1. City of Roundup, Montana
Water System PER
Public Hearing
March 6, 2018

2. Water System Study
Preliminary Engineering Report (PER) Examines Comprehensive Needs for:
Growth/Capacity
Water Supply
Water Quality/Treatment
Water Storage
Distribution System
Water Meters
Required to Apply for Grant and Loan Funding

3. Water Supply Current: Two Wells south of the River Wells:
Capacity of 1,000 gpm each
Depth of 90 feet
Infiltration Gallery
Bypassed and used as a Backup
source
Water Quantity is sufficient to meet current and projected demands.

4. Water Quality Water Quality
Although there are no health violations, the water is high in sulfate, TDS, iron and manganese:
TDS = 580%
Iron = 480%
Manganese = 680%
Sulfate = 620%
Potential Health and Safety Risks
Long term exposure to iron is harmful
Hemochromotosis risks
Lead from cast iron mains

5. Water Storage Storage Tank provides Domestic and Fire Flow Storage
2,000,000 Gallons, 1,990,000 required
Tank is well maintained and has no structural issues
Tank is cleaned every 7 years.
Next cleaning is scheduled for 2018 in the CIP.

6. Distribution System Main Condition:
Main size varies from 4” to 12”, pipe types vary from cast iron, AC and PVC
Cast iron mains are in poor condition
4” mains not able to provide adequate fire flow
Rust has limited capacity down to a 2” main.
Leak repair rate of cast iron mains is 4 times higher than normal.

7. Fire Flow

8. Distribution System Condition of Valves: Hydrants: Water Loss
Many valves are in-operable
Valves required on every block
Isolating mains is difficult
Hydrants:
Not adequately spaced to meet fire protection requirements
Many need replacement
Water Loss
Average = 24% (Standard is 10%)

9. Leaks

10. Cast Iron Mains-2010

11. Mains Replaced

12. Main Replacement Progress
2010
Estimated 45,680 feet of cast iron mains (8.65 miles)
2018 (After all Phase 4)
Estimated 19,200 feet of cast iron mains remaining (3.64 miles)
58.2% Completed after Phase 4

13. Summary of Needs/Alternative Development
Distribution System Improvements
Keep going on cast iron mains
Alternative Development
Three alternatives identified

14. Alternatives Considered In Detail
Distribution System Alternatives:
D-2: Replace all cast iron mains and AC mains in the highway with 8” PVC mains.
D-3: Alternative D-2 plus replace three blocks of 4” PVC
D-4: Alternative D-3 plus the remaining 4” AC mains that are limiting fire flows.

15. Decision Matrix & Weighing Factors
Weighting Factors
Life Cycle Costs = 10
Operation and Maintenance = 7
Permitting Issues = 5
Social Impacts = 7
Environmental Impacts = 5
Sustainability = 4
Land Acquisition = 5
Public Health and Safety = 10

16. Preferred Alternative
Decision Matrix
Preferred Alternative
Alternative D-3: Replace all cast iron mains, plus three blocks of 4” PVC main.

17. Estimated Costs for Improvements

18. Remaining Water Main Replacements (Red)

19. Phase 5 Estimated Costs

20. Phase 5 Schedules

21. Potential Grant Funding & Target Rates
Information On Target Rate Calculation
Target rates based on median household income (MHI) as determined from the 2017 Income Survey
Water = $33.30
Sewer = $21.40
Existing Rates (average resident)
Water = $40.78*
Sewer = $29.66
Rates will be 129% of Target Rate

22. Grant/Loan Eligibility
Treasure State Endowment Program (TSEP) - $500,000 to $750,000 (Phases 1, 2 and 3)
50-50 match (cannot exceed 50% of project costs)
User rate must meet or exceed target rate
Roundup = 129% of water rate = $625,000 grant
Will be highly competitive this year
Department of Natural Resources and Conservation Renewable Resource Grant and Loan Program (DNRC- RRGL) - $125,000 (Phases 1 and 2)
Conserve, manage, develop, or protect renewable resources
With fixing of water main leaks, this project presents a strong case for water conservation

23. Grant/Loan Eligibility
CDBG– Community Development Block Grants
Grants up to $450,000
25% match required
> 50% Low to Moderate Income (LMI) (Income Survey)
Very competitive
Roundup LMI = 60.0%
Used on Phases 3 and 4

24. Grant/Loan Eligibility
Coal Board
No limit-but funding is scarce
Water Projects are eligible
Coal Board has funded a lot of recent projects in Roundup
Used on Phases 1, 3 and 4 with Special Circumstances

25. Grant/Loan Eligibility
Rural Development – No limit but is part of grant/loan combination
Priority given to communities with population < 5,500
Amount based upon MHI:
MHI < $47,757 up to 45% of project costs grant eligible
MHI < $38,205 up to 75% of project costs grant eligible
Current Loan Rate = 2.75% over 40 years
($4.25 per EDU per $1M)
Roundup population qualifies (1,788 < 5,500)

26. Grant/Loan Eligibility
Montana SRF Loan– Offers Loan Forgiveness
Loan Forgiveness Up to $500,000
Current Loan Rates = 2.50% over 20 or 30 years
Used on Phases 2 and 3
Could be used as a back-up source of funding
(20 years = $6.50 per $1M borrowed)
(30 years = $4.85 per $1M borrowed)

27. Phase 5 Funding Plan TSEP Grant $ 625,000 DNRC Grant $ 125,000
CDBG Grant $ 450,000
City Matching Funds $ 300,000
SRF Forgiveness $ 472,000
SRF/RD Loan $ 473,000
Total: $2,445,000
If any grant applications are unsuccessful, project can be downsized or a new SRF or RD loan obtained.

28. Project Schedule Schedule is dependent on funding strategy:
TSEP Funds available in July, 2019
DNRC/RRGL Funds available in July, 2019
CDBG Funds available by early 2020
SRF Available at Anytime
Design = 4 Months
DEQ Review = 2 Months
Bidding = 1 Month
Construction = Up to 4 Months, Completed in Fall, 2020

29. Questions and/or Comments?