1. City of Clinton Fiscal Year 2013 Sewer Rate Recommendations Committee of the Whole April 24, 2012

2. Long Term Control Plan (LTCP) EPA Clean Water Act Limit Combined Sewer Overflows (CSOs) DNR Enforcement of CSO Policy Development of Long Term Control Plan Consent Order Negotiations 25 Year Implementation (2012-2037) $100,000,000 - $145,000,000 in Debt Capital Improvement Plan

3. Capital Improvement Plan (CIP) CIP is collection of projects from LTCP organized by year, cost Includes one-time projects, annual maintenance expenditures

5. Fiscal Year 2013 Projects 25 th Avenue Pump Stations (Storm, Sanitary)- $7,000,000 Margaret Street Pump Station- $3,000,000 Sewer Operations Center & Lab- $5,000,000 Beaver Slough Trunk Sewer Maintenance/ Rehab- $3,250,000 On-Going Sanitary/Storm Projects- $800,000 Drainage Projects- $650,000 Pump Station Telemetry & Control System- $800,000 Liberty Avenue Sewer Separation - $2,178,823

6. 17 th & 18 th Avenue North Sewer Separation (FY 2012) June 1, 2012 – April 30, 2013 Sewer Separation & Street Construction 17 th Avenue North (2 nd St to 4 th St) 18 th Avenue North (Garfield St to 8 th St) $1.65 Million (CDBG, GO Bond, Sales Tax July 1, 2013 – June 30, 2014) Sewer Lining, Manhole Rehab Permanently Close CSO $700,000

7. Beaver Channel Trunk Sewer June 1, 2012 – December 31, 2013 Clean & Repair 54” Combined Interceptor Quantify Flow to Verify Long Term Plans $3.25 Million Budgeted SRF Loan or Operating Budget (TBD)

8. Margaret Place Pump Station June 1, 2012 – June 30, 2015 Request Bids for Design in June, 2012 Upgrade Storm Sewer Pump Station Permanently Close Overflow Gate (Per IDNR) Eliminate Chance for Sanitary Sewer Overflow Provide Capacity for Future Separation Projects $3,000,000 SRF Loan

9. Sewer Rehab NW of Bluff Blvd. June 1, 2012 – December 31, 2022 Springdale Drive, South 14 th St, 13 th Ave N Yearly Projects ($300,000 per year) $3,000,000 Inflow & Infiltration Mitigation Sewer Lining & Manhole Rehab Sewer Operating Costs

10. 25 th Avenue North Pump Stations June 1, 2012 – December 31, 2014 New Storm & Sanitary Sewer Pump Stations Permanently Close Overflow Gate (Per IDNR) Eliminate Chance for Sanitary Sewer Overflow Provide Capacity for Future Separation Projects Replace Old Force Main from Pump Station $7.0 Million Budgeted SRF Loan

11. 25 th Avenue Sewer Separation July 1, 2014 – December 31, 2018 Begin Preliminary Design This Year Sewer Separation & Street Construction River to 3 rd Street Main Avenue to 30 th Avenue North 2-3 Phases $8,000,000 SRF Loans

12. Operations Center & Laboratory July 1, 2012 – July 31, 2016 Begin Preliminary Design in 2013 $500,000 Planning & Design Loan 2013 Construction To Begin In 2014 Project Completed In 2015 Project to Replace/Relocate Laboratory

13. Disinfection at Treatment Plant July 1, 2013 – July 31, 2018 Project Stipulated in Amended Consent Order as well as NPDES Permit Effluent Monitoring Study July 2013-2014 Facility Plan to IDNR 2015 Final Plans/Specs to IDNR 2016 Construction Awarded 2017 Project Completed 2018 $5,000,000 SRF loan

14. 20 th Avenue North Pump Station July 1, 2014 – December 31, 2017 Begin Preliminary Design Next Year Upgrade Sanitary Sewer Pump Station New Interceptor from 18 th Ave N to 20 th Ave N New Force Main From 20 th Ave N to 1 st Ave Develop Design Based on Flow Metering Provide Enough Sanitary Pump Capacity and Force Main Capacity for No Overflow Prepare Basin for Sewer Separation ~$6,000,000 SRF Loan

15. 20 th Ave North Sewer Separation January 1, 2018 – December 31, 2022 Detention Pond Construction Sewer Separation into Car Barn Ditch 19 th Ave N to Main Ave (West of 3 rd St) 19 th Ave N to 22 nd Ave N (East of 2 nd St) 3 Phases $12,000,000 SRF Loans

16. Bluff Blvd Pump Stations July 1, 2016 – December 31, 2019 Two New Sanitary Sewer Pump Stations From Bluff Blvd to Beaver Interceptor Separated Sanitary from NW of Bluff Presently Recombines SE of Bluff Project Reduces the Amount of Combined Sewer to 1 st Avenue Pump Station $10,000,000 SRF Loans

17. 1 st Avenue Pump Station July 1, 2017 – December 31, 2020 Upgrade Combined Sewer Pump Station New Force Main to Beaver Channel Develop Design Based On NW Bluff I & I Work NW Bluff I & I Work New Bluff Blvd Pump Stations New Bluff Blvd Pump Stations Upstream Pump Station & Separation Work Upstream Pump Station & Separation Work Future Sewer Separation in 1 st Avenue Basin Future Sewer Separation in 1 st Avenue Basin $8,000,000 SRF Loan

18. Basin 006 Sewer Separations January 1, 2019 – December 31, 2037 Bluff Blvd to River; 7 th Ave. N to 8 th Ave. S New Storm & Sanitary Sewers Street Reconstruction Separate to Extent Necessary to Meet EPA/DNR CSO Policy Multiple Phases $40,000,000? SRF Loans

19. What Goes Into Sewer Rates? Operation Costs Dike Maintenance Treatment Plant Operations Collection System Street Cleaning Utility Billing Reserve Funding Debt Service At least 6 loans active in FY13; first P&I payment on Treatment Plant Loan Capital Costs Not Borrowed

20. How Much Does It Cost? Operations$3,626,244 Reserve Funding$80,000 Debt Service$5,471,584 Capital$2,250,000 Revenue must cover Operations & Debt, plus 10%

21. How Much Does It Cost?

22. Rate Recommendations Current Rate Proposed FY13 Rate Residential/C1$6.79$8.21 Comm. 2$7.469$9.031 Comm. 3$8.827$10.673 Comm. 4$10.185$12.315 Comm. 5$11.543$13.957 Industrial- BOD$71.80$92.92 Industrial- SS$78.36$101.50 Industrial- NH3$230.73$278.49 Increase of 20.70% for FY13 for all users Residential/ Commercial per 100 cubic feet Industrial per 100 lbs.

23. Rate Recommendations Recommending a one-year rate structure until other equitable revenue options considered Stormwater Utility (May 8 th COW) Stormwater Utility (May 8 th COW) Franchise Fee Franchise Fee Penalty Increase Commercial Class Structure