2001 PUBLIC WORKS ANNUAL REPORT

- PUBLIC WORKS ADMINISTRATION - BUILDING MAINTENANCE

- STREET DIVISION - EQUIPMENT MAINTENANCE

TABLE OF CONTENTS
DESCRIPTION
I. OVERVIEW . II. DIVISION REVIEWS A. B. C. D. Public Works Administration Street Maintenance . Equipment Maintenance Building Maintenance . Salmon Green Purple Pink

PAGE
1 -3

III. OTHER ANNUAL REPORTS A. Engineering Department B. Airport Manager IV. DIVISION SUPPORTING DATA A. Street Division .. B. Equipment Division . C. Building Division .

Green Purple Pink

I. OVERVIEW
The Public Works and Engineering Departments are proud to submit the 2001 Annual report. The year in review is filled with successes in all divisions. The report is formatted into the following sections. Section one gives a detailed review of all divisions evaluating budget performance, a review of objects, highlights of the year, and listing of 2001 objectives. Section two includes the annual 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 in providing 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 programs are essentially the same. Many new programs, initiatives have been implemented in the sewer and water maintenance division which continues to be the area with the most change. Facility improvements at the Waste Water Treatment Plant have improved the environmental 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 results speak 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 encouraged to share their thoughts and comments on how we may enhance our future reporting.

A. PERSONNEL
The current department is structured in Divisions with personnel assignments as shown. Administration 2 Full Time Street Maintenance 9 Full Time Equipment Maintenance 2 Full Time Utility Maintenance 4 Full Time Water Operations 3 Full Time WWTP Operations 7 Full Time Building 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 the seven year time period the community has grown in street mileage and water/sewer use creating higher demand for services. As a department we have been able to meet the increased demand for service by creating efficiencies within service delivery. New capital equipment investments is obviously one major factor. The overall equipment fleet is very reliable resulting 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 the department. 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 an opportunity 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.

B. FACILITIES
The facility issues are best summarized as a lack of space. The street maintenance garage is bursting at the seams. The Water Operations has a small one car garage. The WWTP stores vehicles outside. The Equipment Maintenance personnel work on equipment outside on the ground. The recent acquisition of a different park maintenance facility has allowed 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 needing prompt 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 Protection 5. NPDES Permit / Phosphorus Removal 6. Personnel Additions

DIVISION REVIEWS

Public Works Administration

1. Responsibilities This activity provides for the administrative direction of all public works services. Responsibilities include the management of daily 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 department services focus in the primary areas as follows: Public Works Administration Street Maintenance Sanitary Sewer/Water System Maintenance Fleet/Equipment Maintenance Airport Operation and Maintenance Building and Grounds Maintenance Wastewater Treatment Water Supply Distribution Engineering 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.

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

Public Works Administration

$188,386

$200,000
$142,770

$170,273 $147,346 $162,260

1999 Actual 2000 Actual 2001 Budget

$150,000 $100,000 $50,000 $0

2001 Actual 2002 Budget

Budget History

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

Department Public Works Admin Street Maintenance Equipment Maintenance Utility Maintenance Engineering Water Operations Wastewater Operations Building Maintenance Total

2001 Budget $ 170,273 $1,080,376 $ 180,085 $ 383,267 $ 385,159 $1,238,059 $1,730,777 $ 156,200 $5,324,196

2001 Actual $ 162,200 $1,030,941 $ 179,689 $ 321,006 $ 331,585 $1,182,815 $1,661,996 $ 163,337 $5,033,569

Net + $ 8,073 + $49,435 + $ 396 + $ 62,261 + $53,574 + $55,244 + $68,781 - $ 7,137 +290,627 (5.4%)

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

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

2001 Overall Operating Budget

Public Works Departments

Building Maintenance 3%

Pubic Works Administration 3%

Street Maintenance 20% Equipment Maintenance 3%

Wastewater Operations 34%

Water Operations 23%

Engineering 7%

Utility Maintenance 7%

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

Street Maintenance

Street Maintenance

1. Responsibilities This activity provides for the maintenance of city streets, including patching, seal coating, mowing of road sides and street sweeping, traffic control signals/signage, cleaning storm ditches, and storm sewers. In addition, street maintenance provides for systematic 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 positions are 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 people Equipment Services/Eng. 2 people Total 6 people In addition to winter activities, summer programs such as seal coating, require equivalent added resources.

2. Budget History The three year operating budget history is depicted below. During 2001 the actual expenses were 4.6% below budget levels resulting in a savings of $49,000. When comparing 2001 and 2000 actual expenses, the increase in spending during 2001 was predominately 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.

Street Maintenance
$1,080,376 $1,096,036

1999 Actual 2000 Actual 2001 Budget 2001 Actual 2002 Budget

$1,100,000 $1,050,000 $1,000,000 $950,000 $900,000 $850,000 $800,000

$929,716 $940,009

$1,030,941

Budget History

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

3. Program Objective Review

Total Program Cost

Special Projects and Events 5%

Street Lighting 18% Administration and Training 4%

Snow and Ice Control 16% Seal Coating/ Crack Filling 7% Bituminous Repair 18%

Traffic Signs and Signals 6% Utility Maintenance 2% General Maintenance Street Sweeping 16% 8%

Description of Services Snow and Ice Control Seal Coating/ Crack Filling Bituminous Repair Street Sweeping General Maintenance Utility Maintenance Traffic Signs and Signals Special Projects and Events Administration and Training Street Lighting Totals

Total Program Cost $163,023 $73,999 $189,317 $82,678 $160,468 $25,389 $58,557 $47,523 $42,315 $187,672 $1,030,941

Labor Cost Dollars $92,473 $25,034 $110,354 $64,884 $110,865 $19,925 $17,371 $37,296 $33,208 $0 $511,410

Total Material Supply Cost $70,550 $48,965 $78,963 $17,794 $49,603 $5,464 $41,186 $10,227 $9,107 $187,672 $519,531

2001 Street Maintenance Program Objective Review

Total Material Supply Cost

Snow and Ice Control 14%

Street Lighting 37%

Seal Coating/ Crack Filling 9%

Administration and Training 2% Special Projects and Events 2% Traffic Signs and Signals 8% Utility Maintenance 1% General Maintenance 9%

Bituminous Repair 15%

Street Sw eeping 3%

Description of Services Snow and Ice Control Seal Coating/ Crack Filling Bituminous Repair Street Sweeping General Maintenance Utility Maintenance Traffic Signs and Signals Special Projects and Events Administration and Training Street Lighting Totals

Total Material Supply Cost $70,550 $48,965 $78,963 $17,794 $47,603 $5,464 $41,186 $10,227 $9,107 $187,672 $517,531

Breakdown of Materials Direct Material Indirect Material Cost in $ Supply Cost $45,191 $25,359 $42,100 $6,865 $48,700 $30,263 $0 $17,794 $19,200 $30,403 $0 $5,464 $36,423 $4,763 $0 $10,227 $0 $9,107 $187,672 $0 $379,286 $140,245

2001 Street Maintenance Program Objective review

Labor Distributions
Special Projects and Events 7% Administration and Training Snow and Ice Control 7% 18%

Traffic Signs and Signals 3% Utility Maintenance 4% General Maintenance 13% Street Sweeping 21%

Seal Coating/ Crack Filling 5%

Bituminous Repair 22%

Description of Services Snow and Ice Control Seal Coating/ Crack Filling Bituminous Repair Street Sweeping General Maintenance Utility Maintenance Traffic Signs and Signals Special Projects and Events Administration and Training Street Lighting Totals

Program Labor Hours 3235 885 3855 3781 2278 709 617 1304 1162 0 17826

% of Labor Distribution 18.1 4.9 21.6 12.7 21.7 3.9 3.4 7.3 6.5 0.0 100

Labor Cost Dollars $92,473 $25,034 $110,354 $64,884 $110,865 $19,925 $17,371 $37,296 $33,208 $0 $511,410

4. 2001 Highlights ??T.H. 60 (4th Street N.W.) Extensive repairs and maintenance of the pavement dominated spring activities. ?? Seal Coating Sealing activities focused on S.E. Faribault. ??Special Projects Railroad crossing repairs and Springwood Trail construction were complete. 5. Workload Trends Program Seal Coating Gravel Maintenance Bituminous Material Snow Removal Sign Maintenance 2001 61 330 2564 39.5 617 2000 48 624 1994 57 455 1999 80 560 2588 48 929 1998 75 469 2070 21 306 Blocks Hours Ton Inches Hours

Equipment Maintenance

Equipment Maintenance

1. Responsibilities This division provides for the maintenance and repair of City vehicles and equipment (excluding fire) in order to assure safe and efficient operation. In addition, this account group provides for the maintenance and operation of the city garage fleet fueling system. The Equipment Maintenance division consists of two full time personnel. Occasionally, overload work is contract on a job basis to outside vendors.

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

Equipment Maintenance
$189,201

1999 Actual 2000 Actual 2001 Budget 2001 Actual 2002 Budget

$190,000 $185,000 $180,000 $175,000 $170,000 $165,000 $160,000

$171,795 $172,945

$180,085

$179,689

Budget History

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

3. Program Objective Review 2001 Equipment Maintenance Total Program Cost

Airport Equipment 1% Utility Maintenance 9% Transit System 6%

Shop Repairs 2%

City Hall Fleet Administration and Training 4% 3%

Park Maintenance 9% Public Safety 12%

Street Division 54%

Description of Services Street Division Public Safety Park Maintenance Transit System Utility Maintenance Airport Equipment Shop Repairs City Hall Fleet Administration and Training

Total Program Cost $98,941 $21,113 $16,228 $10,332 $15,890 $1,685 $3,706 $6,907 $4,885

Program Labor Hours 1,762 376 289 184 283 30 66 123 87

Breakdown of Costs Labor Cost Total Material Dollars Supply Cost $64,608 $34,333 $13,787 $7,326 $10,597 $5,631 $6,747 $3,585 $10,376 $5,514 $1,100 $585 $2,420 $1,286 $4,510 $2,397 $3,190 $1,695

Totals

$179,687

3,200

$117,335

$62,352

4. 2001 Highlights ??WWTP Welding and fabrication of gas piping in the digester along with effluent pump piping. ??Repairs and Preventative Maintenance Manhours totaling 3200 hours of repairs and preventative maintenance

5. Workload Trends Program Street Maintenance Public Safety Park Maintenance Transit System Utility Maintenance Other Departments 2001 1762 (55.1%) 376 (11.7%) 289 (9.0%) 184 (5.8%) 283 (8.8%) 306 (9.5%) 2000 1590 (46.7%) 417 (12.2%) 272 (8%) 189 (5.5%) 354 (10.4%) 387 (17.2%) 1999 1794.5 (56.4%) 565 (18%) 363 (11.4%) 124.5 (4%) 138 (4%) 194 (6%) 1998 1392 (45.2%) 547 (17.8%) 728 (23.7%) 122 (4%) 100 (3.2%) 186 (6%)

Building Maintenance

Building Maintenance

1. Responsibilities This activity provides maintenance services for the cleaning and maintenance at City Hall and labor of operation of Community Services pool. In addition, grounds maintenance and snow removal are provided for City Hall and the Community Center/Library/Senior Center complex. The building maintenance services are provided by a division of one full time employee.

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

B u ild i n g M a i n t e n a n c e
$ 1 6 3 ,3 3 7 $ 1 6 2 ,1 8 8

$165,000 $160,000 $155,000 $150,000 $145,000 $140,000 $135,000 $130,000 $125,000 $120,000

$156,200

1999 Actual 2000 Actual

$139,141

$137,020

2001 Budget 2001 Actual 2002 Budget

B u d g e t H is t o r y
Looking ahead at 2002, budgeted levels have increased by approximately $6,000 with the majority of the increase attributed to phone system improvements.

3. Program Objective Rewiew 2001 Building Maintenance

Cost Allocation
Supplies & Repairs 20%

Labor 33%

Insurance 3%

Utilities 17%

Contract Service 6% Copier/Phone/Telephone 21%

Description of Services Labor Contract Service Copier/Phone/Telephone Utilities Insurance Supplies & Repairs Totals:

Program Cost Allocation $54,054 $9,885 $34,904 $27,410 $4,526 $32,558 $163,337

Distribution 33.1% 6.1% 21.4% 16.8% 2.8% 20.0% 100%

2001 Public Works Annual Report

Water Plant operations Utilities Maintenance Wastewater Treatment

Water Plant Operations

1. Responsibilities The 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, and phosphates to inhibit lead/copper concentrations. 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 foreman with oversight by Public Works Superintendent.

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. The budget savings was predominately due to decreased water usage. Usage was 150 million gallons less than anticipated. When comparing 2001 and 2000 actual expenses, exhibited significant increase due to accounting standard changes.

Water Plant
1999 Actual
$1,352,559

$1,400,000 $1,300,000 $1,200,000 $1,100,000 $1,000,000 $900,000

$992,325 $976,952

$1,238,059 $1,182,815

2000 Actual 2001 Budget 2001 Actual 2002Budget

Budget History

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

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 very conservatively.

Water Revenues
$1,767,860

$1,800,000 $1,700,000 $1,600,000 $1,500,000 $1,400,000 $1,300,000

$1,505,237 $1,544,781 $1,521,000 $1,523,000

1999 Actual 2000 Actual 2001 Budget 2001 Actual 2002Budget

Budget History

3. Program Objective Review 2001 Water Supply

Cost Allocation
Transfer Utility Maintenance 7% Transfer Depreciation 17% Labor 14% Chemicals Testing 6% & Fees 1%

Transfer General Fund 14% Bond Interest 4% Capital Outlay 9%

Utilities 13% Supplies & Repairs 15%

Description of Services Labor Chemicals Testing & Fees Utilities Supplies & Repairs Capital Outlay Bond Interest Transfer General Fund Transfer Depreciation Transfer Utility Maintenance Totals:

Program Cost Allocation $161,714 $68,381 $12,902 $148,500 $180,135 $103,496 $52,540 $170,147 $200,000 $85,000 $1,182,815

2001 % of Cost Distribution 13.7% 5.8% 1.1% 12.5% 15.2% 8.7% 4.4% 14.4% 16.9% 7.1% 100%

2000 % of Cost Distribution 17.6% 6.6% 3.1% 12.1% 10.6% 3.5% 3.9% 18.6% 15.4% 8.7% 100%

4. 2001 Highlights ??Well Head Protection Phase One of the Well Head Protection Plan was basically completed with the assistance MDH/MPCA. The new groundwater model was the result of significant pump out testing. ??Water Distribution Analysis The report analyzing the water distribution system was completed. ??Water Quality Improvements 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 a modified phosphate addition. ??Control Upgrade New automated system controls were installed and replaced. ??Facility/Maintenance A large amount of routine flushing, painting, fencing and security measures were undertaken in 2001.

5. Workload Trends Service Water Pumped Meter Repair/Replace 2001 1,296 MG 422 each 2000 1113 MG 545 each 1999 1181 MG 555 each 1998 1232 MG 397 each

6. 2002 and Beyond ??Lead and Copper The City has exceeded the drinking water standard for lead and copper in home testing since inception of the rule. Annual notifications are required to consumers and the City must maintain optimum corrosion control as mandated by the MDH. The mandate is the addition of phosphate to reduce corrosion of home plumbing. Recent changes to our chemical blends have the system very close to meeting the standard. ??Reservoir Construction Bids for construction of the 2 million gallon reservoir are anticipated March 20. A six to seven month construction timetable will follow. ??Well head Protection The City was originally scheduled to complete their Wellhead Protection Plan by February 5, 2002. Staff requested a ??Water Rate Study Couple with a sewer rate study, staff anticipates a study analyzing water rates and cost of service issues.

Utilities Maintenance

1. Responsibilities The division provides that all city sewer mains are inspected and cleaned to assure proper operation. The sanitary sewer collection system 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 responsible for locating all underground facilities. The division s 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 time employees. The division draws upon the resource of the Street Maintenance Division and Water Plant Operations for larger work tasks such as water main break repairs. The 2001 division staff was increased to four full time personnel and more closely integrated with the three water plant operations staff.

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 of savings were due to not expending funds budgeted for the inflow/infiltration study during 2001.

Utility Maintenance
1999 Actual

$800,000 $600,000
$241,475 $383,267 $258,161 $321,006

$618,797

2000 Actual 2001 Budget 2001 Actual 2002Budget

$400,000 $200,000 $0

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

3. Program Objective Review 2001 Utility Maintenance

Total Program Cost

Locating 15% Capital Projects 3% Street Maintenance 10%

Administration and Training 9%

Sanitary Sew er Maintenance 15%

Water System Maintenance 36% Storm Sew er Maintenance 5%

Manhole Repair 2%

Lift Station Maintenance 5%

Description of Services Sanitary Sewer Maintenance Water System Maintenance Storm Sewer Maintenance Lift Station Maintenance Manhole Repair Street Maintenance Capital Projects Locating Administration and Training

Total Program Cost $48,010 $118,771 $15,813 $17,126 $5,632 $31,964 $8,694 $47,135 $27,861

Breakdown of Costs Labor Cost Total Material Dollars Supply Cost $36,786 $11,224 $90,215 $28,556 $9,262 $6,551 $10,741 $6,385 $3,736 $1,896 $19,973 $11,991 $6,200 $2,494 $37,507 $9,628 $20,001 $7,860

Totals

$321,006

$234,421

$86,585

4. 2001 Highlights ?? Department Reorganization Dennis Duchene was promoted to head the utility maintenance and water operations divisions. The promotion of Dennis allowed an opportunity to more closely align the maintenance and water operation divisions. As can be seen by the workload data 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 Meter A new meter for measuring sewer flow in November of 2001. Staff anticipates utilizing the meter for the basis of sewer charges beginning in July of 2002.

5. Workload Trends Program Sewer Cleaning Watermain Breaks Manhole Repair Hydrant/Repair/Replace Valve Operating *Historical High 2001 89.9* miles 11 each 11 each 25 each 110 2000 31.2 miles 14 each 78 each 55 each 154 1999 50.3 miles 14 each 0 59 each 203 1998 61.9 miles 12 each 10 each 302 each 255

6. 2002 and Beyond ??Inflow Infiltration Study The department staff will be assisting with flow measuring required to complete the study. Implementation of the recommendations will follow. ??Storm Sewer Maintenance The department will be required to expand maintenance operation under the Phase II storm water rules. The MPCA is still working on implementation strategies. In addition, the surface water management plan will include recommendation for system improvements and maintenance needs to address water quality issues. ??Maintenance Policies Staff is preparing documents for Council review on various maintenance activities from sewer cleaning to water system flushing similar to those developed for street maintenance activities.

Wastewater Treatment

1. Responsibilities This division provides for the operation of the wastewater treatment plant which receives and treats allsewage from the collection system. The system involves maintaining treatment units including screening, grit removers, clarifiers, filters, activated sludge system, 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. This involves the transportation and land application of sludge on agriculture land, the maintenance of tanker truck and injection equipment used in the process. The City contracts for service to assist with biosolids disposal. The wastewater treatment plant staff numbers seven full time employees for 2001 with Public Works Superintendent providing daily supervision.

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. In comparing 2000 and 2001 actual expenses it is apparent that base operating costs are stabilizing. For 2001, increased utility costs of approximately $50,000 and $30,000 in chemicals were the primary componets of operating increases.

Waste Treatment
$2,171,638

1999 Actual 2000 Actual 2001 Budget 2001 Actual

$2,500,000
$1,511,174

$1,730,777 $1,661,996

$2,000,000 $1,500,000 $1,000,000 $500,000 $0

$1,336,005

2002Budget

Budget History

Looking ahead at 2002, budgeted levels have increased 25% or approximately $440,000. While the increase is very significant it is merely 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.

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

Sewer Revenues
$3,014,988

1999 Actual
$2,933,353 $2,821,149 $2,817,092

$3,050,000 $3,000,000 $2,950,000 $2,900,000 $2,850,000 $2,800,000 $2,750,000 $2,700,000 $2,650,000

2000 Actual 2001 Budget 2001 Actual 2002Budget

$2,788,739

Budget History

3. Program Objective Review 2001 Waste Treatment Operations

Cost Allocations
Transfer Depreciation 12% Transfer General Fund 10% Chemicals 4% Labor 24%

Bond Interest 19%

Capital Outlay 0%

Sludge 10% Supplies & Repairs 9% Utilities 12%

Description of Services Labor Chemicals Sludge Utilities Supplies & Repairs Capital Outlay Bond Interest Transfer General Fund Transfer Depreciation Totals:

Program Cost Allocation $391,497 $66,350 $168,172 $199,996 $149,474 $5,000 $311,360 $170,147 $200,000 $1,661,996

% of Cost Distribution 23.6% 4.0% 10.1% 12.0% 9.0% 0.3% 18.7% 10.2% 12.0% 100%

% of Cost Distribution 23.1% 1.4% 12.0% 10.3% 8.5% 1.7% 21.8% 12.0% 9.3% 100%

4. 2001 Highlights ??Award for Operations Excellence No Permit Violations for the facility occurred and the facility was given the award for Operation Excellence by the MPCA. ??Plant Efficiency The treatment efficiency of the plant was above 95% for both 2000 and 2001 as noted in the workload data. ?? Digester Cover Replacement and Mixer Project Sometimes failures can prove to be successes. A 40 year old cover on a digester failed structurally. A new 50diameter cover was specified by staff and new mixers installed. The construction was supervised by plant staff and the improvements are complete. ??Effluent Pumping One issue left unaddressed by the improvement project was a pumping station to pump plant discharge to the river during flooding periods. Staff designed, specified and constructed the facilities for less than $30,000 saving $470,000 in cost. The pump station was used numerous times during 2001, and no violations due to spring flooding. ??River Monitoring Program The City continued voluntary river monitoring to assess environmental impacts. While the program needs more data, by the time permit review occurs this year the City will be in a better position to evaluate future permit limits. ??Sludge Storage Lagoon Line One of two lagoons was reconstructed with a new liner. The second is scheduled for spring of 2002.

5. Workload Trends 2001 1545 MG 5.6 MG 97.3% 95% 2000 1418 MG 5.4 MG 97.7% 95.6% 1999 1502 MG 6.5 MG 97.3% 95.7% 1998 1394 MG 8.00 MG 92% 88.7%

Wastewater Sludge Disposal % BOD Removal % TSS Removal

6. 2002 and Beyond ??NPDES Permit The permit for the treatment plant expires June of 2002. Application for a new permit has been filed, however, a new draft permit is not anticipated before the end of the year. The current permit remains in force until a new permit is approved. ??Phoshorus Removal Phosphorus is the hot topic. Inclusion of a standard in a new permit is a likely scenario. Currently the legislature is deliberating a 1 mg/l rule that will have a significant impact on whether phosphorus is a near term or long term issue. I think it goes 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 Facility The plant is perfoming at a high level of treatment efficiency. Barring permit changes, only minor capital investment is anticipated. Facility capacities should easily accommodate 10-15 years of projected growth. ??Industrial Pretreatment Our pretreatment program has seen significant gains. The negative of a solid program is reduced revenues. The revenue reduction coupled with Land O Lakes 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 distribution between domestic and industrial users. Hopefully, significant changes to our current structure will not be necessary.