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HomeMy WebLinkAboutCity of Tamarac Resolution R-2003-087Temp. Reso. #10099 April 3, 2003 1 CITY OF TAMARAC RESOLUTION NO. R-2003- 0 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO RECEIVE THE FISCAL YEAR 2002 CITY OF TAMARAC WATER AND WASTEWATER SYSTEMS ANNUAL REPORT PREPARED BY THE CITY'S CONSULTING ENGINEERS, MATHEWS CONSULTING, INC., ON BEHALF OF THE CITY OF TAMARAC UTILITIES DEPARTMENT AS REQUIRED BY BOND COVENANTS FOR CONTINUING DISCLOSURE FOR THE TAXABLE WATER AND SEWER UTILITY REVENUE REFUNDING BONDS SERIES 1996 AND REFUNDING BONDS SERIES 1992; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Tamarac has covenanted for the benefit of the Series 1992 and Series 1996 bondholders through continuing disclosure to provide certain financial information and operating data relating to the City by no later than April 1 of each year; and WHEREAS, the City of Tamarac's Bond Resolution Nos. R-95-296 and R- 85-436 require that the Consulting Engineers for the Utilities Department review the operation, maintenance and repair of the City's water and wastewater facilities, and to report annually to the City with their recommendations and comments as to the water and wastewater systems; and Temp. Reso. #10099 April 3, 2003 2 WHEREAS, the City's Consulting Engineers, Mathews Consulting, Inc., have prepared the Fiscal Year 2002 Water and Wastewater Systems Annual Report (a copy of which is attached hereto as "Exhibit 1 ") which addresses the sufficiency of the water and wastewater systems rates and charges, the operation and maintenance of the water and wastewater systems, and the status of compliance with covenants and agreements contained in the Bond Resolution; and WHEREAS, Mathews Consulting, Inc., have concluded that the Utilities Department has performed the necessary operation and maintenance activities to keep the facilities in proper condition and that the planned capital activities are adequate to meet the anticipated growth of the City's service area; and WHEREAS, Mathews Consulting, Inc., concluded that water and wastewater rates were sufficient to maintain the operation of the Utilities Department in Fiscal Year 2002; and WHEREAS, it is the recommendation of the Director of Utilities that the City Commission receive the Fiscal Year 2002 City of Tamarac Water and Wastewater Systems Annual Report; and I� fJ 1 Temp. Reso. #10099 April 3, 2003 3 WHEREAS, the City Commission of the City of Tamarac, Florida deems it to be in the best interest of the citizens and residents of the City of Tamarac that they receive the Fiscal Year 2002 City of Tamarac Water and Wastewater Systems Annual Report as prepared by Mathews Consulting, Inc. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, THAT: SECTION 1: The foregoing "WHEREAS" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this resolution. SECTION 2: The Fiscal Year 2002 City of Tamarac Water and Wastewater Systems Annual Report as prepared by the City's Consulting Engineers, Mathews Consulting, Inc., (a copy of which is attached hereto as "Exhibit 1 "), be received. SECTION 3: All Resolutions or parts of Resolutions in conflict herewith are hereby repealed to the extent of such conflict. SECTION 4: If any clause, section, other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or Temp. Reso. #10099 April 3, 2003 4 invalid, in part or application, it shall not affect the validity of the remaining portions or applications of this Resolution. SECTION 5: This Resolution shall become effective immediately upon its passage and adoption. PASSED, ADOPTED AND APPROVED this 23IdRday of April, 2003. JOE SCHREIBER MAYOR ATTEST: MARION S ENSON, CMC CITY CLERK I HEREBY CERTIFY that I have approved this RESOLUTION as to form. ITCHE.LL S. KR* CITY ATTORNEY KW/mg RECORD OF COMMISSION VOTE: MAYOR SCHREIBER DIST 1: COMM. PORTNER DIST 2: COMM. FLANSBAUM-TAL DIST 3: COMM. SULTANOF DIST 4: V/M ROBERTS 1 fi City of Tamarac Wlater and Wastewater Systems Annual Report Fiscal Year 2002 April 2003 Prepared by: MAT H E W S 912 CONSULTING INC Civil and Environmental Engineers i ' MATHEWS zNC. CONSULTING Civil and Environmental Engineers April 17, 2003 Mr. Keith Wilder CITY OF TAMARAC 6001 Nob Hill Road Tamarac, Florida 33321-2401 Water and Wastewater Systems Annual Rgport --- FY 2002 Dear Keith: Mathews Consulting, Inc. is pleased to submit herewith fifteen (15) final copies of the referenced report. We appreciate the opportunity to work with the City on this project. Should you have any questions regarding the report, please contact me at 561-478-7961. iVery Truly Yours, MATHEWS CONSULTING, INC. Rene L. Mathews, P.E. President Enclosure c: Scott Harder, EFG File 1188 Mathews Consulting, Inc. • 1475 Centr•epai-k Boulevai-cl, Suite 250 • West Palm Beach, FL 33401 •561-478-7961 Fax 561-478-7964 u 1 H 1 L� I 1 1 11 City of Tamarac Water and Wjastemater Systems Fiscal Year 2002 Annual Report Table of Contents Section 1 Executive Summary • Background • Utility Awards • Conclusions and Recommendations Section 2 Background and System Summary • Purpose • Background • System Summary ♦ Fixed Assets ♦ Ordinances and Resolutions ♦ Water and Wastewater Service Area ♦ Existing Water Treatment Facilities ♦ Existing Water Distribution System ♦ Existing Wastewater Collection, Treatment and Disposal Facilities • Utility Awards Section 3 Utility Organization • General Organization • Utility Administration Division • Utility Engineering Division • Water Plant Facility Division • Operations Division • Support Services Division Section 4 Ongoing System Maintenance, Renewal and Replacement Improvements and Depreciation • General • Wastewater System Maintenance • Water System Maintenance • Renewal and Replacement Improvements • Utility Operating Budgets • Depreciation • Conclusions • Recommendations IMathews Consulting TOC-1 1 Section 5 Rate Sufficiency and Debt Service Coverage • 'General • Rates and Charges • Water and Wastewater Customers (Accounts) and Billable Flows • Projected FY 2003 Water and Wastewater Rate Revenue • Rate Sufficiency Analysis and Debt Service Coverage for FY 2003 • Conclusions and Recommendations Attachment A Utility Maintenance Record/Schedule J 1 I u 1 k 1 1 1 IMathews Consulting TOC-Z 1 Section 1 Executive Su Background This Fiscal Year (FY) 2002 Annual Report has been prepared by the City of Tamarac (City) to meet continuing disclosure requirements outlined in the 1996 Series Taxable Water and Sewer Utility Revenue Refunding Bonds. For the benefit of bondholders, the City has covenanted to provide certain financial information and operating data on an annual basis. Consequently, this document reports on the sufficiency of rates and charges for services, determines whether the level of maintenance is adequate, and reviews the adequacy of the renewal and replacement program and other capital funding for FY 2002. Information was collected and analyzed to determine the utility's progress on complying with bond covenants. Data considered included: • End of FY 2001 reserve balances (audited) • Unaudited FY 2002 Financial Statement • Existing and Projected Customer Account Data • Metered and Billed Water Reports + Water and Wastewater Rates and Charges • Adopted FY 2003 budget • Utility Fund Capital Improvement Program (CIP) • Renewal and Replacement Funding • Maintenance and Repair Records Utility Awards In 2002, the Florida Water & Pollution Control Operators Association (FWPCOA) — Region 7 presented the City with an award for "Website of the Year". The FWPCOA recognizes the growing importance of the Internet, and its use as a tool in providing service to our customers. The award is presented annually to that water, wastewater, stormwater or reclaimed water utility or municipality within the state that is judged to provide the most outstanding internet web site to their customers. This award demonstrates the City's commitment to excellence in the operation and maintenance of its utility system. I IMathews Consulting 1 1 1 Section 1 — Executive Summary 1 1 1 i I'] 1 1 1�, L 1 1 1 Conclusions and Recommendations The following conclusions and recommendations are made as a result of the Water and Wastewater Systems Fiscal Year 2002 Annual Report: • The City adequately maintains its water and sewer systems in accordance with good utility management principles. • Water and wastewater user charges are expected to be sufficient to meet FY 2003 debt service coverage requirements, in accordance with bond covenants. • The City has the financial resources to implement its water and wastewater capital improvement plan. • No event has occurred during the past fiscal year that might materially affect outstanding bonds. There have been no defaults or delinquencies, unscheduled draws from debt service reserves or credit enhancements, substitution of credit or liquidity providers, modification of bondholder rights, unscheduled redemption calls, defeasances, or ratings changes. • The City's FY 2002 Comprehensive Annual Financial Report is hereby incorporated by reference into this Annual Report. IMathews Consulting 1-2 I 1 Cl 1 1 1 1 [7 L� 1 1 Ll 1 1 I 1-1 a Section 2 Background and System Summary Purpose The City has covenanted to provide to bondholders an Annual Report as required by the Taxable Water and Sewer Utility Revenue Refunding Bonds, Series 1996. The Annual Report provides information on the Utility Department's organizational structure and funding. The report also contains information about ongoing maintenance and new improvements to the City's water and wastewater facilities. Additionally, the report reviews proposed capital funding, especially renewal and replacement funding, and evaluates sufficiency of the existing rates and charges. Background The City of Tamarac was incorporated in 1963 by the State of Florida Legislature and occupies an area of approximately twelve (12) square miles in the northwestern portion of Broward County. The City is primarily a residential community with easy access to nearby areas of industry, commerce and recreation. System Summary The following sections provide a summary of the City's Utility framework, including fixed assets, ordinances and resolutions, and water and wastewater facilities. Fixed Assets Based on unaudited results, as of September 30, 2002, total assets of the City's water and wastewater systems are reported to be $71,288,883. Fixed assets have a book value of $ 42,593,869. Other assets and debits include pooled cash and investments, and restricted assets. Fixed assets are carried at historical cost or estimated cost if historical cost information is unavailable. Major fixed assets include the water treatment facilities, the water distribution system, the wastewater collection and transmission system, computers, trucks, equipment, meters and other property. Capital contributions for FY 2002 were $2,036,617. Contributed capital represents water and wastewater grants and contributions in aid of construction (CIAC) reserved for future system acquisition or expansion. Ordinances and Resolutions In 1996, the City passed Temporary Ordinance Number 1768 consolidating the East and West Utility service areas into one utility. The ordinance was passed to IMathews Consulting 2-1 Section 2 — Background and System Summary 1 1 1 1 1 1 11 1 1 1 1 11 allow the Utility service areas to benefit from economies of scale, thereby minimizing rate increases. In 1996, the City also passed Resolution R-96-212 establishing uniform rates for the East and West service areas. These rates have remained in -place since 1996 and are anticipated to remain in effect during FY 2003. 'In 1998, the City passed Resolution No. R-98-136, increasing the water and wastewater contribution in aid of construction (CIAO) charges to current levels. The outstanding debt includes two bond issues. The Series 1992 bonds bear interest rates varying from 4.7% to 5.9% and mature through 2011. The taxable Series 1996 bonds bear interest rates varying from 5.3% to 6.5% and mature through 2009. Outstanding debt supported by the City's Utility Fund is $13,482,380. Water and Wastewater Service Area The City's water service area is approximately 11.65 square miles and the wastewater service area is approximately 11.80 square miles of urbanized residential, commercial and industrial land uses. The service area is approximately 94% built -out. The City Planning Department estimates that the projected development will fill in the remaining land by the Year 2005. Most of the service area (approx. 10.67 square miles) is west of State Road 7 (a.k.a. U.S. Hwy 441). Existing Water Treatment Facilities The City's existing water treatment plant (WTP) facility is located one block west of the northwest corner of the intersection of University Drive and N.W. 61" Street within the corporate City limits. The existing treatment process consists of raw water supply wells, pre -chlorination, lime softening, chlorination, polymer addition, rapid sand filtration, and fluoridation. The raw water production facilities consist of 19 water supply wells. Six (6) of the wells are located at the WTP site and three (3) of the wells are located adjacent to the plant site. Two (2) additional wells were completed in 1996 and are located south of the WTP. Eight (8) remote wells are located approximately 0.3 miles east of the WTP. All of the raw water wells are controlled from the main control system in the WTP. The South Florida Water Management District renewed the City's Water Use Permit in March 1999. The City is allocated an average 7.54 million gallons per day (MGD) or 2,754 million gallons per year through the Year 2004. Peak day allocation is 9.28 MGD. The WTP has a design and permitted capacity of 20 mgd. The plant currently produces an average daily flow (ADF) of 6.5 MGD of finished water. Lime softening of the water is provided by three (3) steel water softening units IMathews Consulting 2-2 Section 2 — Background and System Summary I 1 I 1 11 ("accelators") including two (2) with a capacity of 8 MGD and one with a capacity of 4 MGD. The two (2) 8 MGD accelators are alternated every six (6) months as the duty unit, and the 4 MGD accelator serves as a standby unit. Softened water is fed from the accelators to six (6) steel rectangular dual -media gravity filters, each with three cells, or to a single 8-MGD automatic filter with four cells. The 8 MGD filter was placed into operation during FY 1989. The filters are periodically backwashed (manually for the rectangular gravity filters and automatically or manually for the 8 MGD filter) for the removal of residual solids in the media. Backwash and blow off water is routed to an onsite lime pond. Finished filtered water is piped to the clearwell. Finished water may be pumped directly into the potable water distribution system from the clearwell, or transferred to a one (1) million gallon (MG) onsite storage tank or to two (2) remote storage tanks prior to re -pumping into the distribution system. Existing Water Distribution System Water is distributed throughout the City's service area in over 229.5 miles of water mains ranging in size from 2 to 30 inches in diameter. In addition, there are two storage/booster pump stations located within the distribution system. The storage and booster pump stations in the water distribution system include the Grant's Plaza and the Tract 27 booster stations. Grant's Plaza Station: The facility is located near the corner of Commercial Boulevard and U.S. Hwy. 441. The station consists of a one million gallon ground level storage tank, and is equipped with two (2) 1,500 gallon per minute (gpm) booster pumps. • Tract 27 Station: The facility is located near the corner of N.W. 100" Avenue and 77` Street. The station consists of a two million gallon ground level storage tank, and is equipped with two (2) 3,000 gpm and one (1) 1,500 gpm booster pumps. These stations, along with on -site storage at the WTP, have a combined storage of four million gallons (which will be increased to 6.0 MG with the completion of the new 2.0 MG tank at the WTP). Both the Grant's Plaza and Tract 27 stations are connected to the telemetry system to enable monitoring and control from the WTP. The City has seven (7) emergency interconnects with neighboring utilities, including: Broward County, City of Lauderhill, City of North Lauderdale, and the City of Coral Springs. IMathews Consulting 2-3 1 Section 2 — Background and System Summary 1 1 1 1 1 1 I 1 Ll i7 H 1 LJ 1 Existing Wastewater Collection, Treatment and Disposal Facilities The City abandoned its WWTP in 1988, when it signed a Large User Wastewater Agreement with Broward County. The City of Tamarac's wastewater system is in the North region of the Broward County Wastewater Service Area. The City agreed to purchase wastewater transmission, treatment and disposal services from Broward County at the North Regional Wastewater Treatment Plant (NRWWTP) located in Pompano Beach. The City is required to construct, operate and properly maintain all necessary sanitary gravity sewers, lift stations, pumping stations, wastewater force mains and other required appurtenances related and directly attributable to the wastewater collection system upstream of the point of connection to Broward County's wastewater system. Broward County provides wastewater transmission, treatment and disposal service to the City at fees, rates and charges constituting the full costs of such service. The City currently reserves 8.04 MGD of capacity at the NRWWTP. Flows from the local collection system are routed to two (2) Broward County regional wastewater pumping stations. These stations pump wastewater from the City into Broward County's regional wastewater transmission system where the flow is then conveyed to the NRWWTP. These two stations are owned, operated and maintained by the Broward County Office of Environmental Services (BCOES). In addition to Broward County, the City of Tamarac has a large user agreement with the City of Fort Lauderdale since 1981 to service the eastern portion of the City, formally known as Tamarac East Utilities. The agreement allows up to 0.165 MGD of wastewater flow to be transferred to Fort Lauderdale. The City of Tamarac's wastewater system also includes seventy-four (74) wastewater pumping stations. Most of these stations serve small areas and are minor in size, with pumping capacities ranging from 75 to 1,000 gpm. Some of these pumping stations are currently monitored by a radio -based telemetry system. The City will complete the construction of a radio -based telemetry system that will monitor all of the pumping stations during FY 03. The monitoring system is located in the WTP building which serves as the master control station of the wastewater pumping station network. IMathews Consulting 2-4 1 Section 2 — Background and System Summ [l 1 1 1 1 1 1 1 1 1 1 1 1 1 PI 1 Utility Awards In 2002, the Florida Water & Pollution Control Operators Association (FWPCOA) — Region 7 presented the City with an award for "Website of the Year". The FWPCOA recognizes the growing importance of the Internet, and its use as a tool in providing service to our customers. The award is presented annually to that water, wastewater, stormwater or reclaimed water utility or municipality within the state that is judged to provide the most outstanding internet web site to their customers. This award demonstrates the City's commitment to excellence in the operation and maintenance of its utility system. IMathews Consulting 2-5 1 r Section 3 Utility Organization IGeneral Organization The Utility Department is currently organized into five (5) divisions grouped by function. The Utility Department's Organizational Chart is shown in Figure 3-1. Funding for the Utility Department is derived from user charges (Utility Fund), and Contribution in Aid of Construction (CIAC) charges paid by developers to connect to the water and wastewater systems. CIAC revenues are used to finance growth -related capital improvement projects. The Department's mission statement is as follows: "To provide excellent and cost-effective service to the residences and businesses of the City of Tamarac through the operation of systems that provide an adequate supply of safe, high quality water and efficient transport and treatment of wastewater." Utility Administration Division The Utility Administration Division provides the organizational leadership for the Utilities Department. This division is responsible for implementing the City Commission's utility policies. Utility Administration is the primary liaison between the Utility Department, the City administrative staff and elected officials, and other public and private organizations. The division is responsible for coordinating and facilitating the efforts of the other utility divisions, and Utility Administration is also responsible for long range planning and policy development. Utility Engineering Division The Utility Engineering Division provides technical support to the Utility Department. These services include: design, review and approval of development plans; issuance of construction permits; providing construction inspection; as well as overseeing the i optimization and rehabilitation of the water and wastewater systems. 11 IMathews Consulting 3-1 Section 3 -- Utility Organization 1 I,] 1 1 1 1 11 1 1 Water Plant Facility Division The Water Plant Facility Division operates and maintains the City owned lime softening Water Treatment Plant. The finished potable water quality meets or exceeds applicable Federal and State Regulatory primary and secondary drinking water requirements. Finished water is delivered at sufficient pressure levels for potable water use and fire protection in the City's water distribution system. This division is also responsible for monitoring the potable water quality at the Water Plant Facility Division certified laboratory. Operations Division The Operations Division operates and maintains the City's 229.5 miles of water distribution, and 174 miles of wastewater collection and transmission system which includes 144 miles of gravity sewer lines, 74 pump stations, and 30 miles of transmission (force) mains. The division also performs miscellaneous construction required for the Utility Department to effectively and efficiently carry out its mission. The division is also responsible for reducing the amount of unaccounted for water usage and coordinates the repair of wastewater lines that have experience infiltration/inflow. Support Services Division The Support Services Division provides required non -technical support services for the other division, including clerical, financial, purchasing and warehouse inventory. This division also provides water meter readings, billing, related customer service, and administers the City's Backflow Prevention Program. Mathews Consulting 3-2 M �U _q h � g N � N _ � c a i u 'I 1 H 1 u Section 4 Ongoing System Maintenance, Renewal and Replacement Improvements and Depreciation General The City of Tamarac recognizes the importance of maintaining and improving the operations of the Utility. The City also recognizes how important it is to maintain fixed assets. The City performs maintenance on all components of its utility systems. Maintenance is either conducted by in-house personnel or outside contractual services. Maintenance is classified as preventative maintenance or corrective service. Wastewater System Maintenance The City repairs thousands of feet of sewer main annually. A listing of maintenance activities performed on the wastewater system is provided in Table 4-1. Table 4-1 Wastewater System Maintenance and Repairs Fiscal Year 2002 Preventative ( P ) Quantity Description Corrective ( C ) 63 Mechanical repairs at Pump Stations C 144 Motors pulled 1 P _..................._............ ....... 30 ._._ ....................._ ............... _........... ................................_................ _._..___...._.__..............._..................... _..__.....-__....._._ _ .._................. Motors sent out for electrical repairs _...... .__.......... _.... ............._........................... ... .................. ........... C -- ._...------......_........_ 48 �....................................._..............................._.......-....................................-...._..... _........ _.................... .............. .......................................... ..................................... Motors repaired in house ......_.._...._....__­__ _�....._ ........... ........................... _......... ..... ......... _.. ..... ..C ........................................ . _...................._...................._.....___._ . 716 .. ........................._.._..........................................................................._.... ............ - ........ ............. ................. .. Wet wells cleaned -_.._ .... _.................. .................. ................. P _.__...__....__...__ 24 ............... ............... ....._... ............................ ..............................I ............ .......... _._ __.........__.,__..__._.............._...................................................................................... Pressure tests performed on Force Mains P --- - ....._......._ 72 _......... .......................................................................................................__.__................... .... .............. _........ ........................................................... Off -hours emergency call outs (Pump Stations) .........................................___._... ........... ....... --..... --............ C _................_._......:........._................................................................_........ 22 __.......................................-....._.........................................................................................._......................__......_....................................................................................................... Force Main Valves Exercised . P _._._.. --......_,......................_................_......_... 1 ......... .......__._.....---......_.._............................._._...........................W............................................................_......................_...-.._....._........_.................................................................................. Force Main Valve installed P _ ........._ ............................ 87 ........... .......................... _......... ............. ...................................._.............. _...... _....... ............. _............... ........................ _........ .................. Electrical repairs at Pump Stations [ C ........................._............................................................................................._.............._........_..................................._.........................._...................._ 8 - _._ ... _..........._ ................_ .........................._... Electrical Panel Upgrades (in-house) 1........_----..._....._..._...._.........-.................._._...................................__. --........._._,......_......_..................................... .............. _........................................... C ..... -.. 322 j Manholes inspected P ._.._......,....-....__.................................._......................................................................._........................._.,._._......_. ] _._...... _._... .............. _......................................... _.__._................ ...._..........._......____......._ Manhole rehabs. _.............................. ........................................... . C ... .........................................._.........._..._ 1,124 ............... ..................... _............................. ...................... ..... ..-.-._...._._._........ ....... _............_......................._....-_-.,.... ...... -....... _............. Service Laterals inspected (from Main) ........................._._._....._._................ _...... _._................................ . f i P _.................................. 111,715 -- ._.._._........................_................................................................_....._._._,............................................._..._..........._....__..................... Sanitary Main inspected _....... ........ ............... P _ .......... 1,025 ___ ..... ._._.__.._........... _......................... ........... ..................... ------- _..................... .._.............._...... .... _-...................................... .............................. Main Line joints grouted and sealed .............. ....................... _.____................. ...... .......... C ........................................................................................................................_...........___ 17,099 ............... ............................_.................. ._._._............................................ _............. ; Sewer main grouted and sealed -_,.......... ............_......................................................................... ........... C Mathews Consulting 4-1 1 1 I]- 1 7 1 1.1 1-1 1 I7 L_.J 1 Section 4 — Ongoing Maintenance, Renewal and Replacement Improvements and Depreciation Table 4-1 Continued Wastewater System Maintenance and Repairs Fiscal Year 2002 Preventative ( P ) Quantity Description Corrective ( C ) 127,394 I Sewer main cleaned _........................._.......................................................................... C ......_................................................................._....__......_........ 0 ... .............._........_.........................................................................................._.............................................................................................. ; Sewer lines smoke tested P _.........__...___.._.,.......... 93 ................._...--._.._............._----..._...........................................-------._._.._.._..._.................................._..................................................................._..----..............._..........._.....----......................... 1 Sewer blockages C _._.._ 38 ............................ .._........_....................___......__..._.._..................................................................................................................................... ............. Residential mini -camera inspections (laterals) i _........ ...................... .............. .................................... P _.-_.--......_ 55 ...................._.......................................................................,......._.._..............................................................._._._....................._.._........................ _.........................................._................._........................................................ Emergency call outs (blockages, etc.) ; C ...............................................�-11��.�............_.._._......................................._._..................................._......................................................................._....._................................................._..----..._... 7 Clean outs installed/repaired ..................................._._.,.........._............................................. C ..........................................................._.__._..._._......_.......................... 7 ... _._....__.......................__.....____...-_-...._.... .................... ................................._............................._.__..__.._..._........................................................................_........._............. Sewer Wyes repaired/replaced C —-._....---...__....._ 91 ................................_..................................._....__..._.__......................�...__._-----__............_._. _...._..__..._................................................................. Manhole rainguards installed ......._............................................. P _.... _ ._._...._.....,_..... _._............ ontractor inspections (relining) C ...._.._.... 400 �............_......_......._....._T_____ _ _-_ ____. ........................... Sewer Mains relined (contractors) ,_...._... _......................__..__......_...__. C 10 __....................................._._...............................-_.............._.........................................................._.....__.._.._.....__._._............ Electronic flow readings ......... ._...__....__..................................... P Water System Maintenance The maintenance performed on the water system can be divided into two categories: water treatment facilities; and water distribution system maintenance. • Water treatment facilities maintenance: During FY 2002, the City provided continual maintenance of the water treatment facilities, including rehabilitation of the water treatment filters. • Water distribution_ system maintenance: City staff completed three thousand six hundred and fifty seven (3,657) maintenance tasks in FY 2001. A complete listing of these tasks is provided in Table 4-2. Attachment A provides a complete listing of maintenance record/schedules for the last four fiscal years. IMathews Consulting 4-2 7 1 1 1 1 LI n 1 Section 4 - Ongoing Maintenance, Renewal and Replacement Improvements and Depreciation Table 4-2 Water System Maintenance and Repairs Fiscal Year 2002 Preventative( P ) Quantity Description Corrective ( C ) 244 Service Line repairs C _-........._._...--..._......-. 35 _ ................. -.._..... _............................_.....__................................_.....--._._.......................................__..._...............................__........... _,...............................---._......._....---- Water Main repairs ._......_................... C ....._................ ..........................................._..._..�__ 580 .__.._-.........._................................._....__._.....__..._ --.............._..._................._.............................................................,...................................................................................................... Yokes (boxed) I P _.................... ......_.___.._........._-.............. 42 _......................................... __ _.... --._........................................................................................................._........ _.._......__.._ ...--- --........_ New Service Lines i ........... ---- ......-..................-......... _..... ..................... P .......... ..... _..................... ....... ... _... 732 _....... -------................ -....................... ................................................ -........ ._ __._...__..__.........__................... ---._...._........_. Meters Relocated .............. _._._...._..................... _.... -....... _........... _. P ................_................................................,........_..e_.._..........................._._......................................................_ 1.,982 --..._....._.............._................._......_.............................................................................._........_............__.._._............_.............. Meters l�xchanged P alves ced _5�..._.---- ............._ ......'..-New Valvesanstalled...._.._._..__... _.__............._........................__...._._........_...........__._.__............---- ............................. _........_...__.__._._._C...._................................. ......................._........... 7 _... ................................ _-............_...._...._...__.._................................................_..__.....__.........._._.................... ._._.................................................... Fire Hydrants replacement __,........._ .._--- _--------- C _............_._._._.......__......__ 0 ...:............._._..—._....._....................................._....._..._._......._.-..........._............__........_.._...._........... —......__._....._.......__....._......._._. ; New Fire Hydrants installed ..._...._........_......._..._............................... P The City tracks unaccounted for water losses reporting less than 10% each year, the industry standard. Water distribution system maintenance is performed to reduce the amount of unaccounted for water. Renewal and Replacement Improvements The FY 2002 Utility Fund budget included a number of projects designed to renew and/or replace City water and wastewater infrastructure. These projects were funded from user charge revenue and Utility Fund reserves. • Inflow and Infiltration Reduction Program: A review of the wastewater flow to Broward County for treatment indicates that there is excessive infiltration and inflow (I&1) within the wastewater collection system. This program identifies sources of I&I and eliminates them by a number of methods depending on the source. This program enables the City to optimize its treatment capacity reserve with the County and reduces unnecessary wastewater treatment charges. This program provides for $500,000 of capital expenditures for each of the next five (5) fiscal years. • Wastewater System Renewal and Replacement: The City budgeted approximately $725,000 of capital improvements for the wastewater collection and transmission system in FY 2002. These projects included mechanical and electrical upgrades to pump stations, replacement and installation of new force mains, and general wastewater system improvements. For FY 2003, the City has budgeted approximately $1.11 Mathews Consulting 4-3 Section 4 — Ongoing Maintenance, Renewal and ' — Replacement Improvements and Depreciation million for capital improvements, including rehabilitation and upgrade of pump stations and various wastewater system improvements. • Water Treatment Facilities Renewal and Replacement: ' The City budgeted approximately $887,000 of capital improvements for the water treatment and distribution facilities in FY 2002. These projects ' included rehabilitation of the water treatment filters as well as water distribution system additions and improvements. For FY 2003, the City has budgeted approximately $1.0 million for water facilities improvements, including the continuing rehabilitation of the water treatment filters, water distribution system improvements, replacement of Grant's Plaza water storage tank pumping equipment, and optimization of the water treatment process. ' Utility Operating Budgets The Utility's operating budget for the last three fiscal years is presented in Table 4-3. 0 11 1 1 F L 11 1 Mathews Consulting 4-4 Section 4 - Ongoing Maintenance, Renewal and ' Replacement Improvements and Depreciation 1 1 1 Table 4-3 Utility Operating Budgets Utilities - Fund 425 FY 00 FY 01 FY 02 Operating Expenses 31-01 Financial Advisor $2,500 $7,50Q 0 31-03 Engineering Services 181,5 99 58,532 83,206 31-07 Project Management 4,813 23,149 8,965 34-00 Contract Services 22,160 28,877 32,904 34-01 _Other Employment Agency Fees 22,847 7,164 23,341 34-02 Other Consultant Services 0 0 0 34-20 Water Purchased Resale _ 126,684 131,988 147,431 34-40 Wastewater Disposal 2,580,047 3,017,497 3,172,772 40-01 Travel, Meals, Lodging 2,637 6,985 6,206 �12,124 40-02 Seminars & Training 13,332 15,419 41-01 Telephone 13,218 14,702 29,612 41-02 Wireless Phones & Pagers 3,440 5,611 6,562 41-10 Postage 86,221 86,626 89,694 43-01 Electricity 323,783 362,506 370,678 43-03 Water & Sewer 1,796 2,071 23150 43-11 Sludge Removal 45,069 72,335 66,915 44-01 Rentals & Leases -Copier 7,422 7,688 7,625 44-04 Equipment Rentals 5,208 825 55 46-01 R&M - Of ice Equipment 1,072 171 2,013 46-02 R&M - Service Contracts 23,626 27,847 25,117 46-03 R&M - Automobile 0 303 0 46-04 R&M - Facilities 17,596 18,983 17,741 46-06 R&M - Gravity Sewer 1,647 3,001 2,845 46-07 R&M - Water Mains 8,921 6,083 12,72$ 46-08 R&M - Water Service Lines 13,773 11,386 25,734 - 46-09 R&M - Street Repairs 3,986 2,932 4,408 46-10 R&M - Other 2,135 2,248 1,385 46-11 R&M - Lift Stations & F/M 44,560 36,620 38,097 46-12 R&M - Special Equipment 0 0 37 46-13 R&M - Telemetry Equipment 4,574 1,824 5,886 46-14 R&M - Machinery 80,988 69,744 91,727 47-01 Printing- Other 20,473 20,464 25,572 49-01 Filing & Recording Fees 0 3,046 42 49-03 Density Charges 0 3,461 2,206 49-04 Licenses & Permits 8,055 7,166 7,260 49-06 Water Testing 20,955 24,194 26,398 49-10 Advertising 0 209 0 49-12 Employee Incentives 0 325 2,732 49-14 Debris Removal 8,328 4698 7,364 1 Mathews Consulting 4-5 Section 4 - ongoing Maintenance, Renewal and Replacement Improvements and Depreciation Utilities - Fund 425 FY 00 FY 01 FY 02� Operating Expenses Continued 49-15 Service Support 0 0 0 49-27 TAPP Incentive Program 27,330 (10) 0 49-30 Inventory-Shortage/Over 0 (1,784) (18,402) 49-31 Uncollectible 7,482 15,867 0 49-32 Rebate Program - - - 660 49-33 Credit Card Merchant - - 176 51-00Office Supplies 52-04 Grease & Oil 52-05 First Aid Supplies 52-07 Supplies - Chemicals 52-08 Supplies -So are 52-09 Supplies -- Computer 52-10 Supplies - Materials 52-11 Supplies -Paint 52-12 Photographic Supplies 52-13 Maps 52-14 Drafting 52-15 Equip. less than $750 52-16 Supplies - Janitorial 52-17 Signs 52-18 Minor Tools 52-19 Barricades 52-20 Supplies - Other 52-21 Supplies -- Safety 52-22 Landscaping & Irrigation 52-23 Supplies - Laboratory 52-24 Protective Clothing 52-25 Uniforms & Accessories 54-01 Books/Pubs/Subscriptions 54-02 Dues & Memberships Personal Services 12-01 Regular Salaries 12-99 Less: Reimbursement 13-02 Temporary 14-01 Overtime 15-01 Longevity 15-04 _ Emergency Standby Pay 15-06 Comp Absences Payout 15-07 ERP Lump Sum Payout 21-00 FICA Taxes 22-01 Pension -General 401 (A)- Mgmt/Prof 22-02 21,857 18,251 14,817 5,310 4,924 4,338 332 443 860 286 120 615 _ 212,063 228,728 240,847 1,624 1,334 3,084 4,160 320 10,698 22,769 16,434 14,786 1,229 1,217 1,028 655 713 619 0 592 0 2,601 4,512 3,752 20,545 22,562 14,382 0 0 0 1,434 1,387 1,768 - 5,038 5,809 4,942 1,812 854 858 22,580 24,522 21,368 2,249 2,313 2,355 2,980 3,729 4,450 17,796 19,062 17,431 10,683 9,752 7,596 21,2 33 22,177 23,354 2,814 2,059 2,617 5,977 5,752 10,839 2,225,105 2,4741703 1 2,715,509 (8,836) (15,465) (3,024) 0 2,507 0 68,953 98,400 120,303 22,067 24,028 26,464 10,534 10,408 10,662 60,013 44,090 26,244 0 0 0 182,574 206,174 220,924 144,548 140,857 256,322 50,691 67,192 83,735 Mathews Consulting 46 1 1 1 n 1 1 1 1 Section 4 - Ongoing Maintenance, Renewal and Replacement Improvements and Depreciation Utilities - Fund 425 FY 00 FY 01 FY 02 Non -Operating Expenses 23-01 Life Insurance 8,548 9,659 10,452 23-02 Health Insurance 215,774 _ 246,083 316,302� 23-03 Health Insurance Retiree 23,891 25,543 31,244 25-00 Benefits 0 7,634 3,023 26-00 Benefit Option 95,634 111,916 130,849 27-01 Disability -Long Term 2,114 2,509 2,685 28-00 Dental Insurance 2,447 2,990 3,172 29-01 Automobile Allowance 2,700 3,600 3,600 31-13 Planning Consultant 73,130 31,590 1,470 32-01 Auditing Services 27,250 30,000 26,799 49-05 Educational Assistance 113 0 0 49-40 Payment In Lieu of Taxes 528,004 530,238 550,230 -104,073 58-01 Information Services 332,970 122,360 58-02 Fleet Maint Charge 253,870 217,350 3371272 58-03 General Admin Service 1,636,355 1,660,000 1,673,300 58-04 Insurance Service Charge 76,390 157,260 T 200,469 59-00 Depreciation Expense 2M17,006 2,030,972 2,106,635 59-01 Amort-FA Abandon CSTS 74,026 74,026 74,026 59-02 Amort-System ACQ Costs 5,789 5,789 5,789 59-03 Amort-Bond Issue CSTS 35,861 34,362 32,760 59-04 Amort-FA Abandon CST 7,372 7,372 7,372 59-05 Amort- Deferred Costs 61,504 57,582 53,389 63-04 Lift Station Rehabilitation 22,026 95,456 26,37$ 63-05 Meters & Meter Box 119,534 87,738 1161467 63-06 Backflow Preventers 704 942 475- 63-09 Hydrants & Valve 26,738 19,959 7,029 63-10 Construction 0 14,327 0 63-20 Construction- Water Plant 0 0 867,547 63-30 Construction -Distribution _ 388,118 25,796 870,087 32,712 63-32 Const-Service Line 15,538 24,535 63-40 Construction-WW 319,382 1,363,286 1,004,824 64-01 Equip. $500 or Greater 171,290 81,631 88,751 64-02 Office Furniture 1,654 0 0 64-03 Computer Equipment 20,563 1,262 4,736 64-04 Lab Equipment 5,300 - 0 1,875 64-05 Motor Vehicles 0 0 0 64-20 Telemetry Equipment 8,416 - 0 64-90 - Fixed Assets -Contra Exp. (1,175,501) (1,773,429) (2,969,414) 72-02 Interest - 1996 Rev. Bond 466,119 433,512 398,413 72-03 Interest - 1992 Rev. Band 597,042 563,832 528,083 1,004 - 72-16 Notes Payable 2,911 1,966 73-01 Service Casts 3,314 3,641 9,221 91-06 Transfer- Util Bond Service 967,820 0 0 1 Mathews Consulting 4-7 1 1 1 1 1 1 1 1 1 1 1 Section 4 — Ongoing Maintenance, Renewal and Replacement Improvements and Depreciation Depreciation The City depreciates its fixed assets annually, representing a non -cash cost to the City's Utility Fund. The annual allowance for depreciation is $2,279,971. Conclusions The following summarizes the maintenance and renewal and replacement program implemented by the City: • The City of Tamarac Utility Department maintains the utility system in accordance with accepted utility. management practices. • As indicated by utility records, the Utility makes required improvements to the system in order to maintain proper operation. • The Utility Fund balance sheet reflects an annual allowance for depreciation of water and wastewater system fixed assets. Renewal and replacement project funding has historically exceeded the annual allowance for depreciation. Mathews Consulting 4-8 Section 4 — Ongoing Maintenance, Renewal and Replacement Improvements and Depreciation • The City has the financial resources to implement its water and wastewater Capital Improvement Program. • Unaccounted for water losses are monitored to stay within industry standards. Recommendations • The City should continue to fund the renewal and replacement of fixed assets at approximately the same level as depreciation. Replacement of fleet trucks, office equipment, and other capital expenses can be considered. • The City should continue the Inflow and Infiltration Program to reduce the amount of storm runoff and groundwater flow into the wastewater collection thereby optimizing the capacity of the system. • The City should continue to monitor unaccounted for water losses and reduce these losses where possible. Mathews Consulting 4-9 ' Section 5 Rate Sufficiency and Debt Service Cove ■ General ■ Water and wastewater services are organized as an enterprise fund of the City of Tamarac (City). As such, the intent and focus of this enterprise fund (referred to as the Utility Fund) is to ensure that the costs of providing services are recovered primarily through user charges. This section presents a review of water and wastewater user charges to finance the ongoing operations of the Utility Fund for the fiscal year 2003 (FY 2003) ending September 30, 2003. In FY 1997, the City began to consolidate its two separate water and wastewater systems: Tamarac Utilities West (TUW) and Tamarac Utilities East (TUE). Resolution R-96-212 consolidated the two systems from a legal, rate and accounting standpoint. This resolution established uniform water and wastewater user charges for the customers of both utilities. As of rFebruary 2003, the City served an average 18,583 water accounts and 17,806 wastewater accounts. Rates and Charges In 1996, the City adopted new rates both to meet the utility fund's fiscal requirements and to demonstrate adequate debt service coverage in accordance with bond covenants. Table 5-1 presents current water user charges and Table 5-2 presents current wastewater user charges. Table 5-3 summarizes current miscellaneous service charges. These rates have remained unchanged since September 25, 1996, and are projected to remain effective for FY 2003. The City is currently conducting a rate study; however, the conclusions and recommendations based in this report assume that the utility rates, fees and charges will remain unchanged through the end of FY 2003. 1 IMathews Consulting 5-1 1 Section 5 — Rate Sufficiency and Debt Service Coverage fl 1 1 11 Table 5-1 Water Rates and Charges October 1, 2002 through September 30, 2003 Single Family Residential Service Availability Charge, per Month All Meter Sizes $ 6.71 Monthly Consumption Charge, per 1000 Gallons 0 to 6,000 Gallons 1.26 6,001 to 15,000 Gallons 1.56 In Excess of 15,000 Gallons 1.86 Multiple Family Residential Service Availability Charge, per Month All Meter Sizes $ 4.68 Monthly Consumption Charge, per 1000 Gallons 0 to 6,000 Gallons 1.26 In Excess of 6,000 Gallons 1.75 General Service or Commercial Service Availability Charge, per Month 5/8 Inch $ 7.54 1 Inch 18.89 1-1/2 Inch 37.72 2 Inch 60.35 3 Inch 120.70 4 Inch 188.58 6 Inch 377.18 Monthly Consumption Charge, per 1000 Gallons $ 1.26 $ 1.75 Meter Size Block 1, Gallons Block 2, Gallons 5/8 Inch 0-6,000 In Excess of 6,000 1 Inch 0-15,000 In Excess of 15,000 1-1/2 Inch 0 — 30,000 In Excess of 30,000 2 Inch 0 — 48,000 In Excess of 48,000 3 Inch 0 — 96,000 In Excess of 96,000 4 Inch 0—150,000 In Excess of 150,000 6 Inch 0 — 300,000 In Excess of 300,000 Mathews Consulting 5-2 1 1 1 1 1 t 1 1 1 i 1 1 1 1 i Section 5 --- Rate Sufficiency and Debt Service Coverage Table 5-1 Water Rates and Charges October 1, 2002 through September 30, 2003 (continued) Irrigation Service(all Classes Service Availability Charge, per Month 5/8 Inch $ 7.54 1 Inch 18.89 1-1/2 Inch 37.72 2 Inch 60.35 3 Inch 120.70 4 Inch 188.58 6 Inch 377.18 Monthly Consumption Charge, per 1000 Gallons $ 1.75 Fire Line Service Charge, per Year Meter Size 4 Inch $ 432.60 6 Inch 865.20 8 Inch 1,555.30 Over 8 Inch By Agreement Water CIAC per ERC $ 1,400.00 (One ERC equals 350 gallons per day of water consumption) Mathews Consulting 5-3 Section 5 -- Rate Sufficiency and Debt Service Table 5-2 Wastewater Rates and Charges October 1, 2002 through September 30, 2003 Single Family Residential Service Availability Charge, per Month All Meter Sizes $ 11.54 Disposal Charge, per 1000 Gallons of Metered Water Usage 2.48 (up to 15,000 gallons) Multiple Family Residential Service Availability Charge, per Unit per Month All Meter Sizes $ 7.67 Disposal Charge, per 1000 Gallons of Metered Water Usage 2.48 (up to 15,000 gallons) General Service or Commercial Service Availability Charge, per Month 5/8 Inch $ 14.82 1 Inch 37.09 1-1/2 Inch 74.12 2 Inch 118.59 3 Inch 237.18 4 Inch 370.59 6 Inch 741.19 Disposal Charge, per 1000 Gallons of Metered Water Usage 2.48 Dumpster Service Availability Charge, per Month $ 10.15 Consumption Fee of $2.48 per 1000 Gallons based on 7,300 gallons of discharge per month 18.10 Wastewater CIAC per ERC $ 1,800.00 Mathews Consulting 5-4 1 i 1 1 1 1 1 1 1 1 1 1 r t Section S - Rate Sufficiency and Debt Service Coverage Table S-3 Miscellaneous Service Charges October 1, 2002 through September 30, 2003 Meter Installation Charges -and De osits Meter Size Meter Installation Charge Deposit Residential 5/8 Inch $ 160.00 $ 90.00 1 Inch 230.00 235.00 1-1 /2 Inch 505.00 470.00 2 Inch 590.00 745.00 Over 2 Inch By Agreement By Agreement Commercial, Multiple Family, General Service 5/8 Inch $ 160.00 $ 105.00 1 Inch 230.00 265.00 1-1/2 Inch 505.00 530.00 2 Inch 590.00 745.00 Over 2 Inch By Agreement By Agreement Renters 5/8 Inch 1 Inch 1-1 /2 Inch 2 Inch Over 2 Inch Construction $ 115.00 225.00 400.00 525.00 By Agreement $ 180.00 470.00 650.00 745.00 By Agreement 5/8 Inch $ 160.00 $ 90.00 Over 5/8 Inch By Agreement By Agreement $50 for meter installation for each additional service call if the meter cannot be installed on the first trip at no fault of the City. Mathews Consulting 5-5 Section S - Rate Sufficiency and Debt Service Coverage Table 5-3 Miscellaneous Service Charges October 1, 2002 through September 30, 2003 (continued) Meter Turn On and Turn Off Meter Turn On Meter Turn Off During Normal Working Hours $ 20.00 20.00 After Normal Working Hours $ 50.00 45.00 Reconnection After Discontinued Service for Cause of Non -Payment During Normal Working Hours $ 30.00 After Normal Working Hours $ 60.00 Returned Check Service Charge $ 15.00 Meter Re -Reads and Special Reads $ 15.00 Testing of Water Meters Meter Size 5/8 to 1 Inch $ 35.00 Over 1 Inch Actual Cost Dual Check Valve Installation Single Famil Residential: Cost of dual check valve plus 15% for administrative cost Back Flow Test Fee Back Flow Re -Certification Fee $ 40.00 per test plus Tamarac Building Department Plumbing permit fee. $ 25.00 per year. Mathews Consulting 5-6 Section 5 --- Rate Sufficiency and Debt Service Water and Wastewater Customers (Accounts) and Billable Mows Table 5-4 and 5-5 summarize projected water and wastewater customers and billable flow for FY 2003. These projections are based on historical and recent available customer data. Billable water and flows are based on historical average demands expressed on a per customer basis. Climatic and economic conditions may affect the accuracy of these estimates, and deviations from these estimates may be material. Table 5-4 Projected FY 2003 Water Customers and Billable Flow West Area East Area Total Single Family Residential 15,510 1,020 16,530 Multiple Family [11 14,500 0 14,500 Irrigation 450 0 450 Commercial 830 30 860 TOTAL AVERAGE CUSTOMERS 31,290 1,050 31,720 ANNUAL BILLABLE WATER 2,225,000 49,400 2,234,400 (1,000 Gallons) [I) — The number indicated is dwelling units Table 5-5 Projected FY 2003 Wastewater Customers and Billable Flow West Area East Area Total Single Family Residential 15,360 924 16,284 Multiple Family [11 14,420 0 14,420 Commercial 680 25 705 TOTAL AVERAGE CUSTOMERS 30,460 949 31,409 ANNUAL BILLABLE 1,920,000 43,320 1,963,320 WASTEWATER (1,000 Gallons) [11 — The number indicated is dwelling units Mathews Consulting 5-7 Section 5 -- Rate Sufficiency and Debt Service Coverage Projected FY 2003 Water and Wastewater Rate Revenue Based on the above projected FY 2003 numbers of customers and billable flows, projected FY 2003 user charge revenues were developed and are shown in Table 5-6. Table 5-6 Projected FY 2003 User Charge Revenue Water S sy teen Single Family Residential $ 2,682,000 Multiple Family Residential 1,780,000 Irrigation 360,000 Commercial 740,000 Total Water User Charges $ 5,562,000 Wastewater Svstem. Single Family Residential 4,495,000 Multiple Family Residential 3,115,000 Commercial 1,005,000 Total Wastewater User Charges $ 8,61.5,000 These estimates presume normal usage patterns, uninterrupted by demand restrictions. Assuming that current water and wastewater user charges are applied to all customers, it is projected that the total water user charge revenue in FY 2003 would be approximately $5,803,000 and total wastewater user charge revenue would be approximately $8,767,000. Rate Sufficiency Analysis and Debt Service Coverage for FY 2003 As discussed above, the primary objective of this rate analysis is to determine if the current rates and/or existing reserves will be sufficient to recover the utility's revenue requirements in FY 2003. Operating and capital budgets, along with discussions with City staff, served as the basis for this rate analysis. These revenue requirements were then compared to the projected rate revenues generated by applying the current rates to all customers, as discussed previously, as well as revenue available from other sources, including miscellaneous service charges and interest income, to determine the sufficiency of these rates. Mathews Consulting 5-8 Section 5 — Rate Su and Debt Service Coverage 1 1 I 1 1 'Li Table 5-7 Projected FY 2003 Net Revenue Requirements from Rates Revenues Total Water Sales Revenue $ 5,562,000 Wastewater Revenue 8,615,000 Other Operating Revenue 350,000 Interest Income 381,000 Total Available Revenue $ 15,016,000 Revenue Requirements Operating Expenses 8,958,000 Wastewater Disposal Charges 3,261,000 Debt Service 2,238,000 Payment in Lieu of Taxes 2,577,000 Capital Outlay From Rates 305,000 Total Revenue Requirements $17,339,000 Rate Revenue Surplus/(Deficiency) (2,323,000) Percent of Existing Rate Revenue 86.6% I(Based on City of Tamarac Adopted FY 2003 Budget.) In FY 2003, existing user charges are expected to be sufficient to recover water and wastewater r operating expenses, debt service, internal transfers, and capital projects funded from rates as budgeted by the City. Existing bond covenants require that coverage must be at least 1.10 (without CIAC revenue) and at least 1.20 (with CIAC revenue). Based on the analysis presented in Table 5-7, it is estimated that the debt service coverage ratio for FY 2003 will be l.i lx without CIAC and 1.47x with CIAC. 1 11 1 IMathews Consulting 5-9 Section 5 — Rate and Debt Service Coverage 1 7 11 1 1 1 1 1 CJ 1 Table 5-8 Projected FY 2003 Debt Service Coverage 110% test 120% Test Operating Revenues $ 14,635,000 $ 14,635,000 Operating Expenses before depreciation, amortization, and $ 12,524,000 $ 12,524,000 payments in lieu of taxes Operating Income $ 2,111 000 $ 2 1—_,_ 11,000 Interest Earnings 381,000 381,000 Contributed CIAC 0 8001000 Amount Available for Debt Service $ 2,492,000 $ 3,292,000 Debt Service $ 2,238,000 $ 2,238,000 Debt Service Coverage 1.1 Ix 1.47x on Citv of Tamarac Adopted FY 2003 Conclusions and Recommendations To summarize the above analyses, the following conclusions may be drawn: • Water and wastewater user charges are expected to be sufficient to meet FY 2003 debt service coverage requirements, in accordance with bond covenants. • The City currently uses the "pay as you go" method of funding capital improvement projects. This may not be the most cost effective or appropriate method in the future. The City should strongly consider the possibility of fully funding its water and wastewater capital improvement program through the issuance of additional revenue bonds. Not only are the interest rates currently favorable, but this could also ease the burden on existing customers and help the utility to maintain reasonable reserves. Another potential benefit of a bond issue is to structure the additional debt service in such a way to levelize the utility's debt service in the future and maintain stable water and wastewater rates. • The City has the financial resources to implement its water and wastewater capital improvement plan. • No event has occurred during the past fiscal year that might materially affect outstanding bonds. There have been no defaults or delinquencies, unscheduled draws from debt service reserves or credit enhancements, substitution of credit or liquidity IMathews Consulting 5-10 Section 5 --- Rate Sufficiency and Debt Service Coverage providers, modification of bondholder rights, unscheduled redemption calls, defeasances, or ratings changes. • The City's FY 2002 Comprehensive Annual Financial Report is hereby incorporated by reference into this Annual Report. Based on the above, it is recommended that: • Water and wastewater rate adjustments are not needed in Fiscal Year 2003. • The utility continues to examine and refine its long-term capital improvement program. • The utility consider alternative funding mechanisms for its capital needs other than depletion of existing reserves in order to mitigate potential rate adjustments in the future. Mathews Consulting 5-11 I 1 I 11 1 1 I 1 1 i 1 1 1 L. �-1 L Attachment A Utility Maintenance Record/Schedule Equipment Task Due Date Water Treatment Plant 1999 2000 2001 2002 4 MGD Accelerator Lubricate Drive Q Q Accelerator Drive Motor Check Motor/Electrical Q Air Condo No.l Fan Motor Check Motor/Electrical A A A A Air Condo No. 2 Fan Motor Check Motor/Electrical A A A A Back -Up Scott Air Packs Open & Check SCBAA M M M M Backwash Pup No.1 Motor Check Motor/Electrical Q Q Q Q Backwash Pump No.2 Motor Backwash Pump No. 1 Check Motor/Electrical Grease Fittings Q Q Q Q Q Q Q Backwash Pump No.2 Grease Bearin s Q Q Q Backwash Valve Motor Check Motor/Electrical CL2 Building Sump Motor. Check Motor/Electrical Q Q Q CL2 Control Building Exhaust Check Motor/Electrical Q NQQ Q Q CL2 Exhaust Blower Motor . Blower Motor Check Motor/Electrical Check Motor/Electrical 1/4 QCoa Q Coa . Feed Motor Coa . Mixer Motor E. 8 MGD Accelerator E. 8 MGD Accelerator Motor Check Motor/Electrical Check Motor/Electrical Change Oil -Drive Unit Check Motor/Electrical Q Q A Q Q A Q A Q A E. 8 MGD Oil Pump Motor Check Motor/Electrical Q Q Q Exhaust Blower Motors Exhaust Fan - Fluoride Room Exhaust Fan - Motor Fluoride Pum Motor Generator - WTP Check Motor/Electrical Check Motor/Electrical Check Motor/Electrical Check Motor/Electrical Clean & Check Gen Set SA SA SA Q W SA SA SA W SA SA SA Q W SA SA SA W Greenleaf Sum Motor Check Motor/Electrical Q Q Q Q Greenleaf Vac. No. 1 Greenleaf Vac. No. 2 Electrical Check Electrical Check Q Q Q Q Grit Conveyor Motor No. 1 Grit Conveyor Motor No. 2 High Service No, 1-Motor Check Motor/Electrical Check Motor/Electrical Grease Motor Bearin s Q Q Q Q Q Q Q Legend W - weekly M - monthly Q - quarterly SA - semi annually A - annually IMathews Consulting A-1 Attachment A — Utility Maintenance Record/Schedule Utility Maintenance Record/Schedule Continued Equipment Task Due Date Water Treatment Plant cont'd. 1999 2000 2001 2002 High Service No. 2 Motor Grease Motor Bearings Q Q High Service No. 3 Motor Change Oil- Motor Q Q High Service No. 4 Motor Change Motor Oil High Service No. 5 Motor Grease Motor Bearings Q Q Q Q High Service No. 6 Motor Grease Fittings Q Q High Service No. 7 Motor Grease All Fittings Q 9 Q High Service No. 1 Motor Check Motor/Electrical Q Q Q Q High Service No. 2 Motor Check Motor/Electrical Q Q Q Q High Service No. 3 Motor Check Motor/Electrical Q Q Q Q High Service No. 4 Motor Check Motor/Electrical Q Q Q Q High Service No. 5 Motor Check Motor/Electrical Q Q Q Q High Service No. 6 Motor Check Motor/Electrical Q Q Q Q High Service No. 7 Motor Check Motor/Electrical Q Q Q Q Hoist Clean Tracks for Hoist SA SA SA SA Lime Slurry Pot - N Slake Check Drive Belts Q Q Q Q Lime Slurry Pot - S Slake Check Drive Belts Q Q Q Q Manual Filter No. 1 Grease Valve Boxes A A A A Manual Filter No. 2 Grease Valve Boxes A A A A Manual Filter No.3 Grease Valve Boxes A A A A Manual Filter No. 4 Grease Valve Boxes A A A A Manual Filter No. 5 Grease Valve Boxes A A A A Manual Filter No. 6 Grease Valve Boxes A A A A Motorola UPS Order Batteries N. Lime Slaker Check Gear Box Oil SA SA SA SA Polymer Pump Motor No. 1 Check Motor/Electrical Q Q Q Q Polymer Pump Motor No. 2 Check Motor/Electrical Q Q Q Q Pump No. 1 Recovery Pond Check Motor/Electrical Q Q Q Q Pump No. 2 Recovery Pond Check Motor/Electrical Q Q Q Q Room Exhaust Fan Electrical Check SA SA SA SA Legend W - weekly M - monthly Q - quarterly SA - semi annually A - annually Mathews Consulting A-2 Attachment A — Utility Maintenance Record/Schedule Utility Maintenance Record/Schedule Continued Equipment Task Due Date Water Treatment Plant cont'd. 1999 2000 2001 2002 S. Lime Slaker Change Gear Box Oil SA SA SA SA Scott Air - Pack (East) Open & Check SCBA M M M M Scott Air - Pack (WeAl Open & Check SCBA M M M M Shop Air Comp. Motor Check Motor/Electrical Q Q Q Silo Air Compressor Mtr Check Motor/Electrical Q Q Q Slaker Air Compressor Change Oil M M M M Slaker Drive Motor No. 1-S Check Motor/Electrical Q Q Q Q Slaker Drive Motor No. 2-N Check Motor/Electrical Q Q Q Q Slaker Feeder Belt Mtr Check Motor/Electrical Q Q Slurry Pot Mixer Motor Check Motor/Electrical Q Q Q Q Slurry Pot Mixer Motor Check Motor/Electrical Q Q Q Q Transfer Punt No. 1 Motor Check Motor/Electrical Q Q Transfer Pump No. 1 Check Lubrication Q Q Q Q Transfer No. 2 Motor Check Motor/Electrical Q Q Q Q Transfer Pump No. 2 Check Lubrication Q Q Q Vacuum Pump Motors Check Motor/Electrical Q Q Q W 8 MGD Drive Motor Check Motor/Electrical Q Q Q Q W 8 MGD Oil Pump Check Motor/Electrical Q Q Q Q W 8 MGD Accelerator Check Lubrication Q Q Q Q W 8 MGD Accelerator Motor Check Motor/Electrical Q QQ Q WTP Fluoride System Clean Fluoride Room Q Q Q Q WTP Fuel Containment Clean Out Debris, Etc. Q Q Q Q WTP Vehicles Inspect Vehicles W W W W WTP - CL2 Equipment Check CL2 Equipment W W W W Legend W - weekly M - monthly Q - quarterly SA - semi annually A - annually Mathews Consulting A-3 Attachment A -- Utility Maintenance Record/Schedule Utility Maintenance Record/Schedule Continued Due Date Equipment Task Water Distribution 1999 2000 2001 2002 Generator - Grants Clean & Check Gen Set W W W W Generator - T27 Clean & Check Gen Set W W W W GP — Fuel Containment Clean out containment Grants No. 1 Pump Grease Motor Bearings Q Q Q Q Grants Pump No. 1 Motor Grants No. 2 Pump Check Motor/Electrical Grease Motor Bearings Q Q Q Q Q Q Q Q Grants Pump No. 2 Motor Check Motor/Electrical Q Q Q Q �r- Grants — CL2 Equipment Check CL2 Equipment W W W T27 Pump No. 1 Motor Grease Bearings Q Q Q Q T27 Pump No. 2 Motor --Grease Motor Bearings Q Q Q Q T27 Pump No. 3 Motor Grease Motor Bearings Q Q Q Q Tract 27 CL2 Equipment Check CL2 Equipment W W W Tract 27 Scott Air - Pack Open & Check SCBA M M M M Wastewater Collection /Transmission See Section 3 Raw Water Wells Well No. 01 Well No. 01 Pump Motor Grease Motor Check Motor/Electrical All Maintenance Performed Quarterly Well No. 02 Grease Bearings Well No. 03 Grease Bearings Well No. 03 Pump Motor Check Motor/Electrical Q Q Well No. 04 Grease Motor Q Q Q Q Well No. 04 Pump Motor Check Motor/Electrical Q Q Q Q Well No. 05 Grease Motor Bearings Q Q Q Q Well No. 05 Pump Motor Check Motor/Electrical Q Q Q Q Well No. 06 Grease Motor Bearings Legend W - weekly M - monthly Q - quarterly SA - semi annually A - annually IMathews Consulting A-4 Attachment A -- Utility Maintenance Record/Schedule Utility Maintenance Record/Schedule Continued Equipment Task Due Date Raw Water Wells Cout'd. 1999 2000 2001 200', Well No. 06 Pump Motor Check Motor/Electrical Q Q Q Q Well No. 07 Grease Motor Bearings Q Q Q Q Well No. 07 Pump Motor Check Motor/Electrical Q Q Q Q Well No. 08 Grease Motor Bearings All Maintenance Performed Well No. 08 Pump Motor Check Motor/Electrical Quarterly Well No. 09 Grease Motor Bearings Q Q Q Q Well No. 09 Pump Motor Check Motor/Electrical Q Q Q Q Well No. 10 Clean Sump Pump Pit Q Q Q Q Well No. 10 Exhaust Motor Check Motor/Electrical Q Q Q Q Well No. 10 Pump Motor Check Motor/Electrical Q Q Q Q Well No. 10 Sump Motor Check Motor/Electrical Q Q Q Q Well No. 11 Paint Well Lids A A A A Well No. 11 Pump Motor Check Motor/Electrical Q Q Q Q Well No. 11 Sump Motor Check Motor/Electrical Q Q Q Q Well No. 12 Clean Sump Pump Pit Q Q Q Q Well No. 12 Exhaust Motor Check Motor/Electrical Q Q Q Q Well No. 12 Pump Motor Check Motor/Electrical Q Q Q Q Well No. 12 Sump Motor Check Motor/Electrical Q Q Q Q Well No. 13 Clean Sump Pump Pit Q Q Q Q Well No. 13 Exhaust Motor Check Motor/Electrical Q Q Q Q Well No. 13 Pump Motor Check Motor/Electrical Q Q Q Q Well No. 13 Sump Motor Check Motor/Electrical Q Q Q Q Well No. 14 Grease Motor Bearings All Maintenance Performed Well No. 14 Pump Motor Check Motor/Electrical Quarterly Well No. 15 Grease Motor Bearings Q Q Q Q Well No. 15 Pump Motor Check Motor/Electrical Q Q Q Q Well No. 16 Grease Motor Bearings Q Q Q Q Well No. 16 Pump Motor Check Motor/Electrical Q Q Q Q Legend W - weekly M - monthly Q - quarterly SA - semi annually A - annually Mathews Consulting A-5 Attachment A — Utility Maintenance Record/Schedule Utility Maintenance Record/Schedule Continued Equipment Task Due Date Legend W - weekly M - monthly Q - quarterly SA - semi annually A - annually Mathews Consulting A-6