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City of Minnetrista, Minnesota
Water TreatmentInformational Open House
18, 2014
Project History
7, 2011 C
(B)
20 (2030)
17, 2013 (B)
E
2030 . = 3,490
1,500 2018
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Project History
F. 17 C
E ,
F. 26 28 E
3 E
C
17 E C
26 C F
F
Project History
A 7 C B &
F
5
F C
19 C
2 A /
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Drinking Water Quality
2A (C)
.
F C
.
A .
2A, 4, 5
.
Population Projections B C
C
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Evaluation of Alternatives
, C, .
C
.
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A 4.3
Capital Costs - Summary
&
C D
$20,721,445 $24,655,528
$6,757,564 $7,773,989
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O&M Costs
,
C
AC
2015
D C
$139,446 $94,974
$239,640 $186,274
Present Worth Analysis
D C
$24,655,528 $20,721,445
& $1,605,996 $1,093,815
$26,261,524 $21,815,260
D C
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RO Savings
(80,000 /.)
(130,000 /.)
(250,000 /.)
$83.95 $138.70 $270.10
$20.96 $34.05 $66.70
$104.91 $172.75 $336.80
Decentralized Gravity Filtration A
G ( )
D
.
&
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Centralized Gravity Filtration A
G ( )
C (
)
&
C
D
Decentralized Gravity Filtration
w/Reverse Osmosis A
H ( , , ,
)
(100 /)
.
D
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Centralized Gravity Filtrationw/Reverse Osmosis A
H ( , ,
)
(100 /)
.
C ( )
&
C
D
H & C H AC
How Will City Finance the Project?
F
A (FA) 20 (. 2%)
C
Are People with Private Wells Going
to Pay for the WTP?
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What are the Proposed Rates?
(Medium User Shown)
2015 2020
$528.92 $132.32 $539.42 $134.86
D $570.62 $142.66 $846.40 $211.60
D A
C $39.42 $9.85 $344.82 $86.21
C $559.52 $139.88 $700.26 $175.07
C A C
$37.58 $9.40 $358.00 $89.50
Can the Project be Constructed in
Phases?
. . C
.
.
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What is the Economy of Costs for aCentralized WTP?
(44%)
144 sq. ft.100 sq. ft.
10
10
12
12
Could Original Proposed
Improvements be Implemented? .
.
D . .
Would More than One WTP Provide
M R d d ?
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Can RO be Added in the Future?
. .
H,
C .
Is a Centralized FacilityExpandable?
. C
.
City of Minnetrista, Minnesota
Water Treatment
Informational Open House
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Option 1 Decentralized - Gravity FiltrationAdvantages
Greatly improves water quality (removal of iron and manganese)
Disadvantages Provides no barrier for emerging contaminants
Separated distribution systems do not provide redundancy to other areas.
Multiple facilities to maintain --- increased O&M costs
Higher capital costs than centralized option
Steel filter for Central system will require rehabilitation after 15-20 years.
Requires use of home water softeners for hardness removal
Option 2 Decentralized Reverse OsmosisAdvantages
Highest quality of water (removal of iron, manganese, hardness, dissolved
solids and other water constituents)
RO provides a positive barrier to contaminants and the highest water quality
possible with a single treatment process
Reduced hardness (100 mg/l) water may lead to removal of home water
softeners or decreased usage of water softeners.
Disadvantages Separated distribution systems do not provide redundancy to other areas.
Multiple facilities to maintain --- increased O&M costs
Higher capital costs than any other option
Steel filter for Central system will require rehabilitation after 15-20 years.
Higher SAC fees due to RO reject
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Option 3 Centralized Gravity FiltrationAdvantages
Greatly improves water quality (removal of iron and manganese)
One treatment facility to maintain
Centralized system provides economy of scale (fewer wells needed) Lower capital and O&M costs compared to decentralized system
Concrete filter construction has longer design life
Disadvantages Provides no barrier for emerging contaminants
Requires use of home water softeners for hardness removal
Option 4 Centralized Reverse OsmosisAdvantages
Highest quality of water (removal of iron, manganese, hardness and other
items)
RO provides a positive barrier to contaminants and the highest water quality
possible with a single treatment process
Reduced hardness (100 mg/l) water may lead to removal of home water
softeners or decreased usage of water softeners.
One treatment facility to maintain
Centralized system provides economy of scale (fewer wells needed)
Lower capital and O&M costs compared to decentralized system RO option
Concrete filter construction has longer design life
Disadvantages
Higher capital and O&M costs than Centralized gravity option Higher SAC fees due to RO reject
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(
) (
) (
)
$ $ $
$ $ $
$ $ $
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Financial Information for four options
75 units a year through 2030
(more conservative estimate)OptionI
Decentralized
Gravity
ProjectedRateIncrease% 15%annuallynext4years
Projected
Annual
Cost
(2015) 602.62$
(mediumuser)
ProjectedQuarterlyCost(2015) averagedyearlyamount 150.66$
(medium
user)
ProjectedAnnualCost(2020) 1,057.60$
(mediumuser)
ProjectedQuarterlyCost(2020) averagedyearlyamount 264.40$
(medium
user)
ProjectedPrincipal&Interest(CityDebtService) $1,481,799
(annual
payments
for
20
years)
OptionII
Decentralized
ROFiltration
ProjectedRateIncrease% 26%annuallynext4years
ProjectedAnnual
Cost
(2015) 659.50$
(medium
user)
ProjectedQuarterlyCost(2015) averagedyearlyamount 164.88$
(mediumuser)
ProjectedAnnualCost(2020) 1,572.66$
(medium
user)
ProjectedQuarterlyCost(2020) averagedyearlyamount 393.17$
(mediumuser)
ProjectedPrincipal&Interest(CityDebtService) $1,900,000
(annual
payments
for
20
years)
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OptionIII
Centralized
Gravity
ProjectedRate
Increase
% 12%
annually
next
4
years(mostcosteffective)
ProjectedAnnualCost(2015) 586.60$
(medium
user)
ProjectedQuarterlyCost(2015) averagedyearlyamount 146.65$
(medium
user)
ProjectedAnnualCost(2020) 848.68$
(mediumuser)
ProjectedQuarterlyCost(2020) averagedyearlyamount 212.17$
(medium
user)
ProjectedPrincipal&Interest(CityDebtService) $1,212,381
(annualpaymentsfor20years)
OptionIV
Centralized
ROFiltration
ProjectedRateIncrease% 19.5%annuallynext5years
ProjectedAnnualCost(2015) 625.86$
(medium
user)
ProjectedQuarterlyCost(2015) averagedyearlyamount 156.47$
(mediumuser)
ProjectedAnnualCost(2020) 1,339.68$
(medium
user)ProjectedQuarterlyCost(2020) averagedyearlyamount 334.92$
(mediumuser)
ProjectedPrincipal&Interest(CityDebtService) $1,629,337
(annual
payments
for
20
years)
Note: - The projects all have significant impacts financially to the City of Minnetrista.
City staff is using more conservative estimates for future growth/new home connections
than what Met Council has projected. We are looking at 75 homes per year on average
as an estimate in this projection. Using Met Council original 2030 population estimates would equate clos
to 160 new homes per year. The last 3 years in Minnetrista has seen 30,33 and 40 new homes
built within the City. One of the biggest factors in City staff expecting an uptick in new homes
from the previous few years is the projected activity in the Woodland Cove Development.
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Financial Information for no water treatment option
OptionV
NoWaterTreatment
(justwells,towers,otherinfrastructure)
ProjectedRateIncrease% 1%annuallyeveryotheryear
ProjectedAnnualCost(2015) 528.92$
(mediumuser)
ProjectedQuarterly
Cost
(2015)
averaged
yearly
amount 132.23$
(mediumuser)
ProjectedAnnualCost(2020) 539.42$
(mediumuser)
ProjectedQuarterlyCost(2020) averagedyearlyamount 134.86$
(mediumuser)
ProjectedPrincipal&Interest(CityDebtService) $128,294 startingin2017
Note: -In the option of not doing any water treatment, the projected growth
for the most part covers any wells/towers that would be needed.
That is why only a real minimal increase would be needed every other year
Our rate increase for 2014 t had water treatment expenses already included. This plays a part
as well as any operational expenses related to water treatment going away in this option
The above projected rates are examples of residential property rates
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Financial Information for four options
OptionI
DecentralizedGravity
ProjectedRateIncrease% 9%annuallynext5years
ProjectedAnnualCost(2015) 570.62$
(medium
user)
ProjectedQuarterlyCost(2015) averagedyearlyamount 142.66$
(medium
user)
ProjectedAnnual
Cost
(2020) 846.40$
(medium
user)
ProjectedQuarterlyCost(2020) averagedyearlyamount 211.60$
(medium
user)
ProjectedPrincipal&Interest(CityDebtService) $1,481,799
(annual
payments
for
20
years)
OptionII
DecentralizedROFiltration
ProjectedRateIncrease% 16.5%annuallynext5years
ProjectedAnnualCost(2015) 610.04$
(mediumuser)
ProjectedQuarterlyCost(2015) averagedyearlyamount 152.51$
(medium
user)
ProjectedAnnualCost(2020) 1,191.22$
(mediumuser)
ProjectedQuarterlyCost(2020) averagedyearlyamount 297.81$
(medium
user)
ProjectedPrincipal&Interest(CityDebtService) $1,900,000
(annualpaymentsfor20years)
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City of Minnetrista
Utility Rate Study
Water Treatment Plant Optio n Summary
2015 2016 2017 2018 2019 2020
OptionI ConstructionCost(infl) 1,069,108 23,126,923 0 828,845 0 648,223
Decentralized
Gravity Rate
Increase
% 9.00% 9.00% 9.00% 9.00% 9.00% 5.00%
Rates
Base
Rate 24.53
26.73
29.14
31.76
34.62
36.35
Tier
1
Usage
Rate 3.16
3.45
3.76
4.09
4.46
4.69
Tier
2
Usage
Rate 3.95
4.31
4.69
5.12
5.58
5.86
Tier
3
Usage
Rate 5.06
5.51
6.01
6.55
7.14
7.50
CashBalances
WaterFund 1,436,739 1,005,023 730,164 520,172 638,995 516,650
WaterImprovementFd 1,528,845 2,758,339 2,288,911 1,434,340 1,114,983 1,296,142
OptionII ConstructionCost(infl) 1,415,532 30,620,767 0 1,428,163 0 0
Decentralized
RO
Filtration Rate
Increase
% 16.50% 16.50% 16.50% 16.50% 16.50% 6.00%
Rates
Base
Rate 26.21
30.54
35.58
41.45
48.28
51.18
Tier
1
Usage
Rate 3.38
3.94
4.59
5.34
6.22
6.60
Tier2UsageRate 4.22 4.92 5.73 6.68 7.78 8.25
Tier
3
Usage
Rate 5.41
6.30
7.34
8.55
9.96
10.55
CashBalances
WaterFund 1,357,450 1,612,381 929,415 446,179 479,505 861,851
Water
Improvement
Fd 1,182,421 1,735,607 1,273,502 1,255,207 824,498 1,041,415
OptionIII ConstructionCost(infl) 876,226 18,954,521 0 956,359 0 0
Centralized
Gravity Rate
Increase
% 7.00% 7.00% 7.00% 7.00% 1.00% 1.00%
Rates
Base
Rate 24.08
25.76
27.56
29.49
29.79
30.09
Tier1UsageRate 3.10 3.32 3.55 3.80 3.84 3.88
Tier2UsageRate 3.88 4.15 4.44 4.75 4.80 4.85
Tier
3
Usage
Rate 4.96
5.31
5.68
6.08
6.14
6.20
CashBalances
Water
Fund 1,435,505 1,084,328 866,238 681,464 709,231 713,859
Water
Improvement
Fd 1,721,727 2,825,551 2,526,214 1,715,919 1,568,796 2,272,135
OptionIV ConstructionCost(infl) 1,174,165 25,788,918 0 950,510 0 0
Centralized
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Low User (80,000 gallons) annually
77%
$286.61
$658.11
$371.50
$ 325.65
Cent
RO
25%
$87.39
$435.61
$348.22
$ 325.65
Cent
Gravity
$305.36
$31.22
n/a
$ range/varianceprojects
70%$740.97$526.452020Projected
$361.53$171.582015-2020 $change
95%48%2015-2020 %
change
9%$ 379.44$ 354.87
2015 -projected
n/a$ 325.65$ 325.65
2014Rates(baseline)
%
variance
Decent
RO
Decent
Gravity
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Medium User (130,000 gallons) - annually
77%
$461.16
$1,058.26
$ 597.10
$ 523.70
Cent
RO
25%
$140.34
$700.26
$ 559.92
$ 523.70
Cent
Gravity
$490.96
$50.12
n/a
$ range/varianceprojects
$581.18$275.782015-2020$ change
70%$ 1,191.22$ 846.402020Projected
95%48%2015-2020% change
9%$ 610.04$ 570.62
2015 -
projected
n/a$ 523.70$ 523.70
2014
Rates(baseline)
%
variance
Decent
RO
Decent
Gravity
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High User (250,000 gallons) - annually
77%
$903.36
2072.46
1,169.10
$1,025.50
CentRO
25%
$274.54
$ 1,370.86
$1,096.32
$1,025.50
CentGravity
$961.36
$98.52
N/A
$ range/varianceprojects
70%$ 2,332.22$1,657.402020Projected
$1,137.38$539.782015-2020$ change
95%48%2015-2020% change
9%$1,194.84$1,117.62
2015 -projected
N/A$1,025.50$1,025.50
2014 Rates(baseline)
%variance
DecentRO
DecentGravity
Minnetrista, MN
Debt Service - Centralized
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Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
WTF $9,270,000 $9,270,000
Wells $470,000 $470,000 $470,000 $1,410,000
Tower $750,000 $750,000
Watermain $7,580,500 $7,580,500
Engineering, etc. $842,525 $674,020 $67,500 $42,300 $42,300 $42,300 $1,710,945
Yearly Total $842,525 $17,524,520 $0 $817,500 $0 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0 $512,300 $0 $0 $0
$20,721,445
Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
WTF $9,270,000 $9,270,000
RO $5,729,600 $5,729,600
Wells $470,000 $470,000 $470,000 $470,000 $1,880,000
Tower $750,000 $750,000
Watermain $7,580,500 $7,580,500
Engineering, etc. $1,129,005 $903,204 $67,500 $42,300 $42,300 $42,300 $42,300 $2,268,909
Yearly Total $1,129,005 $23,483,304 $0 $817,500 $0 $0 $512,300 $0 $0 $0 $512,300 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0
$27,479,009
Gravity Option Only
Gravity Option with RO
Minnetrista, MN
Debt Service - Decentralized
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Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
WTF $16,141,250 $16,141,250
Wells $1,410,000 $470,000 $470,000 $470,000 $2,820,000
Tower $650,000 $650,000 $1,300,000
Watermain $2,358,500 $2,358,500
Engineering, etc. $1,027,988 $822,390 $58,500 $42,300 $42,300 $42,300 $2,035,778
Yearly Total $1,027,988 $21,382,140 $0 $708,500 $0 $512,300 $0 $0 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0
$24,655,528
Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
WTF $16,141,250 $16,141,250
RO $6,662,000 $6,662,000
Wells $1,410,000 $470,000 $470,000 $470,000 $470,000 $3,290,000
Tower $650,000 $650,000 $1,300,000
Watermain $2,358,500 $2,358,500
Engineering, etc. $1,361,088 $1,088,870 $100,800 $42,300 $42,300 $42,300 $2,677,658
Yearly Total $1,361,088 $28,310,620 $0 $1,220,800 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0 $512,300 $0 $0 $0 $0 $0
$32,429,408
Gravity Option Only
Gravity Option with RO
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