HomeMy WebLinkAboutResolution No. 2016-04RESOLUTION NO. 2016-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA;
OFFICIALLY ADOPTING THE FISCAL SUSTAINABILITY
PLAN ANALYSIS & ASSET MANAGEMENT PLAN — 2015
FOR THE CITY'S WASTEWATER UTILITY; PROVIDING
FOR REPEAL OF PRIOR INCONSISTENT RESOLUTIONS;
SEVERABILITY; AND AN EFFECTIVE DATE.
WHEREAS, the City is granted the authority, under section 2(b), Art. VIII of the State
Constitution, to exercise any power for municipal purposes, except when expressly prohibited by
law; and
WHEREAS, the City of Cape Canaveral owns and operates a wastewater utility; and
WHEREAS, the City is a member of the Florida Rural Water Association; and
WHEREAS, the City developed jointly with the Florida Rural Water Association, under
the guidance of the Florida Department of Environmental Protection, a "Fiscal Sustainability Plan
& Asset Management Plan — Wastewater Utility — 2015" for the City of Cape Canaveral;"
(Hereinafter "Plan") and
WHEREAS, the Plan has been presented to the City Council and after due consideration
of the Plan by the City Council, the City Council now desires to officially accept and adopt the
Plan as a management tool for purposes of providing information to assist the City with providing
reliable wastewater utility service to its residential, commercial and institutional wastewater
customers; and
WHEREAS, the City Council hereby finds that this Resolution is in the best interests of
the public health, safety and welfare; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA, AS FOLLOWS:
Section 1. Recitals. The foregoing recitals are hereby fully incorporated herein by this
reference as findings of the City Council and are deemed a material part of this Resolution.
Section 2. Adoption of the Plan. The City Council hereby officially accepts and adopts the
"Fiscal Sustainability Plan & Asset Management Plan — Wastewater Utility — 2015" for the City
of Cape Canaveral." The Plan is attached hereto as EXHIBIT "A" and fully incorporated herein
by this reference. The Plan shall be considered a management tool for purposes of providing
information to assist the City with providing reliable wastewater utility service to its residential,
commercial and institutional wastewater customers.
City of Cape Canaveral
Resolution 2016-04
Page 1 of 2
Section 3. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts of
resolutions in conflict herewith are hereby repealed to the extent of the conflict.
Section 4. Severability. If any section, subsection, sentence, clause, phrase, word, or portion
of this Resolution is for any reason held invalid or unconstitutional by any court of competent
jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such
holding shall not affect the validity of the remaining portions of this Resolution.
Section 5. Effective Date. This Resolution shall become effective immediately upon
adoption by the City Council of the City of Cape Canaveral, Florida.
ADOPTED in a regular meeting of the City Council of ity of Cape naveral, Florida, this
22nd day of March, 2016.
AT ST: ? Bob Hoog, Mayor
Mi Gofort t "
City Clerk F
Name
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Approved as to legal form and sufficiency
for the f Cape Canaveral only by:
Anthony A. arganese, City Attorney
John Bond
Mike Brown
Bob Hoog
Brendan McMillin
Betty Walsh
City of Cape Canaveral
Resolution 2016-04
Page 2 of 2
For Against
X
X
X
motion
Second
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral, Florida
"Final: September 2015"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - 2015
Wastewater Utility
Prepared by:
Florida Rural Water Association
In cooperation with:
Florida Department of Environmental Protection
Revolving Loan Fund Program
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
EXECUTIVE SUMMARY
As a member service, the Florida Rural Water Association is pleased to present this "Fiscal Sustainability Plan Analysis
and Asset Management Plan" to the City of Cape Canaveral. This plan was developed jointly with the wastewater utility
management and staff, under the guidance of the Florida Department of Environmental Protection.
Providing reliable wastewater utility service to its residential, commercial and institutional customers is clearly a goal of
the City of Cape Canaveral.
The condition evaluation of this wastewater utility revealed that the utility has superior management, operation and
maintenance and continued strong customer service is assured. This wastewater utility is a model for how a utility
should be run.
With the aging of the utility's fixed assets, the management and staff will face increasing challenges.
This Asset Management Plan provides important information and tools to assist with the "systematic' and "persistent"
Rehabilitation and Replacement (R&R) of the fixed utility assets that are worn-out or becoming functionally obsolete.
Wastewater load expansion requirements must also be considered in the Asset Management process; however, this is not
a major concern for this utility.
This is not intended to be a final document, but rather an enhancement of the planning process that is ongoing to meet
the future asset needs of the wastewater utility.
The Asset Management Plan should be updated annually using the procedures and tools provided herein.
Implementation of this process calls for some specific action steps:
1. Carefully review this initial written plan, make any needed changes or additions and then officially adopt the
"Fiscal Sustainability Plan & Asset Management Plan - Wastewater Utility - 2015" for the City of Cape
Canaveral". The Florida Rural Water Association staff is available to meet with the elected and appointed
officials in a workshop to review the plan components and the implementation of this important planning
process.
2. Continue to pursue outside capital funding sources to supplement the rate payer revenue. Supplemental
funding sources to pursue are: the FDEP Revolving Loan Fund, St. Johns River Water Management District
advalorem tax allocation to local governments and the HUD Block Grant Program. The Florida Rural Water
Association can assist with these funding pursuits, including how to link the expenditures with the specific
intent of these funding sources.
3. Select the professional engineering firm(s) for the individual capital improvement projects for the purpose of
preparing the necessary Preliminary Engineering Report and the Construction Contract Documents. The
Consultants Competitive Negotiation Act under the Florida Statutes governs the engineer selection process. An
important consideration in selecting an engineering firm is their familiarity with the utility system and the needs
of the community. The Florida Rural Water Association can assist in compliance with the Consultants
Competitive Negotiation Act and provide advice on a reasonable scope for the capital improvements.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 1 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
In addition to the wastewater utility having a profound public health purpose, it is important to realize the large value of
this public asset. This plan analysis projects a preliminary market value of the municipal wastewater utility fixed assets
of $18.7 million.
To preserve this valuable public asset, two categories of actions are required. They are "Asset Management" and
"Operation and Maintenance".
An operation and condition assessment of the wastewater utility identified the following action items:
Asset Management Tasks:
Identifying and funding of major capital improvement needs are an essential part of the Asset Management function.
The following major capital projects have been previously identified by your Utility, and are included in the 2014/2015
capital budget:
• The Grit/Bar Screen Replacement Project includes the replacement of the headworks at the WWTP. This was
included in the FY 2014-15 capital budget.
• The Oxidation Ditch Improvements Project includes the complete redesign of the oxidation ditch system at the
Water Reclamation Facility (WRF).
• The City's Sludge Belt Press is over 20 years old and will be refurbished. Its purpose is to press solids from the
wastewater process and direct the solids into dumpsters for transport and disposal at the Brevard County
Landfill. The Project also includes expansion of the belt press building and purchase/ installation of an additional
sludge belt press to provide redundancy in the treatment process.
• The Reclaimed Water Tank Project includes the construction of a new 2.5 million gallon reclaimed water tank at
the WWTP. The tank will allow the City to eliminate discharges of treated wastewater to the Banana River and
provide additional reclaimed water to residents, Port Canaveral and the City of Cocoa Beach.
• The Holman Road Sanitary Sewer Improvements Project was developed to alleviate sewer back-up in a
residence along Holman Road and to increase sewer capacity. The sanitary sewer line located beneath Holman
Road will be replaced with a 12 -inch diameter pipe. This work is the first phase of a three phased project to
replace the entire sanitary sewer line to Lift Station #2 located along Center Street.
• The Force Main #3 Replacement Project includes the replacement of the oldest force main in the City which was
installed over 25 years ago and has experienced numerous breaks over the past few years. The new force main
will connect Lift Station #3 to the force main located along Thurm Boulevard.
• The Lift Station #6 (Imperial Drive) and #7 (West Central Boulevard) Upgrades include improvements to these
two lift stations due to continued growth along the northern State Road A1A corridor. Lift Station #7 will also be
relocated to City -owned property in Manatee Sanctuary Park.
Other Asset Management Tasks are identified as follows:
Continue to develop and maintain an inventory of critical assets, both "Treatment" and "Non -Treatment". This
includes assigning numerical values to two criteria for each critical asset grouping, "Criticality' and
"Condition". Appendix "A" defines the numeric value scheme for "Critical Treatment Groups' and provides an
initial inventory spreadsheet tool. Appendix "C" defines the numeric value scheme for "Critical Non -Treatment
Groups" and provides an initial spreadsheet tool. The non -treatment groups category applies to the wastewater
collection systems. A non -treatment group consists of a lift station and its connected gravity sewers and the
discharge force main.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 2 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
Develop a long range annual Rehabilitation and Replacement (R&R) program and prioritize the capital
improvements needed each year by using the numerical ratings for "Criticality' and "Condition' of the fixed
asset components. This prioritization procedure maximizes the use of capital improvement funds.
Operation & Maintenance (O&M) Tasks:
• Continue to monitor and control grease discharges to the wastewater collection system from food service
establishments.
• In addition to the formal training courses for the operators' annual certification, consider expanding your
operators' participation with the Florida Water and Pollution Control Operator Association. The annual
membership is $30 per year for this established organization that is exclusively dedicated to the operators. The
organization has monthly operator meetings in your area that provide the operators with the chance to meet
their counterparts in other wastewater utility systems, while earning training credits for their licenses. This
provides a great information network and can be a useful resource for sharing. The $30 annual fee includes the
monthly publication "Florida Water Resources Journal" with current water and wastewater articles.
Refer to Sections I (b), II (b) and 11 (J) for more detailed O&M "Conditions and Performance" information and
requirements.
Administrative Tasks:
• Take full advantage of the FRWA membership services including the "Focus on Change" in January and
February and the annual technical conference in August. The annual technical conference has a management
training tract and extensive networking opportunities, along with a well populated exhibit hall.
• Update the utility's safety protocol and insure that the operators are up-to-date on confined space training and
handling of chemicals associated with the treatment process.
• Conduct frequent safety inspections of the wastewater facilities and repair defective equipment and structures.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 3 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
TABLE OF CONTENTS
Executive Summary 1
Table of Contents 4
Signatures & Certifications 6
Part I: Wastewater Treatment Works Fiscal Sustainability Plan Analysis 7
I (a): Inventory of Critical Treatment Assets 7
I (b): Condition and Performance of Inventoried Treatment Assets or Groupings 7
I (d): Maintenance, Rehabilitation and Replacement Plan with Funding Methods 9
I (k): Water and Energy Conservation Plan and Implementation Certification 10
Part IL• Wastewater Utility Asset Management Plan 11
II (a):
Inventory of Critical Non -Treatment Assets
11
II (b):
Condition and Performance of Inventoried Non -Treatment Assets or Groupings
11
II (c):
Current Asset Value
11
II (d):
Operation and Maintenance Costs
13
II (e):
Capital Improvement Plan
13
II (f):
Analysis of Funding Needs
15
II (g):
Growth Projections, Rate Analysis and Impact Fees Projections
15
II (h):
Funding Rate Structure
16
II (i):
(Not applicable to this study)
16
II (j):
Asset Preservation, Renewal and Replacement
16
Part III: Training
for Plan Implementation and Updating
17
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 4 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
TABLE OF CONTENTS - Appendixes
Appendix "A" - Wastewater Treatment Works Groups - Inventory and Condition 18
Wastewater Treatment Works - Inventory and Condition - Spreadsheet A-1
Appendix "B" - Water and Energy Conservation Evaluation 19
Energy Efficiency Assessment - FRWA Field Inspection Form B-1
Appendix "C" - Wastewater Non -Treatment System Groups - Inventory and Condition
20
Wastewater Non -Treatment Works - Inventory and Condition - Spreadsheet
C-1
Lift Station #1, 402 Washington Avenue
C-2
Lift Station #3,180 West Central Boulevard
C-3
Lift Station #4, 8751 Coquina Drive
C-4
Lift Station #5,306 Columbia Drive
C-5
Lift Station #7, 796 West Central Boulevard
C-6
Manhole Upstream from LS#1
C-7
Manhole Upstream from LS#3
C-8
Manhole Upstream from LS#5
C-9
Manhole Upstream from LS#7
C-10
Appendix "D" - Current Asset Value 21
Fixed Asset Preliminary Market Value Projections - Spreadsheet D-1
Appendix "E" - Treatment and System Operation and Maintenance Cost (O&M) 22
Appendix "F" - Five -Year Capital Improvement Plan (CIP) 23
Five -Year Capital Improvement Plan - Fixed Assets - Spreadsheet F-1
Current 5 -Year Wastewater Fund CIP F-2
Appendix "G" - Funding Rate Structure for O&M and CIP 25
City of Cape Canaveral Rate Study, 2012, Prepared by Raftelis Financial Consultants G-1
Appendix "H" - Maps and Illustrations 26
City of Cape Canaveral Sewer System Service Area Map, with Manhole Numbers H-1
City of Cape Canaveral Lift Station Location Schedule H-2
Appendix "I" - Florida Rural Water Association Technical Publications 27
Fats, Oils and Grease (FOG) I-1
Appendix "J" — References and Information Sources 28
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 5 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
SIGNATURES AND CERTIFICATIONS
Professional Engineer of Record:
The information contained in the report is true and correct to the best of my knowledge; the report was prepared in
accordance with sound engineering principles and best management practices. This Fiscal Sustainability Plan Analysis
and Asset Management Plan were prepared by using historical records and existing facility data, augmented by field
observations, calculations and information provided by the wastewater utility owner and the staff of the Florida Rural
Water Association.
Signature
Name: Sterling L. Carroll, P.E.
State Engineer
Seal:
Fiscal Sustainability Analyst:
Date
Organization: Florida Rural Water Association
Address: 2970 Wellington Circle
Tallahassee, Fl. 32309
The Asset Analyst has no personal interest or bias with respect to the subject matter of the inspection report. All
opinions, conclusions and recommendations concerning the assessments are set forth in the inspection report. The
assessments are based on the Analyst's Certifications and Qualifications.
Signature
Name: William Archebelle, Fiscal Sustainability Analyst
Date
Organization: Florida Rural Water Association
Address: 2970 Wellington Circle
Tallahassee, Fl. 32309
This Asset Management Plan provides a view of the existing condition of the fixed capital assets, but more importantly it
provides recommendations, procedures and tools to assist with the long range management of these valuable assets.
This document and related tools are provided in electronic form and should be updated annually by the utility's
management and staff.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 6 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
PART I: WASTEWATER TREATMENT WORKS FISCAL SUSTAINABILITY PLAN ANALYSIS
I (a) Inventory of Critical Treatment Assets:
City of Cape Canaveral Water Reclamation Facility (WRF):
WASTEWATER TREATMENT:
The City of Cape Canaveral WRF consists of an existing 1.80 million gallon per day (MGD) annual average daily
flow (AADF) activated sludge wastewater treatment facility that provides advanced wastewater treatment
(AWT) including a pretreatment system (mechanical and manual bar screens and grit removal facilities), a
5 -stage modified Bardenpho system with anaerobic basins, first stage anoxic basins, aeration basin, second stage
anoxic basins and re -aeration basins, two (2) secondary clarifiers, three (3) tertiary filters, two (2) chlorine contact
chambers, a 1.4 million gallon (MG) reuse/ substandard effluent storage tank, a 0.40 MG flow equalization tank
(also used for substandard effluent storage), a 1.0 MG reuse storage tank, chemical feed facilities, two (2) in -plant
pump stations, a reuse pump station, and other associated pumps and appurtenances. A belt filter press is
utilized for biosolids dewatering.
Existing FDEP process improvements construction permits include:
• Construction of a 2.5 million gallon reclaimed water storage tank.
• Renovation of the existing belt press for biosolids handling.
• Construction of an additional belt press to add redundancy to the biosolids dewatering process.
• Rehabilitation of the existing oxidation ditch.
REUSE OR DISPOSAL:
Surface Water Discharge D-001: The surface water discharge is an existing 0.990 MGD AADF discharge to
Banana River, Class III Marine waters an Outstanding Florida Water, (WBID# 3057B) which is approximately 29
feet in length and discharges at a depth of approximately 1.5 feet. The point of discharge is located
approximately at latitude 28° 23'36" N, longitude 80° 379" W.
Land Application R-001: The land application effluent disposal is an existing 1.45 MGD AADF permitted capacity slow -
rate public access system. R-001 is a reuse system which consists of irrigation of public access areas, within the "Reuse
Service Area". The system includes three on-site reclaimed water storage tankis: 1) 1.4 MG tank used for substandard or
reclaimed water, and 2) 1.0 MG and 2.5 MG tanks used for reclaimed water only. The reclaimed water disposal system
includes three major users: 1) City of Cape Canaveral 0.70 (MGD), City of Cocoa Beach (0.65 MGD), and Canaveral Port
Authority (0.1 MGD). Reject is diverted to the above D-001 Banana River Discharge.
I (b) Condition and Performance of Inventoried Treatment Assets or Groupings:
"Condition" and "Criticality" are the two important criteria used in evaluating each component of the treatment
facilities. A numeric rating is assigned to each treatment component according to the rating definitions defined in
"Appendix 'A' - Wastewater Treatment Works Groups - Inventory and Condition'.
The numeric ratings range from 0 to 5. For "Condition', 5 is the worst condition and for "Criticality" 5 is the most
critical.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 7 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
On May 711, and 811,, 2015, Florida Rural Water Association Representative James Gary Yallaly, P.E. conducted a field visit
inspection for development of an Asset Management Plan to assist in planning for future wastewater treatment
modifications.
The overall condition assessment ratings for the wastewater treatment facilities are "good" to "excellent". During the
last four years, the capital expenditures for the WRF have been greatly expanded with outstanding results.
Part of the asset management analysis is to assist the utility in facility operations, operator training/review, assistance in
Capital Improvement Plan (CIP) development, and collection systems performance inspections to preserve the valuable
utility assets.
Components at the City of Cape Canaveral WRF reviewed during the field visit and document research are as follows:
• Flow measurement
• Headworks
o Mechanical bar screen
o Manual bar screen
0 Vortex grit removal
• Secondary treatment
o Fermentation basins (anaerobic) - A & B
o First anoxic basins - A & B
o Oxidation ditch aeration basin, single unit
o Second anoxic basins - A & B
o Re -aeration basins - A & B
o Intermediate pumping station
o Secondary clarifiers - A & B
o RAS/ WAS pumps
• Tertiary treatment
0 Sand filters - A, B & C
• Reuse effluent
o Chlorination
o Storage
o Reject holding
o Effluent pump station
• Banana River effluent
o Chlorination
o De -chlorination
o Post aeration
o Outfall
• Sludge
o Sludge holding tank
o Chemical feed - polymer
o Belt filter press
• Electric system
0 Distribution
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 8 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
0 Lighting
0 Emergency generator
• Laboratory
FDEP issued a renewed facility operating permit April 5, 2012. The permit application included an "Updated Capacity
Analysis Report", "Operation and Maintenance Performance Report" and a "Reclaimed Water System Operating
Protocol". These documents were prepared by Tetra Tech, Inc. and provide an in-depth evaluation of the City of Cape
Canaveral WRF.
The "Updated Capacity Analysis Report" included flow rates through February 2011. For the year 2010, the maximum
three-month average daily flow was 1.246 MGD or 69.2% of the current facility permitted capacity of 1.80 MGD. The
report analysis indicated that the connect flow will not likely reach the permitted capacity until the year 2028.
The Cape Canaveral Port Authority discontinued its agreement with the City to treat the Port's wastewater and
constructed a wastewater line to connect with Cocoa Beach for treatment. According to the reports referenced above, the
City of Cape Canaveral collection system serves only wastewater customers within the city limits.
The FDEP operating permit must be renewed in April, 2017, and the application is due six months prior to that date.
Due to the changes pending with the WRF and the complexity of the treatment process, it is recommended that the
permit process be started soon. The reports required with the permit application are extremely helpful and provide an
excellent opportunity for the utility management and staff to participate in this important process.
Some corrosion is occurring at the WRF headwork, which is likely the combination of some hydrogen sulfide (HZS) and
the salt air from the ocean winds.
The City does not need an industrial pretreatment program; however, grease control from the connected food service
establishments would be helpful.
For additional information, refer to "Appendix 'A' - Wastewater Treatment Works Groups - Inventory and Condition'
I (d) Maintenance, Rehabilitation and Replacement Plan with Funding Methods:
To develop an Asset Management Plan, it is important to distinguish between annual operation and maintenance costs
and capital expenditures. Capital expenditures are for the purchase of equipment, land and facilities that have a useful
life spread over multiple years. For simplicity of account, small capital expenditures can be included in the annual
operating budget rather than the capital budget. IRS allows businesses to expense capital expenditures up to $25,000 per
year in the same year that the capital asset is acquired. This is a reasonable dividing point for a small to midsized
wastewater utility for annual operating budget expenses vs. capital budget purchases.
Capital expenditures above $25,000 total per year should be budgeted and funded separately with an annual allocation
of these costs based upon the life of the capital asset. This procedure is applied to the development of the "Asset
Management PlarC.
To insure "sustainability" of the wastewater utility, funding of the required future capital expenditures is absolutely
required.
The City of Cape Canaveral Wastewater Utility is in a separate "Enterprise Fund" similar to a business operation.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 9 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
Capital expenditure funding for small wastewater systems in Florida can be provided by the following:
• Revenue bonds from the Rural Utility Service, US Department of Revenue (population limits apply)
• Revenue bonds from commercial sources such as CoBank and investor owned financial institutions
• State Revolving Loan Fund (SRF), a combination of state and federal appropriated funds
• Grant funds from the Rural Utility Service, US Department of Revenue (population and income limits apply)
• Grant funds from the Community Development Block Grant program, US Housing & Urban Development
(income limits might apply)
• Grant funds from the St. John's River Water Management District
• Revenue from the utility customers user charges
Capital expenditures should be recovered over the life of the asset in the form of a "Capital Recovery" procedure. For
loan funds, this is needed to pay off the loan. For grant funds and utility customer funded capital investments, this is
needed to preserve the capital for future rehabilitation or replacement of the assets. Customer rates allocated to future
capital expenditures and grant capital recovery money should be set aside in a separate interest bearing "sinking fund"
for future capital expenditures. This money should never be "consumed" but should be recovered to maintain the net
asset value of the utility.
In addition to the capital allocation for individual major projects, an annual capital budget should be established for
Rehabilitation and Replacements (R&R). A targeted funding amount should be approximately 3% of the asset value.
This provides for an average asset life of 33 years. The annual R&R projects should be determined based upon the
inventory and condition assessments, to include a "Criticality' and "Condition' priority rating scheme.
I (k) Water and Energy Conservation Plan and Implementation Certification:
Most of the treated wastewater effluent is being used for irrigation of public access areas, with the excess being
discharged to the Banana River.
The City is constructing an additional 2.5 MG reclaimed water storage tank which will enable increasing the amount of
effluent that can be used for irrigation.
The WRF treatment process is very complex and maximizes the use of biological nutrient reduction, avoiding the use of
chemical treatment for this purpose. The process incorporates one anaerobic zone and two anoxic zones that reduce the
air supply requirements as compared with a conventional activated sludge process. It also uses an oxidation ditch
aeration basin with mechanical aerators, which reduces the energy requirements for the aeration process.
With the WRF upgrades, attention is being given to energy efficient components. The WRF lighting upgrade is included
in the current capital budget.
A copy of the Florida Rural Water Associations "Energy Efficiency Assessment for Small Wastewater Systems" was
completed during a field visit to the wastewater utility and is presented in "Appendix "B" - Water and Energy
Conservation Evaluation'.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 10 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
PART II: WASTEWATER UTILITY ASSET MANAGEMENT PLAN
II (a) Inventory of Critical Non -Treatment Assets:
The City of Cape Canaveral Wastewater Utility collection system consists of approximately 18.75 miles of gravity sewers
and 330 manholes, with 13 lift stations and connecting force mains.
These lift stations were observed during the field visit along with a representative sample of manholes, as follows:
• Lift Station #1, 402 Washington Avenue
Appendix Page C-2
• Lift Station #3,180 West Central Boulevard
Appendix Page C-3
• Lift Station #4, 8751 Coquina Drive
Appendix Page C-4
• Lift Station #5,306 Columbia Drive
Appendix Page C-5
• Lift Station #7, 796 West Central Boulevard
Appendix Page C-6
• Manhole Upstream from LS#1
Appendix Page C-7
• Manhole Upstream from LS#3
Appendix Page C-8
• Manhole Upstream from LS#5
Appendix Page C-9
• Manhole Upstream from LS#7
Appendix Page C-10
II (b) Condition and Performance of Inventoried Non -Treatment Assets or Groupings:
The overall condition assessment of the wastewater collection system is "good" to "excellent". An aggressive
Rehabilitation and Replacement (R&R) program of the wastewater collection system was implemented approximately
four years ago with outstanding results.
All of the 330 manholes have been rehabilitated within the last four years, along with some of the lift stations.
Due to the small wastewater collection area and high population density, wastewater transport time to the WRF is
relatively short and the formation of hydrogen sulfide (HZS) is not a major issue. Some HZS corrosion is evident in the
manholes and WRF headworks, but this is being addressed by improved operation and maintenance procedures.
Grease buildup is a problem for some of the lift stations. Action should be taken to increase the enforcement of the
service connection ordinance to control this problem. The Florida Rural Water Association publication on Fats, Oils and
Grease (FOG) is included in Appendix "I", Page I-1.
For additional information on the inventory and condition of the non -treatment asset groups, refer to "Appendix'C' -
Wastewater Non -Treatment Works Groups - Inventory and Condition'.
II (c) Current Asset Value:
Based upon the Comprehensive Annual Financial Report, at the end of September, 2014, the Wastewater Fund had a net
capital assets value of $13,892,808.
The wastewater utility fixed assets have an accounting life of 40 years and land does not depreciate.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 11 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
The original wastewater treatment facility and wastewater collection system construction date could not be determined;
however, much of the system is aging. The current capacity of the municipal wastewater treatment facility is 1.80 MGD.
The "book value' of these depreciated assets would be considered less than its actual current functional value.
The capital facilities are currently in service and likely to remain in service for many years in the future, thus book value
does not represent the true value of the asset. In general, rehabilitation of a fixed asset can extend its useful life for as
much as 50% of the original life expectancy.
"Replacement cost" is another method of evaluating the capital assets value, but this results in a future useful life of the
facilities much longer than the actual existing assets, thus is also not representative of the true value.
"Market value" of the utility would be the best representation of the true asset value. Market value could be defined as
the dollar amount that a willing seller and a willing buyer could agree upon.
In the real estate market, there is a large and current data base for market values based upon the agreements between
willing sellers and willing buyers. In the case of water and wastewater utilities, not so much!
For the purpose of this plan, preliminary market value formulas have been developed and will be adjusted with each
update of this plan report and as more historical data become available.
Preliminary Market Value Projections for the Wastewater Treatment Fixed Assets:
For a small typical activated sludge treatment process, secondary treatment level, nutrient reduction, disinfection and
land application or reuse of the treated effluent, the preliminary market value is projected as:
Formula Constant = $100,000 plus
Formula Variable = $ 5,000,000 per million gallons per day of permitted capacity.
For the City of Cape Canaveral WRF, this would indicate a preliminary market value of $9.1 million for the municipal
treatment facilities currently permitted at 1.800 MGD average daily flow.
Preliminary Market Value Projections for the Wastewater Non -Treatment Fixed Assets:
For a small typical wastewater collection system the preliminary market value is projected as:
Formula Constant = $100,000 plus
Formula Variables = 6" diameter gravity sewers less than 12' deep @ $ 30 per LF
8" diameter gravity sewers less than 12' deep @ $ 36 per LF
10" diameter gravity sewers less than 12' deep @ $42 per LF
6" diameter force mains @ $30 per LF
Major stream or highway crossings cased @ $500 per LF
Manholes less than 12' deep @ $2,000 each
Lift stations @ $350,000 each
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 12 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
For the purpose of this preliminary market value determination for the municipal wastewater collection system, an
equivalent of 10" diameter gravity sewer pipes is used. Other sizes of pipe are in the system but this would be a
reasonable typical size to use considering the connected load and the population density. The actual length of gravity
sewers was not determined during the research and field visit. The number of manholes was reported at 330. Using an
average of 300' of gravity sewer pipe per manhole, this would indicate 18.75 miles of gravity sewer lines. The field
investigation indicated thirteen lift stations in the collection system. Some of the force mains are manifold (serving
multiple lift stations) and the exact footage could not be determined. For this evaluation, the value of the force mains is
included with the lift station unit value.
For the City of Cape Canaveral Wastewater Utility, this would indicate a preliminary market value of the wastewater
collection system of $9.6 million.
Combined Total Market Value Projections for the Wastewater Utility Fixed Assets:
$18.7 million is the combined total preliminary market value projection for the Municipal Wastewater Utility.
Additional information is shown in "Appendix 'D' - Current Asset Value'.
II (d) Operation and Maintenance Costs:
An enterprise fund has been established to separate the Wastewater Fund account from other City of Cape Canaveral
operations.
For the fiscal year ending September 30, 2014, the Wastewater utility had operating revenue of $3,569,928 and operating
expenses of $2,813,214, for a net operating income of $756,714.
After adjustment for non-operating revenue/ expenses and other transfers, the water and sewer fund had a net position
ending September 30, 2014, of $15,090,280.
Additional information is shown in "Appendix 'E' - "Treatment and System Operation and Maintenance Costs (O&M)"
II (e) Capital Improvement Plan:
Fixed Asset Capital improvements include rehabilitation, replacement and capacity expansion. As indicated earlier, the
first $25,000 of expenditures for rehabilitation and replacement should come from the operating budget. The Capital
Improvement Plan (CIP) should look five years into the future.
The City of Cape Canaveral has a Five -Year Capital Improvement Plan (CIP) for the Wastewater Fund and is shown in
Appendix "F" page F-2.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 13 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
Major capital improvements included are as follows:
The Grit/Bar Screen Replacement Project includes the replacement of the headworks at the WWTP. Excessive amounts
of larger debris are currently passing through the existing headworks and into the wastewater treatment train thus
reducing efficiency. This was included in the FY 2014-15 capital budget and is not shown in the Appendix "F" schedules.
The Oxidation Ditch Improvements Project includes the complete redesign of the oxidation ditch system at the WWTP.
There is currently no redundancy with the oxidation ditch design. The redesign will provide a second oxidation ditch
process for use in emergency situations and will allow for improved maintenance. The work will include refurbishment
of all pumps and valves for a more efficient system and installing a cover over the existing oxidation ditch to limit offsite
spray. A "Preliminary Design Report" for the "WWTP Improvements for Oxidation Ditch Rehabilitation' was prepared
by Tetra Tech. The construction phasing is critical to this project since the oxygen ditch is a single unit without
redundancy.
The City's Sludge Belt Press is over 20 years old and will be refurbished. Its purpose is to press solids from the
wastewater process and direct the solids into dumpsters for transport and disposal at the Brevard County Landfill. The
project also includes expansion of the belt press building and purchase/ installation of an additional sludge belt press to
provide redundancy in the treatment process.
The Reclaimed Water Tank Project includes the construction of a new 2.5 million gallon reclaimed water tank at the
WWTP. The tank will allow the City to eliminate discharges of treated wastewater to the Banana River and provide
additional reclaimed water to residents, Port Canaveral and the City of Cocoa Beach.
The Holman Road Sanitary Sewer Improvements Project was developed to alleviate sewer back-up in a residence along
Holman Road and to increase sewer capacity. The sanitary sewer line located beneath Holman Road will be replaced
with a 12 -inch diameter pipe. This work is the first phase of a three phased project to replace the entire sanitary sewer
line to Lift Station #2 located along Center Street.
The Force Main #3 Replacement Project includes the replacement of the oldest force main in the City which was installed
over 25 years ago and has experienced numerous breaks over the past few years. The new force main will connect Lift
Station #3 to the force main located along Thurm Boulevard.
The Lift Station #6 (Imperial Drive) and #7 (West Central Boulevard) Upgrades include improvements to these two lift
stations due to continued growth along the northern State Road A1A corridor. Lift Station #7 will also be relocated to
City -owned property in Manatee Sanctuary Park.
The recommended Five -Year Capital Improvement Plan spreadsheet shown in Appendix Page F-1 includes the current
Wastewater Fund CIP, plus the addition of an annual Rehabilitation and Replacement (R&R) capital budget beginning in
FY 2019-20. This annual R&R capital budget is to provide ongoing renewal of the existing facilities based on an average
life expectancy of thirty-three years.
As a tool in determining the annual amount needed for the R&R program, the preliminary market value was determined
using a unit price value scheme, as shown in Section II (c).
On this basis, the annual R&R budget projections are as follows:
• Water Reclamation Facility $273,000 per year
• Wastewater Collection System $288,000 per year
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 14 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
Determining the projects to be included in each annual R&R should be based upon a priority rating system to include the
specific asset's "Criticality' and "Condition'. This requires an up-to-date condition assessment data program.
The R&R capital program doesn't include capacity expansion, but renews the specific existing asset components over
their life expectancy.
Additional information is included in "Appendix'F' - Five Year Capital Improvement Plan"
II (f) Analysis of Funding Needs:
Approximately four years ago, the City of Cape Canaveral substantially expanded the capital expenditures for the
Wastewater Utility to restore the fixed assets to a high level. A "Sewer System Rate Study" was prepared by Raftelis
Financial Consultants, Inc. and the recommendations were implemented by the City. This study provided an in-depth
view of the revenue needs for restoring and maintaining this valuable public utility.
It is important to supplement the revenue from the rate payers by aggressively pursuing outside capital funding sources.
Supplemental funding sources to pursue are: the FDEP Revolving Loan Funds, St. John's River Water Management
District advalorem tax allocation to local governments and the HUD Block Grant Program.
The Florida Rural Water Association can assist with these funding pursuits, including how to link the expenditures with
the specific intent of each of these funding sources.
II (g) Growth Projections, Rate Analysis and Impact Fees Projections:
The "Updated Capacity Analysis Report" prepared by Tetra Tech, Inc., in 2011 indicates the following service population
projections based upon historic patterns:
Year
Population
2016
12,498
2017
12,634
2018
12,769
2019
12,905
2020
13,041
2021
12,386
2022
12,758
2023
13,141
2024
13,535
The City boundaries are confined by the Atlanta Ocean on the east, Banana River on the west, City of Cocoa Beach on the
south and Port Canaveral on the north. Areas within the city limits are essentially built -out, with the only additional
load potential from higher density redevelopment.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 15 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
The City's population growth rate is impacted by the local economy, including the Kennedy Space Center. The Space
Center is going though significant changes due to revised federal appropriations; however, investor owned businesses
are filling in.
With this growth rate, impact fees from population growth would not be a significant source of revenue.
II (h) Funding Rate Structure:
The City of Cape Canaveral retained the professional services of Raftelis Financial Consultant, Inc. to prepare a "Sewer
System Rate Study" in 2012, which is reprinted in Appendix "G". The study is an in-depth evaluation of the revenue
needs and recommended an appropriated user rate structure. The City has implemented the findings of the study.
The proposed rate for a single family residential unit using 5,000 gallons per month of potable water is $38.82 and for
10,000 gallons of reclaimed water is $6.00. Under the new rate structure, single family residential units generate
approximately 22% of the revenue, multi -family approximately 62% and the remaining from other property types.
II (i) Threshold Rate for Proper Utility Operation (Not applicable to this study):
II (j) Asset Preservation, Renewal and Replacement:
The current management, operation and maintenance of the City of Cape Canaveral Wastewater Utility are very strong.
With the increased capital funding that began four years ago, the condition of the fixed assets is being rapidly restored to
a high level.
After this current level of capital expenditure program is completed, a long range capital Rehabilitation and Replacement
(R&R) program should be continued. An annual target number would be 3% of the projected current asset value.
Load growth and expansion of system and treatment capacity are not creating pressure for this system. This allows
revenue to be directed to process improvements and R&R.
It is important to continue the effort to expand effluent disposal by reclaimed water use and reduce the discharge to the
Banana River. This also expands the revenue source.
With the number of food service establishments connected to the system, increased attention to the fats, oil and grease
(FOG) control program should be considered.
Additional information on FOG control is shown in Appendix "I", page I-1.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 16 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
PART III: TRAINING FOR PLAN IMPLEMENTATION AND UPDATING
Asset Management Plans are not easy to implement or update without the accompanying training for the utility
managers.
Training must include as a minimum:
• Initial presentation of the plan contents, assumptions, findings and tools included for managing the plan.
• First annual follow-up to get feedback from the utility managers and make adjustments to match their needs.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 17 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
APPENDIX "A" - WASTEWATER TREATMENT WORKS GROUPS - INVENTORY AND CONDITION
For the purposes of the Asset Management Plan, wastewater treatment elements are grouped into functional groups for
simplicity. To establish the funding priority for each group, two important rating criteria have been defined;
"Criticality" and "Condition'. The numerical number scheme for each rating category is as follows:
Criticality Numeric Rating:
0 - Non -Existent Asset not needed for the current operation - abandoned, standby status or no longer exists.
1 - Non -Critical
Asset not essential to maintaining customer service or regulatory compliance.
2 - Low Impact
Service interruption of this asset has only short term impact on a small number of customers and
little chance of regulatory non- compliance.
3 - Critical
Service interruption of this asset has substantial impact on customer service, a chance of
negative environmental impact, damage to other assets or creates safety risks to the operators.
4 - Very Critical
Interruption of service has serious impact on customer service, a high chance of negative
environmental impact, severe damage possibility to other assets, high risk of dangerous
conditions to the operators or major health/safety risks for the general population.
5 - Must Have
Failure of this asset has a high risk of a catastrophic event, major customer service interruptions,
serious environmental impact, long term damage to other assets, serious public health/ safety
issues and likely regulatory enforcement action.
Condition Numeric Rating -
0 - Non -Existent Asset abandoned, on standby status or no longer exists.
1 - Excellent Sound physical condition - likely to perform adequately without major rehabilitation for 20
years or more.
2 - Good Acceptable physical condition - minimal short-term failure risk but potential for deterioration in
long-term. Only minor work required (if any).
3 - Fair Significant deterioration evident - failure unlikely within next 5 years but further deterioration
likely and major rehabilitation or replacement likely within next 10 years. Minor components or
isolated sections of the asset need rehabilitation or replacement soon but asset still functions
safely at adequate level of service. Work required but asset is still serviceable.
4 - Poor Failure likely in short-term - need to rehabilitate or replace most or all of asset within next 5
years. No immediate risk to sustained service, but work required within next 5 years to ensure
asset remains functional. Substantial work required in short-term, asset barely serviceable.
5 - Very Poor Failed or failure imminent - need to rehabilitate or replace most or all of this asset. Risk to
sustained service exists or asset cannot be operated without risk to personnel.
The spreadsheet on the following page lists the Criticality Numeric Rating and the Condition Numeric Rating for each of
the function treatment groups along with the expected remaining life and any projected rehabilitation, replacement or
capacity expansion anticipated.
This spreadsheet is intended to be a working management tool to be updated and adjusted at least annually.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 18 of 28
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Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
APPENDIX "B" - WATER AND ENERGY CONSERVATION EVALUATION
An energy assessment was made during a field visit of the City of Cape Canaveral Wastewater Utility on May Th and 81h
Findings of the assessment are documented on the Florida Rural Water Association form included on the following three
pages.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 19 of 28
Resolution No. 2016-04
EXHIBIT "A"
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle • Tallahassee, FL 32309-6885
Telephone: 850-668-2746 - Fax: 850-893-4581
Energy Efficiency Assessment
Small Wastewater Systems
City of Cape Canaveral
Responses in gray areas indicate potential for gains in energy efficiency
1. INFLUENT/EFFLUENT PUMPING
A. Do you have influent and/or effluent pumps?
B. If yes, do you have variable speed control on influent pumps?
C. If yes, are premium -efficiency motors currently installed on influent pumps?
D. If yes, do you have variable speed control on effluent pumps?
E. If yes, are premium -efficiency motors currently installed on effluent pumps?
2. PRE-AERATION/POST-AERATION
A. Do you utilize aeration blowers and/or compressors?
B. If yes, can you throttle the amount of air delivered or otherwise adjust
output?
Yes No
x
x
x
x
x
Yes No
3. INTERMEDIATE PUMPING Yes No
A. Do you have intermediate pumps to convey flow between treatment units? x
B. If yes, do you have variable speed control on the intermediate pumps? x
C. If yes, are the intermediate pumps equipped with premium -efficiency motors? x
4. ACTIVATED SLUDGE PROCESSES
A. Does you have aeration blowers/compressors in an activated sludge process?
B. If yes, can you throttle the amount of air delivered or otherwise adjust
output?
C. If yes, are premium -efficiency motors currently installed?
D. Does your plant use mechanical aerators (including mixers)?
E. If yes, do the aerators have variable speed control?
F. Is the aeration system controlled via DO levels and/or pressure differentials?
G. If yes, are dissolved oxygen/pressure sensors located in the aeration basins?
H. Do you currently use a fine -bubble aeration system?
I. If you have a pure oxygen system, do you have a VPSA 02 generation system?
J. Do you currently have variable speed return activated sludge (RAS) pumps?
K. Do you currently have variable speed waste activated sludge (WAS) pumps?
Yes No
City of Cape Canaveral, Florida - Energy Efficiency Assessment for Small Wastewater Systems FRWA Page B-1
S. FIXED FILM PROCESSES
A. Does you have aeration blowers/compressors as part of a fixed film process?
B. If yes, can you throttle the amount of air delivered or otherwise adjust
output?
C. If yes, are premium -efficiency motors currently installed?
D. Do you utilize pumping for conveying flow to the trickling filters?
E. If yes, do you have variable speed control on these pumps?
F. Are your trickling filter distribution arms mechanically driven?
6. DISINFECTION
A. Do you currently use an ultraviolet disinfection system?
B. If yes, does the UV system utilize low-pressure, high -output lamps?
C. If yes, is the UV system operated via flow -pacing and/or dosing setpoint?
7. SLUDGE PUMPING
A. Do you process sludge on an intermittent (less than 24 hours per day) basis?
B. If yes, do you currently process sludge during off-peak hours?
C. Do you have equalization capacity within your existing sludge handling
process?
D. If no, do you have variable speed capability on your sludge transfer pumps?
8. SLUDGE STABILIZATION
A. Does your plant utilize aerobic digestion?
B. If yes, have considered switching to anaerobic digestion or another method?
C. Do you currently produce biogas (methane) from anaerobic digestion?
D. If yes, is biogas currently flared and/or vented?
E. If yes, is biogas currently being used for thermal or electrical power
generation?
F. Does your plant currently accept hauled waste at the headworks to the plant?
G. If yes, is there equalization capacity for the introduction of hauled wastes?
9. SLUDGE THICKENING AND DEWATERING
A. Does your thickening / dewatering equipment run less than 24 hours per day?
B. Do you use centrifuges for thickening, dewatering, or both?
C. Do you currently use sludge drying beds for dewatering?
D. Does your plant currently haul sludge to another location for processing?
E. Does your plant use incineration for sludge stabilization/disposal?
10. FACILITY/ OPERATIONS
A. Do you monitor your power bills?
B. Is there significant inflow/infiltration into the collection system?
C. Has your plant had any energy efficiency improvements in the last 5 years?
D. If yes, have you switched to more efficient lighting?
E. If yes, have you done any load shedding and/or off-peak load shifting?
F. If yes, have you installed new or improved HVAC equipment?
G. Are energy efficiency measures included with future improvement plans?
Resolution No. 2016-04
EXHIBIT "A"
Yes No
x
N/A
N/A
N/A
N/A
N/A
Yes No
x
N/A
N/A
Yes No
x
x
x
x
Yes No
x
x
x
x
N/A
N/A
x
x
x
N/A
Yes No
x
x
x
x
x
Yes No
x
x
x
x
x
x
x
City of Cape Canaveral, Florida - Energy Efficiency Assessment for Small Wastewater Systems FRWA Page B-2
Resolution No. 2016-04
EXHIBIT "A"
11. ADDITIONAL COMMENTS & INFORMATION
Most of the treated wastewater effluent is being used for irrigation of public access areas, with the excess being
discharged to the Banana River.
The City is constructing an additional 2.5 MG reclaimed water storage tank which will enable increasing the amount
of effluent that can be used for irrigation.
The WRF treatment process is very complex and maximizes the use of biological nutrient reduction, avoiding the
use of chemical treatment for this purpose. The process incorporates one anaerobic zone and two anoxic zones that
reduce the air supply requirements as compared with a conventional activated sludge process. It also uses an
oxidation ditch aeration basin with mechanical aerators, which reduces the energy requirements for the aeration
process.
With the WRF upgrades, attention is being given to energy efficient components. The WRF lighting upgrade is
included in the current capital budget.
12. PRIORITY AREAS FOR POTENTIAL ENERGY EFFICIENCY GAINS
The Utility is proactively addressing energy efficiency, and a list of projects is outlined below. It is
recommended the Utility continue to address energy efficiency replacing older failing motors with High
Efficiency motors as replacement is needed.
Efficiency Project Estimated Project Cost Potential Savings/Year Payback Period
Solar Lighting Retrofit
$180 K
60K /Year
Up to 3 Years
Variable Frequency Drives
$39 K
40%-50%
Up to 2.5 years
Interior Lighting Retrofits
$15.5 K
30%-40%
Up to 3.5 Years
Sand Filter Replacement
$550 k
30%-60%
Up to 3.5 years
13. FUNDING MECHANISMS
Capital budget for large projects and the annual capital budget for Rehabilitation & Replacement (R&R).
City of Cape Canaveral, Florida - Energy Efficiency Assessment for Small Wastewater Systems FRWA Page B-3
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
APPENDIX "C" - WASTEWATER NON -TREATMENT SYSTEM GROUPS - INVENTORY AND CONDITION
For the purposes of the Asset Management Plan, wastewater non -treatment elements are grouped into functional groups
for simplicity. To establish the funding priority for each group, two important rating criteria have been defined;
"Criticality" and "Condition'. The numerical number scheme for each rating category is as follows:
Criticality Numeric Rating:
0 - Non -Existent Asset not needed for the current operation - abandoned, standby status or no longer exists.
1 - Non -Critical Asset not essential to maintaining customer service or regulatory compliance.
2 - Low Impact Service interruption of this asset has only short term impact on a small number of customers and
little chance of regulatory non- compliance.
3 - Critical Service interruption of this asset has substantial impact on customer service, a chance of
negative environmental impact, damage to other assets or creates safety risks to the operators.
4 - Very Critical Interruption of service has serious impact on customer service, a high chance of negative
environmental impact, severe damage possibility to other assets, high risk of dangerous
conditions to the operators or major health/safety risks for the general population.
5 - Must Have Failure of this asset has a high risk of a catastrophic event, major customer service interruptions,
serious environmental impact, long term damage to other assets, serious public health/ safety
issues and likely regulatory enforcement action.
Condition Numeric Rating (Compatible with the NASSCO pipe code matrix):
0 - Non -Existent Asset abandoned, on standby status or no longer exists.
1- Excellent Sound physical condition - likely to perform adequately without major rehabilitation for 20
years or more.
2 - Good Acceptable physical condition - minimal short-term failure risk but potential for deterioration in
long-term. Only minor work required (if any).
3 - Fair Significant deterioration evident - failure unlikely within next 5 years but further deterioration
likely and major rehabilitation or replacement likely within next 10 years. Minor components or
isolated sections of the asset need rehabilitation or replacement soon but asset still functions
safely at adequate level of service. Work required but asset is still serviceable.
4 - Poor Failure likely in short-term - need to rehabilitate or replace most or all of asset within next 5
years. No immediate risk to sustained service, but work required within next 5 years to ensure
asset remains functional. Substantial work required in short-term, asset barely serviceable.
5 - Very Poor Failed or failure imminent - need to rehabilitate or replace most or all of this asset. Risk to
sustained service exists or asset cannot be operated without risk to personnel.
The four spreadsheets on the following pages list the Criticality Numeric Rating and the Condition Numeric Rating for
each of the function treatment groups along with the expected remaining life and any projected rehabilitation,
replacement or capacity expansion anticipated.
These spreadsheets are intended to be working management tools to be updated and adjusted at least annually.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 20 of 28
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Resolution No. 2016-04
Page C-2, City of Cape Canaveral, Lift Station #1 InSpec on`Form
Overall LS Condition: (check all that apply)
❑ Good / Satisfactory
❑ Debris / Solids Buildup in LS
❑ Needs Maintenance (describe in comments)
❑ Needs Repair (describe in comments)
❑ Cracked / broken sides / foundation
❑ Misaligned joints
❑ Roots at joints
❑ Visible infiltration
Condition: 1 2 3 4 5
New Failinc
Comments:' Good Condition — large
................................................................................................................................................................................................................
capacity pumping directly to plant, very
critical. Three pumps, 201-11p, 47 Hp &
47 Hp. Emergency power provided.
"N
„W
SER,IJ POLL
CONTROL PANEL
Date: May 8, 2015
Time: 10:46 A.M. / P.M.
Inspector: James G. Yallaly, P.E.
ALARM LICGTT
HINGED ACCESS DOOR
VENT
GUIDE
RAH
FLOAT SWITCH I i
i LEVEL ALARM
MPTIONAEI
INLET
FLOATSWITCH
INTERMDTENT
OPERATION
PG Vi
TRAP CHECMLUVALVfVAL
DISC" NOT PIPING
- RAIL GUIDE
- GUIDE RAK BASE
Material: ❑ Brick / Mortar ❑ Pre -cast Concrete ❑ Lined
❑ other
Run each pump for a short time. Did all pumps operate properly during inspection?
Yes ❑
No ❑
Were any pumps clogged or suctions obstructed at the time ofinspection?
Yes ❑No
E]
Record current draw of each pump Pump 1 amps Pump 2 amps
_:...........................................................................................................
Pump 3
amps
........... .................................................................................................................................................................... ....................................................................................................................
Record run time for each pump at the station. Analyze the runtime minutes onsite to
Yes ❑
No ❑
locate any trouble. Do the pump runtime indicate any operational problem?
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Does wet well to need cleaning? Is there a buildup of grease & debris?
Yes ❑
No ❑
Check pump on/off floats for properoperation. Did all floats operate properly?
Yes
N o
_
Check high water float operation for alarm notification. Did the alarm telemetry /auto -
Yes E]
No E]
dialer work? Did the alarm sound? Did the light flash?
Exercise all lift station valves. Did all valves properly function?
Yes
No
Exercise generator (if applicable) at lift station. Did the generator properly function.
..................................................................................................................................................................................................................................................................................................................................................................................................................
Yes
No ❑
D0exercise you ALL standby generators at least monthly for 15 to 30 minutes
Yes
No ❑
Surcharge / flooding indications?❑ grease / debris on sides F-1grease/ debris under / around / on cover
........................:................................................................................................................................................................................................................
Vermin or insects present? Yes ❑ No F-1 Description:
Comments:
1 Sample Comments: Poor Structural Condition, Serviceable, Broken, Unsafe, Damaged, Corroded, Missing Grout, Needs Raising, Needs Lowering, Misaligned,
Leaking, III -Fitting, Dirty, Bad Joint, Roots, Grease, Infiltration, Cracks
Resolution No. 2016-04
City of Cape Canaveral, Lift Station #1 Inspection Form - Photo(s) EXHIBIT "A"
tL{ S s._.
Tri ,x '.
Resolution No. 2016-04
Page C-3, City of Cape Canaveral, Lift Station #3 InSpec on `Form
Overall LS Condition: (check all that apply)
❑ Good / Satisfactory
❑ Debris / Solids Buildup in LS
❑ Needs Maintenance (describe in comments)
❑ Needs Repair (describe in comments)
❑ Cracked / broken sides / foundation
❑ Misaligned joints
❑ Roots at joints
❑ Visible infiltration
Condition: 1 2 3 4 5
New Failinc
Comments:' Good condition. Some
................................................................................................................................................................................................................
HZS corrosion on lid. Two pumps, 20 Hp &
20 Hp. Emergency power provided. Wet
well walls recoated in 2009.
"N
„W
SER,IJ POLL
CONTROL PANEL
Date: May 8, 2015
Time: 10:30 A.M. / P.M.
Inspector: James G. Yallaly, P.E.
ALARM LICGTT
HINGED ACCESS DOOR
VENT
GUIDE
RAH
FLOAT SWITCH I i
i LEVEL ALARM
MPTIONAEI
INLET
FLOATSWITCH
INTERMDTENT
OPERATION
PG Vi
TRAP CHECMLUVALVfVAL
DISC" NOT PIPING
- RAIL GUIDE
- GUIDE RAIL BASE
Material: ❑ Brick / Mortar ❑ Pre -cast Concrete ❑ Lined
❑ other
Run each pump for a short time. Did all pumps operate properly during inspection?
Yes ❑
No ❑
Were any pumps clogged or suctions obstructed at the time ofinspection?
Yes ❑No
E]
Record current draw of each pump Pump 1 amps Pump 2 amps
_:...........................................................................................................
Pump 3
amps
........... .................................................................................................................................................................... ....................................................................................................................
Record run time for each pump at the station. Analyze the runtime minutes onsite to
Yes ❑
No ❑
locate any trouble. Do the pump runtime indicate any operational problem?
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Does wet well to need cleaning? Is there a buildup of grease & debris?
Yes ❑
No ❑
Check pump on/off floats for properoperation. Did all floats operate properly?
Yes
N o
_
Check high water float operation for alarm notification. Did the alarm telemetry /auto -
Yes E]
No E]
dialer work? Did the alarm sound? Did the light flash?
Exercise all lift station valves. Did all valves properly function?
Yes
No
Exercise generator (if applicable) at lift station. Did the generator properly function.
..................................................................................................................................................................................................................................................................................................................................................................................................................
Yes
No ❑
D0exercise you ALL standby generators at least monthly for 15 to 30 minutes
Yes
No ❑
Surcharge / flooding indications?❑ grease / debris on sides F-1grease/ debris under / around / on cover
........................:................................................................................................................................................................................................................
Vermin or insects present? Yes ❑ No F-1 Description:
Comments:
..............................................................................................................................................................................................................................................................................................................................................................................
Large diameter inlet pipe from Port Canaveral — no longer serving the port.
1 Sample Comments: Poor Structural Condition, Serviceable, Broken, Unsafe, Damaged, Corroded, Missing Grout, Needs Raising, Needs Lowering, Misaligned,
Leaking, III -Fitting, Dirty, Bad Joint, Roots, Grease, Infiltration, Cracks
City of Cape Canaveral, Lift Station #3 Inspection Form - Photo(s)
I
Resolution No. 2016-04
EXHIBIT "A"
Resolution No. 2016-04
Page C-4, City of Cape Canaveral, Lift Station #4 InSpec on `Form
Overall LS Condition: (check all that apply)
❑ Good / Satisfactory
❑ Debris / Solids Buildup in LS
❑ Needs Maintenance (describe in comments)
❑ Needs Repair (describe in comments)
❑ Cracked / broken sides / foundation
❑ Misaligned joints
❑ Roots at joints
❑ Visible infiltration
Condition: 1 2 3 4 5
New Failinc
Comments:' Located in modular home
................................................................................................................................................................................................................
development. Wet well walls coating
nearly gone and recoating needed. Some
HZS corrosion & some grease. 2 @ 10 Hp.
"N
„W
SER,IJ POLL
CONTROL PANEL
Date: May 8, 2015
Time: 10:36 A.M. / P.M.
Inspector: James G. Yallaly, P.E.
ALARM LIGM
HINGED ACCESS DOOR
VEM
GUIDE -
RAH
FLOAT SW17CH I
i LEVEL ALAFN
[OPTIONAL)
INLET
FLOATSWITEH
INRERMDTEM
OPERATION
PG Vi
TRAP CHECMLUVALVfVAL
DISCHARGE PIPING
- RAIL GUIDE
- GUIDE RAIL BASE
Material: ❑ Brick / Mortar ❑ Pre -cast Concrete ❑ Lined
❑ other
Run each pump for a short time. Did all pumps operate properly during inspection?
Yes ❑
No ❑
Were any pumps clogged or suctions obstructed at the time ofinspection?
Yes ❑No
E]
Record current draw of each pump Pump 1 amps Pump 2 amps
_:...........................................................................................................
Pump 3
amps
........... .................................................................................................................................................................... ....................................................................................................................
Record run time for each pump at the station. Analyze the runtime minutes onsite to
Yes ❑
No ❑
locate any trouble. Do the pump runtime indicate any operational problem?
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Does wet well to need cleaning? Is there a buildup of grease & debris?
Yes ❑
No ❑
Check pump on/off floats for properoperation. Did all floats operate properly?
Yes
N o
_
Check high water float operation for alarm notification. Did the alarm telemetry /auto -
Yes E]
No E]
dialer work? Did the alarm sound? Did the light flash?
Exercise all lift station valves. Did all valves properly function?
Yes
No
Exercise generator (if applicable) at lift station. Did the generator properly function.
..................................................................................................................................................................................................................................................................................................................................................................................................................
Yes
No ❑
D0exercise you ALL standby generators at least monthly for 15 to 30 minutes
Yes
No ❑
Surcharge / flooding indications?❑ grease / debris on sides F-1grease/ debris under / around / on cover
........................:................................................................................................................................................................................................................
Vermin or insects present? Yes ❑ No F-1 Description:
Comments:
No photos for this station.
1 Sample Comments: Poor Structural Condition, Serviceable, Broken, Unsafe, Damaged, Corroded, Missing Grout, Needs Raising, Needs Lowering, Misaligned,
Leaking, III -Fitting, Dirty, Bad Joint, Roots, Grease, Infiltration, Cracks
Resolution No. 2016-04
Page C-5, City of Cape Canaveral, Lift Station #5 InSpec on `Form
System: City of Cape Canaveral, Florida
...............................................................................................................................................................................................
LS No. #5
LS Address: 306 Columbia Drive
o
GPSCoords.................................................o
Overall LS Condition: (check all that apply)
❑ Good / Satisfactory
❑ Debris / Solids Buildup in LS
❑ Needs Maintenance (describe in comments)
❑ Needs Repair (describe in comments)
❑ Cracked / broken sides / foundation
❑ Misaligned joints
❑ Roots at joints
❑ Visible infiltration
Date: May 8, 2015
Time: A.M. / P.M.
Inspector: James G. Yallaly, P.E.
"N
„W
Yes ❑
SER,IJ POLL
INRERMDSEM
DPE�TGN
ALARM LICJIT
E]
CONTROL PANEL
HINGED ACCESS DOOR
/(
T 4ENI
GUIDE
RAIL
1 2 3 4 5
Yes ❑
No ❑
INRERMDSEM
DPE�TGN
Yes ❑No
E]
Record current draw of each pump Pump 1 amps Pump 2 amps
_:...........................................................................................................
Pump 3
y `L'LUG YALK
'�^" CHEC0.vAv
Condition:
Yes ❑
No ❑
locate any trouble. Do the pump runtime indicate any operational problem?
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Does wet well to need cleaning? Is there a buildup of grease & debris?
Yes ❑
No ❑
New Failin
Yes
N o
_
Check high water float operation for alarm notification. Did the alarm telemetry /auto -
Yes E]
No E]
dialer work? Did the alarm sound? Did the liaht flash?
DISCHARGE PIPING
NAIL GUIDE
Comments:' Above ground pumps, 2-31-11p,
GUIDE RA0.iASE
..........................................................................................................................................................................................................................
located in planned unit development.
Some noise and odor complaints. Limited I Material: ❑ Brick / Mortar ❑ Pre -cast Concrete ❑ Lined
access for maintenance. Recoat walls. I ❑ other
Run each pump for a short time. Did all pumps operate properly during inspection?
Yes ❑
No ❑
Were any pumps clogged or suctions obstructed at the time ofinspection?
Yes ❑No
E]
Record current draw of each pump Pump 1 amps Pump 2 amps
_:...........................................................................................................
Pump 3
amps
.......... .................................................................................................................................................................... ....................................................................................................................
Record run time for each pump at the station. Analyze the runtime minutes onsite to
Yes ❑
No ❑
locate any trouble. Do the pump runtime indicate any operational problem?
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Does wet well to need cleaning? Is there a buildup of grease & debris?
Yes ❑
No ❑
Check pump on/off floats for properoperation. Did all floats operate properly?
Yes
N o
_
Check high water float operation for alarm notification. Did the alarm telemetry /auto -
Yes E]
No E]
dialer work? Did the alarm sound? Did the liaht flash?
Comments:
1 Sample Comments: Poor Structural Condition, Serviceable, Broken, Unsafe, Damaged, Corroded, Missing Grout, Needs Raising, Needs Lowering, Misaligned,
Leaking, III -Fitting, Dirty, Bad Joint, Roots, Grease, Infiltration, Cracks
City of Cape Canaveral, Lift Station #5 Inspection Form - Photo(s)
Resolution No. 2016-04
EXHIBIT "A"
44
_V,
Resolution No. 2016-04
Page C-6, City of Cape Canaveral, Lift Station #7 InSpec on `Form
Overall LS Condition: (check all that apply)
❑ Good / Satisfactory
❑ Debris / Solids Buildup in LS
❑ Needs Maintenance (describe in comments)
❑ Needs Repair (describe in comments)
❑ Cracked / broken sides / foundation
❑ Misaligned joints
❑ Roots at joints
❑ Visible infiltration
Condition: 1 2 3 4 5
New Failinc
Comments:' Some 1112Scorrosion of pipe
................................................................................................................................................................................................................
elbows. Grease and hair problems
noted. Duplex station with 7.5 Hp pumps.
Emergency power provided.
"N
„W
SER,IJ POLL
CONTROL PANEL
Date: May 8, 2015
Time: 10:13 A.M. / P.M.
Inspector: James G. Yallaly, P.E.
ALARM LICGTT
HINGED ACCESS DOOR
VENT
GUIDE
RAH
FLOAT SWITCH I i
i LEVEL ALARM
MPTIONAEI
INLET
FLOATSWITCH
INTERMDTENT
9PERATION
PG Vi
TRAP CHECMLUVALVfVAL
DISC" NOT PIPING
- RAIL GUIDE
- GUIDE RAK BASE
Material: ❑ Brick / Mortar ❑ Pre -cast Concrete ❑ Lined
❑ other
Run each pump for a short time. Did all pumps operate properly during inspection?
Yes ❑
No ❑
Were any pumps clogged or suctions obstructed at the time ofinspection?
Yes ❑No
E]
Record current draw of each pump Pump 1 amps Pump 2 amps
_:...........................................................................................................
Pump 3
amps
........... .................................................................................................................................................................... ....................................................................................................................
Record run time for each pump at the station. Analyze the runtime minutes onsite to
Yes ❑
No ❑
locate any trouble. Do the pump runtime indicate any operational problem?
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Does wet well to need cleaning? Is there a buildup of grease & debris?
Yes ❑
No ❑
Check pump on/off floats for properoperation. Did all floats operate properly?
Yes
N o
_
Check high water float operation for alarm notification. Did the alarm telemetry /auto -
Yes E]
No E]
dialer work? Did the alarm sound? Did the light flash?
Exercise all lift station valves. Did all valves properly function?
Yes
No
Exercise generator (if applicable) at lift station. Did the generator properly function.
..................................................................................................................................................................................................................................................................................................................................................................................................................
Yes
No ❑
D0exercise you ALL standby generators at least monthly for 15 to 30 minutes
Yes
No ❑
Surcharge / flooding indications?❑ grease / debris on sides F-1grease/ debris under / around / on cover
........................:................................................................................................................................................................................................................
Vermin or insects present? Yes ❑ No F-1 Description:
Comments:
............................................................................................................................................................................................................
This station is scheduled to be relocated.
1 Sample Comments: Poor Structural Condition, Serviceable, Broken, Unsafe, Damaged, Corroded, Missing Grout, Needs Raising, Needs Lowering, Misaligned,
Leaking, III -Fitting, Dirty, Bad Joint, Roots, Grease, Infiltration, Cracks
City of Cape Canaveral, Lift Station #7 Inspection Form - Photo(s)
A
R.
0�=
6"!.
uo+f
Resolution No. 2016-04
EXHIBIT "A"
Resolution No. 2016-04
Page C-7, City of Cape Canaveral, MH Upstream from $l�"I#i "Alt
System: City of Cape Canaveral Date: May 8, 2015
MH No. Time: 10:48 A.M. I P.M.
. ,
MH Address:Inspector: James a ryYallaly,P.E.
Overall Condition: (check all that apply)
❑ Good / Satisfactory
❑ Debris / Solids Buildup in MH / channel
❑ Needs Maintenance (describe in comments)
❑ Needs Repair (describe in comments)
❑ Cracked / broken shelf or foundation
❑ Cracked / broken sides or walls
❑ Misaligned joints / loose bricks
❑ Roots at joints
❑ Visible infiltration
Show north arrow, label inlets &
outlets, sizes and flow direction
Overflow or diversion lines present?
...........................................................................................................................................................................................................................................................................................................................................
Other utility lines present? Including force main outfall?
Drop line present/ visible? Internal / External
Surcharge/ flooding indications? ❑ grease / debris on sides
Clarity of Flow?
...................................................................................................
Flow Conditions?
Flow Conditions?
Vermin or insects present?
Yes ❑
No ❑
Yes❑
No ❑
Yes ❑
No ❑
❑ grease / debris on shelf
❑ clear sewage appearance
.......................................................
I ❑ turbulent
❑ high
Summarize all inspections and Action Items into a report and submit with the Bacteria Rule Demonstration Checklist.
Resolution No. 2016-04
City of Cape Canaveral, Manhole Upstream from Lift Station #1 EXHIBIT "A"
l,�
Resolution No. 2016-04
Page C-8, City of Cape Canaveral, MH Upstream fromBLS `�3
System: City of Cape Canaveral Date: May 8, 2015
MH No. Time: 10:36 A.M. I P.M.
. ,
MH Address:Inspector: James a ryYallaly,P.E.
Overall Condition: (check all that apply)
❑ Good / Satisfactory
❑ Debris / Solids Buildup in MH / channel
❑ Needs Maintenance (describe in comments)
❑ Needs Repair (describe in comments)
❑ Cracked / broken shelf or foundation
❑ Cracked / broken sides or walls
❑ Misaligned joints / loose bricks
❑ Roots at joints
❑ Visible infiltration
Show north arrow, label inlets &
outlets, sizes and flow direction
Overflow or diversion lines present?
...........................................................................................................................................................................................................................................................................................................................................
Other utility lines present? Including force main outfall?
Drop line present/ visible? Internal / External
Surcharge/ flooding indications? ❑ grease / debris on sides
Clarity of Flow?
...................................................................................................
Flow Conditions?
Flow Conditions?
Vermin or insects present?
Yes ❑
No ❑
Yes❑
No ❑
Yes ❑
No ❑
❑ grease / debris on shelf
❑ clear sewage appearance
.......................................................
I ❑ turbulent
❑ high
Summarize all inspections and Action Items into a report and submit with the Bacteria Rule Demonstration Checklist.
Resolution No. 2016-04
City of Cape Canaveral, Manhole Upstream from Lift Station #3 EXHIBIT "A"
40
Resolution No. 2016-04
Page C-9, City of Cape Canaveral, MH Upstream fromBLS `�s
System: City of Cape Canaveral Date: May 8, 2015
MH No. Time: 11:06 A.M. I P.M.
. ,
MH Address:Inspector: James a ryYallaly,P.E.
Overall Condition: (check all that apply)
❑ Good / Satisfactory
❑ Debris / Solids Buildup in MH / channel
❑ Needs Maintenance (describe in comments)
❑ Needs Repair (describe in comments)
❑ Cracked / broken shelf or foundation
❑ Cracked / broken sides or walls
❑ Misaligned joints / loose bricks
❑ Roots at joints
❑ Visible infiltration
Show north arrow, label inlets &
outlets, sizes and flow direction
Overflow or diversion lines present?
...........................................................................................................................................................................................................................................................................................................................................
Other utility lines present? Including force main outfall?
Drop line present/ visible? Internal / External
Surcharge/ flooding indications? ❑ grease / debris on sides
Clarity of Flow?
...................................................................................................
Flow Conditions?
Flow Conditions?
Vermin or insects present?
Yes ❑
No ❑
Yes❑
No ❑
Yes ❑
No ❑
❑ grease / debris on shelf
❑ clear sewage appearance
.......................................................
I ❑ turbulent
❑ high
Summarize all inspections and Action Items into a report and submit with the Bacteria Rule Demonstration Checklist.
City of Cape Canaveral, Manhole Upstream from Lift Station #5
Resolution No. 2016-04
EXHIBIT "A"
w
Oe
'aA
i
r'
A&MME Not q.
Resolution No. 2016-04
Page C-10, City of Cape Canaveral, MH Upstream Trop til#7
System: City of Cape Canaveral Date: May 8, 2015
MH No. Time: 10:23 A.M. / P.M.
. ,
MH Address:Inspector: James a ryYallaly,P.E.
Overall Condition: (check all that apply)
❑ Good / Satisfactory
❑ Debris / Solids Buildup in MH / channel
❑ Needs Maintenance (describe in comments)
❑ Needs Repair (describe in comments)
❑ Cracked / broken shelf or foundation
❑ Cracked / broken sides or walls
❑ Misaligned joints / loose bricks
❑ Roots at joints
❑ Visible infiltration
Show north arrow, label inlets &
outlets, sizes and flow direction
Overflow or diversion lines present?
...........................................................................................................................................................................................................................................................................................................................................
Other utility lines present? Including force main outfall?
Drop line present/ visible? Internal / External
Surcharge/ flooding indications? ❑ grease / debris on sides
Clarity of Flow?
...................................................................................................
Flow Conditions?
Flow Conditions?
Vermin or insects present?
Yes ❑
No ❑
Yes❑
No ❑
Yes ❑
No ❑
❑ grease / debris on shelf
❑ clear sewage appearance
.......................................................
I ❑ turbulent
❑ high
Summarize all inspections and Action Items into a report and submit with the Bacteria Rule Demonstration Checklist.
City of Cape Canaveral, Manhole Upstream from Lift Station # 7
ti
Resolution No. 2016-04
EXHIBIT "A"
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
APPENDIX "D" - CURRENT ASSET VALUE
Based upon the Comprehensive Annual Financial Report, at the end of September, 2014, the Wastewater Fund had a net
capital assets value of $13,892,808.
The wastewater utility fixed assets have an accounting life of 40 years and land does not depreciate.
The original wastewater treatment facility was constructed in 1966 and rehabilitated in 1996. The wastewater collection
system construction date could not be determined; however, much of the system is aging.
The "book value' of these depreciated assets would be considered less than its actual current functional value.
"Replacement cost" is another method of evaluating the capital assets value, but this results in a future useful life of the
facilities much longer than the actual existing assets, thus is also not representative of the true value.
The municipality utilizes a purchase price and amortization method to track asset valuations. Another method that can
be considered to assist in obtaining asset values is a "Market Value" evaluation. Market value could be defined as the
dollar amount that a willing seller and a willing buyer could agree upon.
For the purpose of this plan, preliminary market value formulas have been developed and will be adjusted with each
update of this plan report and as more historical data become available.
The spreadsheet on the following page indicates an approach to projecting current market value of the wastewater
utility.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 21 of 28
Resolution No. 2016-04
City of Cape Canaveral - Fiscal Sustainability Plan Analysis & Asset Management Plan -Wastewater UtilitU BIT "A"
Appendix "D" - Fixed Assets Preliminary Market Value Projections 15-Jun45
Municipal Wastewater Collection and Treatment Facilities:
Preliminary Market Value Projections for Wastewater Treatment Fixed Assets:
$ 9,100,000.00
Formula Constant:
I
I
$ 100,000.00
Formula Variable:
per 1 MGD Capacity $
5,000,000.00 1
$ 9,000,000.00
Permitted Capacity MGD
1.800
Preliminary Market Value Projections for Non -Treatment Fixed Assets:
$ 9,567,000.00
Formula Constant:
$ 100,000.00
Formula Variable:
$ 9,467,000.00
Unit
Unit Value
Units
6" Dia Gravity Sewers LF
$
30.00
0
8" Dia Gravity Sewers LF
$
36.00
0
10" Dia Gravity Sewer LF
$
43.00
99000
6" Dia Force Mains LF
$
30.00
0
Hwy or stream crossings
$
500.00
0
Manholes Each
$
2,000.00
330
Lift Stations Each
$
350,000.00
13
Preliminary Market Value Projections for both Treatment and Non -Treatment Fixed Assets: $ 18,667,000.00
Note: For the purposes of this calculation, an equivalent of 10" diameter gravity sewers are used and the force mains are included in the lift station value.
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
APPENDIX "E"- TREATMENT AND SYSTEM OPERATION AND MAINTENANCE COSTS (O&M)
From the "Comprehensive Annual Financial Report" for the fiscal year ending September 30, 2014, indicated wastewater
utility revenue and expenses as shown below:
Operating Revenue - Charges for Service
Operating Expenses
Personal services $1,175,980
Materials and supplies $ 133,382
Other operating and maintenance $ 636,671
Depreciation $ 867,181
Operating Income
This does not include non-operating revenues and expenses and other transfers.
The Wastewater Fund's net position ending September 30, 2014, was $15,090,280.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 22 of 28
$3,569,928
$2,813,214
$ 756,714
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
APPENDIX "F" - FIVE-YEAR CAPITAL IMPROVEMENT PLAN (CIP)
Fixed Asset Capital improvements include rehabilitation, replacement and capacity expansion. As indicated earlier, the
first $25,000 of expenditures for rehabilitation and replacement should come from the operating budget. The Capital
Improvement Plan (CIP) should look five years into the future.
The City of Cape Canaveral has a Five -Year Capital Improvement Plan (CIP) for the Wastewater Fund and is shown in
Appendix "F" page F-2.
Major capital improvements included are as follows:
The Grit/Bar Screen Replacement Project includes the replacement of the headworks at the WWTP. Excessive amounts
of larger debris are currently passing through the existing headworks and into the wastewater treatment train thus
reducing efficiency. This was included in the FY 2014-15 capital budget and is not shown in the Appendix "F" schedules.
The Oxidation Ditch Improvements Project includes the complete redesign of the oxidation ditch system at the WWTP.
There is currently no redundancy with the oxidation ditch design. The redesign will provide a second oxidation ditch
process for use in emergency situations and will allow for improved maintenance. The work will include refurbishment
of all pumps and valves for a more efficient system and installing a cover over the existing oxidation ditch to limit offsite
spray. A" Preliminary Design Report" for the "WWTP Improvements for Oxidation Ditch Rehabilitation' was prepared
by Tetra Tech. The construction phasing is critical to this project since the oxygen ditch is a single unit without
redundancy.
The City's Sludge Belt Press is over 20 years old and will be refurbished. Its purpose is to press solids from the
wastewater process and direct the solids into dumpsters for transport and disposal at the Brevard County Landfill. The
Project also includes expansion of the belt press building and purchase/ installation of an additional sludge belt press to
provide redundancy in the treatment process.
The Reclaimed Water Tank Project includes the construction of a new 2.5 million gallon reclaimed water tank at the
WWTP. The Tank will allow the City to eliminate discharges of treated wastewater to the Banana River and provide
additional reclaimed water to residents, Port Canaveral and the City of Cocoa Beach.
The Holman Road Sanitary Sewer Improvements Project was developed to alleviate sewer back-up in a residence along
Holman Road and to increase sewer capacity. The sanitary sewer line located beneath Holman Road will be replaced
with a 10 -inch diameter pipe. This work is the first phase of a three phased project to replace the entire sanitary sewer
line to Lift Station #2 located along Center Street.
The Force Main #3 Replacement Project includes the replacement of the oldest force main in the City which was installed
over 25 years ago and has experienced numerous breaks over the past few years. The new force main will connect Lift
Station #3 to the force main located along Thurm Boulevard.
The Lift Station #6 (Imperial Drive) and #7 (West Central Boulevard) Upgrades include improvements to these two lift
stations due to continued growth along the northern State Road A1A corridor. Lift Station #7 will also be relocated to
City -owned property in Manatee Sanctuary Park.
As a tool in determining the annual amount needed for the R&R program, the preliminary market value was determined
using a unit price value scheme, as shown in Section II (c).
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 23 of 28
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
On this basis, the annual R&R budget projects are as follows:
• Water Reclamation Facility
• Wastewater Collection System
$273,000 per year
$288,000 per year
Determining the projects to be included in each annual R&R should be based upon a priority rating system to include the
specific asset's "Criticality' and "Condition'. This requires an up-to-date condition assessment data program.
The R&R capital program doesn't include capacity expansion, but renews the specific existing asset components over
their life expectancy.
The spreadsheet on the following page indicates the targeted planning projects for the "Five -Year Wastewater Capital
Improvement Plan - Fixed Assets'.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 24 of 28
i
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Resolution No. 2016-04
CITY OF CAPE CANAVERAL
CAPITAL IMPROVEMENT PROGRAM
PAGE F-2 WASTEWATER ENTERPRISE CAPITAL FUND
SUMMARY
RVE YEAR PLAN
Project Summary: 1 W1111''
EXHIBIT
CIP #
ENTERPRISE CAPITAL FUND
EC -1
Force Main Replacements
185,000
155,000
EC - 2
Oxidation Ditch Reconfiguration
1,950,000
231,000
EC -3
TCU Radio Replacements
10,500
ECA 4
Sludge Belt Press Refurbishment
814,400
EC -5
Reclaimed Water Tank
1,212,000
EC -6
Holman Road Improvements
676,775
EC -7
RAS Pump Replacements
15,500
16,000
EC -8
RAS Pump Motor Replacements
8,000
8,000
8,000
EC -9
Lift Station Rehabilitations
586,100
409,500
EC - 10
WAS Pump Replacements
16,000
EC - 11
IWAS Pump Motor Replacements
8,000
EC -12
Internal Recycle Pump Replacements
15,500
16,000
16,500
EC -13
Internal Recycle Pump Motor Replacements
8,000
EC -14
Reclaimed Water Pump Replacements
8,100
8,200
8,300
8,400
EC -15
Reclaimed Water Pump Motor Replacements
8,100
EC -16
Lift Station Pump Replacements
25,500
26,000
26,500
27,000 27,500
EC -17
1 Emergency Generators
45,000
45,000
EC -18
Transfer Basin Pump Replacements
16,000
17,000
EC -19
Transfer Basin Pump Motor Replacements
15,500
EC - 20
Pre -Treatment System Upgrade
75,000
EC - 21
Variable Frequency Drive Installations
7,600
7,700
EC -22
ISludge Holding Blower Replacements
50,000
15,000
EC - 23
Bleach System Upgrades
11,000
EC - 24
Clarifier Cover Improvements
80,000
EC - 25
Sand Filter Improvements
16,000
32,000
EC -26
Computer and Server Replacements
41,500
3,000
6,000 1
6,000 3,000
EC - 27
Office Equipment Upgrades
8,000
15,000
EC - 28
Banana River Park Phases 11/III - WW
20,000
EC - 29
Vehicle Replacements - WWTP
28,000
56,000
EC -30
WWTP Generator Replacement
-
130,000
EC - 31
Instrumentation Upgrades
12,000
12,000
12,000
EC - 32
Wastewater Sampler Replacements
7,000
EC - 33
WWTP SCADA System
-
125,000
EC -34
Mixer Replacements
8,400
EC - 35
TSS Oven Replacement
5,000
EC - 36
Intermediate Pump Station By-pass
32,000
250,000
EC - 37
Shop Equipment - Heavy Duty Tools
3,000
EC -38
Distilled Water System Replacement
16,800
EC -39
Defibrillators
400
4,000
400
EC - 40
Piermount Mixer Rehabilitations
22,000
EC -41
WWTP Facility Fence Replacement
70,000
EC - 42
Refrigerator Replacement
8,500
EC - 43
Reclaimed Pump Enclosure
52,000
EC - 44
Other Pump/Motor Enclosures
115,000
EC -45
WWTPElectrical/Lighting Replacement
180,000
EC - 46
WWTP Lab Dishwasher Replacement
6,000
EC -47
AC Unit Upgrades
14,000
14,000
EC -48
Maintenance Software Purchase/Maintenance
10,910
1,135
1,135
1,135 1,135
Total Enterprise Capital Fund
$ 5,804,285
$ 783,835 $
822,235 $
604,735 $ 258,535
F-
I
W
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
APPENDIX "G" - FUNDING RATE STRUCTURE FOR O&M AND CIP
The City of Cape Canaveral retained the professional services of Raftelis Financial Consultant, Inc. to prepare a "Sewer
System Rate Study" in 2012, which is reprinted on the following pages.
The study is an in-depth evaluation of the revenue needs and recommended an appropriated user rate structure. The
City has implemented the findings of the study.
The proposed rate for a single family residential unit using 5,000 gallons per month of potable water is $38.82 and for
10,000 gallons of reclaimed water is $6.00. Under the new rate structure, single family residential units generate
approximately 22% of the revenue, multi -family approximately 62% and the remaining from other property types.
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 25 of 28
Resolution No. 2016-04
EXHIBIT "A"
City of
Cape Canaveral
Sewer System
Rate Study
February 2012
Prepared by:
RFC
RAFTELIS FINANCIAL
CONSULTANTS, INC.
RFC■ 976 Lake Baldwin Lane, Suite 204
Orlando • Florida • 32814
RAFTELIS FINANCIAL
CONSULTANTS, INC.
February 1, 2012
Mr. John M. McGinnis
Financial Services Department
City of Cape Canaveral
105 Polk Avenue
P.O. Box 326
Cape Canaveral, Florida 32920-0326
Subject: Sewer System Rate Study (the "Study")
Dear Mr. McGinnis:
Resolution No. 2016-04
EXHIBIT "A"
Phone 407.271.4775 www.raftelis.com
Fax 407.730.5941
Raftelis Financial Consultants, Inc. (RFC) is pleased to present herein our Report concerning a
multi-year Sewer System Rate Study authorized by the City of Cape Canaveral (the "City"). Study
objectives in addition to revenue sufficiency included the development of appropriate provisions
allowing for equitable recovery of costs from all class of customers including those being provided
reclaimed water. This Report contains findings, conclusions, recommendations and supporting
analysis associated with the design and determination of recommended sewer customer
reclassifications, rate structure modifications, reclaimed water rates and sewer rate component
adjustments for the next five fiscal years ending 2015/16.
We wish to acknowledge the assistance provided by your excellent staff and thank the City for the
opportunity to be of service.
Very truly yours,
Raftelis Financial Consultants, Inc.
Marco H. Rocca, C.M.C.
Director of Florida Operations
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
Table of Contents
ExecutiveSummary....................................................................................................................................
ES -1
Findings, Conclusions and Recommendations.......................................................................................
ES -6
Findings and Conclusions............................................................................................................
ES -6
Recommendations.........................................................................................................................
ES -6
General................................................................................................................................................................1
Existing Sewer Revenue Generating System.................................................................................................1
ExistingSewer Customers................................................................................................................................
2
Proposed Reclassification and Implementation of Reclaimed Water Rates................................3
Commercial Customer Classification................................................................................................3
Rental Property Equivalency Basis and Usage Rate Attribute.......................................................
4
Reclaimed Water Class and Cost Recovery Basis............................................................................
4
Overview of Customer Classification, Equivalency Basis and Rate Structure Changes............
5
ProjectedSewer Customers..............................................................................................................................
5
FiscalRequirements...........................................................................................................................................
5
Net Rate Requirements for Fiscal Year 2011/12 ............................................................................
6
Allocation of Net Rate Requirements...............................................................................................
7
Rate Determinants by Customer Class.............................................................................................
7
ProposedUser Rates............................................................................................................................
8
Results of Reclassification, Modification and Adjustments...........................................................
8
Multi -Year Revenue Sufficiencv.........................................................................................................
9
Proposed Multi -Year User Rates.......................................................................................................
9
RateImpact on Typical Bills..........................................................................................................................10
Comparisons to Other Communities...........................................................................................................10
ProformaOperating Results..........................................................................................................................11
ReserveFund Balances...................................................................................................................................12
Capital Improvement Program Sources and Uses......................................................................................13
Findings, Conclusions and Recommendations............................................................................................14
Findingsand Conclusions.................................................................................................................14
Recommendations..............................................................................................................................14
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
List of Tables
Table ES -1. Projected Revenue Sufficiency............................................................................................
ES -2
Table ES -2. Schedule of Proposed Multi -Year Rates and Charges .....................................................
ES -2
Table ES -3. Typical Bill Impact of Proposed Rate Adjustments by Customer Class ......................
ES -3
Table ES -4. Other Utility Comparison....................................................................................................
ES -4
Table ES -5. Proforma Operating Statement and Fund Balances........................................................
ES -5
Table1. Existing Rates......................................................................................................................................2
Table2. Existing ERU Basis............................................................................................................................
2
Table 3. FY 2009/10 Customer ERUs, Usage and Revenue Relationships.............................................3
Table 4. Summary of Cost Recovery Changes..............................................................................................
5
Table 5. Projected Fiscal Requirements..........................................................................................................
6
Table6. Net Rate Requirement.......................................................................................................................
7
Table7. Cost Allocations..................................................................................................................................
7
Table 8. Rate Determinants by Customer Class............................................................................................
8
Table 9. Determination of Proposed User Rates for Fiscal Year 2011/12 ...............................................
8
Table 10. FY 2011/12 Proposed Customer ERUs, Usage and Revenue Relationships .........................
8
Table 11. Projected Net Rate Requirements..................................................................................................9
Table 12. Schedule of Proposed Multi -Year User Rates..............................................................................9
Table 13. Other Utility Comparison.............................................................................................................11
Table 14. Proforma Operating Statement....................................................................................................12
Table15. Fund Balances.................................................................................................................................13
Table16. CIP Sources and Uses....................................................................................................................13
List of Graphs
Graph ES -1. 2009/10 Customer ERUs, Usage and Revenue Relationships ..................................... ES -1
Graph ES -2. 2011/12 Proposed Typical Bill Impacts.......................................................................... ES -3
Graph ES -3. FY 2011/12 Proposed Customer ERUs, Usage and Revenue Relationships ............ ES -4
Graph 1. 2011/12 Proposed Typical Bill Impacts......................................................................................10
List of Schedules
Schedule 1. Sewer Customer Accounts, ERUs and Billable Flow Projections ..................................... S-1
Schedule 2. Net Rate Fiscal Requirements................................................................................................. S-2
Schedule 3. Capital Improvement Program............................................................................................... S-4
Schedule4. Cost Allocations........................................................................................................................ S-5
Schedule 5. Results of Proposed Rate Adjustments................................................................................. S-7
M
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
Executive Summary
The City of Cape Canaveral, Florida (the "City") retained Raftelis Financial Consultants, Inc. (RFC)
to conduct a Sewer System Rate Study (the "Study") providing multi-year recommendations for
revenue sufficiency through just and equitable cost recovery. The Study utilized a comprehensive
approach that incorporated reviews and analyses of customers, operations, and financial
requirements, which are discussed in the following portions of this report. The Study process
concluded that certain customer reclassifications, rate structure modifications and the addition of
charges for reclaimed water services would be necessary to implement uniform rate adjustments on a
just and equitable basis.
The City's Sewer Utility (the "Utility") customer and financial data were collected and analyzed to
identify the relationships between the demands (ERUs), service (Usage) and cost recovery
(Revenues) by customer class. The findings of this important ratemaking exercise, as illustrated in
Graph ES -1, is that certain imbalances existed, which could be corrected to better normalize these
relationships. (In reading this graph, the closer the relationship between ERUs, Usage and Revenues
within each customer class, the more normalized are the results; as can be observed, the Revenue
green bar associated with Commercial exceeds both the ERU blue bar and the Usage red bar.)
PW Graph ES -1. 2009/10 Customer ERUs, Usage and Rev
Relationships
80%
70%
60%
50%
40%
30%
20%
10%
0%
Single Family Multi -Family Commercial
■ ERUs ■ Usage ■ Revenues
The next item of ratemaking concern involves the sufficiency of revenues to meet the projected
fiscal requirements through 2015/16, based on existing rates. This analysis process included the
assumption that future expenses would be subject to inflation and that a long-term loan would be
ES -1
Resolution No. 2016-04
EXHIBIT "A"
Citv of Cape Canaveral Sewer
required to fund $2,000,000 of the Capital Improvement Program (CIP). The results of this analysis
are reflected on Table ES -1, which shows the need for additional revenues in future periods.
Table ES -1. Projected Revenue Sufficiency'
2011/12 2012/13 2013/14 2014/15 2015/16
O&M Expenses
$2,352,100
$2,440,300
$2,532,300
$2,627,500
$2,726,300
Debt Service
727,200
805,100
805,100
805,100
553,400
Transfers
243,400
250,000
270,400
288,900
307,100
Capital from Rates
34,000
34,000
34,000
34,000
34,000
Subtotal
$3,356,700
$3,529,400
$3,641,800
$3,755,500
$3,620,800
Other Revenues
79,600
79,600
79,600
79,600
79,600
Total Fiscal Requirement
$3,277,100
$3,449,800
$3,562,200
$3,675,900
$3,541,200
User Revenues
3,491,900
3,491,900
3,491,900
3,491,900
3,491,900
Difference Amount
$ 214,800
$ 42,100
$ (70,300)
$ (184,000)
$ (49,300)
Difference Percent
6.15%
1.21%
-2.01%
-5.27%
-1.41%
1 Assumes fiscal requirements are increased to account for inflation and proposed debt service on CIP debt, and
revenues remain at current rates.
The Study addressed the previously discussed customer imbalances and revenue shortfall in future
fiscal years through: (i) the reclassification of connections with multi -dwelling rentals within the
Commercial and Multi -Family classes to a new customer classification of Rental Property; (ii)
adjustment of the Commercail rate factor from 3.0 to 1.25; and (iii) implementaion of a flat rate for
recovery of Reclaimed Water service. Revenue shortflalls in the following fiscal years were
addressed through uniform rate adjustments of 5.5 percent for fiscal year 2012/13 followed by 5.0
percent for each successive fiscal year. The individual rates and changes for the multi-year period
through fiscal year 2015/16 based on the criteria discussed above are reflected in Table ES -2.
Table ES -2. Schedule of Proposed Multi -Year Rates and Charges
2010/11 2011/121 2012/13 2013/14 2014/15 2015/16
Customer Charge per Bill
All Classes $1.55
$1.64
$1.74
$1.83
$1.93
$2.03
Readiness to Serve Charge per ERU
Single Family $13.38
$14.18
$14.96
$15.71
$16.50
$17.33
Commercial $40.14
$17.73
$18.71
$19.65
$20.64
$21.68
Rental Property N/A
$14.18
$14.96
$15.71
$16.50
$17.33
Public Buildings $13.38
$14.18
$14.96
$15.71
$16.50
$17.33
Usage Rate per 1,000 gal.
Single Family $4.34
$4.60
$4.86
$5.11
$5.37
$5.64
Commercial $13.02
$5.75
$6.07
$6.38
$6.70
$7.04
Rental Property N/A
$4.60
$4.86
$5.11
$5.37
$5.64
Public Buildings $4.34
$4.60
$4.86
$5.11
$5.37
$5.64
Sewer Flat Rate
Multi -Family $22.92
$24.30
$25.64
$26.93
$28.28
$29.70
Reclaimed Water Flat Rate per ERIC
All Classes $0.00
$6.00
$6.33
$6.65
$6.99
$7.34
1 Rates were increased by 6.0% on January
1, 2012. The rate classification
and
rate structure
modifications to Commercial, Rental Property and Reclaimed
Water
classifications
are proposed to
be effective as of July 1, 2012.
ES -2
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
Examples of the result of these proposed rate changes on typical billings for customer class are
shown in Table ES -3, as summarized from Schedules 5A, B, C and D, and illustrated in Graph ES -
2. It should be noted that: 1) the Bill Amt and % Diff for fiscal year 2011/12 are the results of all
the changes discusssed in (i), (ii) and (iii) above; and 2) the slight difference between the stated
adjustment percentages and the % Diff in the table are due to rounding of the individual rates to the
nearest penny as provided in Table ES -2.
Table ES -3. Typical Bill Impact of Proposed Rate Adjustments By Customer Class
The proposed typical bill impact for fiscal year 2011/12 differs among the customer classes due to
the determination of rates and charges based on apportioned fiscal requirements and customer class
determinants for each customer class. Once these relationships between ERUs, Usage and
apportioned fiscal requirements have been established, rate adjustments for future years can be
conducted through uniform amounts. Illustrated in Graph ES -2 are the differences in typical billing
impacts that each customer in each customer class will experience pursuant to the proposed rate
changes. The changes for residential customers, Single and Multi -Family, fall within the low six
percent range. Commercial class connections are projected to experience a onetime significant
decrease based on reducing the previous rate factor on the Readiness to Serve Charge and Usage
Rate from three hundred percent to one hundred and twenty-five percent. The varied decreases for
those customers that are included within the new Rental Property are also due to the previously
stated reduction in the rate factor.
ES -3
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
Class
Bill Amt
Bill Amt % Diff
Bill Amt
% Diff
Bill Amt
% Diff
Bill Amt
% Diff
Bill Amt % Diff
Single Family
$36.63
$38.82 5.98%
$41.00
5.62%
$43.09
5.10%
$45.28
5.08%
$47.56 5.04%
Multi -Family
$22.92
$24.30 6.01%
$25.64
5.53%
$26.93
5.03%
$28.28
5.01%
$29.70 5.02%
Commercial
$106.79
$48.12 -54.94%
$50.80
5.57%
$53.38
5.08%
$56.07
5.04%
$58.91 5.07%
Rental Property
$9,067.16 $4,854.74 -46.46%
$5,127.05
5.61%
$5,389.38
5.12%
$5,661.69
5.05%
$5,945.82 5.02%
Note: Single Family, Multi -Family
and Commercial based on 5,000 gal usage. Rental Property based
on average
of actual usage for the four Rental Property
accounts.
The proposed typical bill impact for fiscal year 2011/12 differs among the customer classes due to
the determination of rates and charges based on apportioned fiscal requirements and customer class
determinants for each customer class. Once these relationships between ERUs, Usage and
apportioned fiscal requirements have been established, rate adjustments for future years can be
conducted through uniform amounts. Illustrated in Graph ES -2 are the differences in typical billing
impacts that each customer in each customer class will experience pursuant to the proposed rate
changes. The changes for residential customers, Single and Multi -Family, fall within the low six
percent range. Commercial class connections are projected to experience a onetime significant
decrease based on reducing the previous rate factor on the Readiness to Serve Charge and Usage
Rate from three hundred percent to one hundred and twenty-five percent. The varied decreases for
those customers that are included within the new Rental Property are also due to the previously
stated reduction in the rate factor.
ES -3
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
Graph ES -3 is provided to illustrate the effectiveness of the proposed reclassification and rate
structure modifications on providing a closer relationship between ERUs, Usage and Revenue for
each customer class. As illustrated in the graph, the green bar more closely approximates the levels
of the blue and red bars.
Graph ES -3 FY 2011/12 Proposed Customer ERUs, Usage
80"/o and Revenue Relationships
70%
60%
50%
40%
30%
20%
10%
0%
Single Family Multi -Family Commercial Rental Property
■ ERUs ■ Usage ■ Revenues
A comparison of typical Single Family monthly wastewater service and reclaimed water service bill
amounts, exclusive of taxes and other charges, is provided in Table ES -4. It is important to note
that utilities throughout Florida and the nation differ significantly in the way they are capitalized,
operate, service areas, customer characteristics, geographical location, quality of service, community
standards and many other factors. These differences are all reflected in the amounts charged and
impact on customer classes.
Table ES -4. Other Utility Comparison
Single Family 5,000 gal Sewer and Reclaimed 10,000 gal Service
ES -4
Sewer
Reclaimed
City of Cape Canaveral
Existing
$36.63
$0.00
Proposed
$38.82
$6.00
Neighboring Utilities
Brevard County
Barefoot Bay
$52.61
$6.00
North Brevard
$32.66
$6.00
Indian River County
$30.17
$6.00
City of Cocoa
$38.81
$7.00
City of Cocoa Beach
$24.09
$6.00
ES -4
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
Table ES -4. Other Utility Comparison (continued)
Single Family 5,000 gal Sewer and Reclaimed 10,000 gal Service
City of Holly Hill
City of Melbourne
City of New Smyrna Beach
City of Ormond Beach
City of Palm Bay
City of Rockledge
City of Vero Beach
City of West Melbourne
Average of Other Utilities
Sewer
Reclaimed
$33.41
N/A
$39.69
$8.00
$34.77
$10.00
$28.36
$16.00
$37.24
$18.42
$26.65
$10.00
$37.84
$19.20
$55.22
$8.00
$36.27
$10.05
The effectiveness of the proposed changes to provide revenues that are sufficient to provide for the
projected fiscal requirements including debt service for a proposed loan and reestablish necessary
reserve levels is demonstrated in Table ES -5 as summarized from Tables 14 and 15 in the body of
this Report. The additional surpluses in the Proforma Operating Statement are accumulated in the
Unrestricted Operation Reserve Fund to assist in reestablishing necessary levels of reserves to
address creditworthiness of the Utility and be available for emergencies.
Table ES -5. Proforma Operating Statement and Fund Balances
2011/12 2012/13 2013/14 2014/15 2015/16
Operating Proforma
Fiscal Requirements
$3,356,700
$3,526,600
$3,637,800
$3,758,800
$3,633,600
Other Revenues
79,600
85,000
88,400
86,400
86,600
Net Rate Requirements
$3,277,100
$3,441,600
$3,549,400
$3,672,400
$3,547,000
User Revenues
3,412,500
3,449,300
3,627,000
3,813,000
4,008,300
Surplus (Deficit)
$135,400
$7,700
$77,600
$140,600
$461,300
Fund Balances
Unrestricted Operating Reserve Fund
Beginning Balance
$ 1,647,900
$ 1,372,300
$ 1,380,000
$ 1,457,600
$ 1,159,000
Annual Operating Surplus
135,400
7,700
77,600
140,600
461,300
Transfer in from DSRF
-
-
-
-
435,500
Transfer to Project Fund
411,000
-
-
439,200
367,400
Ending Balance
$ 1,372,300
$ 1,380,000
$ 1,457,600
$ 1,159,000
$ 1,688,400
Expansion Fund
Beginning Balance $ 49,800
Assessment Fees -
Transfer to Project Fund -
Interest Earnings 400
Ending Balance $ 50,200
$ 50,200 $ 72,900 $ 15,900 $ 39,700
22,300 23,000 23,700 24,400
- 80,000 - -
400 - 100 300
$ 72,900 $ 15,900 $ 39,700 $ 64,400
ES -5
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
Findings and Conclusions
The findings and recommendations presented herein were formulated based on reviews, analyses,
community standards and ratemaking principles all predicated on existing and anticipated
conditions.
1.
2.
3.
a. The existing rates are not sufficient to fully fund the current budgeted and projected
operating, debt service, transfers and other requirements of the Utility.
b. The study made provisions to increase the revenues generated by the system and
provide for debt funding of CIP to minimize the annual cash requirements.
a. Uses of reserves accumulated from the prior year's earnings to address the rate
deficiencies are not adequate and depletion of the reserves will reflect negatively on
the Utility's creditworthiness.
b. Debt funding is to be initiated to reduce the burden on operating reserves and rate
funded pay-as-you-go capital funding needs.
a. The current rate structure does not fully address the customer characteristics and
community standards, and places an undue burden on certain customer classes.
b. Reclaimed water service is a valuable service and costs for such services should be
recovered from those who benefit through a rate structure that does not require an
added expense of metering usage.
c. Connections with multi -dwelling rental activities exhibit unique characteristics and
should be classified independent of other Commercial and Multi -Family connections
with an equivalency basis relating to dwelling units in lieu of meter size.
d. The rate factor currently utilized for Commercial connections no longer reflects the
additional demand and loading characteristics of non-residential connections.
Recommendations
Pursuant to the objectives, findings and conclusions previously discussed and the reviews, analyses,
and assumptions summarized herein, along with the needs of the community, the application of
ratemaking principles, and the consultant's experience with similar utilities, it is recommended that:
1. The City proceed to revise the applicable sections of the Code of Ordinance to reflect the
Rental Property and Reclaimed Water customer classifications including the basis of
determining equivalencies and applicable rate structures.
2. The City proceed to adopt the multi-year rates identified herein as summarized in Table 12
with an effective date of the first full billing period after October 1 of each fiscal year.
3. The City secure a minimum of $2,000,000 in construction proceeds from the issuance of
long term debt on or before April 2012.
ES -6
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
4. A reevaluation of revenue sufficiency be conducted in the event of any material change in
customers, operations, fiscal requirements or other items that adversely affect the Utility.
The revenues, expenses, costs, and criteria associated with ratemaking are representative of averages
that are developed primarily from historic and projected data. A significant amount of historical
review and analysis together with the development of assumptions based on prudent engineering,
financial, and ratemaking relationships have been utilized in the development of the proposed rates,
fees, and charges proposed herein. Some of the assumptions will inevitably change or not
materialize and unanticipated events may occur which could significantly change the results
presented herein. The findings, conclusions and recommendations presented herein were
formulated based on reviews, analysis and input from City staff, together with and predicated on
existing conditions, community standards and ratemaking principles.
ES -7
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
General
The City of Cape Canaveral, Florida (the "City") retained Raftelis Financial Consultants, Inc. (RFC)
to provide professional services concerning a multi-year Sewer System Rate Study (the "Study") with
the primary goal and objective being that the recommendations result in: (i) operating revenues,
which together with other available resources, that are sufficient to provide for 100 percent of the
fiscal requirements for the City's Sewer Utility (the "Utility"); (ii) just and equitable rate structure and
rates; and (iii) administratively compatible and publicly understandable system of cost recovery.
Important considerations that the City specifically requested were the evaluation of the Commercial
rate structure and the cost recovery of reclaimed water services.
The Study uses a methodology predicated on cost of service ratemaking principles that also takes
into consideration the existing rate structure, City policies, economic conditions, and community
standards. This process results in cost recovery provisions where reasonable relationships exist
between the amounts paid by customers and the benefits /services provided to the customers.
Sewer related customer benefits and services include the availability of service capacity, the
collection, treatment, environmentally responsible disposal of treated effluent and provision of
reclaimed water for reuse purposes. The approach used in this Study followed ratemaking protocol,
which includes reviews of historic, current and projected customers by category, fiscal requirements
and enterprise financials. The approach also takes into consideration concerns the City and
community have regarding the appropriateness of the criteria used for Commercial customers.
The results of this Study contain forecasts and results that are based on assumptions of future
events, which will inevitably change; however, a significant amount of historical reviews and
analyses, together with the development of assumptions based on prudent engineering, financial and
ratemaking relationships, have been utilized in the development of the findings, conclusions and
recommendations presented herein.
Existing Sewer Revenue Generating System
The Utility's existing cost recovery system for providing sewer service is comprised of. (i) user rates
and charges (monthly usage charges); (ii) other charges for services (special service requests,
penalties, interest earnings, reclaimed water hook-up fees, miscellaneous services, etc.); and (iii)
Assessment Fees from new connections. It should be noted that operating revenues provided
through user rates and charges, and other charges for services are unrestricted and primarily utilized
to pay the Utility's operating and maintenance expenses and capital improvements; whereas
Assessment Fee revenues, which are actually impact fees, are restricted and limited for use in
expansion related projects and debt service.
The Utility's existing cost recovery system was last adjusted with the adoption of Resolution No.
2007-25 on September, 18 2007, effective January 1, 2008, and provided for annual rate adjustments
through fiscal year 2011/12. The existing rate structure provides for the following:
1. Sewer Customer Charge — a uniform charge per bill.
2. Sewer Readiness To Serve Charge — a uniform charge per Equivalent Residential Unit
(ERU), where one ERU is equal to the service characteristics of a Single Family dwelling
unit.
3. Sewer Usage Cost — a charge based on the recorded billable metered water usage and a
uniform rate per 1,000 gallons.
4. Flat Charge — a flat charge per residential dwelling unit for Multi -Family class only.
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Resolution No. 2016-04
EXHIBIT "A"
Citv of Cape Canaveral Sewer
Summarized in Table 1 are the existing rate component amounts effective as of January 1, 2011. It
should be noted that the City currently does not charge for reclaimed water to customers within the
City's service area nor to the City of Cocoa Beach and Port Canaveral, which have agreements for
reclaimed water.
Table 1. Existing Rates
Amount
Customer Billing Charge per Bill $ 1.64
Monthly Readiness to Serve per ERU 1 $14.18
Usage Rate per 1,000 gallons of Usage' $ 4.60
Monthly Flat Charge (Multi -Family only) $ 24.30
1 Commercial connection at 3.0 times.
Other operating revenues consist of amounts accumulated from specific charges for specific services
provided including: (i) inspection/tap fees; (ii) wastewater discharge permit fees; and (iii) reuse hook-
up fees; as well as late charges, penalty income, interest income and other miscellaneous charges.
All new connections to the Utility are required to pay an Assessment Fee based on $2,337.81 per
ERU. Assessment Fee revenues are accounted for separately with their use limited to expenditures
relating to system expansion facilities and debt service.
Existing Sewer Customers
Customer classifications as established through the Rate Ordinance consist of. (i) Single Family -
detached residential dwelling units other than mobile homes; (ii) Multi -Family - attached residential
dwelling units either individually or master metered; (iii) Commercial - nonresidential connections;
and (iv) Public Buildings - all connections associated with public purposes by any department or
branch of government, state, county or municipal, without reference to the ownership of the
building or of the realty upon which it is situated. Also established through the Rate Ordinance is
the equivalency basis referred to as ERU, which relates a Single Family dwelling unit to other
customer classifications, dwelling units and sizes of connection. The ERU basis for Single Family,
Commercial and Public Building classifications is shown in Table 2.
Table 2. Existing ERU Basis
Meter Size ERU
3/4"
1.00
1.0"
2.50
1.5"
5.00
2.0"
8.00
3.0"
15.00
4.0"
25.00
6.0"
60.00
8.0"
80.00
A billing frequency analysis was conducted on the billing records for fiscal year 2009/10 containing
the recorded customer activities. The primary purpose of the billing frequency analysis is to identify
the relationships between the demands (ERUs), service (Usage) and cost recovery (Revenues) by
customer class. Summarized in Table 3 are the results of the billing frequency analysis, indicating
2
Resolution No. 2016-04
EXHIBIT "A"
Citv of Cape Canaveral Sewer
relative differences between ERUs, Usage and Revenues, namely within the Commercial class.
These differences are primarily due to the effects of the existing rate structure and rates, which are
addressed in this Study.
Table 3. FY 2009/10 Customer ERUs, Usage and Revenue Relationships
1 In thousands of gallons.
2 Single Family Billable Usage was capped at 7,000 gallons per month in FY 2009/10. It is no longer capped.
Proposed Reclassification and Implementation of Reclaimed Water Rates
An important aspect of classifying customers, selecting rate structures, establishing equivalency
criteria and setting rates is to address the requirements of Chapter 180.13 (2) F.S, which in part
states: "(2) The city council, or other legislative body of the municipality, by whatever name known,
may establish just and equitable rates or charges to be paid to the municipality for the use of the
utility by each person, ..." Just refers to the relationship between the costs of services and the
benefits of such services to the customer; whereas, equitable refers to similarity and consistency of
charges within and among all customer classes. Just and equitable cost recovery results in reasonable
relationships between cost and services such that customers do not either overly benefit from or
subsidize other customer services due to classification, equivalency, rate structure and/or rate
attributes. A review of the current cost recovery system identified two areas directly affecting the
Utility's ability to maintain just and equitable charges for services. These two areas are: 1) the level
of revenues provided by the Commercial customer class; and 2) the provision of reclaimed water to
certain properties within the City at no charge. These areas of concern can be addressed through
customer reclassification, rate structure modifications and implementation of reclaimed water rates.
Commercial Customer Classification
Commercial customers, as illustrated in Table 3, accounted for 4.8 percent of the total ERUs,
contribute 15.1 percent of the billable flow and provide 25.2 percent of the revenues. This
unbalance between ERUs, flow and revenue is due to both the characteristics of some of the
customers currently included within this classification and the current policy of increasing
Commercial rates by three times the Single Family rate. The Commercial class includes connections
whose businesses are that of a hotel, motel or similar rental operation, which are materially different
from the operations of the standard grouping of other Commercial connections (retail stores,
offices, restaurants, etc.). Considering that the Utility's existing customer categories recognize
connections with multiple dwelling units as a separate category and after review of ratemaking
principles together with discussions with City staff, this Study concluded that it is appropriate to add
a new Rental Property user class consisting of connections with multiple dwelling units that are
rented/leased.
The addition of this new customer class necessitates the review and development of appropriate rate
setting attributes for both the remaining Commercial connections and the newly identified Rental
Property connections. Commercial connections are currently identified pursuant to meter
3
Average (monthly)
Billable Usage
Revenues
Connections %
ERUs
%
Amount' %
Amount
%
Single Family'
1,717 65.3%
1,723
19.6%
65,374 20.5%
$ 558,393
18.0%
Multi -Family
728 27.7%
6,582
74.7%
198,210 62.2%
1,720,389
55.4%
Commercial
149 5.7%
423
4.8%
47,990 15.1%
783,625
25.2%
Public Building
36 1.4%
81
0.9%
7,004 2.2%
41,544
1.3%
Total
2,630 100.0%
8,809
100.0%
318,578 100.0%
$ 3,103,951
100.0%
1 In thousands of gallons.
2 Single Family Billable Usage was capped at 7,000 gallons per month in FY 2009/10. It is no longer capped.
Proposed Reclassification and Implementation of Reclaimed Water Rates
An important aspect of classifying customers, selecting rate structures, establishing equivalency
criteria and setting rates is to address the requirements of Chapter 180.13 (2) F.S, which in part
states: "(2) The city council, or other legislative body of the municipality, by whatever name known,
may establish just and equitable rates or charges to be paid to the municipality for the use of the
utility by each person, ..." Just refers to the relationship between the costs of services and the
benefits of such services to the customer; whereas, equitable refers to similarity and consistency of
charges within and among all customer classes. Just and equitable cost recovery results in reasonable
relationships between cost and services such that customers do not either overly benefit from or
subsidize other customer services due to classification, equivalency, rate structure and/or rate
attributes. A review of the current cost recovery system identified two areas directly affecting the
Utility's ability to maintain just and equitable charges for services. These two areas are: 1) the level
of revenues provided by the Commercial customer class; and 2) the provision of reclaimed water to
certain properties within the City at no charge. These areas of concern can be addressed through
customer reclassification, rate structure modifications and implementation of reclaimed water rates.
Commercial Customer Classification
Commercial customers, as illustrated in Table 3, accounted for 4.8 percent of the total ERUs,
contribute 15.1 percent of the billable flow and provide 25.2 percent of the revenues. This
unbalance between ERUs, flow and revenue is due to both the characteristics of some of the
customers currently included within this classification and the current policy of increasing
Commercial rates by three times the Single Family rate. The Commercial class includes connections
whose businesses are that of a hotel, motel or similar rental operation, which are materially different
from the operations of the standard grouping of other Commercial connections (retail stores,
offices, restaurants, etc.). Considering that the Utility's existing customer categories recognize
connections with multiple dwelling units as a separate category and after review of ratemaking
principles together with discussions with City staff, this Study concluded that it is appropriate to add
a new Rental Property user class consisting of connections with multiple dwelling units that are
rented/leased.
The addition of this new customer class necessitates the review and development of appropriate rate
setting attributes for both the remaining Commercial connections and the newly identified Rental
Property connections. Commercial connections are currently identified pursuant to meter
3
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
equivalency criteria that reasonably reflect the demand and service levels associated with the size of
each connection's water meter. This is a common and nationally accepted ratemaking practice and,
therefore, no change is being considered pursuant to the use of meter equivalency criteria. However,
reducing the existing Commercial charge factor to better represent Commercial service cost
characteristics is advisable. This Study does recognize that commercial customers as a class have the
propensity to discharge wastewater containing higher loading characteristics than domestic flows,
and can place higher levels of service demands on the system and pose greater chemical and
financial risks to the system than residential customers. Considering these factors and the
composition of remaining commercial connections, this Study proposed a reduction from 3.0 to
1.25 as a reasonable basis to address the differences between residential and commercial cost
recovery.
Rental Property Equivalency Basis and Usage Rate Attribute
The selection of an equivalency basis for Rental Property customers relies upon similar criteria as
used to set the existing equivalency basis for Multi -Family connections. The criteria utilize the
number of dwelling units as the basis for setting each connection's ERUs. The primary difference in
selection of equivalencies between Multi -Family and Rental Property categories is that Multi -Family
dwelling units in general are similar in wastewater discharge characteristic (sewer fixture units) to
that of Single Family dwelling units; whereas, Rental Property dwelling units in general do not have
kitchen and additional bath facilities associated with most Multi -Family and Single Family dwellings.
A sewer fixture unit relates to a drain or opening that allows for the discharge of wastewater.
Therefore, the level of demand associated with Rental Property connections is lower than for Multi -
Family connections. This distinction allows for the use of a 0.75 equivalency factor in determining
the ERUs for Rental Property connections.
Further review of the Rental Property customer class identified that unlike the flow characteristics of
Multi -Family connections, which allowed for setting a Flat Rate per dwelling unit, the flow
associated with Rental Property connections involve activities that are materially different and not as
consistent as those for Multi -Family connections. Therefore, this Study proposes that in addition to
a Customer Service Charge per bill and Readiness to Service Charge per dwelling unit, each Rental
Property pays for metered flow based on a uniform Usage Rate.
Reclaimed Water Class and Cost Recovery Basis
Information provided by the City indicates that, in addition to providing bulk reclaimed water to the
City of Cocoa Beach and Port Canaveral, the Utility provides reclaimed water to approximately
1,103 properties through unmetered 1, 2 and 4 -inch lines. Currently, the costs for reclaimed water
services, including wastewater effluent filtration, disinfection, storage, pumping and distribution, are
not recovered individually from those who directly benefit, as the services are free of charges. The
cost of providing the reclaimed water service is included in and recovered from the other charges for
services.
In developing a rate structure and rates for reclaimed water services, it is important to realize that
currently due to unmetered connections it is impractical and cost prohibitive at this time to meter
the usage of each connection. Unlike potable water that is used for many different purposes and
allows for classification of different customers, reclaimed water is primarily for irrigation purposes
and therefore representative of one customer class. Additionally, the existing system of assessing
ERUs based on dwelling unit or water meter size is not applicable and requires a new equivalency
basis be established to identify service levels among the different sizes of connections to the
4
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
reclaimed water system. An equivalency basis referred to as Equivalent Reclaimed Irrigation
Connections (ERIC) is proposed setting the service levels for charge purposes as:
1 -inch connection = 1 ERIC
2 -inch connection = 4 ERICs
4 -inch connection = 12 ERICs
The rate structure for Reclaimed Water connections is limited to a flat monthly charge per ERIC
due to the unmetered condition of all connections.
Overview of Customer Classification, Equivalency Basis and Rate Structure Changes
The proposed changes and modifications are intended to provide closer relationships between and
among the customers with respect to the cost recovery of sewer services than previously identified
through the billing frequency analysis shown in Table 3. Summarized in Table 4 are descriptions of
the proposed adjustments and modification to the Utility's system of cost recovery.
Table 4. Summary of Cost Recovery Changes
Customer Class
Equivalency Basis
Rate Structure
Single Family
No Chane
No Change
Multi -Family
No Chane
No Change
Public Buildings
No Chane
No Change
Commercial
No Chane
Rate Index Reduction From 3.0 to 1.25
Rental Property
0.75 ERU Per Dwelling Unit
Addition of Billing Charge Per Bill,
Readiness To Service Charge per ERU
And Usage Rate Per 1,000 Gal.
Reclaimed Water
Per Line Size
Addition of a Flat Rate Per ERIC plus a
Billing Charge Per Bill if billed separately
Projected Sewer Customers
Projections of Sewer Customers for the five year projection period is based on a review of historic
activities, available land use within the City's sewer service area and discussions with City staff. The
results, primarily due to the current economic conditions, suggest that the growth amount is
relatively small and limited. The growth projections by customer class consist of the following, as
summarized from Schedule 1:
• Single Family customers are projected to increase by 2 connections per year.
• Multi -Family customers are projected to increase by an average of 7 equivalencies per year.
• Rental Property customers are projected to increase by 120 Dwelling Units in FY 2012/13
with the addition of an assisted living center.
• Commercial and Public Building are projected to remain constant with no increases.
Fiscal Requirements
Fiscal requirements consist of all expenditures required for the Sewer enterprise regardless of
classification. In general, the fiscal requirements can be categorized as Operating and Maintenance
(O&M) Expenses, Debt Service, Transfers and Capital as summarized below:
• O&M Expenses — consists of fixed and variable expenses related to labor, materials,
supplies, services, etc. required to manage and operate the Utility at the required level of
service;
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Resolution No. 2016-04
EXHIBIT "A"
Citv of Cape Canaveral Sewer
• Debt Service — consists of principle and interest on bonds, loans or other debt instruments
with associated revenue requirements pursuant to covenants contained in the loan agreement
or debt authorizing resolution. Debt Service can also include payments associated with
capital leases and classified pursuant to the seniority of the lien provision on the security or
payment provisions of the debt.
• Transfers — consist of payments in lieu of taxes, provisions for reserves including Renewal
and Replacement (R&R) and/or other specified purposes.
• Capital — consists of scheduled expenditures pursuant to the City's adopted Capital
Improvement Program (CIP) funded from operations, reserves, debt or other sources.
The City's Annual Budget for Fiscal Year 2011/12 (the "Budget") was used as the basis for
projecting the fiscal requirements for the five year period ending fiscal year 2015/16. This total
fiscal requirement is comprised of. 1) amounts to be funded by operating sources (annual cash flow
from user rates, other revenues); and 2) amounts associated with capital requirements derived from
operating sources, existing reserves, debt proceeds and/or grants. Projected fiscal requirements in
Table 5, as summarized from Schedules 2 and 3, include annual escalations for inflation and
growth, allowance for R&R to address ongoing system refurbishments and debt service for
proposed debt to provide $2,000,000 for capital improvements.
Table 5. Projected Fiscal Requirements
Total Fiscal Requirement $4,197,900 $4,334,000 $4,462,800 $4,215,400 $4,001,000
1 Includes provision for proposed CIP funding
Net Rate Requirements for Fiscal Year 2011/12
Net rate requirements refer to the required amount of revenues that need to be generated from user
rates and charges after Other Revenues and CIP amounts have been subtracted from total fiscal
requirements. Fiscal year 2011/12 was selected for the initial rate determination period with rates
for subsequent fiscal years to be adjusted based on revenue sufficiency requirements. A uniform
percentage revenue sufficiency adjustment for fiscal year 2011/12 is not applicable due to proposed
reclassification, addition of reclaimed water rates and reduction of the Commercial rate factor.
Additionally, the use of existing Utility reserves to reduce the net rate requirements is not
contemplated or advisable. The Utility reserves at this time are considered minimal and should not
be used in lieu of generating the required revenues from modifications and adjustments to the
schedule of rates and charges for sewer and reclaimed water services to customers within the City's
service area. Furthermore, providing for increasing the level of unrestricted reserves and
establishing an R&R reserve will increase the Utility's creditworthiness, provide funding for future
cost effective projects and allow opportunities for future rate stabilization. The net rate requirement
for fiscal year 2011/12 is provided below in Table 6.
6
2011/12
2012/13
2013/14
2014/15
2015/16
O&M Expenses
$2,352,100
$2,440,300
$2,532,300
$2,627,500
$2,726,200
Debt Service 1
727,200
805,100
805,100
805,100
553,400
Transfers
243,400
247,200
266,400
292,200
320,000
Capital from Rates
34,000
34,000
34,000
34,000
34,000
Subtotal
$3,356,700
$3,526,600
$3,637,800
$3,758,800
$3,633,600
CIP
841,200
807,400
825,000
456,600
367,400
Total Fiscal Requirement $4,197,900 $4,334,000 $4,462,800 $4,215,400 $4,001,000
1 Includes provision for proposed CIP funding
Net Rate Requirements for Fiscal Year 2011/12
Net rate requirements refer to the required amount of revenues that need to be generated from user
rates and charges after Other Revenues and CIP amounts have been subtracted from total fiscal
requirements. Fiscal year 2011/12 was selected for the initial rate determination period with rates
for subsequent fiscal years to be adjusted based on revenue sufficiency requirements. A uniform
percentage revenue sufficiency adjustment for fiscal year 2011/12 is not applicable due to proposed
reclassification, addition of reclaimed water rates and reduction of the Commercial rate factor.
Additionally, the use of existing Utility reserves to reduce the net rate requirements is not
contemplated or advisable. The Utility reserves at this time are considered minimal and should not
be used in lieu of generating the required revenues from modifications and adjustments to the
schedule of rates and charges for sewer and reclaimed water services to customers within the City's
service area. Furthermore, providing for increasing the level of unrestricted reserves and
establishing an R&R reserve will increase the Utility's creditworthiness, provide funding for future
cost effective projects and allow opportunities for future rate stabilization. The net rate requirement
for fiscal year 2011/12 is provided below in Table 6.
6
Resolution No. 2016-04
EXHIBIT "A"
Citv of Cape Canaveral Sewer
Table 6. Net Rate Requirement
O&M Expenses
Debt Service 1
Transfers
Capital from Rates _
Subtotal $3,356,700
Other Revenue 79,600
Net Rate Requirement $3,277,100
1 Includes provision for proposed CIP funding
2011/12
$2,352,100
727,200
243,400
34,000
Allocation of Net Rate Requirements
Determination of each charge or rate is dependent on cost allocations pursuant to reasonable
relationships between the cost and rate service component. The cost allocations shown in Table 7
as summarized from Schedule 4 will be used as the cost basis in determining the individual charges
and rates that comprise the user rate revenue generation system for the Utility. Cost allocations for
Multi -Family takes into consideration certain system cost savings economies, such as less expense
and maintenance for gravity sewer facilities.
O&M
Debt Service
Transfers
Capital
Total Allocated
Other Revenues
Net Rate Req.
Table 7. Cost Allocations
$ 3,356,700 $ 51,500 $ 548,100 $ 689,300 $ 1,050,500 $ 859,100 $ 158,200
79,600 - 78,600 - - - 1,000
$ 3,277,100 $ 51,500 $ 469,500 $ 689,300 $ 1,050,500 $ 859,100 $ 157,200
Rate Determinants by Customer Class
Rate determinants represent the number of billing events, ERUs and/or 1,000's of billable gallons
that function as the denominator with respect to calculating each charge or rate. Determination of
the rate determinants is based on the equivalency basis and rate structure identified for each
customer as previously summarized in Table 4. Dividing the rate determinants into the amount of
costs apportioned for each rate element provides the functional rate for each rate structure
component. For ratemaking purposes the: (i) total number of accounts/connections are used to
determine the monthly Customer Service Charge; (ii) total number of ERUs are used to determine
the monthly Readiness to Serve Charge; (iii) total amount of usage is used to determine the Usage
Rate per 1,000 gallons; and (iv) the total ERICs are used to determine the Reclaimed Water flat
charge. It should be noted that the Multi -Family flat charge is determined through the use of both
Multi -Family ERUs and usage. Rate determinants associated with Sewer and Reclaimed Water
services by customer class are summarized in Table 8.
7
Customer Readiness
Usage
Multi -Family
Reclaimed
Total
Charge
To Serve
Rate
ERU
Usage
Water
$ 2,352,100
$ 36,000
$ 384,100
$ 483,000
$ 736,000
$ 602,000
$ 111,000
727,200
11,300
118,700
149,400
227,700
186,100
34,000
243,400
3,700
39,700
50,000
76,200
62,300
11,500
34,000
500
5,600
6,900
10,600
8,700
1,700
$ 3,356,700 $ 51,500 $ 548,100 $ 689,300 $ 1,050,500 $ 859,100 $ 158,200
79,600 - 78,600 - - - 1,000
$ 3,277,100 $ 51,500 $ 469,500 $ 689,300 $ 1,050,500 $ 859,100 $ 157,200
Rate Determinants by Customer Class
Rate determinants represent the number of billing events, ERUs and/or 1,000's of billable gallons
that function as the denominator with respect to calculating each charge or rate. Determination of
the rate determinants is based on the equivalency basis and rate structure identified for each
customer as previously summarized in Table 4. Dividing the rate determinants into the amount of
costs apportioned for each rate element provides the functional rate for each rate structure
component. For ratemaking purposes the: (i) total number of accounts/connections are used to
determine the monthly Customer Service Charge; (ii) total number of ERUs are used to determine
the monthly Readiness to Serve Charge; (iii) total amount of usage is used to determine the Usage
Rate per 1,000 gallons; and (iv) the total ERICs are used to determine the Reclaimed Water flat
charge. It should be noted that the Multi -Family flat charge is determined through the use of both
Multi -Family ERUs and usage. Rate determinants associated with Sewer and Reclaimed Water
services by customer class are summarized in Table 8.
7
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
Table 8. Rate Determinants by Customer Class
Accounts
Single Family
1,717
Multi -Family
728
Commercial
143
Rental Properties
6
Public Buildings
36
Total
1 In thousands of gallons.
Multi -Family
ERUs Usage' ERU
1,723 76,882
6,582
409 18,139
551 34,018
76 7,144
2,630 2,759 136,183 6,582
Reclaimed
ERIC
835
1,205
88
57
2,185
Proposed User Rates
The proposed values of the rate structure components were developed based on the aforementioned
cost allocations and rate determinants. The proposed user rates for fiscal year 2011/12, together
with the cost allocation, determinants, existing user rate and differences presented in Table 9.
Table 9. Determination of Proposed User Rates for Fiscal Year 2011/12
1 Result of dividing Allocated Net Rate Requirement by Annual Determinants
Results of Reclassification, Modifications and Adjustments
The customer ERU, Usage and Revenue relationships previously presented in Table 3 reflected
relative differences in cost recovery among the various customer classes. Redevelopment of a similar
analysis predicated on the proposed reclassification, modifications and adjustments result in the
relative relationships between the customer classes being more closely aligned. The results of these
proposed changes, shown in Table 10, demonstrate the effectiveness of reestablishing a rate
structure and rates that are reasonably just and equitable to all customers.
Table 10. FY 2011/12 Proposed Customer ERUs, Usage and Revenue Relationships
Customer
Readiness
Usage
Multi -Family
Reclaimed
Charge
To Serve
Rate
Flat Rate
Flat Rate
Allocated Net Rate Requirement
$ 51,500
$ 469,500
$ 689,300
$ 1,909,600
$ 157,200
Annual Determinants
31,560
33,108
136,183
78,984
26,220
User Rate per Determinant 1
$ 1.64
$ 14.19
$ 5.07
$ 24.18
$ 5.99
Existing
$ 1.64
$ 14.18
$ 4.60
$ 24.30
$ -
Amount Difference
$ -
$ 0.01
$ 0.47
$ (0.12)
$ 5.99
Percentage Difference
0.00%
0.07%
10.22%
-0.49%
N/A
1 Result of dividing Allocated Net Rate Requirement by Annual Determinants
Results of Reclassification, Modifications and Adjustments
The customer ERU, Usage and Revenue relationships previously presented in Table 3 reflected
relative differences in cost recovery among the various customer classes. Redevelopment of a similar
analysis predicated on the proposed reclassification, modifications and adjustments result in the
relative relationships between the customer classes being more closely aligned. The results of these
proposed changes, shown in Table 10, demonstrate the effectiveness of reestablishing a rate
structure and rates that are reasonably just and equitable to all customers.
Table 10. FY 2011/12 Proposed Customer ERUs, Usage and Revenue Relationships
1 In thousands of gallons.
2 Revenues from July 1, 2012 through September 30, 2012.
M
Average (monthly)
Annual Usage
Revenues
Connections
%
ERUs
%
Amount 1
%
Amount 2
%
Single Family
1,717
65.3%
1,723
18.4%
76,882
23.2%
$ 185,100
23.0%
Multi -Family
728
27.7%
6,582
70.5%
198,210
59.9%
505,100
62.7%
Commercial
143
5.4%
409
4.4%
14,511
4.4%
40,600
5.0%
Rental Properties
6
0.2%
551
5.9%
34,018
10.3%
62,600
7.8%
Public Bldg.
36
1.4%
76
0.8%
7,144
2.2%
12,600
1.6%
Grand Total
2,630
100.0%
9,341
100.0%
330,765
100.0%
$ 806,000
100.0%
1 In thousands of gallons.
2 Revenues from July 1, 2012 through September 30, 2012.
M
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
Multi -Year Revenue Sufficiency
The fiscal requirements previously established for the five year Study period included allowances for
R&R but did not have any provisions to address increasing the unrestricted operating reserves to
levels that will address creditworthiness and provide for emergencies. Proposed herein are future
rate adjustments that will continue to meet the forecasted increases resulting from inflation and
additionally gradually build the operating reserves to desired levels. The forecasted fiscal
requirements together with rate adjustments are shown in Table 11.
Table 11. Projected Net Rate Requirements
2011/12 2012/13 2013/14 2014/15 2015/16
O&M Expenses
$2,352,100
$2,440,300
$2,532,300
$2,627,500
$2,726,200
Debt Service
727,200
805,100
805,100
805,100
553,400
Trans to GF & R&R 1
253,400
294,300
305,800
315,000
324,500
Trans to Operating Reserve
2,000
25,500
107,000
192,000
535,900
Capital from Rates
50,500
50,500
50,500
50,500
50,500
Subtotal
$3,385,200
$3,615,700
$3,800,700
$3,990,100
$4,190,500
Other Revenue
79,600
83,000
86,700
85,100
86,100
Net Rate Requirement
$3,305,600
$3,532,700
$3,714,000
$3,905,000
$4,104,400
Future Rate Adjustments
5.50%
5.00%
5.00%
5.00%
1 Transfers for R&R are based on 3.5% of prior year's revenues for
2012/13, 4.0%
for 2013/14, 4.5%
for 2014/15
and 5.0% 2015/16.
Proposed Multi -Year User Rates
The schedule of user rates and charges for fiscal years 2011/12 through 2015/16 are presented in
Table 12. The rates and charges were adjusted by the annual percentages shown in Table 10;
however, the calculated percentage of any particular rate adjustment may be slightly different due to
rounding the rate or charge to a whole penny.
Table 12. Schedule of Proposed Multi -Year User Rates
2010/11 2011/121 2012/13 2013/14 2014/15 2015/16
Customer Charge per Bill
All Classes $1.55 $1.64
Readiness to Serve Charge per ERU
Single Family $13.38 $14.18
Commercial $40.14 $17.73
Rental Property
N/A
Public Buildings
$13.38
Usage Rate per 1,000
gal.
Single Family
$4.34
Commercial
$13.02
Rental Property
N/A
Public Buildings
$4.34
Sewer Flat Rate
$17.33
$14.18
$14.18
$1.74
$1.83
$1.93
$2.03
$14.96
$15.71
$16.50
$17.33
$18.71
$19.65
$20.64
$21.68
$14.96
$15.71
$16.50
$17.33
$14.96
$15.71
$16.50
$17.33
$4.60
$4.86
$5.11
$5.37
$5.64
$5.75
$6.07
$6.38
$6.70
$7.04
$4.60
$4.86
$5.11
$5.37
$5.64
$4.60
$4.86
$5.11
$5.37
$5.64
Multi -Family $22.92 $24.30 $25.64 $26.93 $28.28 $29.70
Reclaimed Water Flat Rate per ERIC
All Classes $0.00 $6.00 $6.33 $6.65 $6.99 $7.34
1 Rates were increased by 6.0% on January 1, 2012. The rate classification and rate structure
modifications to Commercial, Rental Property and Reclaimed Water classifications are proposed to
be effective as of July 1, 2012.
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
Rate Impact on Typical Bills
The impact of the proposed reclassifications, equivalency adjustments and rate structure
modification on typical monthly charges are illustrated in Graph 1. The typical bill impact for a
Single Family connection is based on 5,000 gallons of monthly service; whereas the Multi -Family
comparison is based on a flat Charge per dwelling unit. Commercial connections regardless of usage
will experience the typical impact reflected on the graph. Impacts for each Rental Property
connection was developed using actual fiscal year 2009/10 monthly average usage for each
individual customer.
The impacts on other usage levels for the proposed rate modifications and adjustments are further
provided on the Schedules 5A, B, C and D for Single Family, Multi -Family, Commercial and
Rental Property, respectively.
10.00%
0.00%
-10.00%
-20.00%
-30.00%
-40.00%
-50.00%
-60.00%
Graph 1. 2011/12 Proposed Typical Bill Impacts
6.0% 6.0%
■ Single Family ■ Multi -Family ■ Commercial ® Rental Property
Comparisons to Other Communities
A comparison of typical Single Family monthly wastewater service and reclaimed water service bill
amounts, exclusive of taxes and other charges, is provided in Table 13. It is important to note that
utilities throughout Florida and the nation differ significantly in the way they are capitalized, operate,
service areas, customer characteristics, geographical location, quality of service, community
standards and many other factors. These differences are all reflected in the amounts charged and
impact on customer classes.
10
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
Table 13. Other Utility Comparison
(Single Family 5,000 monthly Sewer Service and Reclaimed
Water 10,000 gallon monthly Service)
Proforma Operating Results
The projected results of the proposed rates and charges for the five fiscal years through 2015/16 are
shown in Table 14. The projections utilize the previously discussed and identified: (i) minimal
customer growth; (ii) fiscal requirements including provisions for additional CIP; and (iii) proposed
rates and charges. The Proforma clearly demonstrates the ability of the rate revenue generated from
the proposed classification, equivalency basis, and rate adjustments together with Other Revenues
and without transfers from prior earnings to:
• Fully fund the budgeted operating and maintenance requirements;
• Pay existing and proposed debt service;
• Provide funding for R&R improvements; and
• Replenish the unrestricted operating reserves.
11
Reclaimed
Sewer
Water
City of Cape Canaveral
Existing
$36.63
$0.00
Proposed
$38.82
$6.00
Neighboring Utilities
Brevard County
Barefoot Bay
$52.61
$6.00
North Brevard
$32.66
$6.00
Indian River County
$30.17
$6.00
City of Cocoa
$38.81
$7.00
City of Cocoa Beach
$24.09
$6.00
City of Holly Hill
$33.41
City of Melbourne
$39.69
$8.00
City of New Smyrna Beach
$34.77
$10.00
City of Ormond Beach
$28.36
$16.00
City of Palm Bay
$37.24
$18.42
City of Rockledge
$26.65
$10.00
City of Vero Beach
$37.84
$19.20
City of West Melbourne
$55.22
$8.00
Average of Other Utilities
$36.27
$10.05
Proforma Operating Results
The projected results of the proposed rates and charges for the five fiscal years through 2015/16 are
shown in Table 14. The projections utilize the previously discussed and identified: (i) minimal
customer growth; (ii) fiscal requirements including provisions for additional CIP; and (iii) proposed
rates and charges. The Proforma clearly demonstrates the ability of the rate revenue generated from
the proposed classification, equivalency basis, and rate adjustments together with Other Revenues
and without transfers from prior earnings to:
• Fully fund the budgeted operating and maintenance requirements;
• Pay existing and proposed debt service;
• Provide funding for R&R improvements; and
• Replenish the unrestricted operating reserves.
11
City of Cape Canaveral Sewer
Table 14. Proforma Operating Statement
User Revenue
Single Family
Multi -Family
Commercial
Rental Property
Public Buildings
Reclaimed Water
Subtotal User Revenue
Other Revenues
Total Revenues
O&M Expenses
Net Revenues
Debt Service
Existing Loans
Proposed CIP Funding
Total Debt Service
Balance After Debt Service
Non -Operating
Transfer to General Fund
R&R
Capital From Rates
Total Non -Operating
Net Surplus/ (Deficit)
Resolution No. 2016-04
EXHIBIT "A"
2011/12 2012/13 2013/14 2014/15 2015/16
$ 671,000 $ 719,700 $ 757,200 $ 796,500 $ 837,600
1,906,300
2,042,500
2,147,600
2,257,700
2,373,600
687,300
164,500
172,800
181,500
190,800
62,600
307,600
323,500
339,800
356,900
46,000
49,100
51,600
54,200
57,000
39,300
165,900
174,300
183,300
192,400
$ 3,412,500
$ 3,449,300
$ 3,627,000
$ 3,813,000
$ 4,008,300
79,600
85,000
88,400
86,400
86,600
$ 3,492,100
$ 3,534,300
$ 3,715,400
$ 3,899,400
$ 4,094,900
2,352,100
2,440,300
2,532,300
2,627,500
2,726,200
$ 1,140,000 $ 1,094,000 $ 1,183,100 $ 1,271,900 $ 1,368,700
$ 649,400
77,800
$ 727,200
$ 412,800
$ 125,000
118,400
34,000
$ 649,400
155,700
$ 805,100
$ 288,900
$ 125,000
122,200
34,000
$ 649,400
155,700
$ 805,100
$ 378,000
$ 125,000
141,400
34,000
$ 649,400
155,700
$ 805,100
$ 466,800
$ 125,000
167,200
34,000
$ 397,700
155,700
$ 553,400
$ 815,300
$ 125,000
195,000
34,000
$ 277,400 $ 281,200 $ 300,400 $ 326,200 $ 354,000
$ 135,400 $ 7,700 $ 77,600 $ 140,600 $ 461,300
Reserve Fund Balances
Reserve balances are vital elements in maintaining a fiscally sound utility and, for the purpose of the
Study, consideration is given to the Operating Reserve and Assessment Fee Funds. Although other
funds may exist, such as a Debt Service Reserve and Sinking Funds for compliance with debt
obligations, they are not directly involved in the process of ratemaking. The Operating Reserve
Fund is unrestricted and accumulates funds that can be used for any lawful purpose. The
Assessment Fee Fund is restricted for the accumulation and disbursement of Assessment Fees
(Impact Fees) paid by new connections to the Utility. The annual activities for the Operating
Reserve and Assessment Fee Funds resulting from annual cash inflows and outflows by primary
categories projected within this Study are shown on Table 15.
The beginning balance of the Operating Reserve Fund consists of the unrestricted cash assets at the
beginning of fiscal year 2011/12 less any encumbrances including accounts payable. It should be
noted for conservative purposes that receivables are not included. Added to the Operating Reserve
Fund is income derived from annual operations, which together with existing reserves can and are
used for CIP. Funds provided from the retirement of the Debt Service Reserve Fund associated
with the existing debt that is projected to be retired in fiscal year 2015/16 are projected to be
transferred to the Operating Reserve Fund.
12
City of Cape Canaveral Sewer
Table 15. Fund Balances
2011/12 2012/13 2013/14
Resolution No. 2016-04
EXHIBIT "A"
2014/15 2015/16
Unrestricted Operating Reserve Fund
Beginning Balance
$ 1,647,900
$ 1,372,300
$ 1,380,000
$ 1,457,600
$ 1,159,000
Annual Operating Surplus
135,400
7,700
77,600
140,600
461,300
Transfer from DSRF 1
-
-
-
-
435,500
Transfer to Project Fund
411,000
-
-
439,200
367,400
Ending Balance
$ 1,372,300
$ 1,380,000
$ 1,457,600
$ 1,159,000
$ 1,688,400
Minimum Balance Target
839,200
$ 881,700
$ 909,500
$ 939,700
$ 908,400
Expansion Fund
Beginning Balance
$ 49,800
$ 50,200
$ 72,900
$ 15,900
$ 39,700
Assessment Fees
-
22,300
23,000
23,700
24,400
Transfer to Project Fund
-
-
80,000
-
-
Interest Earnings
400
400
-
100
300
Ending Balance
$ 50,200
$ 72,900
$ 15,900
$ 39,700
$ 64,400
1 Debt Service Reserve Fund (DSRF) released upon retirement
of State Revolving
Fund (SRF) debt.
CIP Sources and Uses
As previously mentioned, the Utility's five year CIP addressed by this Study includes the budgeted
$2,886,600 plus $411,000 post budget items for a total of $3,297,600. Funding is provided from
unrestricted Operating Reserve and Assessment Fee Funds plus a proposed loan to obtain
$2,000,000 in improvement proceeds. Debt service for the proposed loan for the purpose of this
Study was estimated assuming a 20 year term and a 4.5 percent net interest rate with an additional
$25,000 for loan expenses. The sources and uses for the CIP are shown on Table 16.
Sources:
Beginning Balance
Reserve Fund
Assessment Fees
Debt Proceeds
Total Sources
Uses:
Large Capital Projects
R&R Projects
Post Budget Additions
Total Uses:
Ending Balance
Table 16. CIP Sources and Uses
5 -yr Total 2011/12 2012/13 2013/14 2014/15 2015/16
$ - $ - $ 1,569,800 $ 762,400 $ 17,400 $ -
1,217,600 411,000 - - 439,200 367,400
803000 - - 80,000 - -
2,0003000 2,000,000 - - - -
$ 3,297,600 $ 2,411,000 $ 1,569,800 $ 842,400 $ 456,600 $ 367,400
$ 2,337,800 $ 318,000 $ 677,800 $ 733,000 $ 338,800 $ 270,200
548,800 112,200 129,600 92,000 117,800 97,200
411,000 411,000 - - - -
$ 3,297,600 $ 841,200 $ 807,400 $ 825,000 $ 456,600 $ 367,400
$ 1,569,800 $ 762,400 $ 17,400 $ - $ -
13
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
Findings and Conclusions
The findings and recommendations presented herein were formulated based on reviews, analyses,
community standards and ratemaking principles all predicated on existing and anticipated
conditions.
1.
2.
3.
a. The existing rates are not sufficient to fully fund the current budgeted and projected
operating, debt service, transfers and other requirements of the Utility.
b. The Study made provisions to increase the revenues generated by the system and
provide for debt funding of CIP to minimize the annual cash requirements.
a. Uses of reserves accumulated from prior year's earnings to address the rate
deficiencies are not adequate and depletion of the reserves will reflect negatively on
the Utility's creditworthiness.
b. Debt funding to be initiated to reduce the burden on operating reserves and rate
funded pay-as-you-go capital funding needs.
a. The current rate structure does not fully address the customer characteristics and
community standards, and places an undue burden on certain customer classes.
b. Reclaimed water service is a valuable service and costs for such services should be
recovered from those who benefit through a rate structure that does not require an
added expense of metering usage.
c. Connections with multi -dwelling rental activities exhibit unique characteristics and
should be classified independent of other Commercial connections with an
equivalency basis relating to dwelling units in lieu of meter size.
d. The rate factor currently utilized for Commercial connections no longer reflects the
additional demand and loading characteristics of non-residential connections.
Recommendations
Pursuant to the objectives, findings and conclusions previously discussed and the reviews, analyses,
and assumptions summarized herein, along with the needs of the community, the application of
ratemaking principles, and the consultant's experience with similar utilities, it is recommended that:
1. The City proceed to revise the applicable sections of the Code of Ordinance to reflect the
Rental Property and Reclaimed Water customer classifications including the basis of
determining equivalencies and applicable rate structures.
2. The City proceed to adopt the multi-year rates identified herein as summarized in Table 12
with an effective date of the first full billing period after October 1 of each fiscal year.
14
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
The City secures a minimum of $2,000,000 in construction proceeds from the issuance of
long term debt on or before April 2012.
4. A reevaluation of revenue sufficiency be conducted in the event of any material change in
customers, operations, fiscal requirements or other items that adversely affect the Utility.
The revenues, expenses, costs, and criteria associated with ratemaking are representative of averages
that are developed primarily from historic and projected data. A significant amount of historical
review and analysis, together with the development of assumptions based on prudent engineering,
financial, and ratemaking relationships, have been utilized in the development of the proposed rates,
fees, and charges proposed herein. Some of the assumptions will inevitably change or not
materialize and unanticipated events may occur which could significantly change the results
presented herein. The findings, conclusions and recommendations presented herein were
formulated based on reviews, analysis and input from City staff, together with and predicated on
existing conditions, community standards and ratemaking principles.
15
Resolution No. 2016-04
EXHIBIT "A"
Citv of Cape Canaveral Sewer
Schedule 1. Sewer Customer Accounts, ERUs and Billable Flow Projections
New Impact Fee ERUs 0 9 9 9 9
1 Multi -Family ERUs represents the number of dwelling units.
2 In thousands of gallons.
S-1
Growth
Reference
2009/10
2011/12 2012/13 2013/14
2014/15
2015/16
Accounts
Single Family
1
1,717
1,717
1,719
1,721
1,723
1,725
Multi -Family
2
728
728
729
730
731
732
Commercial
3
143
143
143
143
143
143
Rental Property
4
6
6
7
7
7
7
Public Buildings
5
36
36
36
36
36
36
Total
2,630
2,630
2,634
2,637
2,640
2,643
ERUs
Single Family
1
1,723
1,723
1,725
1,727
1,729
1,731
Multi -Family 1
2
6,582
6,582
6,589
6,596
6,603
6,610
Commercial
3
409
409
409
409
409
409
Rental Property
4
551
551
641
641
641
641
Public Buildings
5
76
76
76
76
76
76
Total
9,341
9,341
9,440
9,449
9,458
9,467
Usage 2
Single Family
3.79
76,882
76,882
76,971
77,060
77,150
77,239
Multi -Family
2.51
198,210
198,210
198,421
198,632
198,842
199,053
Commercial
3.70
47,990
14,511
14,511
14,511
14,511
14,511
Rental Property
3.86
0
34,018
39,571
39,571
39,571
39,571
Public Buildings
7.83
7,144
7,144
7,144
7,144
7,144
7,144
Total
330,226
330,765
336,619
336,919
337,219
337,519
ERICs
Single Family
6
835
835
835
835
835
835
Multi -Family
6
1205
1205
1205
1205
1205
1205
Commercial
6
88
88
88
88
88
88
Public Buildings
6
57
57
57
57
57
57
Total
2,185
2,185
2,185
2,185
2,185
2,185
Growth Reference Factors
Single Family
1
1.0000
1.0010
1.0010
1.0010
1.0010
Multi -Family
2
1.0000
1.0010
1.0010
1.0010
1.0010
Commercial
3
1.0000
1.0000
1.0000
1.0000
1.0000
Rental Property
4
1.0000
1.0000
1.0000
1.0000
1.0000
Public Buildings
5
1.0000
1.0000
1.0000
1.0000
1.0000
ERICs
6
1.0000
1.0000
1.0000
1.0000
1.0000
New Impact Fee ERUs 0 9 9 9 9
1 Multi -Family ERUs represents the number of dwelling units.
2 In thousands of gallons.
S-1
Citv of Cape Canaveral Sewer
Schedule 2. Net Rate Fiscal Requirements
Resolution No. 2016-04
EXHIBIT "A"
S-2
Ref #
2011/12
2012/13
2013/14
2014/15
2015/16
Personnel Services
Salaries and Wages
3
$
765,300 $
795,900 $
827,700 $
860,800 $
895,200
Overtime
3
9,600
10,000
10,400
10,800
11,200
Special Pays
3
45,000
46,800
48,700
50,600
52,600
Employee Recognition
3
2,000
2,100
2,200
2,300
2,400
FICA Taxes
3
59,300
61,700
64,200
66,800
69,500
Retirement Contribution
3
53,600
55,700
57,900
60,200
62,600
Retirement Match
3
23,000
23,900
24,900
25,900
26,900
Life and Health Insurance
3
168,800
175,600
182,600
189,900
197,500
Worker's Compensation
3
15,800
16,400
17,100
17,800
18,500
Unemployment Compensation
3
9,000
9,400
9,800
10,200
10,600
Reimburse of GF Payroll Exp.
3
286,400
297,900
309,800
322,200
335,100
Subtotal
$
1,437,800 $
1,495,400 $
1,555,300 $
1,617,500 $
1,682,100
Operating Expenses
Legal Fees
2
$
3,000$
3,100$
3,200$
3,300$
3,400
Engineering Services
2
15,500
16,000
16,500
17,000
17,500
Physicals
3
800
800
800
800
800
Banking Fees
2
2,500
2,600
2,700
2,800
2,900
Audit Expense
3
20,600
21,400
22,300
23,200
24,100
Contract Services
5
1,200
1,200
1,200
1,200
1,200
Travel Per Diem
5
6,300
6,500
6,700
6,900
7,100
Communication Service
3
7,500
7,800
8,100
8,400
8,700
Postage
2
400
400
400
400
400
Utilities
5
193,100
198,900
205,100
211,500
218,000
Sludge Disposal Fees
4
45,500
45,500
45,500
45,500
45,500
General Insurance
3
1583200
164,500
171,100
177,900
185,000
Buildings & Grounds Maint.
6
25,500
26,500
27,600
28,700
29,800
Plant & Equip. Maintenance
6
183,500
190,800
198,400
206,300
214,600
Collection System Maint.
6
69,500
72,300
75,200
78,200
81,300
Printing
2
800
800
800
800
800
Operating Supplies
2
11,000
11,300
11,600
11,900
12,300
Safety Supplies
2
8,200
8,400
8,700
9,000
9,300
Chemicals
2
93,400
96,200
99,100
102,100
105,200
Uniforms
3
5,100
5,300
5,500
5,700
5,900
Motor Fuel & Lubricants
2
9,800
10,100
10,400
10,700
11,000
Small Tools
2
7,500
7,700
7,900
8,100
8,300
Lab Supplies
2
31,900
32,900
33,900
34,900
35,900
Reclaimed Water Supplies
2
3,000
3,100
3,200
3,300
3,400
Subscriptions & Training
3
3,200
3,300
3,400
3,500
3,600
Operating Fees & Licenses
2
7,300
7,500
7,700
7,900
8,100
Contingency
1
-
-
-
-
-
Subtotal
$
914,300$
944,900$
977,000 $
1,010,000 $
1,044,100
Total O&M
$
2,352,100 $ 2,440,300 $ 2,532,300 $ 2,627,500 $ 2,726,200
S-2
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral Sewer
Schedule 2. Net Rate Fiscal Requirements (continued)
Ref # 2011/12 2012/13 2013/14 2014/15 2015/16
Capital
Ref # 2011/12
2012/13
2013/14
2014/15
2015/16
Zero
Buildings
1
$ 9,000$
9,000$
9,000$
9,000$
9,000
Machinery and Equipment
1
25,000
25,000
25,000
25,000
25,000
Capital From Rates
1.030
$ 34,000$
34,000$
34,000$
34,000$
34,000
Debt Service
1.040
Customer Growth
4
1.000
1.001
1.001
Existing State Revolving Fund Loan
Input
$ 649,400$
649,400$
649,400$
649,400$
397,700
Proposed
Input
77,800
155,700
155,700
155,700
155,700
Subtotal
0.015
$ 727,200$
805,100 $
805,100 $
805,100 $
553,400
Transfers & Contingencies
1.031
1.031
1.031
Rate Adjustments
9
1.055
Transfer to General Fund
1
$ 125,000$
125,000$
125,000$
125,000$
125,000
R&R
10
118,400
122,200
141,400
167,200
195,000
Subtotal
$ 243,400$
247,200$
266,400$
292,200$
320,000
Total Requirements
$ 3,356,700 $
3,526,600 $
3,637,800 $
3,758,800 $
3,633,600
Other Revenue
Utility Penalty Income
9
60,000
63,300
66,500
69,800
73,300
Reuse Hook -Up Fees
9
1,000
1,100
1,200
1,300
1,400
Interest Earnings
Input
18,600
20,600
20,700
15,300
11,900
Subtotal
$ 79,600$
85,000$
88,400$
86,400$
86,600
Net Fiscal Requirement
$ 3,277,100 $
3,441,600 $
3,549,400 $
3,672,400 $
3,547,000
Growth Factors
Ref # 2011/12
2012/13
2013/14
2014/15
2015/16
Zero
0
0.000
0.000
0.000
0.000
Constant
1
1.000
1.000
1.000
1.000
Inflation
2
1.030
1.030
1.030
1.030
Personnel
3
1.040
1.040
1.040
1.040
Customer Growth
4
1.000
1.001
1.001
1.001
Customer Growth & Inflation
5
1.030
1.031
1.031
1.031
Repairs & Maintenance
6
1.040
1.040
1.040
1.040
Interest Earnings
7
0.015
0.015
0.015
0.015
Utilities
8
1.030
1.031
1.031
1.031
Rate Adjustments
9
1.055
1.050
1.050
1.050
Renewal and Replacement
10
3.50%
4.00%
4.50%
5.00%
S-3
Citv of Cape Canaveral Sewer
Resolution No. 2016-04
EXHIBIT "A"
Schedule 3. Capital Improvement Program
5 -yr Total 2011/12 2012/13 2013/14 2014/15 2015/16
Sources:
Beginning Balance
Revenue Fund Reserves
Assessment Fee Funds
Debt Proceeds
Total Sources
Uses:
Plant Clarifier Rehab - Eng.
Plant Clarifier Rehab - Const.
Blowers for Sludge Holding Tank
Force Main & Manhole Rehab
Sand Filter
Portable Sewer Jet
Lab Expansion - Engineering
Lab Expansion - Construction
Emergency Generators
Lift Station Rehabilitation
Sludge Press
Truck & Crane
R&R - Capital Equipment
R&R - Capital Infrastructure
R&R - Vehicles
R&R - Computers
Post Budget Addition
Total Uses:
Ending Balance
$ - $ - $ 1,569,800 $ 762,400 $ 17,400 $ -
1,217,600 411,000 - - 439,200 367,400
80,000 - - 80,000 - -
2,000,000 2,000,000 - - - -
$ 3,297,600 $ 2,411,000 $ 1,569,800 $ 842,400 $ 456,600 $ 367,400
$ 10,000
$ 10,000
$ -
$ -
$ -
$ -
95,000
-
95,000
-
-
-
60,000
-
-
-
60,000
-
1,000,000
200,000
200,000
200,000
200,000
200,000
200,000
-
200,000
-
-
-
70,000
-
70,000
-
-
-
15,000
-
-
15,000
-
-
15,000
-
-
-
15,000
-
180,000
60,000
60,000
60,000
-
-
292,800
48,000
52,800
58,000
63,800
70,200
325,000
-
-
325,000
-
-
75,000
-
-
75,000
-
-
74,300
16,500
41,800
10,000
6,000
-
365,800
61,000
57,800
63,000
108,800
75,200
88,000
20,000
30,000
19,000
-
19,000
20,700
14,700
-
-
3,000
3,000
411,000
411,000
-
-
-
-
$ 3,297,600
$ 841,200
$ 807,400
$ 825,000
$ 456,600
$ 367,400
$ 1,569,800
$ 762,400
$ 17,400
$ -
$ -
S-4
City of Cape Canaveral Sewer
Schedule 4. Cost Allocations
Resolution No. 2016-04
EXHIBIT "A"
S-5
Customer Readiness
Multi -Family
Usage
Reuse
Charge To Serve
ERU
Usage
Rate Connect
Personnel Services
Salaries and Wages
$
11,900 $
125,000 $
239,500 $
195,900 $
157,200 $
35,800
Overtime
100
1,600
3,000
2,500
2,000
400
Special Pays
700
71300
14,100
11,500
9,200
2,200
Employee Recognition
-
300
600
500
400
200
FICA Taxes
900
9,700
18,600
15,200
12,200
2,700
Retirement Contribution
800
8,800
16,800
13,700
11,000
2,500
Retirement Match
400
3,800
7,200
5,900
4,700
1,000
Life and Health Insurance
2,600
27,600
52,800
43,200
34,700
7,900
Worker's Compensation
200
2,600
4,900
4,000
3,200
900
Unemployment Comp.
100
1,500
2,800
2,300
1,800
500
Reimburse of GF Payroll Exp.
4,400
46,800
89,600
73,300
58,800
13,500
Subtotal
$
22,100 $
235,000 $
449,900 $
368,000 $
295,200 $
67,600
Operating Expenses
Legal Fees
$
- $
500$
900$
800 $
600$
200
Engineering Services
200
2,500
4,900
4,000
3,200
700
Physicals
-
100
300
200
200
-
Banking Fees
-
400
800
600
500
200
Audit Expense
300
3,400
6,400
5,300
4,200
1,000
Contract Services
-
200
400
300
200
100
Travel Per Diem
100
1,000
2,000
1,600
1,300
300
Communication Service
100
1,200
2,300
1,900
1,500
500
Postage
-
100
100
100
100
-
Utilities
3,000
31,500
60,400
49,400
39,700
9,100
Sludge Disposal Fees
700
7,400
14,200
11,600
9,300
2,300
General Insurance
2,500
25,800
49,500
40,500
32,500
7,400
Buildings & Grounds Maint.
400
4,200
8,000
6,500
5,200
1,200
Plant & Equip. Maintenance
2,800
30,000
57,400
47,000
37,700
8,600
Collection System Maint.
1,100
11,300
21,800
17,800
14,300
3,200
Printing
-
100
300
200
200
-
Operating Supplies
200
1,800
3,400
2,800
2,300
500
Safety Supplies
100
1,300
2,600
2,100
1,700
400
Chemicals
1,400
15,300
29,200
23,900
19,200
4,400
Uniforms
100
800
1,600
1,300
1,000
300
Motor Fuel & Lubricants
200
1,600
3,100
2,500
2,000
400
Small Tools
100
1,200
2,300
1,900
1,500
500
Lab Supplies
500
5,200
10,000
8,200
6,600
1,400
Reclaimed Water Supplies
-
500
900
800
600
200
Subscriptions & Training
-
500
1,000
800
700
200
Operating Fees & Licenses
100
1,200
2,300
1,900
1,500
300
Contingency
-
-
-
-
-
-
Subtotal
$
13,900 $
149,100 $
286,100 $
234,000 $
187,800 $
43,400
Total O&M
$
36,000 $
384,100 $
736,000 $
602,000 $
483,000 $
111,000
S-5
City of Cape Canaveral Sewer
Schedule 4. Cost Allocations (continued)
Resolution No. 2016-04
EXHIBIT "A"
S-6
Customer
Readiness
Multifamily
Usage
Reuse
Charge
To Serve
ERU
Usage
Rate
Connect
Capital
Buildings
$
100
$
1,500
$
2,800
$
2,300
$ 1,800
$
500
Machinery and Equipment
400
4,100
7,800
6,400
5,100
1,200
Subtotal
$
500
$
5,600
$
10,600
$
8,700
$ 6,900
$
1,700
Debt Service
SRLF CS120825020 Princ.
$
6,900
$
72,200
$
138,400
$
113,200
$ 90,800
$
20,600
SRLF CS120825030 Princ.
1,900
20,400
39,200
32,000
25,700
5,900
SRLF Interest
1,300
13,400
25,700
21,000
16,900
$
3,900
Proposed
1,200
12,700
24,400
19,900
16,000
3,600
Subtotal
$
11,300
$
118,700
$
227,700
$
186,100
$ 149,400
$
34,000
Transfers & Contingencies
Transfer to General Fund
$
1,900
$
20,400
$
39,100
$
32,000
$ 25,700
$
5,900
R&R
1,800
19,300
37,100
30,300
24,300
5,600
Subtotal
$
3,700
$
39,700
$
76,200
$
62,300
$ 50,000
$
11,500
Total
$
51,500
$
548,100
$1,050,500
$
859,100
$ 689,300
$
158,200
Other Revenue
Utility Penalty Income
$
-
$
60,000
$
-
$
-
$ -
$
-
Reuse Hook -Up Fees
-
-
-
-
-
1,000
Interest Earnings
-
18,600
-
-
-
-
Subtotal
$
-
$
78,600
$
- S
- S
- $
1,000
Net Revenue Requirement
$
51,900$
474,900$
1,058,800 $
865,900$
694,100$
158,000
S-6
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Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
APPENDIX "H" - MAPS AND ILLUSTRATIONS
The City of Cape Canaveral Wastewater Utility Service Area map is shown on the following page, H-1
The City of Cape Canaveral Wastewater Utility Lift Station Location Schedule, H-2
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 26 of 28
Resolution No. 2016-04
Page H-1, City of Cape Canaveral - Wastewater Utility Service Area and Lift S"MIMPk"
CITY L— I r -T mvn :-I 4�
LL,t-:s
Mal
Miller Leg
Mal
..r €W-2 ne
�•h .rr rrri
Resolution No. 2016-04
Page H-2, City of Cape Canaveral - Lift Station Location Schedule EXHIBIT "A"
CITY OF GAPE CANAVERAL
PRIORITY PZME
IN THE EVENT OF A POWER OUTAGE, EMERGENCY,
NATURAL DISASTER OR HURRICANE
'All locations are within the City limits unless otherwise noted
"All stations run off 220 power except Lift Station till
LIFT STATION
L OCATION
METER #
PRIORITY #
Wastewater T reatmeni Plant
601 Thurm Blvd
321-868 1241} Deytirne
321,568.1241 Evenings & Weekends
RV224VO
1
Wastewater Lift Station #4
it., G,.
d
9751 Gogama Drive
W32014-23032614
2
VVaxlewate r Lit Station # 9
6,M5656-244120114
8
5803 North Banana River Blvd
(5tand4Ffy Generator)
3
Wastewater LHt Station
796 W. Centrad 'Blvd
{NW Corner of Central Blvd & Thurm
5J10742
7
BlvCq
3 Phase 2201"" 7.5HP
4
Wastewater Lift Station 9 3
180 W. Central Blvd
(localed-5W corner of vacant lot -
5JO3217.23405031
3 103k
Manor Mobile horse park)
(gland -By Generator)
5
Westewater Litt Station # 5
a� Columbia Drive
5
(West end -Treasure Island Condos)
5J13135-23012688
b
Wastewater L Fft Station 4 2
5.40390.H10390
2
194 Center Street
Mand -8y Generator)
7
Wastewater Lift Station 4 t
533 Thum► Blvd
6
East Entrance - Discavaery Say
SJ 178+63
8
Wastewater tilt Station A 1
44199591-30649691
402 *ashlrlgton Ave (Wash!ngtor,
(sland-Hy Generator)
1
AverMag nvlia Ave)
3 PhwK Motors, 2201440 21t HP
9
City Had, Library 8 Plecreetlon
Center
SR AIA- PloAk Ave- Palnsetts Ave at
Taylar Ave
City Hall 32 11-85b.1 220
tlbrary 321.868.1141
Roma ion Cantor 321-"b-1220
N-0 Motor #
1J
Canaveral Firs & Rascuc
19+7 .JackEon Ave
Nn Meter #
W14ea-1711
(Stand -By Generfflvr)
I I
Bravard Courny 5hattirb Dept
Palk Ave
No MCte, #
321-868-1212
(5tWd-By Genarator)
12
ongs r.Road
(Corner - I ong Point end sunset
12
Court)
No MMor #
13
192 Imperial Blvd
8
(Located In Median)
N -D M-Oter A
14
Mywd - MI I r#4
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
APPENDIX "I" - FLORIDA RURAL WATER ASSOCIATION PUBLICATIONS
Applicable Florida Rural Water Association publications are included on the following pages:
Fats, Oils and Grease (FOG)
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 27 of 28
Page
I-1
Resolution No. 2016-04
EXHIBIT "A"
City of Cape Canaveral, Asset Management Plan, Appendix I, Page 1-1
BEST MANAGEMENT PRACTICES
(BMP)
FOR FATS, OILS
(FOG)
& GREASE
Resolution No. 2016-04
Best Management Practice and Guidance Manual for Food Service Establishments pilTyWe
City of Cape Canaveral for the control of fat, oil and grease (FOG) discharged to the sanitary sewer
system by Food Service Establishments.
Introduction
Best management practices (BMPs) help facilities meet environmental regulations and prevent
pollution. This best management practice contains guidelines to reduce the amount of fat, oil and
grease (FOG) discharged to the City of Cape Canaveral sanitary sewer system and wastewater
treatment plants. Our intent is to reduce the amount FOG introduced to the City's sanitary sewer
system and protect the public health and environment from hazards caused by sanitary sewer
overflows.
The Clean Water Act was established to protect wastewater plants and the streams they discharge
to. The U.S. Environmental Protection Agency and the Florida Department of Environmental
Protection require local governments or utilities to protect their systems and the receiving streams
from FOG -related problems.
Background
All food service establishments generate varying amounts of FOG. While fat, oil and grease are most
commonly associated with fried foods, they are generated in significant quantities in all types of
commercial food preparation:
Cooking meats
Mayonnaise and salad dressings
Butter, ice cream and other dairy products
Creams and sauces
What's the Problem?
FOG coats pots, pans, utensils and equipment. When these materials are washed, FOG is rinsed into
the sewer.
Sanitary sewer systems are not equipped to handle FOG. In the sewer, FOG coats the interior
surface of the pipes. Over time, FOG accumulations restrict the flow of wastewater through the
sewer. Eventually the FOG can clog the sewer pipes causing the sewage to back up and spill onto
the ground, or into waterways, homes or buildings. This is called a sanitary sewer overflow (SSO),
which endangers the public health and the environment.
Fat, oil and grease can also interfere with proper operation at the wastewater treatment facility
(WWTF). This could result in poor wastewater treatment and pollution.
Policy
Discharges of fat, oil and grease cause major problems in the sewer system and treatment plants.
The City of Cape Canaveral is required to regulate discharges from food service establishments to
prevent these sewer problems. This manual will help you use best management practices to
minimize the amount of FOG entering the sewer system and treatment plants. Keeping FOG out of
the sewer will help prevent a sewer backup in your facility or a sewer overflow on your street.
Fat, Oil and Grease Discharge Policy
1. All discharges from Food Service Establishments must be in accordance with applicable state,
local or federal rules and regulations.
2. All Food Service Establishments must have a properly sized and operational grease interceptor
(large external device) or grease trap (smaller "under the sink" fixture).
3. Sizing and design of grease traps and interceptors must meet the criteria in the Florida Building
Code, Chapter 10, Plumbing
4. All FOG bearing drains must be plumbed to the interceptor.
5. All grease interceptors and traps must be maintained on a regular basis.
Resolution No. 2016-04
EXHIBIT "A"
Reauired Maintenance Practices
To prevent introduction of FOG to the City of Cape Canaveral sanitary sewer, grease interceptor
devices must be maintained on a regular basis. Interceptors must have all FOG removed and hauled
off site for proper disposal at a minimum frequency of once every 90 days unless otherwise
determined by the City of Cape Canaveral. Interior "under the sink" grease traps must have the
entire contents removed and hauled offsite for proper disposal at a minimum frequency of once
every 90 days unless otherwise determined by the City of Cape Canaveral. It is recommended that
these devices be maintained at a weekly frequency. This will help extend the life of these fixtures.
Maintenance of interior grease traps can be performed by the Food Service Establishment as long as
the trap contents are properly disposed.
FOG must be removed and hauled off site for proper disposal any time the volume of grease and
solids factions exceeds 25% of the interceptor's or trap's functional volume. At a minimum
frequency of once per year all contents of grease interceptor must be removed and hauled off site.
Grease interceptor devices must be inspected for proper functionality during each pump out event.
Kitchen Practices - strictly control the discharge of grease and solids to the interceptor. By reducing
the amount of these substances discharged, a Food Service Establishment may be able to reduce the
cost associated pump out frequency. This practice will also lead to decreased plumbing maintenance
cost.
Fryer oil (yellow grease) must not be disposed of through the sanitary sewer. Yellow grease has re-
use value and should be placed in a secured tank. Contract with a rendering service to haul the
grease offsite for beneficial re -use.
Reduce the amount of food particles washed down the drain. Food particles take up volume in the
grease interceptor, resulting in increased pump out frequency.
One way to reduce pump out frequency is to not use grinders or garbage disposal units. Ground
food takes up volume in the grease interceptor, resulting in increased pump out frequency.
Use rubber scrapers and paper towels to wipe off grease from pots, pans and ware into garbage
cans before washing.
Clean up all grease spills with paper towels and dispose of in the garbage. Avoid washing straws,
disposable gloves, paper towels or any other inappropriate materials down the drain.
Use a test kit provided by your grocery distributor to determine when to change the oil in fryers.
This extends the life of both the fryer and the oil. Build-up of carbon deposits on the bottom of the
fryer acts as an insulator that forces the fryer to heat longer thus causes the oil to break down
sooner.
Develop a rotation system if multiple fryers are in use. Designate a single fryer for products that are
particularly high in deposits, and change more often.
Documentation
For every grease interceptor/trap pump -out event, whether performed by the Food Service
Establishment or a hauler, a City of Cape Canaveral Out Report must be submitted to the City within
seven (7) days of the event. All records of pump outs or interceptor maintenance must be
maintained on site and available for City inspection for a minimum of three (3) years.
Training
-- Train all kitchen staff in these best management practices and the environmental impacts of
grease in the sewer system.
-- Post Best Management Practices signs in kitchens and near sinks.
-- Place yellow grease re -use bins in easy access areas for staff. Follow up to ensure staff properly
disposes of grease.
-- Provide constant re -enforcement on proper disposal of fat, oil, and grease with staff.
Resolution No. 2016-04
EXHIBIT "A"
Interceptor Additives
Many vendors service grease interceptors with chemicals or microorganisms to remove FOG
material. Known interceptor additives are:
Emulsifiers, detergents, or caustic substances - these chemicals act to break up the grease and
allow it to pass through the interceptor and into the sewer system where it can reform and cause
blockages. These substances reduce the efficiency of the interceptor or trap and are prohibited for
use as an additive.
Enzymes - have the same effect as emulsifiers and are therefore prohibited as additives.
Microorganisms - typically cultured bacteria are added to the interceptor. Ideally these bacteria
digest the FOG converting it to innocuous substances. Microorganisms are allowed as an additive.
However, since bacteria need an environment with specific requirements to proliferate, the
effectiveness of these organisms in the environment of the interceptor is not known. The use of
microorganisms does not relieve a FSE of the minimum pump out frequency requirements.
Guidance for Working with Grease Hauling Companies
Work closely with your hauling company to make sure your interceptor is serviced at the proper
frequency and all required paperwork is completed properly and submitted to the City of Cape
Canaveral in a timely manner.
Be sure your hauler leaves a copy of each pump out report and any other interceptor maintenance
documentation.
Review your pump out reports from haulers for accumulations of grease and solids. If amounts are
nearing or exceeding 25% review kitchen practices to find areas in which improvements can be
made to reduce the introduction of FOG and solids. If the pump out report indicates that the
interceptor is in need of repair, contact hauler or plumber to have it serviced immediately.
Ask your hauler where/how grease interceptor contents are disposed.
Preferred Hauler List
The City of Cape Canaveral has accepted the following grease trap maintenance companies into
the "Preferred Hauler Program" (PHP). To be added to this listing these companies have passed all
of the criteria set forth by the City of Cape Canaveral to ensure they meet FOG Program standards.
Some of these criteria included:
-- Submission of required paperwork.
-- Acceptable disposal method documentation.
-- Acceptable grease trap maintenance performance.
-- A commitment to the service of their customers as well as the FOG program
Preferred Haulers"
(To be determined)
Conclusion
Food service establishments can have a significant impact on the environment. Through the use of a
properly sized and functioning interceptor, suitable kitchen practices and regular maintenance of the
interceptor, Food Service Establishments can reduce the amount of fat, oil and grease discharged to
the sanitary sewer system.
By following the practices in this document, Food Service Establishments will be helping to reduce
sanitary sewer overflows and protect our community's health and environment as well as reducing
plumbing maintenance cost associated with the discharge of fat, oil and grease.
Questions can be directed to: City of Cape Canaveral Wastewater Utility.
Resolution No. 2016-04
City of Cape Canaveral, Florida EXHIBIT "A"
Fiscal Sustainability Plan Analysis &
Asset Management Plan - Wastewater Utility - 2015
APPENDIX "J" - REFERENCES AND INFORMATION SOURCES
The main reference for this document is the "Asset Management Plan Requirements - Fiscal Sustainability Plan Analysis
Requirements" outline developed jointly by the Florida Department of Environmental Protection and the Florida Rural
Water Association. Additional information sources are as follows:
Federal Environmental Protection Agency - Water - Sustainable Infrastructure from their website
Federal Environmental Protection Agency Publication - Asset Management: A Best Practices Guide
Federal Environmental Protection Agency Publication - Asset Management: A Handbook for Small Water Systems
Federal Environmental Protection Agency Publication - Strategic Planning: A Handbook for Small Water Systems
Federal Environmental Protection Agency Publication - Reference Guide for Asset Management Tools
Federal Environmental Protection Agency Publication - Condition Assessment of Wastewater Collection Systems
Guide to Water & Wastewater Asset Management by Underground Infrastructure Management
NASSCO's Pipeline Assessment and Certification Program Manual
Comprehensive Annual Financial Report for Fiscal Year Ending September 30, 2014, prepared by City of Cape Canaveral
Finance Department, with Independent Auditors' Report by James Moore, CPA
City of Cape Canaveral WRF Improvement for Oxidation Ditch Rehabilitation, Preliminary Design Report, 2013,
prepared by Tetra Tech.
City of Cape Canaveral WRF Permit Application Attachment - Updated Capacity Analysis Report, 2011, Tetra Tech
City of Cape Canaveral WRF Permit Application Attachment - Operation and Maintenance Performance Report, 2011,
Tetra Tech
City of Cape Canaveral WRF Permit Application Attachment - Reclaimed Water system Operating Protocol, 2011, Tetra
Tech
FLORIDA RURAL WATER ASSOCIATION
2970 Wellington Circle - Tallahassee, FL 32309-7813
Tel: (850) 668-2746 - Fax: (850) 893-4581
Email: frwa@frwa.net - Website: www.frwa.net
Page 28 of 28