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
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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
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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
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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
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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
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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.
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Section 1 — Executive Summary
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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.
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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
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Section 2 — Background and System Summary
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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
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Section 2 — Background and System Summary
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("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.
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Section 2 — Background and System Summary
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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.
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Section 2 — Background and System Summ
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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.
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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.
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Section 3 -- Utility Organization
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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.
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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
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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
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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
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1 Mathews Consulting 4-4
Section 4 - Ongoing Maintenance, Renewal and
' Replacement Improvements and Depreciation
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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
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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
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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
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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
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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
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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
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1
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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