ITEM 1 Water System Improvements0
tSTe F O
MINNESOTA
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, City Administrator
DATE: January 4, 2016
SUBJECT: Water System Improvements
The recently approved Capital Improvement Plan (CIP) includes several water system
improvements to both the west and east water systems. There was considerable discussion
during the CIP work sessions about improvements to water tower 1 to bring the tower back on
line after years of sitting dormant. Although the requested improvements were approved in
the CIP, a work session was called to analyze further and to understand better the water system
and the short and long-term benefits of water tower 1 improvements and other identified
future improvements. The ultimate long-term goal is to connect the two existing water systems
into one interconnected system; thus, in addition to review of the east water system, staff has
prepared a similar analysis of the west water system.
Staffs analysis takes into consideration how future improvements or policy changes affect five
main categories of importance to the water system: redundancy, fire suppression, drought
conditions, regulatory requirements, and future development impact. Redundancy is
important in the event that a well or tower experiences a failure. Adequate capacity and
interconnection between wells and towers creates redundancy as long as the waterlines are
looped. Fire suppression indicates the ability to fight a fire for three hours with the highest
producing well out of service during peak day demand and while maintaining a 20% capacity
reserve to maintain adequate pressure. Drought conditions category refers to the well
pumping capacity and the ability to keep the towers filled adequately during drought
conditions. The Department of Natural Resources (DNR) regulates the State's water resources
and places regulations on cities through rules, legislation, and permits, thus the regulatory
requirements category. Finally, the ability to develop with urban services beyond the existing
developed area or area with municipal utility access is captured in the development impact
section.
As I stated earlier, the long-term goal is to integrate the two water systems into one city-wide
system. However, since they are currently very different systems, they will be presented
separately with decisions on each independent of the other system. Before discussing each
system separately, though, it is important to note the items that are relevant to both systems.
One is DNR regulation of public water systems and water use. The DNR requires certain
conservation efforts such as tiered water rates with higher rates for higher utilization and
recommends other conservation methods such as imposing watering restrictions. Otsego is
required to implement a Water Supply Plan to support long-term water sustainability,
conservation measures, and emergency management needs. The attached capacity summaries
indicate that implementing odd/even watering restrictions provides nine years of additional
water system capacity at no cost. Therefore, implementing watering restrictions is a financially
responsible and recommended water system policy. The peaks of seasonal watering are what
drive capital costs and managing use to eliminate those peak days through watering restrictions
can significantly reduce capital costs. Implementing watering restrictions while the system is
small and still growing will be easier than implementing later. Many cities have watering
restrictions in place thus new residents moving from other urban areas will be used to such
restrictions. Another overarching item is the goal of achieving an outcome from this
comprehensive water system review that provides long-term solutions and eliminates a piece
meal approach to managing the water systems. The preferred options identified should allow
the east system to meet needs until 2039 and the west until 2032. Finally, the costs listed in
the summaries are in today's costs. For each year that the projects are delayed, the costs must
be adjusted for inflation. Using today's costs, the water fund is able to finance these
improvements based on current financial conditions and projections.
East Water System:
Water tower 1 was taken off line in 2008 because it was no longer needed following
construction of tower 3. Additional connections and required blending of water from well #8
require system enhancements including bringing tower 1 back on line to meet existing and
projected future user demand. The tower rehabilitation project was originally programmed for
2016, but is now recommended for 2017 to ensure that adequate water supply is available
during the peak season in 2016 as Kurt Neidermeier explains in his attached memo addressing
water tower maintenance.
West Water System:
An ongoing discussion with the west water system has been the Riverwood National
development water system. That system is independent, although part of the City's water
system, and is not properly sized for the development to support the full build out of the 155
lots in the neighborhood of which 109 are currently developed. It is adequate in terms of
domestic water use for interior home uses and meets Minnesota Department of Health
requirements for up to 150 homes. Where it falls short is in adequately suppling water for
irrigation needs or fire protection generally associated with similar urban style development.
Watering restrictions were implemented in this neighborhood successfully several years ago
addressing the previous capacity issues that the neighborhood experienced. However, the
2
solution to the under -sizing issue is to connect the system to the west water system.
Fortunately, this connection benefits the entire west system, not just Riverwood National.
In addition, the entire west water system will bump up against capacity issues within three
years based on current data and future projects. Connecting the Riverwood National system
and upgrading that well will provide capacity through 2023 for the entire west system.
Implementing watering restrictions adds another nine years of capacity without any capital
costs.
Below is a list of the benefits of connecting Riverwood National to the west water system
prepared by Kurt Neidermeier:
For Riverwood National
Water Storage Capacity
Increase from 10,000 gallons to 1,000,000 gallons
Resolves limited fire protection
Eliminates water ban
Improved system maintenance for hydrant flushing
Provides emergency preparedness
• Redundancy
Increase from one well to three wells and 1 MG tower
Increases water capacity as demand is supported by tower and multiple wells
Supports maintenance of wells and tower
Provides emergency preparedness
For the West Water System
• Redundancy
Increases from two wells to three wells
Increased flow dynamics
Support during water tower maintenance
Added Water Capacity
Provides emergency preparedness
In conclusion, it is staff's goal to be proactive to provide a well -managed and sufficiently sized
water system to meet current and future needs of the City versus reacting after the fact to
issues that should have or could have been anticipated. That includes planning far enough in
advance to accommodate construction timelines and to structure finances to meet the future
funding obligations. There are numerous attachments to this memo that provided significant
information about the water system and help lead to the recommended conclusion/options. It
is somewhat challenging to get the entire scope of this matter from the attached documents
without further explanation; therefore, all of the information will be reviewed and explained
fully at the work session to give you a comprehensive understanding of the water system to
enable you to make informed decisions about upcoming water system improvements and
policy.
11
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0a.-1.1:
O
MINNESOTA
MEMORANDUM
TO: Mayor and City Council
FROM: Kurt Neidermeier, Utility Manager
DATE: January 7, 2016
SUBJECT: Tower Maintenance Schedule
Water Tower inspections are conducted on a three to five year frequency based on American
Water Works Association Standards. These tank and coating inspections provide a planning
basis for budgeting and scheduling repairs. Included are the engineer's project cost estimates
from the 2015 inspections.
Single Pedestal Spheroid:
Water Tower 1 is the original storage tank providing water to the East Public Water System; its
storage capacity is 400,000 gallons. The tower has been offline since 2008 as Water Tower 3
was initiated. Kollmer Consultants conducted a coating inspection in September of 2015.
Water Tower #1 (1999) — East Public Water Svstem Proiect Cost Estimate:
Interior Structure Repairs
$7500.00
Interior Wet Coating Complete Replacement
$85,250.00
Type of Coating — Epoxy/System Repair
Interior Dry Coating Complete Repair
$25,000.00
Exterior Structural Repairs
$17,500.00
Exterior Coating Complete Replacement w/containment
$169,600.00
Type of Coating — Epoxy/Urethane System
Engineering Specifications and Inspection Fee
$58,000.00
Estimated Total Cost $362,850.00 (2015 dollars)
Staff recommends installation of a submersible mixer after cleaning to prevent future ice
buildup and uniform water disinfection in 2017. $20,000.00
The adopted 2016 CIP budget scheduled $428,600.00 for Water Tower 1 repairs allowing room
for the addition of a submersible mixer.
Tentative Water Tower 1 Project schedule:
February 2016
March 2016
June 2016
March 2017
May 2017
Engineering and specification
Antenna Notification
Bid Advertisement
Bid Acceptance
Project Initiation
Project Completion
Project overview:
Engineering and specifications can be produced quickly as the schedule indicates. Antenna
Carrier notification and requirements is directed by the Engineering firm providing opportunity
for removal and temporary reset of antenna equipment and review of additional City requests.
To receive the best qualified contractor and pricing through competitive bidding, it is
recommended the project bid 9-12 months prior to the scheduled start date. A construction
schedule of eight weeks is anticipated for the quantity of repairs.
Staff has met with two consultants to further asses cost estimates and scheduling for Water
Tower #1. Staff is awaiting comments from the 2nd firm. Copies of the detailed inspection
reports are available for review upon request. These maintenance costs are necessary to
continue distribution service and provide fire protection to our customers.
Tower 1 is scheduled to be reinstated for service the last week of March of 2016 to
accommodate water demands of the East Public Water System and provide continued water
service during Water Tower 3 cleaning in April.
Cleaning and disinfection quote
$2000.00
Hydropillars:
Water Tower 3 serving the East Public Water System and Water Tower #2 serving the West
Public Water System is 1,000,000 gallon Hydropillars, inspected by KLM Engineering in May
2015.
Water Tower #3 (2008) — East Public Water Svstem Proiect Cost Estimate:
No engineer's cost estimate has been prepared as no coating repairs are required at this
time.
Interior Wet Structure Maintenance items include:
Confirmation of weir overflow box height — adjust if needed
Biofilm cleaning
Sediment removal
2
Routine maintenance scheduled: Interior cleaning is tentatively scheduled for the first
week of April 2016 prior to hydrant flushing.
Interior sediment removal quoted at
Exterior cleaning quoted at
$2500.00
$9875.00
Staff recommends installation of a submersible mixer after cleaning to prevent future ice
buildup and uniform water disinfection. The mixer addition is not budgeted for 2016 however
staff feels the benefit and timing of installation is appropriate and benefits provide justification
for installation.
$20,000.00
Water Tower #2 (2004) — West Public Water System Project Cost Estimate:
Interior Wet Structural Repairs $7,700.00
Interior Wet Coating Complete Repair $70,100.00
Type of Coating — Epoxy System
Interior Dry Structural Repairs $9,000.00
Interior Dry Coating Spot Repair $67,800.00
Type of Coating — Epoxy System
Exterior Structural Repairs $4,500.00
Exterior Coating Spot Repair at Structural Modifications $63,300.00
Type of Coating — Epoxy System/Urethane System
Mobilization $25,000.00
Estimated Total Cost $247,400.00 (2015 dollars)
The 2019 CIP includes $250,000.00 in 2019 for spot repairs base on these cost estimates. There
is concern that coatings used in 2004 are not candidates for spot repair, if full coating
replacement is required estimates would reach $908,987.00. These coatings will be
reevaluated in 2019 for further information coinciding with sediment removal.
Cleaning and coating evaluation 2019
$4000.00
Staff recommends installation of a submersible mixer after cleaning to prevent future ice
buildup and uniform water disinfection in 2019. $20,000.00
The Capital Improvement Plan and Water Budgets will be adjusted accordingly to provide a
conservative estimate for future repairs and maintenance based on findings and
recommendations.
wt�ti;it
Minnesota Water Conservation Goals and Objectives
Minnesota's existing statutes and rules establish programs and measures that are consistent with
the water conservation and efficiency goals and objectives adopted by the Regional Body and
Compact Council.
Water conservation goals in Compact Section 4.2.1 have been adopted in Minnesota Statutes
103G.801. These goals include:
a. Ensuring improvement of the Waters and Water Dependent Natural Resources;
b. Protecting and restoring the hydrologic and ecosystem integrity of the Basin;
c. Retaining the quantity of surface water and groundwater in the Basin;
d. Ensuring sustainable use of Waters of the Basin; and
e. Promoting the efficiency of use and reducing losses and waste of Water.
Minnesota statutes require the Department of Natural Resources to develop and manage water
resources to assure an adequate supply to meet long-range seasonal requirements for domestic,
municipal, industrial, agricultural, fish and wildlife, recreational, power, navigation, and quality
control purposes from waters of the state (M.S. 103G.265). Water conservation plays a critical
role in balancing the development and protection of Minnesota's water resources. Minnesota's
water conservation programs include water supply planning, implementation of measures to
improve water use efficiencies, and placing prohibitions or limits on wasteful or inefficient uses
of water. These programs guide the review of applications for the use and appropriation of waters
of the state.
Water Appropriation Permits. A permit is required for all groundwater or surface water
withdrawals that exceed in 10,000 gallons per day or one million gallons per year. Applicants for
water appropriation permits must evaluate alternatives to the actions proposed in the permit
application including conservation measures to improve water use efficiencies and reduce water
demand.
Measuring Withdrawals. Flow meters are required to measure water withdrawals. Other
methods of measurement can be approved based on the type and volume of the appropriation.
DNR Ecological and Water Resources
December 8, 2010
Water Use Reporting. Permit holders are required to submit annual water use reports and fees
based on the volume of water appropriated. The annual water use reporting fee schedule is
intended to encourage conservation,
• increasing block rates for annual volumes over 50 million gallons that range from $3.50 to
$8.00 per million gallons
• summer surcharges for municipal use and golf course and landscape irrigation
• special rates for once -through HVAC systems that use groundwater
Statewide Drought Plan. This plan provides a framework of conservation measures and water
use priorities for responding to drought.
Water Use Priorities. Minnesota statutes establish water use priorities. Nonessential uses are the
lowest priority and are subject to restrictions to protect higher priority uses.
Public Water Suppliers (serving over 1,000 people)
• Must have an approved water supply plan that addresses emergency preparedness, water
sustainability and water conservation.
• Water conservation rate structures are required by January 1, 2013.
• Demand reduction measures that include conservation rates and education programs are
required before requesting increases in authorized water volumes or new municipal wells.
• Annual reports provide water use by customer categories and unaccounted water
• Annual water use fees are subject to a summer surcharge of $30/million gallons for
volumes above winter use level.
• Benchmarks for unaccounted water, per capita use, and peak demands were developed in
consultation with the American Water Works Association and are used for water supply
planning and permitting approvals.
Soil and Water Conservation Plans. Failure to implement adequate soil and water conservation
measures can result in suspension or termination of a water appropriation permit.
Landscape Irrigation Systems. Automated irrigation systems are required to have technology
that inhibits or interrupts operation during periods of sufficient moisture.
Prohibited or Limited Uses. The use of groundwater for augmenting surface water basins and
groundwater use for once -through heating ventilation and air conditioning (HVAC) systems.
DNR Ecological and Water Resources
December 8, 2010
East Water System Capacity Summary
Year Oa
Water System Description
100 REC's per
Capacity in REC's
Estimated
Notes
Comments
TodayCapacity
Expenditure
Year
>
Existing System Water Tower #3
Past
1313
n/a
Requires Improvement
Not dire but needs addressing soon - equates to 2.9 hour fire
Well #3 and Well #8
fighting ability versus suggested 3 hour fire fight ability
Water Tower #3
Well #3 and Well #8
2018
1786
Need Policy change and
Only obtains two additional years
✓
✓
and Odd/Even Ban
enforcement
Increased dependency on Well #8
$450000
Water Tower #1 and Water Tower #3
WT #1 Rehab
14 additional years of service for $450k and creates a drought
with All Wells
2030
2872
$40,000
tolerant system - creates a more flexible system to allow
✓
✓
✓
✓
decreased reliance on Well #8
2 Circulating Pump s
Water Tower 41 and Water Tower #3
$450000
with All Wells
2039
3866
WT #1 Rehab
Need Policy change and
Preferred option to extend the Capcity year beyond 2030 when
✓
✓
✓
✓
✓
and Odd/Even Ban
$40,000
enforcement
the east and west systems will likely be connected
2 Circulating Pumps
- Haicanson
■■Anderson
* January 1st, 2015 = 1406 RECs
+Wells #1, #2, and #8 have Radium Issues
Redundancy - ability to handle water supply with a well off the system
Fire - ability to handle 3 hour fire during peak day demand with best well out
Drought - ability to handle long periods of high demand with no wells out
Regulatory - meet DNR policies regarding conservation of water resource efforts
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Existing System Water Tower #2
2019
1918
n/a
3 years away from minor issues involving storage capacity
Well #4 and Well #5
of West Otsego Water System
Water Tower #2
$800,000 Open Cut
Remedies two water supply issues with one project.
Well #4 and Well #5
2023
2342
or $1,250,000 Directional bore
1) RWN water supply and fire protection
✓
....
w/ Connection of Well #7
plus $250,000 for Well #7
2) Storage Capacity of West Otsego Water System
and Upgrade Well #7
upgrade
3) Promotes development of Industrial sites along Radler Ave
Existing System Water Tower #2
✓
✓
✓
✓ �t '
Well #4 and Well #5
2026
2595
$0
Need Policy change and
No cost and delivers 10 years with no storage capacity issues.
w/ Odd/Even Watering Ban
enforcement
Does not address RWN water supply or fire protection issues.
./
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Water Tower #2
$800,000 Open Cut
Well #4 and Well #5
w/ Connection of Well #7
2032
3199
or $1,250,000 Directional bore
Need Policy change and
Preferred Option - Provides service beyond 2030 @ 100 new RECs
✓
V,
V,
Combined
w/ Odd/Even Watering Ban
plus $250,000 for Well #7
enforcement
per year at which point east and west connection is likely
West
and Upgrade of Well #7
upgrade
1-111Anderson
Hal<anson
* January 1st, 2015 = 1483 RECs
Redundancy - ability to handle water supply with a well off the system
Fire - ability to handle 3 hour fire during peak day demand with best well out
Drought - ability to handle long periods of high demand with no wells out
Regulatory - meet DNR policies regarding conservation of water resource efforts
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