892Pump Capacity* (GPM) 2120 2120 2120 2120 2120 2120 2120 2120Pump Capacity w largest Pump out of Service 1600 1600 1600 1600 1600 1600 1600 1600                 * Utilized 3% annual growth rate                                 

                       

Project Design Criteria

City of PolsonWater Demand and Supply 2010 2020 2030

ADD with 10% Reserve Capacity 593 797 1071MDD (GPM) 1305 1754 2357Current Pump Capacity (GPM) 2120 2120 2120Pump Capacity* (GPM) 1600 1600 1600

*w ith largest w ell out of service

Problem Evaluation and Resolution

Water SupplyStorage Distribution – Water Mains, Valves and

HydrantsDevelop Financial Plan

Water Supply Problems

Additional Water Needed to Meet Anticipated Peak DemandWater Needed on East Side of City during High Demand Unaccounted for Water

Leakage Unmetered Users

Complex Water Rights Issues Variable Aquifer Characteristics Limited Data on Peak Use and Aquifer ResponseGlobal Warming (Drought)

Activities to Address Water Supply Issues

Obtain New Sources of GroundwaterReplace All Malfunctioning Water Meters Install Meters on City FacilitiesRemain Involve in All Water Rights

Negotiations, Further Investigate Existing Rights

Expand Monitoring of Water Use including PWL, SWL and Peak Use

Potential New Well

Storage Tank NeedsTwo Tanks Under

ConstructionRenovate Interior Tank

Coating on Skyline IConnect Available Storage at

Skyline to West Parts of Town

Plan for Future Storage near Woodbine Tank

Identified DistributionSystem Problems

Low Pressures and Lack of Adequate Flow to Fight Fires in the Downtown Area

Skyline-Woodbine Connector via Skyline Drive Reconstruction

Hydraulic Restrictions (undersized mains) 4th Street East, etc

Looping of Water Mains- Irvine Flats, Kerr Dam Road.

Resolution of Distribution System Problems

Downtown Water Main ImprovementsInstall 10” Main in Skyline Drive

under Road Reconstruction ProjectEliminate Hydraulic RestrictionsWater Main LoopingOngoing CIP for Undersized Mains

Summary of High Priority NeedsSupply

Construct New Well on East Side Address UAW

Storage Rehabilitate Skyline I Metal Tank Connect Skyline Storage to West Side

Distribution Downtown Main Upsizing Skyline Drive Reconstruction Address Hydraulic Restrictions thru out

City

Cost SummaryNew Well - $231,945Storage Improvements - $189,610Distribution Improvements - $1,920,309

Total High Priority Needs

Total Construction Cost $ 1,658,330

Contingency $ 282,244

Engineering $ 331,666

Legal, Administration $ 69,623

TOTAL PROJECT COST $ 2,341,864

Financial Assistance Treasure State Endowment Program

up to $500,000 grant DNRC Renewable Resources Grant

up to $100,000 grant CDBG Grant

up to $500,000 Montana State Revolving Loan Fund

2.75% and 3.75% loans up to 30 year term

Current Economy May Limit Grant Opportunities

Other Funding Scenarios

Extend Loan TermSeek $500,000 CDBG grantDivide Project into Smaller ComponentsPursue STAG, WRDA, ARRA, RD or other

Grant Funding

Existing Rates for Water and Sewer Service

Current “Typical” Water Rate $25.09

Current “Typical” Sewer Rate $28.75

Combined Rate $53.84

Target Rate Used for Funding $ 41.92

Cost for Ratepayers

Assumptions- No Local Funds, Use SRF Loan Funds @ 3.75% for 20 Years

      No Grant 50% Grant FundingDebt Amount $ 2,341,864 $ 1,170,932

Debt Reserve $ 180,750 $ 90,375 Total Loan $ 2,522,614 $ 1,261,307 # EDU’s 2967 2967Debt Cost $ 5.10 $ 2.55 Coverage (25%) $ 1.28 $ 0.64

Cost per User   $ 6.38 $ 3.19

Potential Project ScheduleComplete PER this SpringDevelop CIPGrant Applications due April-May of 2010Grant Funds Available in Summer 2011City is in Process of Drilling Test Well

QUESTIONS?

Contacts:

Scott Anderson @ 449-3303

or Tony Porrazzo @ 883-8215

THANK YOU!!