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BCRUA_R-16-07-20-7A RESOLUTION NO. R-16-07-20-7A WHEREAS, the Board of Directors of the Brushy Creek Regional Utility Authority (`BCRUA") wishes to adopt the BCRUA Annual Operating Budget for Fiscal Year 2016-2017, in accordance with the attached proposal,Now Therefore BE IT RESOLVED BY THE BRUSHY CREEK REGIONAL UTILITY AUTHORITY, That the BCRUA Annual Operating Budget for Fiscal Year 2016-2017 be adopted, subject to the approval of the Participating Cities, as set forth in Exhibit "A" attached hereto and incorporated herein for all purposes. The Board of Directors hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 20th day of July, 2016. JON LUX;President Brushy-Creek Regional Utility Authority A ;7: on Abruzzes , ec C:\Users\madams\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\VWEYNNPO\Res.BCRUA-Annual Operating Budget FY 2016-2017 (00360884xA08F8).doc DATE: July 15, 2016 SUBJECT: BCRUA Board Meeting—July 20, 2016 ITEM: 7A. Consider a resolution approving the BCRUA Annual Operating Budget for Fiscal Year 2016-2017,subject to the approval of the Participating Cities. PRESENTER: Tom Gallier, General Manager BACKGROUND INFO: The current fiscal year represents the longest continual operating period since the regional water treatment plant achieved substantial completion status in 2012.The plant currently operates a single daily shift (8—10 hours per day) to maximize system storage volume, and then feeds supply into distribution as each city requires during the balance of each 24 hour cycle. Staff and the Operating Committee have reviewed the current operating scheme, and have decided to budget for increased production next year to approximately 2.2 billion gallons,divided primarily between Cedar Park and Leander. Round Rock has completed its primary system interconnect with BCRUA's system, but does not anticipate needing any of BCRUA's capacity during the coming fiscal year. In order to meet the increasing demand,a decision has been made to prepare for increasing plant operations to a full 24 hour per day schedule. Doing so will require the addition of four full-time plant operators. We anticipate filling these positions on a staggered basis between late winter to early spring of 2017, in order to be fully staffed and prepared forthe summer peak demand season of 2017.As a result,all four positions have been budgeted for 8 months in the fiscal year. The recommended total operations budget for FY 2016-2017 is$2,302,665,and,combined with the total debt service budget of$12,381,596, yields a total recommended operations and debt service budget of $14,684,261 for Fiscal Year 2016—2017. Staff and the Operating Committee recommend approval of the budget. Staff and representatives of the Operating Committee will be present to answer any Board questions. Subsequent to Board action of the budget, formal action will also be required by all three member city councils, per the existing Master Agreement. FY 2017 Proposed Operating Budget v2 WON BRUSHY CREE K REGIONAL UTILITY AUTHORITY A Par[ncrsh I of Cedar Park, Lca n dor, and Round Rock Fixed Fixed Operating Operating Expenses for Expenses for Cities not Cities Variable Non-Operating Receiving Receiving Operating CODE FY 2017 BCRUA Op Budget Expenses Water Water Expenses FY 2016 3.31.16 Act FY 2017 Cedar Park Leander Round Rock 7510.00 Insurance 100% S 15,600.00 $ 3,740.46 $ 15 600.00 $ 2,335.32 S 7,363.20 $ 5,901,48 7300.00 Security/Fire/Elevator 100% 8,200.00 675.00 9,000.00 1 1,347.30 4,248.00 3,404.70 Simplex Grinnell/Elevator Ins ect-License/Misc Repairs 7100.00 Gen Manager-Admin Services 100% 111 700.00 50 018.45 127 000.00 19 011.90 59,944.00 48 044.10 GM$106.7K Admin$5K ROUND ROCK 9300.00 Capital Outlay 100% 25 000.00 123,000.00 18413.10 58 056.00 46,530.90 WQ Moniloringl5K(NTU/CL2)/Chem Pump 9.5K 9305.00 Desks Files Kitchen Appliances,etc. 100% 2,000.00 2,000.00 299.40 944.00 756.60 52.2K Radio,26K RWL CAVV's 20K RWL Vaults 7215.00 Grounds Maint/Building Maint 100% 23000.00 5664.46 45000.00 6736.50 21240.00 17,023.50 HVAC$6K,Mowing$34K,Misc$5K 7220.00 Iri afion Water at Plant-WW-Solid Waste 100% 11,000.00 9,673.03 6,300.00 943.11 2,973.60 2,383.29 $1.2K CTR Annual/$425 Month W/WW 7225.00 TCEQ Admin 100% 1 1 100.00 100.00 14.97 47.20 37.83 Annual PWS Fee Less 25 Connections=$100 7230.00 Safety Equip 100% 3,500.00 334.97 18 500.00 2,769.45 8,732.00 6,998.55 7235.00 Treated/Raw Main Maint 100% 20 000.00 1,347.95 10 000.00 1,497.00 4,720.00 3,783.00 7470.00 Audit Fees/Invest/Bank 100% 51,000.00 31,590.78 51,000.00 7,634.70 24,072.00 19,293.30 7680.00 Legal Services 100% 40 000.00 1,842.00 20 000.00 2,994.00 9,440.00 7,566.00 7710.00 Computers&Equipment 33% 67% 10 500.00 876.00 12,000.00 4,246.99 6,254.94 1,498.07 Admin Server/Network Improvement,Dahill 7240.00 SCADA/Services 33% 67% 10 000.00 495.00 16 500.00 5,839.61 8,600.54 2,059.84 Ignition 3.5K/Services/UPS Maint. 7715.00 Communication/Phones 33% 67% 7000.00 2382.49 15000.00 5,308.74 7818.68 1872.59 7245.00 Intake Bare Repair/Maint 33% 67% 1 20 000.00 20,000.00 7,078.32 10 424.90 2,496.78 7430.00 Accwuntin/Finanace/Personnel 33% 67% 45 000.00 17 874.83 45 000.00 15 926.22 23 456.03 5,617.76 7101.00 Plant Superintendent 1 FTE 33% 67% 116 223.12 61 620.22 120 588.00 42 678.02 62 855.89 15 054,09 Base X 1.5% LEANDER 7105.00 Administration Assistant(operations) 33% 67% 7110.00 Small Tools/Equipment 33% 67% 7,500.00 638.92 7,500.00 2,654.37 3,909,34 936.29 7115.00 Office/Buildin Supplies 33% 67% 7000.00 1,752.07 7,000.00 2,477.41 3,648.72 873.87 General Office Supplies/Paper/Toner/Pens 7120.00 Plant Winterization Supplies 33% 67% 2,000.00 72.03 3,200.00 1,132.53 1,667.98 399.48 7720.00 Miscellaneous Expenses 33% 67% 2000.00 536.64 2000.00 707.83 1042.49 249.68 7000.00 Plant Operators 3 FTE 100% 200 091.84 121 360.98 365 800.00 166 256.10 199 543.90 3 FTE Base X 1.5% 12&4 FTE Base 8 7005.00 Maintenance Technician 100% 7010.00 Treatment Materials/Supplies 100% 30 000.00 14 459.31 30,000.00 13,635.00 16,365.00 Misc repair arts/services 7015.00 Vehicle Repairs/Maint 100% 4,000.00 104.99 4,000.00 1,818.00 2,182.00 2 Truck/1 UTV/Backhoe 7020.00 Contract Services Lab Services 100% 15 000.00 1,152.00 17 000.00 7,726.50 9,273.50 Annual/1/4 TCEQ Sampling,VOC TOC Bacts 7020.50 Laboratory Supplies 100% 20 000.00 4,077.11 31 000.00 14 089.50 18 910.50 Equip Maint/Reagents/Supplies/On-Line Equip 7025.00 Fuel and Oil 100% 5,000.00 5,000.00 2,272.50 2,727.50 2 Truck/1 UTV Gas/Backhoe 7030.00 Janitorial Facility Maint 100% 6,900.00 6,900.00 3,136.05 3,763.95 1 X Clean per week $575.00 Mo. Misc Supplies 7035.00 Equip Facility Maint 100% 25 000.00 8,334.63 25 000.00 11 362.50 13 637.50 7040.00 Schools/Training 100% 7,500.00 7,500.00 3,408.75 4,091.25 7045.00 License and Membership Dues 100% 2,000.00 2,000.00 909.00 1,091.00 TWUA/AWWA etc... 7050.00 Uniforms 100% 3200.00 1486.41 5,200.00 2,363.40 2,836.60 jUniforms 7200.00 Power-Pumping Raw/Treated/Lift Stations 100% 500,000.00 147784.92 620000.00 281,790.00 338,210.00 7205.00 Chemicals 100% 185 000.00 73 036.23 273 800.00 124 442.10 149 357.90 7210.00 Sludge Disposal 100% 23 500.00 1,650.00 32 000.00 14,544.00 17 456.00 $510.00 per Roll Off 1 per week Subtotal 2,101,488,00 9310.00 Contingency 46,489.20 15,439.22 63,044.64 8,939.73 29,794.90 24,310.01 3% Total Annual $ 1,612,004 $ 580,001 $ 2,164,533 $ 808,740 $ 1,138,701 $ 217,092 ' CREEK FY 2017 Proposed Operating Budget v2 BRUSHY REGIONAL UTILITY AUTHORITY A P.—---hip Ccdar Park, L--d— and Round Rack Fixed Fixed Operating Operating Expenses for Expenses for Cities not Cities Variable Non-Operating Receiving Receiving Operating CODE FY 2017 BCRUA Op Budget Ex enses Water Water Expenses FY 2016 3.31.16 Act FY 2017 Cedar Park Leander Round Rock $ 541,133 $ 202,185 $ 284,675 $ 54,273 LESS:FY16 Reserve Budget (403,001) (173,375) (188,631) (40,995) Reserve Adlu>tmtntfor FY17 138,132 28,810 96,044 13,278 Round Rock Fee in Lieu of Min.Take (145,000) 145,000 Total Operating Budget 2,302,665 692,550 1,234,745 375,370 FY 2017 Debt Service Budget $ 12,381,596 $ 1,723,035 $ 6,311,167 $ 4,347,375 Total Operating and Debt Service Budget $ 14,684,261 $ 2,415,584 $ 7,545,932 $ 4,722,745 BCRUA Project Reserved Capacity Allocation Round Rock Fee in Lieu of Minimum Take Calculation Cedar Park 14.97 Leander 47.20% BCRUA FY17 Gallons Treated(6MGD x 365) 2,190,000,000 Round Rock 37.83 BCRUA FY17 WTP O&M Expenses(minus amount paid by RR) 1,681,664 Capacity Allocation for Cities Receiving Water Cedar Park 45.45% BCRUA Cost per 1,000 gal, $0.77 Leander 54.55% Round Rock 0.00% Cedar Park FY15 WTP O&M Expenses(minus rawwater) 1,982,335 Ultimate Capacity Allocation Cedar Park 14.18% Cedar Park FY15 Gallons Treated 4,217,958,000 Leander 47.26% Round Rock 38.56% Cedar Park Cost per 1,000 gal. $0.47 Difference in BCRUA and CP Cost per 1,000 gal $0.30 Round Rock Minimum Annual Take in gallons 486,727,500 Round Rock Fee in Lieu of Minimum Take $145,000 BCRUA Budget FY 2016 FY 2017 Cedar Park Leander Round Rock Operating Total 1,612,004 2,164,533 808,740 1,138,701 217,092 Reserve/Minimum take adjustment 12,947 138,132 116,190 96,044 158,278 Operating/Reserve Total 1,599,057 2,302,665 692,550 1,234,745 375,370 Debt Service Budget 11,809,880 12,381,596 1,723,035 6,311,187 4,347,375 Total Operating and Debt Service Budget $ 13,408,937 14,684,262 21415,584 7,545,932 4,722,745