2001 cover

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2001

PUBLIC WORKS

ANNUAL REPORT

- PUBLIC WORKS ADMINISTRATION - STREET DIVISION

- BUILDING MAINTENANCE - EQUIPMENT MAINTENANCE

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TABLE OF CONTENTS

DESCRIPTION PAGE

I. OVERVIEW. 1 - 3

II. DIVISION REVIEWS

A. Public Works Administration Salmon

B. Street Maintenance. Green

C. Equipment Maintenance Purple

D. Building Maintenance. Pink

III. OTHER ANNUAL REPORTS

A. Engineering Department

B. Airport Manager

IV. DIVISION SUPPORTING DATA

A. Street Division.. Green

B. Equipment Division. Purple

C. Building Division. Pink

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I. OVERVIEWThe Public Works and Engineering Departments are proud to submit the 2001 Annual report. The year in review is filled withsuccesses in all divisions. The report is formatted into the following sections. Section one gives a detailed review of all divisionsevaluating budget performance, a review of objects, highlights of the year, and listing of 2001 objectives. Section two includes theannual reports of the engineering division and airport manager. The third section (not in all copies) includes division supervisors

workload data and job totals for the year. The report summarizes the efforts of all department personnel.

As a department we continue to evaluate various ways to contain cost of providing service. Like many departments of the City,annual operating costs are dominated by personnel costs in several areas. It takes people to provide service. Capital equipment

purchases and system/building upgrades also can have impacts to containing cost of services. Equipment can create efficiencies inproviding services and allows the department to meet increasing service needs resulting from community growth.

Department service levels, as far as programs, remain fairly static. Year to year program levels vary based on needs, but the programsare essentially the same. Many new programs, initiatives have been implemented in the sewer and water maintenance division whichcontinues to be the area with the most change. Facility improvements at the Waste Water Treatment Plant have improved theenvironmental results of the service. Our focus needs to be the quality of the service provided versus adding or deleting services.

We hope the information in the report is useful in evaluating the Public Works Department performance. We feel the service resultsspeak for themselves and the community can take pride in our work. The department personnel remain dedicated to their jobs and to

our community. A big thank you to all department employees is well deserved.

The areas detailed in the division review section include.

- Department Responsibilities- Budget History- Workload Data- 2001 Objective Review- 2001 Highlights

We struggle to provide information in the annual report that is representative of our work. Users/readers of the report are encouragedto share their thoughts and comments on how we may enhance our future reporting.

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A. PERSONNEL

The current department is structured in Divisions with personnel assignments as shown.Administration 2 Full TimeStreet Maintenance 9 Full TimeEquipment Maintenance 2 Full TimeUtility Maintenance 4 Full TimeWater Operations 3 Full TimeWWTP Operations 7 Full TimeBuilding Maintenance 1 Full Time

28 Full Time

The total number of fulltime employees has remained fairly static over the last seven years with minor resource

adjustment in the water/wastewater areas. The historical high for Public Works has been 28 full time personnel. Over theseven year time period the community has grown in street mileage and water/sewer use creating higher demand forservices.

As a department we have been able to meet the increased demand for service by creating efficiencies within servicedelivery. New capital equipment investments is obviously one major factor. The overall equipment fleet is very reliableresulting in less down time during critical operations such as snow plowing. Facility improvements have also resulted in

the saving of manpower. Projects automating control systems at the water plant and WWTP are good examples.

As we look forward, 2002 will see a change in the Director position. The resignation of the current Director of eight years

needs to be a growth opportunity. A different vision, approach, and management style can be a significant attribute to thedepartment. The new Director will have the ability to view our current operations from a new perspective and chart a

course for enhancing our operations and efficiencies for the future.

The second level management team is well prepared to maintain ongoing programs and initiatives for the near term future.The dedication and abilities of our management team has been the key to the departmental successes and given anopportunity to expand their leadership roles within the department will only make the overall department will only make

the overall department a stronger organization for the future.

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B. FACILITIES

The facility issues are best summarized as a lack of space. The street maintenance garage is bursting at the seams. TheWater Operations has a small one car garage. The WWTP stores vehicles outside. The Equipment Maintenancepersonnel work on equipment outside on the ground. The recent acquisition of a different park maintenance facility hasallowed for the relocation of utility maintenance personnel; however, this is only a short-term solution.

Implementation of a solution is the challenge. Can $2.0 million public works building be a reality? The issue is needingprompt attention and resolution. The Council has made a significant step forward in earmarking dollars for a future

building project. A site study for a new facility is the next logical step forward.

C. PENDING STUDIES AND ISSUES

1. Infiltration

2. Surface Water Management

3. Transportation Study

4. Wellhead Protect ion

5. NPDES Permit / Phosphorus Removal

6. Personnel Additions

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DIVISION REVIEWS

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Public Works Administration

1. ResponsibilitiesThis activity provides for the administrative direction of all public works services. Responsibilities include the management ofdaily operations, department personnel, department budget, inventory and providing the support services to other departments,City Council, Advisory Boards and City Administrator. The department service delivery is provided by 31 full time employees.The department staffing levels are supplemented by the addition of 9 seasonal part time employees.

The Public Works Department provides for the operation and maintenance of the City infrastructure systems. The departmentservices focus in the primary areas as follows:

Public Works AdministrationStreet MaintenanceSanitary Sewer/Water System MaintenanceFleet/Equipment MaintenanceAirport Operation and MaintenanceBuilding and Grounds Maintenance

Wastewater TreatmentWater Supply DistributionEngineering Department Administration

The overall department continues to grow as a management team and any successes are truly a result of a team effort. All

divisions rely on the expertise and resources of others to deliver services.

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2. Budget History

The three year budget history is shown below for Public Works Administration.

$142,770$147,346

$170,273$162,260

$188,386

$0

$50,000

$100,000

$150,000

$200,000

Budget History

Public Works Administration

1999 Actual

2000 Actual

2001 Budget

2001 Actual

2002 Budget

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The following table summarizes the overall operating budget performance of the public works department for 2001.

Department 2001 Budget 2001 Actual NetPublic Works Admin $ 170,273 $ 162,200 + $ 8,073Street Maintenance $1,080,376 $1,030,941 + $49,435Equipment Maintenance $ 180,085 $ 179,689 + $ 396Utility Maintenance $ 383,267 $ 321,006 + $ 62,261Engineering $ 385,159 $ 331,585 + $53,574Water Operations $1,238,059 $1,182,815 + $55,244Wastewater Operations $1,730,777 $1,661,996 + $68,781

Building Maintenance $ 156,200 $ 163,337 - $ 7,137

Total $5,324,196 $5,033,569 +290,627 (5.4%)

Equally important are operating revenues generated. In all areas revenue exceeded projected budgets.

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The following graph summarizes the overall budget allocation of the public works department for 2001.

2001 Overall Operating Budget

Pub l ic Works Depar tments

Pubic Works

Administration

3% Street Maintenance20%

Wastewater Operations

34%

Building Maintenance

3%

Water Operations

23%

Equipment Maintenance

3%

Utility Maintenance

7%Engineering

7%

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3. Program Objective Review

During the year significant progress was made on major issues and objectives. The highlights and major work items are as noted.

1. Wastewater Treatment?? No violation in 2001 led to Operations and Excellence Award?? Digester Cover Replacement contracted and completed?? Successfully negotiated approval for lagoon lining project

2. Water Operations

??New control system contracted??Phase One wellhead protection program completed

3. Utilities Maintenance

??Personnel changes to combine with water operations??Lift station control upgrade completed

4. Administration??2001-2005 Capital Improvement Program update completed??2002-2003 Budget process completed

??Inter agency projects with MnDOT, MPCA, and MDH

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Street

Maintenance

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Street Maintenance

1. ResponsibilitiesThis activity provides for the maintenance of city streets, including patching, seal coating, mowing of road sides and streetsweeping, traffic control signals/signage, cleaning storm ditches, and storm sewers. In addition, street maintenance provides forsystematic removal of snow and ice from city streets and contract hauling of snow from the public right-of-way.

The street maintenance division consists of 9 full-time and 2 regular part-time personnel. Up to three seasonal part-time positionsare added during summer months. The street maintenance division relies heavily upon the personnel resources of other divisions,especially utility maintenance, to respond to daily workload issues. The following lists the resource sharing from other

departments to accomplish typical snow removal activities.

Utilities Maintenance 4 peopleEquipment Services/Eng. 2 people

Total 6 peopleIn addition to winter activities, summer programs such as seal coating, require equivalent added resources.

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2. Budget History

The three year operating budget history is depicted below. During 2001 the actual expenses were 4.6% below budget levelsresulting in a savings of $49,000. When comparing 2001 and 2000 actual expenses, the increase in spending during 2001 waspredominately in utilities and gas. Street lighting expenses were up $40,000, fuel expense $26,000 and building utilities $15,000.The funding for street maintenance activities for 2001 equates to $642 per block of street.

$929,716 $940,009

$1,080,376

$1,030,941

$1,096,036

$800,000

$850,000

$900,000

$950,000

$1,000,000

$1,050,000

$1,100,000

Budget History

Street Maintenance

1999 Actual

2000 Actual

2001 Budget

2001 Actual

2002 Budget

Looking ahead at 2002, budget levels have been increased by 1.5% amounting to $16,000 in additional funding. Program levels areanticipated to remain static with the increase in funding resulting from increases in base labor and supply cost.

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Total Program Cost

Street Lighting

18%Snow and Ice Control

16%

Seal Coating/ Crack

Filling7%

Traffic Signs and Signals6%

Special Projects and

Events

5%

Utility Maintenance2%

Bituminous Repair18%

Street Sweeping8%

General Maintenance16%

Administration and

Training4%

Description of Total Labor Cost Total Material

Services Program Cost Dollars Supply Cost

Snow and Ice Control $163,023 $92,473 $70,550Seal Coating/ Crack Filling $73,999 $25,034 $48,965

Bituminous Repair $189,317 $110,354 $78,963

Street Sweeping $82,678 $64,884 $17,794General Maintenance $160,468 $110,865 $49,603

Utility Maintenance $25,389 $19,925 $5,464

Traffic Signs and Signals $58,557 $17,371 $41,186

Special Projects and Events $47,523 $37,296 $10,227

Administration and Training $42,315 $33,208 $9,107

Street Lighting $187,672 $0 $187,672

Totals $1,030,941 $511,410 $519,531

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2001 Street Maintenance Program Objective Review

Total Material Supply Cost

Administration and Training

2%

General Maintenance

9%

Street Sweeping

3%

Bituminous Repair

15%

Utility Maintenance

1%

Special Projects and Events

2%

Traffic Signs and Signals

8%

Seal Coating/ Crack Filling

9%

Snow and Ice Control

14%Street Lighting

37%

Breakdown of Materials

Description of Total Material Direct Material Indirect Material

Services Supply Cost Cost in $ Supply Cost

Snow and Ice Control $70,550 $45,191 $25,359Seal Coating/ Crack Filling $48,965 $42,100 $6,865

Bituminous Repair $78,963 $48,700 $30,263

Street Sweeping $17,794 $0 $17,794General Maintenance $47,603 $19,200 $30,403

Utility Maintenance $5,464 $0 $5,464

Traffic Signs and Signals $41,186 $36,423 $4,763

Special Projects and Events $10,227 $0 $10,227

Administration and Training $9,107 $0 $9,107

Street Lighting $187,672 $187,672 $0

Totals $517,531 $379,286 $140,245

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2001 Street Maintenance Program Objective review

Labor Distributions

Administration and Training7%

General Maintenance13%

Street Sweeping

Bituminous Repair22%

Utility Maintenance

4%

Special Projects and Events7%

Traffic Signs and Signals

3% Seal Coating/ Crack Filling

5%

Snow and Ice Control18%

Description of Program Labor % of Labor Labor Cost

Services Hours Distribution Dollars

Snow and Ice Control 3235 18.1 $92,473

Seal Coating/ Crack Filling 885 4.9 $25,034

Bituminous Repair 3855 21.6 $110,354

Street Sweeping 3781 12.7 $64,884General Maintenance 2278 21.7 $110,865

Utility Maintenance 709 3.9 $19,925

Traffic Signs and Signals 617 3.4 $17,371

Special Projects and Events 1304 7.3 $37,296

Administration and Training 1162 6.5 $33,208Street Lighting 0 0.0 $0

Totals 17826 100 $511,410

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4. 2001 Highlights

??T.H. 60 (4th Street N.W.)Extensive repairs and maintenance of the pavement dominated spring activities.

?? Seal CoatingSealing activities focused on S.E. Faribault.

??Special ProjectsRailroad crossing repairs and Springwood Trail construction were complete.

5. Workload Trends

Program 2001 2000 1999 1998

Seal Coating 61 48 80 75 BlocksGravel Maintenance 330 624 560 469 HoursBituminous Material 2564 1994 2588 2070 TonSnow Removal 39.5 57 48 21 InchesSign Maintenance 617 455 929 306 Hours

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Equipment

Maintenance

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1. ResponsibilitiesThis division provides for the maintenance and repair of City vehicles and equipment (excluding fire) in order to assure safe andefficient operation. In addition, this account group provides for the maintenance and operation of the city garage fleet fuelingsystem.

The Equipment Maintenance division consists of two full time personnel. Occasionally, overload work is contract on a job basisto outside vendors.

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2. Budget HistoryThe three year budget history is shown with 2001 expenses slightly below budget. When comparing 2001 and 2000 actualexpenses, the increase in spending during 2000 was approximately $7,000.

$171,795$172,945

$180,085$179,689

$189,201

$160,000

$165,000

$170,000

$175,000

$180,000

$185,000

$190,000

Budget History


1999 Actual

2000 Actual

2001 Budget

2001 Actual

2002 Budget

Looking ahead at 2002, budgeted levels show an increase of approximately $9,000.

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2001 Equipment Maintenance

Total Program Cost


3%Utility Maintenance

9%Transit System

6%

Park Maintenance

9%

Airport Equipment1%

City Hall Fleet

4%

Shop Repairs

2%

Public Safety

12%

Street Division

54%

Breakdown of Costs

Description of Total Program Labor Cost Total Material

Services Program Cost Labor Hours Dollars Supply Cost

Street Division $98,941 1,762 $64,608 $34,333

Public Safety $21,113 376 $13,787 $7,326

Park Maintenance $16,228 289 $10,597 $5,631

Transit System $10,332 184 $6,747 $3,585

Utility Maintenance $15,890 283 $10,376 $5,514

Airport Equipment $1,685 30 $1,100 $585Shop Repairs $3,706 66 $2,420 $1,286

City Hall Fleet $6,907 123 $4,510 $2,397

Administration and Training $4,885 87 $3,190 $1,695

Totals $179,687 3,200 $117,335 $62,352

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4. 2001 Highlights

??WWTPWelding and fabrication of gas piping in the digester along with effluent pump piping.

??Repairs and Preventative MaintenanceManhours totaling 3200 hours of repairs and preventative maintenance

5. Workload Trends

Program 2001 2000 1999 1998Street Maintenance 1762 (55.1%) 1590 (46.7%) 1794.5 (56.4%) 1392 (45.2%)Public Safety 376 (11.7%) 417 (12.2%) 565 (18%) 547 (17.8%)

Park Maintenance 289 (9.0%) 272 (8%) 363 (11.4%) 728 (23.7%)Transit System 184 (5.8%) 189 (5.5%) 124.5 (4%) 122 (4%)Utility Maintenance 283 (8.8%) 354 (10.4%) 138 (4%) 100 (3.2%)Other Departments 306 (9.5%) 387 (17.2%) 194 (6%) 186 (6%)

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Building

Maintenance

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Building Maintenance

1. ResponsibilitiesThis activity provides maintenance services for the cleaning and maintenance at City Hall and labor of operation of CommunityServices pool. In addition, grounds maintenance and snow removal are provided for City Hall and the CommunityCenter/Library/Senior Center complex.

The building maintenance services are provided by a division of one full time employee.

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2. Budget History

The three year budget history is shown with 2001 expenses approximately $7,000 over budget. When comparing 2001 and 2000actual expenses were driven by phone system upgrades and high building heating cost.

$ 1 3 9 , 1 4 1 $ 1 3 7 , 0 2 0

$ 1 5 6 , 2 0 0

$ 1 6 3 , 3 3 7$ 1 6 2 , 1 8 8

$ 1 2 0 , 0 0 0

$ 1 2 5 , 0 0 0

$ 1 3 0 , 0 0 0

$ 1 3 5 , 0 0 0

$ 1 4 0 , 0 0 0

$ 1 4 5 , 0 0 0

$ 1 5 0 , 0 0 0

$ 1 5 5 , 0 0 0$ 1 6 0 , 0 0 0

$ 1 6 5 , 0 0 0

B u d g e t H i s t o r y

B u i ld i n g M a i n t e n a n c e

1 9 9 9 A c t u a l

2 0 0 0 A c t u a l

2 0 0 1 B u d g e t

2 0 0 1 A c t u a l

2 0 0 2 B u d g e t

Looking ahead at 2002, budgeted levels have increased by approximately $6,000 with the majority of the increase attributed tophone system improvements.

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3. Program Objective Rewiew

2001 Building Maintenance

Cost Allocation

Insurance

3%

Utilities

17%

Labor

33%

Contract Service

6%

Copier/Phone/Telephone

21%

Supplies & Repairs

20%

Description of Services Program Cost Allocation DistributionLabor $54,054 33.1%Contract Service $9,885 6.1%

Copier/Phone/Telephone $34,904 21.4%

Utilities $27,410 16.8%

Insurance $4,526 2.8%

Supplies & Repairs $32,558 20.0%

Totals: $163,337 100%

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2001

Public Works

Annual Report

Water Plant operations

Utilities Maintenance

Wastewater Treatment

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Water Plant Operations

1. ResponsibilitiesThe division provides for day to day operation of the municipal water supply. The operators coordinate well field production with

storage requirements and daily demand. The water is treated with chlorine for disinfection, fluoride for healthy teeth, andphosphates to inhibit lead/copper concentrat ions. Metering devices are maintained and read quarterly to account for usage. A

significant portion of the workload is a result of customer calls. Closing accounts, pressure problems, water quality complaints,locating service lines, and information requests essentially require the attention of one full time position.

The water plant operations are performed by three full time personnel. Day to day operations are supervised by a division foremanwith oversight by Public Works Superintendent.

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2. Budget History

The three year expense budget history is shown with 2001 expenses 4.4% below budget resulting in a savings of $55,000. Thebudget savings was predominately due to decreased water usage. Usage was 150 million gallons less than anticipated. Whencomparing 2001 and 2000 actual expenses, exhibited significant increase due to accounting standard changes.

$992,325 $976,952

$1,238,059

$1,182,815

$1,352,559

$900,000

$1,000,000

$1,100,000

$1,200,000$1,300,000

$1,400,000

Budget History

Water Plant1999 Actual

2000 Actual

2001 Budget

2001 Actual

2002Budget

Looking ahead at 2002, budgeted levels have increased 8.5% . In general, expense budget have stabilized mostly due to a lack ofadditional unfunded mandates. The most significant impact on future budgets may be an increased contribution to the generalfund to provide reimbursement for expenses and increases in electric utilities.

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The three year revenue history is shown with anticipated revenues for 2001 exceeding budget by 16% or about $246,000. A large

portion of the increase in revenues resulted from a 2% rate increase and the fact that revenues are typically budgeted veryconservatively.

$1,505,237

$1,544,781$1,521,000

$1,767,860

$1,523,000

$1,300,000

$1,400,000

$1,500,000

$1,600,000

$1,700,000

$1,800,000

Budget History

Water Revenues

1999 Actual

2000 Actual

2001 Budget

2001 Actual

2002Budget

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2001 Water Supply

Cost A l locat ion

Transfer Utility Maintenance

7%

Capital Outlay9%

Bond Interest4%

Testing & Fees

1%

Chemicals6%

Labor14%

Utilities13%

Supplies & Repairs

15%

Transfer Depreciation

17%

Transfer General Fund

14%

2001 2000

Description of Program Cost % of Cost % of Cost

Services Allocation Distribution Distribution

Labor $161,714 13.7% 17.6%

Chemicals $68,381 5.8% 6.6%

Testing & Fees $12,902 1.1% 3.1%Utilities $148,500 12.5% 12.1%

Supplies & Repairs $180,135 15.2% 10.6%

Capital Outlay $103,496 8.7% 3.5%

Bond Interest $52,540 4.4% 3.9%

Transfer General Fund $170,147 14.4% 18.6%

Transfer Depreciation $200,000 16.9% 15.4%

Transfer Utility Maintenance $85,000 7.1% 8.7%

Totals: $1,182,815 100% 100%

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4. 2001 Highlights

??Well Head ProtectionPhase One of the Well Head Protection Plan was basically completed with the assistance MDH/MPCA. The new groundwatermodel was the result of significant pump out testing.

??Water Distribution AnalysisThe report analyzing the water distribution system was completed.

??Water QualityImprovements were made in complying with lead/copper requirements. Initial testing of alternative to phosphate addition have

been completed with a pilot project pending MDH approval. Mn. Department of Health prefers that the City continue with amodified phosphate addition.

??Control UpgradeNew automated system controls were installed and replaced.

??Facility/MaintenanceA large amount of routine flushing, painting, fencing and security measures were undertaken in 2001.

5. Workload Trends

Service 2001 2000 1999 1998Water Pumped 1,296 MG 1113 MG 1181 MG 1232 MG

Meter Repair/Replace 422 each 545 each 555 each 397 each

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6. 2002 and Beyond

??Lead and CopperThe City has exceeded the drinking water standard for lead and copper in home testing since inception of the rule. Annualnotifications are required to consumers and the City must maintain optimum corrosion control as mandated by the MDH. Themandate is the addition of phosphate to reduce corrosion of home plumbing. Recent changes to our chemical blends have thesystem very close to meeting the standard.

??Reservoir ConstructionBids for construction of the 2 million gallon reservoir are anticipated March 20. A six to seven month construction timetablewill follow.

??Well head ProtectionThe City was originally scheduled to complete their Wellhead Protection Plan by February 5, 2002. Staff requested a

??Water Rate StudyCouple with a sewer rate study, staff anticipates a study analyzing water rates and cost of service issues.

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Utilities Maintenance

1. Responsibilities

The division provides that all city sewer mains are inspected and cleaned to assure proper operation. The sanitary sewer collectionsystem is comprized of sewer mains, and lift stations which transport waste to the wastewater treatment facility. In addition to

sewer mains, maintenance is provided to the water distribution system including hydrants and valves. The division is responsiblefor locating all underground facilities. The divisions role continues to evolve with anticipated responsibility for storm sewer

system maintenance growing in 2002.

The utilities maintenance division consists of three full time personnel supplemented by two seasonal part t ime employees. Thedivision draws upon the resource of the Street Maintenance Division and Water Plant Operations for larger work tasks such aswater main break repairs. The 2001 division staff was increased to four full time personnel and more closely integrated with thethree water plant operations staff.

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2. Budget History

The three-year budget history is shown with 2001 expenses 16.2% below budget resulting in a savings of $62,000. A majority ofsavings were due to not expending funds budgeted for the inflow/infiltration study during 2001.

$241,475 $258,161

$383,267

$321,006

$618,797

$0

$200,000

$400,000

$600,000

$800,000

Budget History

Utility Maintenance1999 Actual

2000 Actual

2001 Budget

2001 Actual

2002Budget

Looking ahead at 2002, budgeted levels have increased dramatically. The increase is predominately attributed to an accountingstandards change that now adds depreciation as a budgeted expense. The depreciation has always been funded, but is a non cashexpense. It is anticipated that the budget will continue to increase at higher levels for several years as storm sewer maintenanceresponsibilities grow.

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2001 Utility Maintenance

Total Program Cost


9%

Manhole Repair

2% Lift Station Maintenance

5%

Storm Sewer Maintenance

5%

Street Maintenance

10%

Locating

15%

Capital Projects

3%

Water System Maintenance

36%

Sanitary Sewer Maintenance

15%

Breakdown of Costs

Description of Total Labor Cost Total Material

Services Program Cost Dollars Supply Cost

Sanitary Sewer Maintenance $48,010 $36,786 $11,224

Water System Maintenance $118,771 $90,215 $28,556Storm Sewer Maintenance $15,813 $9,262 $6,551

Lift Station Maintenance $17,126 $10,741 $6,385

Manhole Repair $5,632 $3,736 $1,896

Street Maintenance $31,964 $19,973 $11,991

Capital Projects $8,694 $6,200 $2,494

Locating $47,135 $37,507 $9,628

Administration and Training $27,861 $20,001 $7,860

Totals $321,006 $234,421 $86,585

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4. 2001 Highlights

??Department ReorganizationDennis Duchene was promoted to head the utility maintenance and water operations divisions. The promotion of Dennisallowed an opportunity to more closely align the maintenance and water operation divisions. As can be seen by the workloaddata our maintenance levels continue to increase. The department has three new employees who have replaced retirees.Employee training and certification remains a primary object6ive.

??Minnesota Corrections Flow MeterA new meter for measuring sewer flow in November of 2001. Staff anticipates utilizing the meter for the basis of sewercharges beginning in July of 2002.

5. Workload Trends

Program 2001 2000 1999 1998Sewer Cleaning 89.9* miles 31.2 miles 50.3 miles 61.9 milesWatermain Breaks 11 each 14 each 14 each 12 eachManhole Repair 11 each 78 each 0 10 eachHydrant/Repair/Replace 25 each 55 each 59 each 302 eachValve Operating 110 154 203 255

*Historical High

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6. 2002 and Beyond

??Inflow Infiltration StudyThe department staff will be assisting with flow measuring required to complete the study. Implementation of therecommendations will follow.

??Storm Sewer MaintenanceThe department will be required to expand maintenance operation under the Phase II storm water rules. The MPCA is stillworking on implementation strategies. In addition, the surface water management plan will include recommendation forsystem improvements and maintenance needs to address water quality issues.

??Maintenance PoliciesStaff is preparing documents for Council review on various maintenance activities from sewer cleaning to water systemflushing similar to those developed for street maintenance activities.

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Wastewater Treatment

1. ResponsibilitiesThis division provides for the operation of the wastewater treatment plant which receives and treats allsewage from the collectionsystem. The system involves maintaining treatment units including screening, grit removers, clarifiers, filters, activated sludgesystem, sludge pumps and anaerobic digesters.

In addition, the activity provides for on land disposal of bio-solids as a byproduct of the wastewater treatment process. Thisinvolves the transportation and land application of sludge on agriculture land, the maintenance of tanker truck and injectionequipment used in the process. The City contracts for service to assist with biosolids disposal. The wastewater treatment plantstaff numbers seven full time employees for 2001 with Public Works Superintendent providing daily supervision.

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2. Budget History

The three year expense budget history is shown with 2001 expenses 4.0% below Budget resulting in a savings of $68,781. Incomparing 2000 and 2001 actual expenses it is apparent that base operating costs are stabilizing. For 2001, increased utility costsof approximately $50,000 and $30,000 in chemicals were the primary componets of operating increases.

$1,336,005

$1,511,174$1,730,777

$1,661,996

$2,171,638

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Budget History

Waste Treatment

1999 Actual

2000 Actual

2001 Budget

2001 Actual

2002Budget

Looking ahead at 2002, budgeted levels have increased 25% or approximately $440,000. While the increase is very significant it ismerely an accounting standards change. In previous budgets depreciation was not budgeted since it is a noncash expense.

Depreciation was funded, however, in prior years not expensed. Depreciation accounts for $390,000 of the budget increase.

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The three-year revenue history is shown with anticipated revenues for 2001 just slightly exceeding budget amounts.

$3,014,988

$2,788,739 $2,817,092$2,821,149

$2,933,353

$2,650,000$2,700,000$2,750,000

$2,800,000$2,850,000

$2,900,000$2,950,000$3,000,000

$3,050,000

Budget History

Sewer Revenues

1999 Actual

2000 Actual

2001 Budget

2001 Actual

2002Budget

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3. Program Objective Review2001 Waste Treatment Operations

Cost Allocations

Capital Outlay

0%

Bond Interest

19%

Sludge

10%

Chemicals

4%

Labor

24%

Utilities

12%

Supplies & Repairs

9%

Transfer General Fund

10%

Transfer Depreciation

12%

Description of Program Cost % of Cost % of Cost

Services Allocation Distribution Distribution

Labor $391,497 23.6% 23.1%Chemicals $66,350 4.0% 1.4%

Sludge $168,172 10.1% 12.0%

Utilities $199,996 12.0% 10.3%Supplies & Repairs $149,474 9.0% 8.5%

Capital Outlay $5,000 0.3% 1.7%

Bond Interest $311,360 18.7% 21.8%

Transfer General Fund $170,147 10.2% 12.0%

Transfer Depreciation $200,000 12.0% 9.3%

Totals: $1,661,996 100% 100%

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4. 2001 Highlights

??Award for Operations ExcellenceNo Permit Violations for the facility occurred and the facility was given the award for Operation Excellence by the MPCA.

??Plant EfficiencyThe treatment efficiency of the plant was above 95% for both 2000 and 2001 as noted in the workload data.

??Digester Cover Replacement and Mixer ProjectSometimes failures can prove to be successes. A 40 year old cover on a digester failed structurally. A new 50 diameter coverwas specified by staff and new mixers installed. The construct ion was supervised by plant staff and the improvements arecomplete.

??Effluent Pumping

One issue left unaddressed by the improvement project was a pumping station to pump plant discharge to the river duringflooding periods. Staff designed, specified and constructed the facilities for less than $30,000 saving $470,000 in cost. Thepump station was used numerous times during 2001, and no violations due to spring flooding.

??River Monitoring ProgramThe City continued voluntary river monitoring to assess environmental impacts. While the program needs more data, by thetime permit review occurs this year the City will be in a better position to evaluate future permit limits.

??Sludge Storage Lagoon LineOne of two lagoons was reconstructed with a new liner. The second is scheduled for spring of 2002.

5. Workload Trends

2001 2000 1999 1998Wastewater 1545 MG 1418 MG 1502 MG 1394 MG

Sludge Disposal 5.6 MG 5.4 MG 6.5 MG 8.00 MG% BOD Removal 97.3% 97.7% 97.3% 92%

% TSS Removal 95% 95.6% 95.7% 88.7%

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6. 2002 and Beyond

??NPDES PermitThe permit for the treatment plant expires June of 2002. Application for a new permit has been filed, however, a new draftpermit is not anticipated before the end of the year. The current permit remains in force until a new permit is approved.

??Phoshorus RemovalPhosphorus is the hot topic. Inclusion of a standard in a new permit is a likely scenario. Currently the legislature isdeliberating a 1 mg/l rule that will have a significant impact on whether phosphorus is a near term or long term issue. I think itgoes without saying that at some point removal will be required and significant reinvestment in our facility will be required.

??Lagoon Lining

Anticipate project completion in early July.

??Overall FacilityThe plant is perfoming at a high level of treatment efficiency. Barring permit changes, only minor capital investment isanticipated. Facility capacities should easily accommodate 10-15 years of projected growth.

??Industrial PretreatmentOur pretreatment program has seen significant gains. The negative of a solid program is reduced revenues. The revenue

reduction coupled with Land OLakes closing will have a more significant impact on long term cash flow than anticipated.Close monitoring is recommended.

??Sewer Rate Study

A new study is anticipated to augment6 staffs operating proforma. The study will look at cost and revenue distributionbetween domestic and industrial users. Hopefully, significant changes to our current structure will not be necessary.

2001 cover

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