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Home My WebLink Aboutagenda.council.worksession.20181029 CITY COUNCIL WORK SESSION October 29, 2018 4:00 PM, City Council Chambers MEETING AGENDA I. Budget Work Session - Water / Electric / Stormwater Funds P1 1 2019 Proposed Budget October 29, 2018 P2I. Water Utility Fund Potential Projects on the Horizon (Excluded Currently) 2 •Cooper and Hyman Street Malls –Design Funding Only •Red Mountain and East Aspen Water System Upgrades •Future Water Storage Development P3I. Water Utility Fund 3 •5 Year Transition to Cost of Service Raw Water, Fire and Pump Charges <100% Demand > 100% Variable approximately at cost of service now •Fee Increases Proposed for 2019 Infrastructure analysis completed Fire mitigation project excluded Average bill increase roughly 7% •Tap Fee Updates •Last revised January 2013 •Proposed increase 21% Demand Service $2,971,800 Raw, Wholesale & Reclaimed Service $836,290 Variable Service $3,785,980 Development Review Fees $520,000 Tap Fees $875,050 Other Revenues $168,940 Revenues = $9,158,060 P4I. 4 Water Utility Fund P5I. 5 321 479 480 481 482 525 527 531 540 552 557 581 612 616 633 636 658 669 699 706 740 756 775 898 922 989 991 1,331 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 New Castle Arvada Carbondale Broomfield Glenwood Springs Aspen 2018 Boulder Aspen 2019 Louisville Denver Water Fort Collins Highlands Ranch S. Adams County Basalt Greeley Silt Golden Northglenn Brighton Thornton Parker Westminster Aurora Snowmass Erie Rifle CO Springs Arapahoe Colorado Water Rate Survey 115,000 Gallons per Year -5 Year Transition Water Utility Fund P6I. Water Utility Rates 6 2018 Proposed Rate 2019 Avg. Bill Changes Avg. Bill Water Variable $25.80 6.95%$27.59 Water Demand $15.83 1.17%$16.02 Fire Charge $5.58 23.29%$6.88 Pump Charge $0.00 13.13%$0.00 Avg. Residential -Downtown 2.67 ECUs –No Pump / 10K gallons $47.21 $50.49 6.9% Water Variable $25.80 6.95%$27.59 Water Demand $47.44 1.17%$48.00 Fire Charge $16.72 23.29%$20.61 Pump Charge $18.60 13.13%$21.04 Avg. Residential –Red Mountain 4.00 ECUs –1 Pump / 10K gallons $108.56 $117.24 8.0% Water Variable $51.60 6.95%$55.19 Water Demand $54.20 1.17%$54.83 Fire Charge $19.10 23.29%$23.55 Pump Charge $0.00 13.13%$0.00 Avg. Commercial 9.14 ECUs -No Pump / 20K gallons $124.90 $133.57 6.9%P7I. 7 29.15 47.21 61.06 31.18 50.49 65.30 25.00 30.00 35.00 40.00 45.00 50.00 55.00 60.00 65.00 70.00 Winter Average Median Summer Average Average Monthly Bill, Using Median Consumption --2.67 ECU example 5-Year Transition Existing 2019 Transition Water Utility Fund P8I. 8 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 1 2 3 4 5 6 7 Bill Area Average Bill Increase in Water Utility's 7 Billing Areas 5-Year Transition Water Utility Fund P9I. 9 Billing Area Current Charges per ECU Tap Fee Adjustment Using Consumer Price Index (CPI) Tap Fee Adjustment Using Aspen's Historic Utility Plant in Service (UPIS) Staff Recommendation -- Average of 2 Methods Billing Area 1 $5,795.00 $6,078.00 $7,960.00 $7,019.00 Billing Area 2 $11,590.00 $12,157.00 $15,920.00 $14,038.00 Billing Area 3 $11,590.00 $12,157.00 $15,920.00 $14,038.00 Billing Area 4 $7,243.75 $7,598.00 $9,950.00 $8,774.00 Billing Area 5 $10,141.25 $10,637.00 $13,930.00 $12,284.00 Billing Area 6 $11,590.00 $12,157.00 $15,920.00 $14,038.00 Billing Area 7 $8,692.50 $9,117.00 $11,940.00 $10,529.00 UTILITY CONNECTION PERMIT FEES / WATER TAP FEES -- LAST INCREASED JANUARY 1, 2013 Water Utility Fund P10I. Water Utility Fund 10 •Base Budget Decrease: 5.8% Climate Action Office to General Fund •Repayment of Advance: $284,770 •Supplementals: $150,000 Contract legal services around water rights •Transfers Share of Pedestrian Mall Design Share of AMI Network Doubling of Employee Housing Allocation •Capital (Excluding Labor): $930,200 Administrative & Facility Mainenance $734,400 Planning and Review $421,670 Utility Billing $365,090 Efficiency Programs $123,160 Treated & Untreated Water $1,114,960 Distribution Management $1,115,070 Capital $1,113,010 Water Rights $367,330 Debt Service (Wheeler) $284,770 Transfers Out $4,316,010 Expenditures = $9,955,470 P11I. Water Utility Fund 11 Project Amount Annual Distribution Replacement Authority $155,000 Backwash Pond (Master Plan and Design Only)$120,000 Castle Creek Headgate / Pipeline –Point Repairs $80,000 Maroon Creek Headgate / Pipeline –Point Repairs $80,000 Integrated Resource Plan –Master Planning $75,000 Castle Creek Diversion –Replace Bypass $60,000 Maroon Creek Hydro Building Repairs $60,000 Altitude Valve at Tiehack Tank $50,000 Water Treatment Plant Campus Maintenance $50,000 Pre-Engineering Services for Capital Projects $50,000 Bobcat Replacement $45,000 All Other Projects < $45,000 $105,200 Total Capital Projects $930,200 P12I. Water Utility Fund 12 Net Change to Fund Balance: ($797,410) $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 2018 Forecast 2019 2020 2021 2022 2023 Ending Fund Balance Revenue Expense 25% Reserve Requirement P13I. Electric Utility Fund 13 Consumption $7,840,063 74% Demand $557,903 5% Transfers In $803,300 8%Electric Development Fee $100,000 1%Availability $1,006,027 9% Other Revenues $278,700 3% Revenues = $10,586,263 •2019 Revenue By Customer Base Residential: 40% Sm. Commercial: 38% Lg. Commercial: 22% •5 Year Cost of Service Transition Transition To Greater Fixed Revenues Greater Increases for Residential City Facility Rate Class Eliminated •Large One-Time Transfer In 50% of AMI Project P14I. 14 P15I. 1563.43 65.25 69.72 75.07 76.75 76.97 80.95 82.17 82.35 84.79 85.62 87.13 93.08 102.25 106.85 108.46 111.00 111.07 111.70 113.20 124.63 126.63 68.55 88.69 90.27 94.32 96.17 97.54 100.13 100.65 100.94 102.03 105.30 105.42 105.42 109.42 110.30 110.69 112.36 114.21 117.12 118.39 120.10 127.75 129.44 139.88 116.34 $0 $20 $40 $60 $80 $100 $120 $140 $160 FORT MORGANLONGMONTGUNNISONFOUNTAINOAK CREEKFORT COLLINSASPEN 2018LOVELANDJULESBURGWRAYGLENWOOD SPRINGSCOLORADO SPRINGSASPEN 2019 COSLYONSLA JUNTAFLEMINGTRINIDADLAS ANIMASSPRINGFIELDGRANADALAMARESTES PARKBURLINGTONCENTERDELTAHAXTUNHOLLYHOLYOKERATONYUMAMOON LAKEHOLY CROSS EAPOUDRE VALLEY REAUNITED POWERINTERMOUNTAIN REAWHEATLANDY-W ELECTRIC ASSNDELTA-MONTROSE EAGRAND VALLEY RPLK C ELECTRIC ASSNMOUNTAIN PARKS EIMORGAN COUNTY REAWHITE RIVER EALA PLATAMOUNTAIN VIEW EAHIGHLINE EAHIGH WEST ENERGYEMPIRE EAGUNNISON COUNTY EASE COLORADO PASAN ISABELSAN LUIS VALLEY REASANGRE DE CRISTOTRI-COUNTYSAN MIGUEL PAYAMPA VALLEY EABLACK HILLS ENERGYXCEL ENERGYCAMU Residential Survey July 2018 -Cost of 700 kWh Municipality CO-OP Investor P16I. 16162.75 178.60 184.22 189.74 205.43 209.47 217.40 223.11 224.20 227.40 229.00 233.18 236.57 255.57 259.11 270.40 285.50 293.00 298.93 299.80 326.60 333.80 162.20 216.70 218.78 220.48 221.90 232.78 235.50 242.65 244.40 245.00 247.00 257.32 259.19 264.82 267.48 272.70 275.25 280.00 297.26 304.50 317.00 354.04 363.13 373.36 277.60 $0 $50 $100 $150 $200 $250 $300 $350 $400 FORT MORGANLONGMONTGUNNISONFOUNTAINCOLORADO SPRINGSFORT COLLINSOAK CREEKASPEN 2018GLENWOOD SPRINGSWRAYJULESBURGLOVELANDASPEN 2019 COSESTES PARKFLEMINGLYONSGRANADATRINIDADLA JUNTASPRINGFIELDLAS ANIMASLAMARBURLINGTONCENTERDELTAHAXTUNHOLLYHOLYOKERATONYUMAMOON LAKEK C ELECTRIC ASSNPOUDRE VALLEY REAHIGHLINE EAHOLY CROSS EAGRAND VALLEY RPLMORGAN COUNTY REAWHEATLANDUNITED POWERDELTA-MONTROSE EAMOUNTAIN PARKS EIWHITE RIVER EAY-W ELECTRIC ASSNMOUNTAIN VIEW EAGUNNISON COUNTY EALA PLATAEMPIRE EAHIGH WEST ENERGYINTERMOUNTAIN REASAN LUIS VALLEY REASAN ISABELSE COLORADO PATRI-COUNTYSANGRE DE CRISTOSAN MIGUEL PAYAMPA VALLEY EABLACK HILLS ENERGYXCEL ENERGYCAMU Small Commercial Survey July 2018 -Cost of 2,000 kWh + 10 kW Municipality CO-OP Investor P17I. 173,558.50 3,661.90 3,761.66 4,176.74 4,251.50 4,342.66 4,463.70 4,486.24 4,659.06 4,808.00 4,944.50 5,582.71 5,697.00 5,734.11 6,072.30 6,124.50 6,222.75 6,304.70 6,929.00 3,392.00 4,145.50 4,367.13 4,374.50 4,419.20 4,591.75 4,642.40 4,646.83 4,649.00 4,677.40 4,708.50 4,774.67 4,842.05 4,889.00 4,920.25 5,072.63 5,217.50 5,301.80 5,493.50 5,633.15 6,075.80 6,141.35 7,758.64 5,301.71 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 LONGMONTGUNNISONFOUNTAINCOLORADO SPRINGSOAK CREEKFORT COLLINSLOVELANDFORT MORGANESTES PARKGLENWOOD SPRINGSWRAYASPEN 2019 COSLYONSASPEN 2018LA JUNTATRINIDADLAMARSPRINGFIELDLAS ANIMASBURLINGTONCENTERDELTAFLEMINGGRANADAHAXTUNHOLLYHOLYOKEJULESBURGRATONYUMAMOON LAKEK C ELECTRIC ASSNHOLY CROSS EADELTA-MONTROSE EAHIGHLINE EAGRAND VALLEY RPLGUNNISON COUNTY EAY-W ELECTRIC ASSNLA PLATAMOUNTAIN VIEW EAMOUNTAIN PARKS EIWHEATLANDINTERMOUNTAIN REAUNITED POWERMORGAN COUNTY REATRI-COUNTYHIGH WEST ENERGYPOUDRE VALLEY REASAN LUIS VALLEY REASE COLORADO PAEMPIRE EASAN ISABELSANGRE DE CRISTOSAN MIGUEL PAWHITE RIVER EAYAMPA VALLEY EABLACK HILLS ENERGYXCEL ENERGYCAMU Large Commercial Survey July 2018 -Cost of 45,000 kWh + 130 kW Municipality CO-OP Investor P18I. Electric Utility Rates 18 2018 Avg. Bill Proposed Rate Change 2019 Avg. Bill kWh Charges $63.27 7.8%$68.21 kW Charges $0.00 0.0%$0.00 Availability Charges $17.68 38.1%$24.42 Average Residential -200 AMP service / 700 kwh $80.95 $92.63 14.4% kWh Charges $204.52 (1.2%)$202.07 kW Charges $0.00 0.0%$0.00 Availability Charges $18.59 24.8%$23.20 Average Small Commercial -200 AMP service / 2,000 kwh $223.11 $225.27 1.0% kWh Charges $4,080.86 (10.1%)$3,668.69 kW Charges $1,606.80 15.0%$1,847.82 Availability Charges $46.45 (10.0%)$41.81 Average Large Commercial -400 AMP service / 45,000 kwh / 130 kw $5,734.11 $5,558.32 (3.1%)P19I. 19 0 50 100 150 200 250 300 350 400 450 500 550 600 ($2) to $0 $0 to $2 $2 to $4 $4 to $6 $6 to $8 $8 to $10 $10 to $15 $15 to $20 $20 to $25 > $25Number of Customers$ Change in Average Monthly Bills 5-Year Transition Residential Sm. Comm Lg. Comm Sm. City Lg. City P20I. Electric Utility Fund 20 •Base Operating Budget: Climate Action Office to General Fund Purchased Power Outlook Favorable •Supplemental: $91,180 Apprentice Lineman (1.0 FTE) •Debt Service: $173,200 CCEC Bonds Partial Call –Dec 2018 •Capital (excluding Labor): $2,240,400 AMI Network: $1,800,000 Annual Infrastructure Replacement: $200,000 Micro Hydro Turbine: $200,000 Admin / Facility Maintenance $457,390 Utility Billing $309,600 Locally Produced Power $513,790 Capital $2,417,740 Purchased Power $5,106,860 Debt Service $173,200 Transfers Out $1,086,200 Efficiency Programs $53,920 Distribution Management $682,030 Public Lighting $192,620 Expenditures = $10,993,350 P21I. Electric Utility Fund 21 Net Change to Fund Balance: ($407,087) $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 2018 Forecast 2019 2020 2021 2022 2023 Ending Unrestricted Fund Balance Revenue Expense 25% Reserve Requirement P22I. Stormwater Fund 22 •Property Tax Revenue No Growth: Non Re-Assessment Year •Fee-in-Lieu Revenue Phased Out Property Tax (0.650 Mil Levy) $1,055,000 Investment Income $17,550 Review Fees $180,000 Construction Mitigation Fees $82,300 Revenues = $1,334,850 $700,831 $382,384 $511,805 $324,651 $106,953 $15,891 $152,955 $28,290 $325 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 •Permit Review Fees (30%) •Construction Mitigation Fees (17%)P23I. Stormwater Fund 23 •Storm Drainage Wetlands / Natural Filtration Street Sweeping / Vault Cleaning Traditional Conveyance Via Pipe ▪Development Services ▪Capital Projects (Excl. Labor): $150,000 Park Avenue Conveyance: $100,000 (*REVISED*) Mud and Debris Alert System: $50,000 Administrative / Facilities $192,310 Transfers $690,890 Capital (Includes Labor) $248,060 Development Services $177,560 Storm Drainage Maintenance $403,890 Expenditures = $1,712,710 P24I. Stormwater Fund –Unfunded Projects 24 CMP Replacements (Durant, Hopkins, Bleeker, Original, Spring, Francis, Mill, Aspen, Main)$4,811,000 Spring and Original Upgrades $4,560,000 Castle Creek Basin Improvements $1,380,000 Maroon Creek Basin Improvements $1,380,000 River Management Plan $720,000 Riverside McSkimming Basin $655,000 Brown Lane Branch $640,000 Gibson Ave $600,000 Garmish Improvements $600,000 Small Water Quality Facilities $600,000 Outfalls (E.Hopkins, Lone Pine, Oklahoma Flats)$492,000 Riparian Area Improvements $480,000 Garrish Park Water Quality $420,000 Eastwood Main System $310,000 River Management -Out Years $300,000 Green Streets $300,000 Mudflow Protection and Mitigation $240,000 Williams Woods Proposed System $223,000 River Bluff Townhomes Branch $176,000 Grand Total $18,887,000 P25I. Stormwater Fund 25 Net Change to Fund Balance: ($377,860) $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2018 Forecast 2019 2020 2021 2022 2023 Ending Fund Balance Revenue Expense 12.5% Reserve Requirement P26I.