Regular Meeting of the Public Utilities Commission

Kip Peters Hudson Public Utilities Director 505 Third St. Hudson, WI 54016 Phone: (715) 386-4765, ext. 115 Fax: (715) 386-3385 kpeters@hudsonwi.gov www.hudsonpublicutilities.com AGENDA PUBLIC UTILITIES COMMISSION MEETING TUESDAY, JANUARY 12, 2021 – 6:00 P.M. PUBLIC UTILITIES SERVICE CENTER 1201 LIVINGSTONE RD. 1. Roll Call. 2. Approval of December 8, 2020 Meeting Minutes. 3. Discussion and Possible Action on Updating of 2020 Sewer Rate Study and Connection Fee Study – Ordinance 198-10. 4. Discussion and Possible Action on Amending Ordinance 242-1 Section B. 5. Discussion and Possible Action on Well #5 Pump & Column Repair Issue Sheet and Bids. 6. Discussion and Possible Action on the Wastewater Treatment Plant Improvement Project – Magney Construction, Inc Pay Request #7. 7. Project Updates/Project Status Report. 8. Other business for information purposes only or for upcoming agenda. 9. Sewer Utility and Water Utility Cash Reports. 10. Discussion and Possible Action on Claims. 11. Adjournment. Andy Hassan, Chairperson cc: Hassan Peters Weiss O’Connor Korum Frye Chamberlin Jensen Hall Intihar Mroz Parotti Nolan Reeves Gray Munkittrick Prissel Johnson O’Brien Village of N. Hudson TeWinkel Egger Boles River Channel Cable TV Wekkin Eggen Watson City Hall Lobbies Emailed to Commissioners and posted in City Hall lobbies – 1/7/2021 To access the meeting please use the link or phone number below. If you cannot access the meeting via the methods below or need any special accommodations please contact Kip Peters at 715-386-4765 x115 or kpeters@hudsonwi.gov. Join Zoom Meeting https://us02web.zoom.us/j/85153296602 Meeting ID: 851 5329 6602 One tap mobile +13126266799,,250672100# US (Chicago) +19292056099,,250672100# US (New York) Dial by your location +1 312 626 6799 US (Chicago) +1 929 205 6099 US (New York) +1 253 215 8782 US +1 301 715 8592 US +1 346 248 7799 US (Houston) +1 669 900 6833 US (San Jose) Meeting ID: 250 672 100 Notice is hereby given that a majority of the City Council may be present at the aforementioned meeting to gather information about a subject over which they have decision- making responsibility. This constitutes a meeting of the City Council pursuant to State ex rel. Badke v. Greendale Village Bd., 173 Wis.2d 553, 494 N. W. 2d 408 (1993), and must be noticed as such, although the Council will not take any formal action at this meeting. -1- PUBLIC UTILITIES COMMISSION MEETING CITY OF HUDSON, WISCONSIN TUESDAY, DECEMBER 8, 2020 Vice Chairperson Suzy Korum presiding. Meeting called to order by Korum at 6:00 p.m. PRESENT: Suzy Korum, Vice Chairperson, Joyce Hall, Pat Nolan, and Dave Prissel, Commissioners; Mary Wekkin, North Hudson Liaison. ABSENT: Chairperson Andy Hassan. ALSO PRESENT: Kip Peters and Jace Holzemer, Hudson Public Utilities. APPROVAL OF NOVEMBER 10, 2020 MEETING MINUTES: Wekkin asked that the minutes state the attorney representing the Utility regarding the Riverside Drive N. lift station maintenance responsibility issue reviewed the three (3) agreements between the City and the Village. Motion by Prissel, second by Hall to approve the minutes of the November 10, 2020 Public Utilities Commission meeting with the noted change. MOTION CARRIED. DISCUSSION AND POSSIBLE ACTION ON THE WASTEWATER TREATMENT PLANT IMPROVEMENT PROJECT – MAGNEY CONSTRUCTION, INC PAY REQUEST #6: Peters presented Magney Construction’s Pay Request #6 for the Wastewater Treatment Plant Improvement Project. He said the project is progressing as scheduled. Motion by Hall, second by Prissel to approve Magney Construction’s Pay Request #6, as recommended by SEH, in the amount of $401,293.43 for the Wastewater Treatment Plant Improvement Project. MOTION CARRIED. DISCUSSION AND POSSIBLE ACTION ON THE LAKE MALLALIEU DAM RE-HAB PROJECT - PEMBER COMPANIES PAY REQUEST #1: Peters presented Pember Companies’ Pay Request #1 for the Lake Mallalieu Dam Re-hab Project. He said the project is progressing as scheduled. Discussion followed on possible additional project costs. Motion by Prissel, second by TeWinkel to approve Pember Companies’ Pay Request #1, as recommended by SEH, in the amount of $34,017.12 for the Lake Mallalieu Dam Re-hab Project. MOTION CARRIED. DISCUSSION AND POSSIBLE ACTION ON SEH LETTER OF ENGAGEMENT (LOE) FOR THE AWIA RISK RESILIENCE ASSESSMENT AND EMERGENCY RESPONSE PLAN: Peters said on October 23, 2018 the America’s Water Infrastructure Act (AWIA) was signed into law. Under this law community water systems with a population greater than 3,300 people must develop or update risk and resilience assessments (RRAs) and emergency response plans (ERPs). Peters then presented SEH’s LOE to assist the Utility in developing its RRAs and ERPs. Wekkin asked about the need to have SEH assist the Utility with the first two tasks listed in the LOE. Discussion followed. It was the consensus of the Commission to have Peters discuss with SEH on having the Utility complete the first two tasks listed in the LOE. Motion by Hall, second by Prissel to postpone action on this item until next month’s meeting. All ayes. Korum opposed. MOTION CARRIED. PROJECT UPDATES/PROJECT STATUS REPORT: Peters reviewed the report. He noted: The Meter Replacement/ Residential Cross-connection Inspection Program is completed for the year. -2- PUBLIC UTILITIES COMMISSION MEETING CITY OF HUDSON, WISCONSIN TUESDAY, DECEMBER 8, 2020 The Utility is waiting to hear from the State regarding bids received and project timeline for the Hwy 35 Re-hab Project. Peters then presented a construction summary and photos of the Wastewater Treatment Plant Improvement Project. The Wisconsin St Tower Re-hab Project is complete and the tower is on-line. OTHER BUSINESS FOR INFORMATION PURPOSES ONLY OR FOR UPCOMING AGENDA: Nolan asked about the status of the generator for the Riverside Dr. N. Lift Station. Peters said it is scheduled to be installed within the next couple of weeks. WATER AND WASTEWATER UTILITY’S CASH REPORTS: The water and wastewater utility’s monthly cash reports were not available for the Commission's review. DISCUSSION AND POSSIBLE ACTION ON THE CLAIMS: Prissel asked about the claim from Diamond Tower Services. Peters said it was for the removal and re-installation of the Utility’s communication equipment as part of the Wisconsin St. Tower re-hab project. Motion by Prissel, second by Hall to approve claims as reviewed by Commissioners. MOTION CARRIED. ADJOURNMENT: Motion by Hall, second by Nolan to adjourn. MOTION CARRIED. – 6:40 p.m. Jace Holzemer, Recording Secretary HUDSON PUBLIC UTILITIES ISSUE SHEET DATE: January 12, 2021 SUBMITTED TO: PUC and Common Council SUBMITTED BY: Utility Director Peters REGARDING: Updating of 2020 Sewer Rate Study and Connection Fee Study/ Ordinance 198-10 ISSUE: The 2020 Sewer Rate and Connection Fee study was adopted by Common Council on July 6, 2020. Since then, there has been the need to make some slight changes to the adopted document. Rates that were adopted on July 6, 2020 have not changed with the proposed changes. Included changes are an amendment to the report to provide documentation of how much is included in the rates for the WWTP and general capital and how much is for the City and Village collection system accounts. More information on the funding sources for capital costs. Amendments to Chapter 198 of the Municipal Code are highlighted on the attached sheets. FUNDING SOURCE: STAFF RECOMMENDATION: COMMITTEE RECOMMENDATION: Sewer Rate Study Prepared for the City of Hudson by Trilogy Consulting, LLC January 2021 City of Hudson 2021 Sewer Rate Study 2 TABLE OF CONTENTS INTRODUCTION ............................................................................................................................................. 4 IMPETUS FOR STUDY ..................................................................................................................................... 4 STUDY METHODOLOGY................................................................................................................................. 4 SEWER RATE STUDY ...................................................................................................................................... 6 SUMMARY ................................................................................................................................................ 6 HISTORICAL AND FORECAST CUSTOMER DEMANDS .............................................................................. 7 Table 1 - Historical Flows and Trends ................................................................................................... 8 Table 2 - Projected Flows and Demand .............................................................................................. 10 Table 3 - Test Year Revenues at Present Rates ................................................................................... 12 HISTORICAL AND FORECAST OPERATION AND MAINTENANCE EXPENSE ............................................ 12 Table 4 - Historical and Forecast O&M Expenses ............................................................................... 14 HISTORICAL AND FORECAST CAPITAL IMPROVEMENTS ....................................................................... 15 Table 5 - Forecast Capital Improvements ........................................................................................... 16 CASH FLOW FORECASTS ......................................................................................................................... 16 Figure 1 - Projected Cash Flow with Zero Increase ............................................................................. 19 Figure 2 - Projected Cash Flow with 2021 Increase ............................................................................ 20 Figure 3 - Projected Cash Flow with Phased-In Increase: 38 Percent in 2021, 11 Percent in 2022 ... 21 Figure 4 - Projected Cash Flow with Phased-In Increase: 11 Percent in 2021, 38 Percent in 2022 ... 22 Figure 5 - Projected Cash Flow with Phased-In Rate Increase: 23.7 Percent in 2021, 23.7 Percent in 2022 .................................................................................................................................................... 23 Table 6 - Forecast Cash Flows: 38 Percent Increase in 2021, 11 Percent Increase in 2022 ................ 25 Table 7 - Forecast Cash Flows: 11 Percent Increase in 2021, 38 Percent Increase in 2022 ............... 26 Table 8 - Forecast Cash Flows: 23.7 Percent Increase in 2021, 23.7 Percent Increase in 2022 ......... 27 REVENUE REQUIREMENTS AND COST-OF-SERVICE ANALYSIS .............................................................. 28 PROPOSED RATE SCHEDULE ................................................................................................................... 28 Table 9 - Proposed Phased-In Rate Schedule – Increase of 38 Percent in 2021 and 11 Percent in 2022 .................................................................................................................................................... 29 Table 10 - Proposed Phased-In Rate Schedule – Increase of 11 Percent in 2021 and 38 Percent in 2022 .................................................................................................................................................... 30 City of Hudson 2021 Sewer Rate Study 3 Table 11 - Proposed Phased-In Rate Schedule – Increase of 23.7 Percent in 2021 and 23.7 Percent in 2022 .................................................................................................................................................... 31 COMMUNITY RATE COMPARISON ......................................................................................................... 31 Table 12 - Regional Comparison of Average Residential Bills ............................................................. 32 Table 13 - Regional Comparison of Average Non-Residential Bills ..................................................... 33 RECOMMENDATIONS ............................................................................................................................. 33 APPENDIX A – SEWER UTILITY COST OF SERVICE STUDY AND PROPOSED RATE DESIGN ........................... 34 City of Hudson 2021 Sewer Rate Study 4 INTRODUCTION The City of Hudson owns and operates a wastewater collection system and Wastewater Treatment Facility that provides wastewater service to just over 7,600 customers within the City of Hudson and the Village of North Hudson. The City serves the Village on a retail basis and covers the costs of limited operation and maintenance of the Village’s collection system, but the Village is responsible for major repairs, rehabilitation, and replacement for its collection mains and lift stations. About 16 percent of billable wastewater flows over the past five years have been from the Village of North Hudson, and approximately 84 percent were from the customers within the City of Hudson, on average. The City is required to treat at its wastewater treatment plant: organic pollutants (BOD), suspended solids (TSS), phosphorus and ammonia (NH-3). The City last increased wastewater rates in January of 2019. IMPETUS FOR STUDY The sewer utility is planning on significant capital investment in upgrades to the Wastewater Treatment Facility in the amount of $ 12,700,000, equipment replacement, and ongoing replacement of s ewer infrastructure as needed . For these reasons, the City hired Trilogy Consulting to conduct a formal Sewer User Rate Study. The study consisted of determining recommended user rates based on a detaile d cost of service study for 2020, and cash flow projections, including future rate increases. A 25-year projection of user rates and cash flows was prepared to develop a plan to complete all necessary capital improvement projects and meet all debt requirements while maintaining the financial health of the Utility. STUDY METHODOLOGY The study is generally organized into three sections: 1. An analysis of historical conditions including historical revenues, expenses, and usage. 2. Projections for the next twenty-five years, including billed wastewater usage projections, and projections of future operating and maintenance expenses. The analysis took into consideration the City’s 5-year capital improvement needs, as well as estimates of capital improvements for years 6 -25 based on prior years’ investments and scheduled annual debt service payments for existing utility debt. Utility capital funding in future years includes connection fees, revenues generated from annual rates, new debt issuances and utility reserves. 3. Allocation of costs and detailed rate calculations for the ‘test year’ or target year for the immediate rate increase(s). In this study, 2022 was used as the year when the full amount of debt service payments for the Wastewater Treatment Facility upgrades will be in place. City of Hudson 2021 Sewer Rate Study 5 The user rates were calculated using a cash -based method. The cash -based method calculates rates to recover the cost of operating and maintena nce expenses, administrative expenses, annual debt servic e and any debt coverage requirements , annual capital outlay expenses, transfers to the City collection system replacement fund and to the Village for collection system costs, and deposits into reserve funds, if necessary. City of Hudson 2021 Sewer Rate Study 6 SEWER RATE STUDY SUMMARY The purpose of this study was to recommend rates that will collect adequate revenues for the City of Hudson Wastewater Utility to fulfill all its current and upcoming obligations. Specifically, revenues need to be adequate to recover operation and maintenance expenses, debt service, transfers to the City collection system replacement fund and to the Village for collection system costs, and annual capital improvements . These current revenues will be combined with the reserves in the wastewater fund to fund the capital improvement plan. The results of the study indicate a significant rate increase of about 47 percent by 2022. This overall level of rate increases is recommended to fund the utility’s ongoing operating expenses and $17.3 million capital improvement program for 2020 through 2024 and to maintain an adequate level of reserve funds available to cover ongoing equipment replacements, unexpected replacement and rehabilitation needs, or unexpected fluctuations in revenues or expenses . Significant capital improvements in this plan include Wastewater Treatment Facil ity (WWTF) improvements estimated at $12.7 million, the Hwy 35/2 nd Street sewer replacement project estimated at $1.69 million, a new jet truck at $450,000, and approximately $550,000 per year of miscellaneous replacements and rehabilitation projects at the Wastewater Treatment Plant for 2022-2024, based on past history. Of the $17.1 million in capital projects included in the projections, $12.7 million would be funded through debt using the State Clean Water Fund program , $1.0 million from the City’s sewer collection system replacement fund, $1.5 million from general utility reserves paid in by past customers and the remaining $1.9 million through annual revenues generated through user charges, connection charges, interest income and other revenues. Currently, the City’s wastewater rates are some of the lowest in Hudson’s geographic region. Following this recommendation would increase rates significantly, yet rates would remain below average in the region, not considering any increases to wastewater rates that other communities may also implement in the interim. Following implementation of the rates for 2020 through 2022, a plan for additional inflationary cost-of-living type rate increases is recommended for consideration by the City Council. These increases should be evaluated on an annual basis and adjusted for changing conditions, such as an increase in sales or unexpected capital needs. The recommended rate increases for 2020 through 2022 would increase the utility’s user charge revenues by a total of about $1.03 million per year by 2022. City of Hudson 2021 Sewer Rate Study 7 HISTORICAL AND FORECAST CUSTOMER DEMANDS The following table shows the analysis of historical trends in total wastewater treated at the wastewater treatment plant, as well as number of customers, customer volume of wastewater and estimated loadings (BOD, TSS, phosphorus and NH -3) for domestic strength customers. The Utility does not currently serve any known high -strength sewer customers at this time but may in the future. However, it does receive a small amount of leachate from a local landfill; currently, there is no charge for accepting this waste. City of Hudson 2021 Sewer Rate Study 8 Table 1 - Historical Flows and Trends 2015 2016 2017 2018 Last 12 Months 5-Year Trend WWTP Influent (Gallons) (Gallons) (Gallons) (Gallons) (Gallons) (Gallons) Total Annual Inflow 554,699,400 545,828,600 538,910,700 547,665,200 559,053,000 552,394,520 Total Billable Flow 405,324,870 442,895,200 415,254,680 456,951,040 403,052,413 427,548,918 Billable Flow as % of Inflow 73.1% 81.1% 77.1% 83.4% 72.1% 77.4% Inflow/Infiltration 149,374,530 102,933,400 123,656,020 90,714,160 156,000,587 124,845,602 I/I as % of Inflow 26.9% 18.9% 22.9% 16.6% 27.9% 22.6% Maximum Monthly Flow per Day Average Day Flow 1,519,724 1,491,335 1,476,468 1,500,453 1,531,652 1,513,410 Max Day/Average Day Ratio - - - - - - BOD (mg/l) 252 245 232 205 224 203 TSS (mg/l) - - - - - - P (mg/l) - - - - - - NH3 (mg/l) - - - - - - BOD (lbs) 1,166,802 1,113,724 1,041,328 937,790 1,043,575 933,927 TSS (lbs) - - - - - P (lbs) - - - - - NH3 (lbs) - - - - - Customer Demand Residential Sewer Usage 259,473,810 277,850,490 256,150,740 281,259,470 236,898,257 249,803,916 Residential Customers 6,211 6,300 6,400 6,550 6,629 6,744 Usage / Customer 41,776 44,103 40,024 42,940 35,737 37,042 Multi-Family Sewer Usage 35,290,100 40,371,680 38,935,320 44,931,000 42,024,570 45,719,012 Multi-Family Customers 55 60 62 65 69 72 Usage / Customer 641,638 672,861 627,989 691,246 609,052 634,106 Commercial Sewer Usage 92,840,360 105,372,910 101,686,780 112,599,480 105,635,081 113,471,726 Commercial Customers 470 480 490 500 522 530 Usage / Customer 197,533 219,527 207,524 225,199 202,366 214,259 Industrial Sewer Usage 4,871,310 5,325,380 4,517,320 3,361,300 2,935,032 2,451,078 Industrial Customers 22 23 24 25 25 26 Usage / Customer 221,423 231,538 188,222 134,452 117,401 93,553 Public Authority Sewer Usage 12,849,290 13,974,740 13,964,520 14,799,790 15,337,209 15,925,376 Public Authority Customers 32 33 34 35 35 36 Usage / Customer 401,540 423,477 410,721 422,851 438,206 439,928 Total Domestic Strength Usage Strength (mg/l) 405,324,870 442,895,200 415,254,680 456,951,040 402,830,149 427,371,107 Estimated BOD (lbs.) 300 1,014,123 1,108,124 1,038,967 1,143,292 1,007,881 1,069,283 Estimated TSS (lbs.) 300 1,014,123 1,108,124 1,038,967 1,143,292 1,007,881 1,069,283 Estimated Phos. (lbs.) 8 27,043 29,550 27,706 30,488 26,877 28,514 Estimated NH-3 (lbs.) 40 135,216 147,750 138,529 152,439 134,384 142,571 Landfill Leachate Strength (mg/l) - - - - 222,264 177,811 Estimated BOD (lbs.) 100 - - - - 185 148 Estimated TSS (lbs.) 300 - - - - 556 445 Total 415,254,680 456,951,040 403,052,413 427,548,918 Estimated BOD (lbs.) 1,038,967 1,143,292 1,008,066 1,069,431 Estimated TSS (lbs.) 1,038,967 1,143,292 1,008,437 1,069,727 Estimated Phos. (lbs.) 27,706 30,488 26,877 28,514 Estimated NH-3 (lbs.) 138,529 152,439 134,384 142,571 City of Hudson 2021 Sewer Rate Study 9 Wastewater Treatment Plant Influent The total volume of wastewater treated at the plant has fluctuated some over the past several years, with a dip in 2017 and an increase in 2019. However, the ‘billable’ flow , or wastewater generated by customers, has fluctuated more during the same time, with 2019 flows being down compared to prior years. The remaining volume is clearwater infiltration and inflow, water that seeps into the system via cracks in wastewater mains or customer service laterals, or through sewer manholes. At certain times of year , such as periods of high precipitation, infiltration and inflow (I/I) may be the majority of water volume arriving at the treatment plant. Wastewater entering the plant is sampled daily for wastestrengths, so the total pounds of BOD entering the plant per year can be estimated. Total pounds of these constituents have seen a steady decline in the last several years, before an uptick during 2019. To make sure the all customers are charged fairly, surcharge rates were calculated as a part of this study in case the Utility samples customers that should be charged for high-strength flows for any of the constituent loadings in the future. Forecast flows for 2020 through 2022 follow trends over the previous five years, as shown in the next table. It should be noted that at the time this study was being completed, the City was in the midst of the global COVID -19 pandemic, with effects on billed water and sewer demand unknown as of yet. This was not factored into the long-term projections, as it is assumed that any impacts will be temporary, but revenues during the pandemic may be higher or lower than expected during a normal year. In addition, the assumptions used in this study should b e reviewed post-pandemic to determine whether any impacts on water and sewer use were temporary or if longer-term structural changes resulted. City of Hudson 2021 Sewer Rate Study 10 Table 2 - Projected Flows and Demand Current Year Test Year Last 12 Months 5-Year Trend 2020 2021 2022 WWTP Influent (Gallons) (Gallons) (Gallons) (Gallons) (Gallons) Total Annual Inflow 559,053,000 552,394,520 552,352,476 563,657,338 577,118,157 Total Billable Flow 403,052,413 427,548,918 427,516,377 440,923,457 448,087,068 Billable Flow as % of Inflow 72.1% 77.4% 77.4% 78.2% 77.6% Inflow/Infiltration 156,000,587 124,845,602 124,836,099 122,733,881 129,031,089 I/I as % of Inflow 27.9% 22.6% 22.6% 21.8% 22.4% Maximum Monthly Flow per Day 1,815,953 1,853,120 1,897,375 Average Day Flow 1,531,652 1,513,410 1,513,294 1,544,267 1,581,146 Max Day/Average Day Ratio - - 1.20 1.20 1.20 BOD (mg/l) 224 203 232 235 233 TSS (mg/l) - - 232 235 233 P (mg/l) - - 6 6 6 NH3 (mg/l) - - 31 31 31 BOD (lbs) 1,043,575 933,927 1,069,090 1,102,634 1,120,558 TSS (lbs) - 1,069,090 1,102,634 1,120,558 P (lbs) - 28,509 29,404 29,882 NH3 (lbs) - 142,545 147,018 149,408 Customer Demand Residential Sewer Usage 236,898,257 249,803,916 249,811,324 256,827,148 258,105,858 Residential Customers 6,629 6,744 6,744 6,852 6,961 Usage / Customer 35,737 37,042 37,042 37,482 37,079 Multi-Family Sewer Usage 42,024,570 45,719,012 45,655,601 47,795,528 50,243,885 Multi-Family Customers 69 72 72 75 79 Usage / Customer 609,052 634,106 634,106 637,274 635,999 Commercial Sewer Usage 105,635,081 113,471,726 113,557,429 117,155,646 120,218,932 Commercial Customers 522 530 530 542 554 Usage / Customer 202,366 214,259 214,259 216,154 217,002 Industrial Sewer Usage 2,935,032 2,451,078 2,432,367 2,659,475 2,489,373 Industrial Customers 25 26 26 26 26 Usage / Customer 117,401 93,553 93,553 102,288 95,745 Public Authority Sewer Usage 15,337,209 15,925,376 15,837,391 16,263,395 16,806,757 Public Authority Customers 35 36 36 37 38 Usage / Customer 438,206 439,928 439,928 439,551 442,283 Total Domestic Strength Usage Strength (mg/l) 402,830,149 427,371,107 427,294,113 440,701,193 447,864,804 Estimated BOD (lbs.) 300 1,007,881 1,069,283 1,069,090 1,102,634 1,120,558 Estimated TSS (lbs.) 300 1,007,881 1,069,283 1,069,090 1,102,634 1,120,558 Estimated Phos. (lbs.) 8 26,877 28,514 28,509 29,404 29,882 Estimated NH-3 (lbs.) 40 134,384 142,571 142,545 147,018 149,408 Landfill Leachate Strength (mg/l) 222,264 177,811 222,264 222,264 222,264 Estimated BOD (lbs.) 100 185 148 185 185 185 Estimated TSS (lbs.) 300 556 445 556 556 556 Total 403,052,413 427,548,918 427,516,377 440,923,457 448,087,068 Estimated BOD (lbs.) 1,008,066 1,069,431 1,069,275 1,102,820 1,120,743 Estimated TSS (lbs.) 1,008,437 1,069,727 1,069,646 1,103,190 1,121,114 Estimated Phos. (lbs.) 26,877 28,514 28,509 29,404 29,882 Estimated NH-3 (lbs.) 134,384 142,571 142,545 147,018 149,408 City of Hudson 2021 Sewer Rate Study 11 Customer Demand The Wastewater Utility mostly serves domestic sewage customers (residential, multi -family, commercial, industrial and public authority, i.e. government); it does not have any high strength customers currently and the only hauled waste is a small amount of leachate from a local landfill, which is not currently charged. However, if any increase in monitoring indicates that there could be high strength customers that the Utility is unaware of , or if a new customer is known to discharge high-strength waste, then they may be charged surcharges for higher than domestic strength pollutant loadings. Domestic Waste The volume of domestic strength waste has fluctuated over the last three year s, resulting from changes within all customer classes. The estimates of pounds of pollutant loadings for domestic strength waste are based on current domestic strength assumptions of 300 mg/l for BOD, 300 mg/l for TSS, 8 mg/l for phosphorus, and 40 mg/l for NH-3. A comparison of total pounds being treated at the plant versus estimated pounds from domestic strength sewage indicated that those assumptions are reasonable. Additional sampling at the treatment plant in the future may result in a need for those assumptions to be adjusted, but there is no need to do so at present. Forecast Revenues at Present Rates The table below shows the forecast revenues at present rates for the test year, based on the forecast number of customers and volume of sewer usage. The City currently charges the following user charges: • Sewer Usage Charge of $3.00 per hundred cubic feet of wastewater (estimated based on metered water use) for all users. This rate is comprised of $2.88 per hundred cubic feet for collection system operation and maintenance and WWTP operation, maintenance, and capital, and a trunk line and lift station replacement charge of $0.12 per hundred cubic feet . Revenues from the trunk line and lift station replacement charge are transferred to the Village of North Hudson and to the City’s sewer collection system replacement fund based on the amount of billable flows from each municipality. For 2015 through 2019, approximately 16 percent of these revenues , or $11,000 per year, were transferred to the Village, and 84 percent, or $58,000 per year, to the City’s replacement fund. • Flat Charge based on the size of customer’s water meter City of Hudson 2021 Sewer Rate Study 12 Forecast user charge revenues of $2,031,586 for the test year of 2022 are higher than 2018 user charge revenues of $ 1,900,341 due to projected growth in the number of customers and billed usage through 2022. Table 3 - Test Year Revenues at Present Rates HISTORICAL AND FORECAST OPERATION AND MAINTENANCE EXPENSE The following table shows the actual O&M expenses for 2015 through 2018, budgeted 2019 and 2020 expenses, a 4-year trend analysis and forecast expenses for 2020 through 2022. Some categories of expenses that fluctuate substantially from year to year were normalized to reflect historical average expenses or the 4-year trend analysis. Electricity, chemicals, and biosolids costs were forecast based on the forecast wastewater influent. These adjustments were done to reflect a typical year so that the O&M expenses can be projected for future years. As shown the City of Hudson 2021 Sewer Rate Study 13 projected O&M expense for 2020 used for cash flow forecasting purposes was $1,841, 589, or approximately 2.0 percent higher than actual 2018 expenses. Future years’ O&M expenses are forecast to increase by 2.0 percent per year. City of Hudson 2021 Sewer Rate Study 14 Table 4 - Historical and Forecast O&M Expenses Budget 4-Year Budget Current Year Test Year Account Description 2016 2017 2018 2019 Trend 2020 2020 2021 2022 ($) ($) ($) ($) ($) ($) ($) ($) ($) WASTEWATER TREATMENT & DISPOSAL Salaries and Wages 217,503 230,697 231,426 216,455 223,417 211,367 211,367 215,594 219,906 FICA 15,624 16,086 16,775 16,560 17,136 16,170 16,170 15,650 15,963 Retirement 14,246 14,967 15,496 13,785 14,410 13,452 13,452 14,073 14,355 Health Insurance 72,956 82,808 93,023 90,060 100,094 76,064 76,064 81,526 83,156 Utilities - Electricity 105,858 108,978 102,390 108,000 106,266 108,000 108,000 107,991 111,675 Utilities - Gas 12,304 12,080 14,078 13,000 13,887 13,000 13,887 14,026 14,166 Contractual Services 280,892 78,662 124,313 73,900 (4,390) 79,500 139,442 140,836 142,245 Chemicals 26,120 27,406 73,794 25,000 48,837 25,000 27,261 28,097 29,056 Supplies 30,082 49,182 46,062 49,000 56,990 48,300 56,990 57,560 58,135 Biosolids Charges 300,810 340,154 335,654 335,000 352,422 335,000 390,138 406,403 417,139 Other Services & Charges 13,036 SUBTOTAL WASTEWATER TREATMENT & DISPOSAL 1,089,431 961,020 1,053,011 940,760 929,068 925,853 1,052,771 1,081,756 1,105,796 LIFT STATIONS & PUMPING EQUIPMENT Salaries and Wages 28,946 23,953 26,411 22,960 21,693 26,467 26,467 26,996 27,536 GASB 68 22,289 29,144 13,357 21,597 22,029 22,469 FICA 2,133 1,710 1,916 1,760 1,652 2,025 1,946 1,985 2,024 Retirement 1,948 1,629 1,769 1,500 1,411 1,472 1,772 1,807 1,843 Health Insurance 8,585 8,206 9,262 8,620 8,959 7,281 8,973 9,153 9,336 Utilities - Electricity 18,845 19,827 18,901 19,900 19,928 19,500 20,854 21,723 22,297 Utilities - Gas 1,286 327 344 400 (71) 400 357 361 364 Contractual Services 5,940 20,314 5,150 6,500 6,105 9,500 6,105 6,166 6,228 Supplies 912 1,428 332 5,000 4,710 5,000 891 900 909 Other Services & Charges SUBTOTAL LIFT STATIONS & PUMPING EQUIPMENT 90,884 106,538 77,442 66,640 64,385 71,645 88,961 91,119 93,006 WASTEWATER COLLECTION SYSTEM Salaries and Wages 35,930 28,312 24,609 30,010 24,350 88,239 88,239 90,004 91,804 FICA 2,576 1,996 1,770 2,300 1,897 6,750 6,750 6,544 6,675 Retirement 2,375 1,925 1,649 1,970 1,607 5,780 5,780 5,996 6,116 Health Insurance 9,117 9,593 9,363 12,820 12,943 39,861 39,861 30,965 31,584 Contractual Services 35,408 19,675 118,626 50,250 91,859 54,300 55,990 56,550 57,115 Supplies 3,918 2,348 1,656 5,000 3,869 10,600 3,869 3,908 3,947 Other Services & Charges SUBTOTAL WASTEWATER COLLECTION SYSTEM 89,324 63,849 157,673 102,350 136,525 205,530 200,489 193,966 197,241 DAMS Salaries and Wages 3,496 3,615 3,870 2,580 2,767 3,032 2,767 2,822 2,879 FICA 259 262 281 200 211 232 204 209 213 Retirement 235 245 259 170 182 199 185 189 193 Health Insurance 1,363 1,428 1,635 845 981 713 1,076 1,097 1,119 Contractual Services 1,362 0 3,222 3,000 3,930 4,000 1,896 1,915 1,934 Utilities - Electricity 516 534 1,098 1,000 1,291 100 787 795 803 Supplies 100 SUBTOTAL DAMS 7,231 6,084 10,365 7,895 9,362 8,276 6,915 7,027 7,140 GENERAL AND ADMINISTRATIVE EXPENSES Salaries and Wages 171,758 180,328 170,009 124,638 123,764 130,430 130,430 133,039 135,699 GASB 68 29,144 21,080 21,501 21,931 FICA 12,405 13,089 12,347 9,539 9,510 10,278 10,278 9,746 9,941 Retirement 11,482 12,258 11,374 8,162 8,108 8,735 8,735 8,902 9,080 Health Insurance 56,037 62,877 58,995 37,900 39,379 36,905 36,905 44,394 45,282 Contractual Services 18,677 30,666 27,404 31,900 36,264 30,200 27,162 27,433 27,708 Supplies 3,895 3,650 2,240 7,250 6,423 7,775 4,259 4,301 4,344 Insurance 44,072 74,227 48,530 63,560 65,789 54,688 54,688 55,235 55,787 Other Services & Charges SUBTOTAL GENERAL & ADMINISTRATIVE EXPENSES 318,326 406,239 330,899 282,949 289,236 279,011 293,536 304,552 309,773 METER READING Salaries and Wages 12,085 12,403 6,766 11,040 8,381 10,760 10,760 10,975 11,195 FICA 821 841 500 845 685 823 823 780 796 Retirement 728 771 453 725 588 705 705 695 709 Health Insurance 2,625 3,190 2,073 4,950 4,674 4,181 4,181 3,331 3,398 Contractual Services 338 698 1,016 500 839 500 839 847 856 Supplies 6,113 6,203 5,337 6,700 6,312 6,600 6,312 6,375 6,439 Meter Use Charge Paid to Water Utility 161,611 173,998 162,205 175,000 175,297 180,000 175,297 180,556 185,973 SUBTOTAL METER READING EXPENSES 184,321 198,104 178,350 199,760 196,775 203,569 198,917 203,560 209,365 TOTAL OPERATION & MAINTENANCE EXPENSES 1,779,517 1,741,834 1,807,740 1,600,354 1,625,350 1,693,884 1,841,589 1,881,980 1,922,322 City of Hudson 2021 Sewer Rate Study 15 HISTORICAL AND FORECAST CAPITAL IMPROVEMENTS Between 2015 and 2019, the Utility invested almost $2.0 million, or an average of just under $400,000 per year, in capital improvements and equipment replacement . Most of this amount was for WWTP improvements and communications, vehicles, and other general equipment. The Utility’s forecast capital improvements for 20 20 through 202 4 includes $ 17.1 million of capital improvements and equipment. Of this amount, $1.69 million is for the Hwy 35/2nd Street trunk sewer replacement project. The rest is for improvements and upgrades to the WWTP , as well as vehicles and other general equipment. Of this amount, $ 12.7 million for major upgrades to the WWTP in 2020 and 2021 is planned to be borrowed through the Wisconsin Clean Water Fund program . The Hwy 35/2 nd Street trunk sewer replacement will be funded in part with funds from the City’s sewer collection system replacement fund and in part with utility reserves. Other capital expenditures will be funded in part with current revenues and in part with reserves. In total, the Utility plans to issue $12.7 million in debt, use $1.5 million of sewer utility reserves and $1.0 million of sewer collection system replacement reserves, and fund the remaining $1.9 million with current revenues. With the borrowing for the WWTP upgrades , annual debt service is projected to increase f rom no debt service currently to just over $784,000 per year by 2022. City of Hudson 2021 Sewer Rate Study 16 Table 5 - Forecast Capital Improvements CASH FLOW FORECASTS To estimate the overall level of immediate and future rate increases, a 25-year cash flow forecast was prepared. Multiple cash flow forecasts were prepared for various scenarios of the level and timing of immediate and future rate increases. Each forecast was evaluated with the same criteria: • Generating positive cash flow; • Providing sufficient debt coverage for future debt; Current Year Test Year Account Description 2020 2021 2022 2023 2024 Land and land rights $0 Structures and improvements $0 Service connections, traps and access $0 Collecting mains $0 Interceptor mains $0 $1,690,000 Force mains $0 Other collecting system equip $0 Land and land rights $0 Pumping structures and improvements $0 Receiving wells $0 Electric pumping equipment $0 Other power pumping equip $0 Misc. pumping equipment $0 Land and land rights $0 Treatment plant structures and improvements $6,195,600 $530,450 $546,364 $562,754 Preliminary treatment equip $1,395,200 Primary treatment equip $0 Secondary treatment equip $881,200 Advanced treatment equip $1,851,600 Chlorination equipment $0 Sludge treatment and disposal equip $1,214,000 Plant site piping $419,500 Flow metering equipment $0 Outfall sewer pipes $0 Other treatment and disposal plant equip $296,000 Structures and improvements $819,800 Office furniture and equipment $0 Computers $68,300 Transportation equipment $0 $450,000 Communication equipment $153,800 Other general equipment $0 Laboratory equipment $0 Total Cost $13,295,000 $1,690,000 $980,450 $546,364 $562,754 City of Hudson 2021 Sewer Rate Study 17 • Maintaining the utility’s reserves above recommended levels – Recommended reserve levels include operating reserves to manage cash flow or fluctuations in revenues or expenses, any restricted debt reserves, and capital reserves for unplanned capital costs. Wastewater utilities that have a loan through the state’s Clean Water Fund Program are also required to maintain an equipment replacement fund to pay for replacement of mechanical and other equipment; • Avoiding or mitigating the need for issuance of new debt for routine wastewater main and equipment replacement; and • Percentage of debt financing versus equity. As of December 31, 2018, the wastewater utility had total reserve funds totaling $ 6,321,807. About $1.95 million of this total w as held in a restricted account for equipment replacement , meaning it cannot be used for any other use than the designated use, such as operating losses or ongoing capital improvements. The remaining $4.37 million was unrestricted, meaning it can be used for any purpose, including capital improvements, operating expenses, or debt service payments. Additionally, the City maintains a Sewer Collection System Replacement Fund within its general funds, which had a balance of $1,076,512. This fund is to be used for replacement of sewer main throughout the City. The cash flow analysis developed a recommended minimum amount of reserves the Utility should keep on hand, for those purposes and as a rate stabilizer. This amount was determined to be $3.7 million to $3.8 million for the next several years, comfortably below the Utility’s actual reserve levels as of the end of 2018. All the alternative cash flow scenarios were based on the following common assumptions: • Inflation of approximately two percent per year in operation and maintenance expenses; • Continuation of a similar level of other operating revenues and non -operating revenues as contained in the 2020 budget; • Any debt issuance for the treatment plant would be for 20 years at the current interest rate of 1.65% through the Clean Water Fund loan program; any future debt issuances would be for 20 years at 3.50% interest with level annual payments; • Recommended reserve levels include the following: o Operating reserve equal to 3 months of annual operating expenses; o Debt service reserve equal to current year’s debt service payments; o Equipment replacement fund equal to the estimated year -end 2019 level of $2,044,440 – this fund currently has a larger balance than necessary, but may need to be adjusted based on final costs of the W astewater Treatment Facility upgrades; City of Hudson 2021 Sewer Rate Study 18 o Depreciation/Capital reserve equal to $500,000 for emergency replacement of critical infrastructure. The following charts show the five cash flow alternatives that were prepared: one with zero increase to rates (do-nothing alternative), one showing all of the increase occurring at the beginning of 2021, and three alternatives for phasing the increase in over two increases, one at the beginning of 2021 and a second increase at the beginning of 2022. All the rate increase scenarios also include future rate increases of 2.0 percent every other year. The three options that were explored for phasing the rate increase were as follows: • An increase in user charge revenues of approximately 38.0 percent in 2021 a nd 11.0 percent in 2022. The rate increase of 38.0 percent would provide revenues sufficient to pay debt service on the Clean Water Fund (CWF) loan for the WWTF project plus the required 10 percent debt coverage. The second rate increase is recommended to allow the Utility to cash fund capital improvements other than the WWTF project without significant negative cash flow. • An increase of 11.0 percent in 2021 and another increase of 38.0 percent in 2022. Since the Utility will not have to make full principal and interest payments on the CWF loan until 2022, the full rate increase needed to provide debt coverage could be delayed until 2022. The smaller increase in 2021, could however, result in the need for larger or more frequent rate increases in future years. • A third option was to implement the rate increase in equal steps in 2021 and 2022. To achieve the overall target of a 46.5 percent rate increase by 2022, two increases of approximately 23.7 percent could be implemented. City of Hudson 2021 Sewer Rate Study 19 Figure 1 - Projected Cash Flow with Zero Increase City of Hudson 2021 Sewer Rate Study 20 Figure 2 - Projected Cash Flow with 2021 Increase City of Hudson 2021 Sewer Rate Study 21 Figure 3 - Projected Cash Flow with Phased-In Increase: 38 Percent in 2021, 11 Percent in 2022 City of Hudson 2021 Sewer Rate Study 22 Figure 4 - Projected Cash Flow with Phased-In Increase: 11 Percent in 2021, 38 Percent in 2022 City of Hudson 2021 Sewer Rate Study 23 Figure 5 - Projected Cash Flow with Phased-In Rate Increase: 23.7 Percent in 2021, 23.7 Percent in 2022 Key findings and recommendations regarding the utility’s financial condition are as follows: • The utility has had fluctuating cash flow for several years but had negative cash flow in 2019, with most of the capital additions being funded through reserves. • Utility reserve levels are above the minimum recommended amount. However, without an increase, reserves are expected to drop below the recommended minimum in 2021 and be completely depleted by 202 4 or 2025, due to the debt service on the treatment plant upgrades. • The utility is currently free of debt. • The utility has utility-financed capital improvements totaling $17.1 million, or an average of $3.4 million per year, planned for the period 20 20-2024, with 12.7 million of that for the 2020/2021 upgrades at the treatment plant. City of Hudson 2021 Sewer Rate Study 24 • An increase in user charge revenues of appr oximately 46.5 percent is recommended to generate sufficient revenues to fund the expected level of expenses, the capital improvement program, and projected debt service while maintaining the cash reserves at the recommended level. A rate increase of 38.0 percent is required to provide revenues sufficient to pay debt service on the Clean Water Fund loan for the WWTF project plus the required 10 percent debt coverage. The remainder of the increase is recommended to allow the Utility to cash fund routine capital improvements to the WWTF and additions and replacements to vehicles, communication equipment and other general equipment without significant negative cash flow. • Additional future rate increases may be warranted , depending on actual sales and expenses. The projected cash flows include 2.0 percent increases every other year, in 2024, 2026 and 2028. With the rate increases and the use of reserves, it is expected that the utility will not need to issue debt for any other planned capital projects anticipated during the next five years and may not need to issue debt for a longer period of time. • Under the recommended plan, approximately $1.5 million of the Utility’s cash reserves would be used to fund a portion of the capital improvement program, with an additional $1.0 million from the City Sewer Collection System Replacement fund used for the Hwy 35 / 2nd Street reconstruction. • In total, with the recommended plan, the Utility’s cash reserves are projected to decrease from $5.9 million to $4.4 million in the Wastewater Utility fund, and from $1.15 million to $453,000 in the Sewer Collection System Fund between 2019 and 2024. The f ollowing tables show the forecast cash flows with the three options for phasing in the recommended rate increase. It should be noted that these future projections of cash flow are for planning purposes only. The City and the Utility should continue to assess the financial, physical, and operational conditions of the utility on an annual basis to respond to changing conditions and make decisions regarding which capital improvement projects to undertake, how those projects should be financed and the appropriate rate increase that may be needed to meet future revenue requirements. City of Hudson 2021 Sewer Rate Study 25 Table 6 - Forecast Cash Flows: 38 Percent Increase in 2021, 11 Percent Increase in 2022 Current Year Test Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Projected Demand Change 6.1% 3.1% 1.6% 1.6% 1.4% 1.7% 1.6% 1.5% 1.7% Customer Growth 128 124 126 127 123 127 125 125 127 Projected Average Expense Change 15.1% 2.2% 2.1% 2.1% 2.1% 2.0% 2.1% 2.1% 2.1% Projected Rate Increase 0.0% 38.0% 11.0% 0.0% 2.0% 0.0% 2.0% 0.0% 2.0% Revenues Subtotal User Charge Revenues $1,944,250 $1,944,250 $2,683,065 $2,978,202 $3,025,398 $3,130,037 $3,184,300 $3,298,628 $3,349,688 $3,475,389 Less: Charges for City/Village Collection Systems (1) ($71,000) ($68,580) ($70,731) ($71,880) ($73,019) ($74,064) ($75,348) ($76,522) ($77,707) ($79,042) Subtotal Other Operating Revenues $42,560 $61,245 $63,212 $41,823 $46,309 $51,030 $52,724 $51,020 $48,581 $49,933 Subtotal Non-Operating Revenues $226,800 $222,746 $231,768 $238,025 $256,213 $227,653 $241,121 $246,402 $236,043 $242,362 Total Cash In $2,142,610 $2,159,661 $2,907,314 $3,186,171 $3,254,902 $3,334,656 $3,402,797 $3,519,527 $3,556,605 $3,688,643 Expenses Subtotal O&M $1,600,354 $1,841,589 $1,881,980 $1,922,322 $1,962,088 $2,004,233 $2,045,203 $2,087,767 $2,131,553 $2,177,285 Debt Service $0 $0 $136,429 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 Capital Outlay $916,750 $13,295,000 $1,690,000 $980,450 $546,364 $562,754 $579,637 $597,026 $614,937 $633,385 Less: New Borrowing $12,700,000 $0 $0 $0 $0 $0 $0 $0 $0 Transfer to General Fund per Intermunicipal Contract $62,000 $63,788 $65,331 $66,091 $67,666 $69,065 $70,255 $71,528 $72,961 $74,211 Less: Transfer from Sewer Collection Replacement Fund (2) $1,000,000 Total Cash Out $2,579,104 $2,500,377 $2,773,741 $3,752,979 $3,360,234 $3,420,169 $3,479,211 $3,540,438 $3,603,567 $3,668,997 Net Cash Flow ($436,494) ($340,716) $133,574 ($566,809) ($105,332) ($85,513) ($76,414) ($20,911) ($46,962) $19,645 Sewer Utility Reserves Beginning Balance $6,321,807 $5,885,313 $5,544,597 $5,678,171 $5,111,362 $5,006,030 $4,920,517 $4,844,103 $4,823,192 $4,776,230 Net Cash Flow ($436,494) ($340,716) $133,574 ($566,809) ($105,332) ($85,513) ($76,414) ($20,911) ($46,962) $19,645 Ending Balance $5,885,313 $5,544,597 $5,678,171 $5,111,362 $5,006,030 $4,920,517 $4,844,103 $4,823,192 $4,776,230 $4,795,876 Unrestricted Reserves $3,840,873 $2,716,040 $2,849,614 $2,282,805 $2,177,473 $2,091,960 $2,015,546 $1,994,635 $1,947,674 $1,967,319 Restricted Reserves $2,044,440 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 Total Reserves $5,885,313 $5,544,597 $5,678,171 $5,111,362 $5,006,030 $4,920,517 $4,844,103 $4,823,192 $4,776,230 $4,795,876 Recommended Reserves Unrestricted Reserves Operating Reserve $400,089 $460,397 $470,495 $480,581 $490,522 $501,058 $511,301 $521,942 $532,888 $544,321 Capital Reserve $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 Restricted Reserves Debt Service $0 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 DNR Grant Replacement Account $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 Total $2,944,529 $3,788,954 $3,799,052 $3,809,137 $3,819,079 $3,829,615 $3,839,857 $3,850,498 $3,861,445 $3,872,878 Sewer Collection System Replacement Fund Beginning Balance $1,076,512 $1,152,300 $1,209,907 $269,321 $329,701 $391,037 $453,251 $516,543 $580,822 $646,095 Transfer from Sewer Utility $59,640 $57,608 $59,414 $60,379 $61,336 $62,213 $63,292 $64,279 $65,274 $66,395 Expenditures (2) $0 ($1,000,000) $0 $0 $0 $0 $0 $0 $0 Ending Balance $1,152,300 $1,209,907 $269,321 $329,701 $391,037 $453,251 $516,543 $580,822 $646,095 $712,491 Notes: (1) Funds transferred to the City and Village for collection system costs. (2) Funds to be used for the Hwy 35 / 2nd Street trunk sewer replacement project in 2021. City of Hudson 2021 Sewer Rate Study 26 Table 7 - Forecast Cash Flows: 11 Percent Increase in 2021, 38 Percent Increase in 2022 Current Year Test Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Projected Demand Change 6.1% 3.1% 1.6% 1.6% 1.4% 1.7% 1.6% 1.5% 1.7% Customer Growth 128 124 126 127 123 127 125 125 127 Projected Average Expense Change 15.1% 2.2% 2.1% 2.1% 2.1% 2.0% 2.1% 2.1% 2.1% Projected Rate Increase 0.0% 11.0% 38.0% 0.0% 2.0% 0.0% 2.0% 0.0% 2.0% Revenues Subtotal User Charge Revenues $1,944,250 $1,944,250 $2,158,118 $2,978,202 $3,025,398 $3,130,037 $3,184,300 $3,298,628 $3,349,688 $3,475,389 Less: Charges for City/Village Collection Systems (1) ($71,000) ($68,580) ($70,731) ($71,880) ($73,019) ($74,064) ($75,348) ($76,522) ($77,707) ($79,042) Subtotal Other Operating Revenues $42,560 $61,245 $63,212 $41,823 $46,309 $51,030 $52,724 $51,020 $48,581 $49,933 Subtotal Non-Operating Revenues $226,800 $222,746 $231,768 $238,025 $256,213 $227,653 $241,121 $246,402 $236,043 $242,362 Total Cash In $2,142,610 $2,159,661 $2,382,367 $3,186,171 $3,254,902 $3,334,656 $3,402,797 $3,519,527 $3,556,605 $3,688,643 Expenses Subtotal O&M $1,600,354 $1,841,589 $1,881,980 $1,922,322 $1,962,088 $2,004,233 $2,045,203 $2,087,767 $2,131,553 $2,177,285 Debt Service $0 $0 $136,429 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 Capital Outlay $916,750 $13,295,000 $1,690,000 $980,450 $546,364 $562,754 $579,637 $597,026 $614,937 $633,385 Less: New Borrowing $12,700,000 $0 $0 $0 $0 $0 $0 $0 $0 Transfer to General Fund per Intermunicipal Contract $62,000 $63,788 $65,331 $66,091 $67,666 $69,065 $70,255 $71,528 $72,961 $74,211 Less: Transfer from Sewer Collection Replacement Fund (2) $1,000,000 Total Cash Out $2,579,104 $2,500,377 $2,773,741 $3,752,979 $3,360,234 $3,420,169 $3,479,211 $3,540,438 $3,603,567 $3,668,997 Net Cash Flow ($436,494) ($340,716) ($391,374) ($566,809) ($105,332) ($85,513) ($76,414) ($20,911) ($46,962) $19,645 Sewer Utility Reserves Beginning Balance $6,321,807 $5,885,313 $5,544,597 $5,153,223 $4,586,414 $4,481,082 $4,395,569 $4,319,155 $4,298,244 $4,251,283 Net Cash Flow ($436,494) ($340,716) ($391,374) ($566,809) ($105,332) ($85,513) ($76,414) ($20,911) ($46,962) $19,645 Ending Balance $5,885,313 $5,544,597 $5,153,223 $4,586,414 $4,481,082 $4,395,569 $4,319,155 $4,298,244 $4,251,283 $4,270,928 Unrestricted Reserves $3,840,873 $2,716,040 $2,324,667 $1,757,858 $1,652,526 $1,567,013 $1,490,599 $1,469,688 $1,422,726 $1,442,372 Restricted Reserves $2,044,440 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 Total Reserves $5,885,313 $5,544,597 $5,153,223 $4,586,414 $4,481,082 $4,395,569 $4,319,155 $4,298,244 $4,251,283 $4,270,928 Recommended Reserves Unrestricted Reserves Operating Reserve $400,089 $460,397 $470,495 $480,581 $490,522 $501,058 $511,301 $521,942 $532,888 $544,321 Capital Reserve $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 Restricted Reserves Debt Service $0 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 DNR Grant Replacement Account $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 Total $2,944,529 $3,788,954 $3,799,052 $3,809,137 $3,819,079 $3,829,615 $3,839,857 $3,850,498 $3,861,445 $3,872,878 Sewer Collection System Replacement Fund Beginning Balance $1,076,512 $1,152,300 $1,209,907 $269,321 $329,701 $391,037 $453,251 $516,543 $580,822 $646,095 Transfer from Sewer Utility $59,640 $57,608 $59,414 $60,379 $61,336 $62,213 $63,292 $64,279 $65,274 $66,395 Expenditures (2) $0 ($1,000,000) $0 $0 $0 $0 $0 $0 $0 Ending Balance $1,152,300 $1,209,907 $269,321 $329,701 $391,037 $453,251 $516,543 $580,822 $646,095 $712,491 Notes: (1) Funds transferred to the City and Village for collection system costs. (2) Funds to be used for the Hwy 35 / 2nd Street trunk sewer replacement project in 2021. City of Hudson 2021 Sewer Rate Study 27 Table 8 - Forecast Cash Flows: 23.7 Percent Increase in 2021, 23.7 Percent Increase in 2022 Current Year Test Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Projected Demand Change 6.1% 3.1% 1.6% 1.6% 1.4% 1.7% 1.6% 1.5% 1.7% Customer Growth 128 124 126 127 123 127 125 125 127 Projected Average Expense Change 15.1% 2.2% 2.1% 2.1% 2.1% 2.0% 2.1% 2.1% 2.1% Projected Rate Increase 0.0% 23.7% 23.7% 0.0% 2.0% 0.0% 2.0% 0.0% 2.0% Revenues Subtotal User Charge Revenues $1,944,250 $1,944,250 $2,405,037 $2,975,031 $3,022,177 $3,126,705 $3,180,909 $3,295,115 $3,346,122 $3,471,689 Less: Charges for City/Village Collection Systems (1) ($71,000) ($68,580) ($70,731) ($71,880) ($73,019) ($74,064) ($75,348) ($76,522) ($77,707) ($79,042) Subtotal Other Operating Revenues $42,560 $61,245 $63,212 $41,823 $46,309 $51,030 $52,724 $51,020 $48,581 $49,933 Subtotal Non-Operating Revenues $226,800 $222,746 $231,768 $238,025 $256,213 $227,653 $241,121 $246,402 $236,043 $242,362 Total Cash In $2,142,610 $2,159,661 $2,629,287 $3,183,000 $3,251,680 $3,331,324 $3,399,407 $3,516,015 $3,553,039 $3,684,942 Expenses Subtotal O&M $1,600,354 $1,841,589 $1,881,980 $1,922,322 $1,962,088 $2,004,233 $2,045,203 $2,087,767 $2,131,553 $2,177,285 Debt Service $0 $0 $136,429 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 Capital Outlay $916,750 $13,295,000 $1,690,000 $980,450 $546,364 $562,754 $579,637 $597,026 $614,937 $633,385 Less: New Borrowing $12,700,000 $0 $0 $0 $0 $0 $0 $0 $0 Transfer to General Fund per Intermunicipal Contract $62,000 $63,788 $65,331 $66,091 $67,666 $69,065 $70,255 $71,528 $72,961 $74,211 Less: Transfer from Sewer Collection Replacement Fund (2) $1,000,000 Total Cash Out $2,579,104 $2,500,377 $2,773,741 $3,752,979 $3,360,234 $3,420,169 $3,479,211 $3,540,438 $3,603,567 $3,668,997 Net Cash Flow ($436,494) ($340,716) ($144,454) ($569,980) ($108,553) ($88,846) ($79,805) ($24,423) ($50,528) $15,945 Sewer Utility Reserves Beginning Balance $6,321,807 $5,885,313 $5,544,597 $5,400,143 $4,830,163 $4,721,610 $4,632,764 $4,552,959 $4,528,536 $4,478,008 Net Cash Flow ($436,494) ($340,716) ($144,454) ($569,980) ($108,553) ($88,846) ($79,805) ($24,423) ($50,528) $15,945 Ending Balance $5,885,313 $5,544,597 $5,400,143 $4,830,163 $4,721,610 $4,632,764 $4,552,959 $4,528,536 $4,478,008 $4,493,953 Unrestricted Reserves $3,840,873 $2,716,040 $2,571,586 $2,001,606 $1,893,053 $1,804,207 $1,724,403 $1,699,980 $1,649,451 $1,665,396 Restricted Reserves $2,044,440 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 $2,828,557 Total Reserves $5,885,313 $5,544,597 $5,400,143 $4,830,163 $4,721,610 $4,632,764 $4,552,959 $4,528,536 $4,478,008 $4,493,953 Recommended Reserves Unrestricted Reserves Operating Reserve $400,089 $460,397 $470,495 $480,581 $490,522 $501,058 $511,301 $521,942 $532,888 $544,321 Capital Reserve $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 Restricted Reserves Debt Service $0 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 $784,117 DNR Grant Replacement Account $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 $2,044,440 Total $2,944,529 $3,788,954 $3,799,052 $3,809,137 $3,819,079 $3,829,615 $3,839,857 $3,850,498 $3,861,445 $3,872,878 Sewer Collection System Replacement Fund Beginning Balance $1,076,512 $1,152,300 $1,209,907 $269,321 $329,701 $391,037 $453,251 $516,543 $580,822 $646,095 Transfer from Sewer Utility $59,640 $57,608 $59,414 $60,379 $61,336 $62,213 $63,292 $64,279 $65,274 $66,395 Expenditures (2) $0 ($1,000,000) $0 $0 $0 $0 $0 $0 $0 Ending Balance $1,152,300 $1,209,907 $269,321 $329,701 $391,037 $453,251 $516,543 $580,822 $646,095 $712,491 Notes: (1) Funds transferred to the Village and the City for collection system costs. (2) Funds to be used for the Hwy 35 / 2nd Street trunk sewer replacement project in 2021. City of Hudson 2021 Sewer Rate Study 28 REVENUE REQUIREMENTS AND COST-OF-SERVICE ANALYSIS The tables attached to this report as an appendix show the detailed revenue requirements and the cost of service analysis based on projected 2022 revenue requirements . The cost of service analysis allocates the utility’s revenue requirements first to utility functions and then to each customer class. Rates were calculated to recover the costs for 2022, and then stepped -in rates for 2021 were developed to phase in the rate increase . Finally, the estimated revenues at the proposed rates for 2020 through 2022 were calculated . Utility revenue requirements include operation and maintenance expense, debt service, and capital improvements. Costs were first allocated to the functions served by the utility. Each of the utility’s costs was split between costs to provide collector sewer conveyance, wastewater treatment for average daily volume, costs to provide peak (maximum day) treatment capacity, costs to treat pollutant loadings (BOD, TSS, phosphorus and NH -3), and customer costs that are relatively fixed per customer or meter. Costs were then allocated to each customer class (residential, multi -family, commercial, industrial, public authority ) based on the demand characteristics of each customer class. A portion of the conveyance system, average day and peak d ay flow costs were allocated to infiltration and inflow (I/I) based on forecast percentage of I/I on an average and peak day basis. Costs allocated to I/I are proposed to be recovered through the flat charge, as the amount of I/I in the system is related more closely to the number of customers, size of sewer laterals and feet of sewer main rather than the volume of wastewater generated by each customer. PROPOSED RATE SCHEDULE The targeted overall increase in user charge revenues by 2022 is approximately 46.5 percent. The following tables show the specific schedule of rates for 2021 and 2022 under each of the three options for phasing in the rate increase. Rate increases for specific types of charges vary from the overall rate increase. City of Hudson 2021 Sewer Rate Study 29 Table 9 - Proposed Phased-In Rate Schedule – Increase of 38 Percent in 2021 and 11 Percent in 2022 City of Hudson 2021 Sewer Rate Study 30 Table 10 - Proposed Phased-In Rate Schedule – Increase of 11 Percent in 2021 and 38 Percent in 2022 Flat Charge Connection Size Current Charge 2020 Percent Change 2021 Percent Change 2022 Percent Change 5/8 $7.60 $7.60 0% $9.28 22% $12.80 38% 3/4 $7.60 $7.60 0% $9.28 22% $12.80 38% 1 $8.45 $8.45 0% $17.46 107% $24.10 38% 1 1/4 $9.50 $9.50 0% $24.71 160% $34.10 38% 1 1/2 $10.35 $10.35 0% $31.96 209% $44.10 38% 2 $11.15 $11.15 0% $50.00 348% $69.00 38% 2 1/2 $11.70 $11.70 0% $70.65 504% $97.50 38% 3 $12.50 $12.50 0% $86.59 593% $119.50 38% 4 $0.00 $0.00 NA $137.10 NA $189.20 38% 6 $0.00 $0.00 NA $257.25 NA $355.00 38% 8 $0.00 $0.00 NA $400.65 NA $552.90 38% 10 $0.00 $0.00 NA $590.36 NA $814.70 38% 12 $0.00 $0.00 NA $780.14 NA $1,076.60 38% Usage Charges Units Current Rate 2020 Percent Change 2021 Percent Change 2022 Percent Change Domestic Sewage $/CCF $3.00 $3.00 0% $3.08 3% $4.25 38% Landfill Leachate $/CCF $0.00 $2.01 NA $2.23 11% $3.08 38% $/1,000 gals $0.00 $2.68 NA $2.98 11% $4.11 38% per load $0.00 $0.44 NA $0.49 11% $0.68 38% Surcharge Rates BOD $/pound $0.00 $0.50 NA $0.55 11% $0.76 38% TSS $/pound $0.00 $0.47 NA $0.52 11% $0.72 38% Phosphorus $/pound $0.00 $4.18 NA $4.64 11% $6.40 38% TKN $/pound $0.00 $0.79 NA $0.88 11% $1.21 38% City of Hudson 2021 Sewer Rate Study 31 Table 11 - Proposed Phased-In Rate Schedule – Increase of 23.7 Percent in 2021 and 23.7 Percent in 2022 COMMUNITY RATE COMPARISON To provide context for the proposed rates for Hudson, a comparison with the sewer user rates charged by other communities in the region was prepared. The two communities in Minnesota included in the comparison were chosen because they have their own wastewater treatment plant and are comparable to Hudson. The basis of the charges, and the estimated total annual bill for a residential customer for each community are shown in the following table. As shown, for a customer using 4,850 cubic feet or 36,278 gallons of water per year, the estimated annual sewer bill under current Hudson rates would be $175.90 per year. Under the proposed rates for 2022, this would increase to $ 257.33, or a total increase of $ 20.36 per quarter. Even with th e Flat Charge Connection Size Current Charge 2020 Percent Change 2021 Percent Change 2022 Percent Change 5/8 $7.60 $7.60 0% $10.35 36% $12.80 24% 3/4 $7.60 $7.60 0% $10.35 36% $12.80 24% 1 $8.45 $8.45 0% $19.48 131% $24.10 24% 1 1/4 $9.50 $9.50 0% $27.57 190% $34.10 24% 1 1/2 $10.35 $10.35 0% $35.65 244% $44.10 24% 2 $11.15 $11.15 0% $55.78 400% $69.00 24% 2 1/2 $11.70 $11.70 0% $78.74 573% $97.40 24% 3 $12.50 $12.50 0% $96.60 673% $119.50 24% 4 $0.00 $0.00 NA $152.95 NA $189.20 24% 6 $0.00 $0.00 NA $286.98 NA $355.00 24% 8 $0.00 $0.00 NA $446.89 NA $552.80 24% 10 $0.00 $0.00 NA $658.61 NA $814.70 24% 12 $0.00 $0.00 NA $870.25 NA $1,076.50 24% Usage Charges Units Current Rate 2020 Percent Change 2021 Percent Change 2022 Percent Change Domestic Sewage $/CCF $3.00 $3.00 0% $3.44 15% $4.25 24% Landfill Leachate $/CCF $0.00 $2.01 NA $2.48 24% $3.07 24% $/1,000 gals $0.00 $2.69 NA $3.32 24% $4.11 24% per load $0.00 $0.44 NA $0.55 24% $0.68 24% Surcharge Rates BOD $/pound $0.00 $0.50 NA $0.61 24% $0.76 24% TSS $/pound $0.00 $0.47 NA $0.58 24% $0.72 24% Phosphorus $/pound $0.00 $4.18 NA $5.17 24% $6.39 24% TKN $/pound $0.00 $0.79 NA $0.98 24% $1.21 24% City of Hudson 2021 Sewer Rate Study 32 increase, the average bill would remain significantly below the average or median bill for the other regional communities. Table 12 - Regional Comparison of Average Residential Bills A similar comparison was prepared for a n average non -residential customer in Hudson using 28,700 cubic feet , or 214,676 gallons per year , with a 3/4” meter . Under current rates , this customer would receive an annual bill of $ 894.80. Under the proposed increase for 2022, the annual bill would increase to $1,316.15, or an increase of $105.34 per quarter. Again, this would keep the average non-residential bill well below the median for the region. City of Hudson 2021 Sewer Rate Study 33 Table 13 - Regional Comparison of Average Non-Residential Bills RECOMMENDATIONS It is recommended that the City phase in the rate increase according to one of the schedules shown in Tables 8-10 and continue to monitor the financial health of the utility for the necessity of additional future rate increases as presented in the cash flow forecasts. This will allow the Wastewater Utility to generate the revenue needed to provide adequate funding for the utility’s operation and maintenance expenses and capital improvement program while maintaining the utility’s reserve funds at the recommended levels. City of Hudson 2021 Sewer Rate Study 34 APPENDIX A – SEWER UTILITY COST OF SERVICE STUDY AND PROPOSED RATE DESIGN Allocation of Operation and Maintenance Expenses to Service Cost Functions YEAR 2022 CONVEYANCE Acct No. Alloc No. Account Description Total Collection System Interceptor System Average Peak BOD TSS P NH-3 Billing Equivalent Meter Equivalent Service ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) WASTEWATER TREATMENT & DISPOSAL 5 Salaries and Wages 219,906 43,981 0 65,972 65,972 21,991 21,991 5 FICA 15,963 3,193 0 4,789 4,789 1,596 1,596 5 Retirement 14,355 2,871 0 4,306 4,306 1,435 1,435 5 Health Insurance 83,156 16,631 0 24,947 24,947 8,316 8,316 7 Utilities - Electricity 111,675 44,670 0 27,919 22,335 11,168 5,584 7 Utilities - Gas 14,166 5,666 0 3,542 2,833 1,417 708 Propor. Contractual Services 142,245 0 0 18,383 0 56,161 45,880 11,404 10,416 0 0 0 8 Chemicals 29,056 0 0 17,433 0 5,811 5,811 Propor. Supplies 58,135 0 0 7,513 0 22,953 18,751 4,661 4,257 0 0 0 6 Biosolids Charges 417,139 0 0 208,570 166,856 20,857 20,857 Propor. Other Services & Charges 0 0 0 0 0 0 0 0 0 0 0 0 LIFT STATIONS & PUMPING EQUIPMENT 1 Salaries and Wages 27,536 22,947 4,589 0 0 0 0 1 GASB 68 22,469 18,724 3,745 0 0 0 0 1 FICA 2,024 1,687 337 0 0 0 0 1 Retirement 1,843 1,536 307 0 0 0 0 1 Health Insurance 9,336 7,780 1,556 0 0 0 0 1 Utilities - Electricity 22,297 18,581 3,716 0 0 0 0 1 Utilities - Gas 364 303 61 0 0 0 0 1 Contractual Services 6,228 5,190 1,038 0 0 0 0 1 Supplies 909 757 151 0 0 0 0 1 Other Services & Charges 0 0 0 0 0 0 0 WASTEWATER COLLECTION SYSTEM Coll Salaries and Wages 91,804 91,804 Coll FICA 6,675 6,675 Coll Retirement 6,116 6,116 Coll Health Insurance 31,584 31,584 Coll Contractual Services 57,115 57,115 Coll Supplies 3,947 3,947 Coll Other Services & Charges 0 0 DAMS Propor. Salaries and Wages 2,879 407 0 455 32 900 735 183 167 0 0 0 Propor. FICA 213 30 0 34 2 67 54 14 12 0 0 0 Propor. Retirement 193 27 0 30 2 60 49 12 11 0 0 0 Propor. Health Insurance 1,119 158 0 177 12 350 286 71 65 0 0 0 Propor. Contractual Services 1,934 273 0 305 21 605 494 123 112 0 0 0 Propor. Utilities - Electricity 803 113 0 127 9 251 205 51 47 0 0 0 Propor. Supplies 0 0 0 0 0 0 0 0 0 0 0 0 METER READING Cust Salaries and Wages 11,195 11,195 Cust FICA 796 796 CUSTOMER COSTS TREATMENT PLANT FLOW WASTE TREATMENT 35 YEAR 2022 CONVEYANCE Acct No. Alloc No. Account Description Total Collection System Interceptor System Average Peak BOD TSS P NH-3 Billing Equivalent Meter Equivalent Service CUSTOMER COSTS TREATMENT PLANT FLOW WASTE TREATMENT Cust Retirement 709 709 Cust Health Insurance 3,398 3,398 Cust Contractual Services 856 856 Propor. Supplies 6,439 538 5,901 Meter Meter Use Charge Paid to Water Utility 185,973 185,973 1,612,549 198,250 0 221,542 15,580 438,825 358,494 89,109 81,385 17,491 191,874 0 Subtotal for allocation of G & A expenses 1,612,549 198,250 0 221,542 15,580 438,825 358,494 89,109 81,385 17,491 191,874 0 PERCENTAGE 12.29% 0.00% 13.74% 0.97% 27.21% 22.23% 5.53% 5.05% 1.08% 11.90% 0.00% GENERAL AND ADMINISTRATIVE EXPENSES Gen Salaries and Wages 135,699 16,683 0 18,643 1,311 36,928 30,168 7,499 6,849 1,472 16,147 0 Gen GASB 68 21,931 2,696 0 3,013 212 5,968 4,876 1,212 1,107 238 2,610 0 Gen FICA 9,941 1,222 0 1,366 96 2,705 2,210 549 502 108 1,183 0 Gen Retirement 9,080 1,116 0 1,248 88 2,471 2,019 502 458 98 1,080 0 Gen Health Insurance 45,282 5,567 0 6,221 438 12,323 10,067 2,502 2,285 491 5,388 0 Gen Contractual Services 27,708 3,406 0 3,807 268 7,540 6,160 1,531 1,398 301 3,297 0 Gen Supplies 4,344 534 0 597 42 1,182 966 240 219 47 517 0 Gen Insurance 55,787 6,859 0 7,664 539 15,181 12,402 3,083 2,816 605 6,638 0 Gen Other Services & Charges 0 0 0 0 0 0 0 0 0 0 0 0 309,773 38,084 0 42,559 2,993 84,299 68,867 17,118 15,634 3,360 36,859 0 1,922,322 236,334 0 264,100 18,573 523,124 427,361 106,227 97,019 20,851 228,733 0TOTAL SUBTOTAL SUBTOTAL 36 Allocation of Total Plant to Service Cost Functions CONVEYANCE Acct No. Alloc No. Account Description Average Balance Collection System Interceptor System Average Peak BOD TSS P NH-3 Billing Equivalent Meter Equivalent Service ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) INTANGIBLE PROPERTY Cust Misc. intangible property 0 0 COLLECTION SYSTEM Prop. Land and land rights 0 0 0 0 0 0 0 0 0 0 0 0 Serv. Service connections, traps and accessories 0 0 Coll Collecting mains 680,920 680,920 Int Interceptor mains 0 0 Int Force mains 0 0 Coll Structures and improvements 0 0 Coll Receiving wells 0 0 Coll Electric pumping equipment 0 0 Prop. Other power pumping equipment 0 0 0 0 0 0 0 0 0 0 0 0 Prop. Misc. pumping equipment 12,400 12,400 0 0 0 0 0 0 0 0 0 0 TREATMENT AND DISPOSAL PLANT Prop. Land and land rights 129,856 35,193 1,050 34,258 38,922 10,247 10,187 5 Structures and improvements 10,547,988 2,109,598 0 3,164,396 3,164,396 1,054,799 1,054,799 5 Electrical controls 804,635 160,927 0 241,391 241,391 80,464 80,464 3 Preliminary treatment equipment 940,714 611,464 0 0 329,250 0 0 2 Primary treatment equipment 207,974 103,987 0 20,797 83,189 0 0 5 Secondary treatment equipment 1,253,173 250,635 0 375,952 375,952 125,317 125,317 6 Advanced treatment equipment 925,800 0 0 462,900 370,320 46,290 46,290 8 Chlorination equipment 83,276 0 0 49,966 0 16,655 16,655 2 Sludge treatment and disposal equipment 1,006,547 503,274 0 100,655 402,619 0 0 2 Biogas equipment 221,334 110,667 0 22,133 88,534 0 0 1 Plant site piping 823,504 686,253 137,251 0 0 0 0 7 Flow metering equipment 157,484 62,994 0 39,371 31,497 15,748 7,874 1 Outfall sewer pipes 0 0 0 0 0 0 0 Prop. Other treatment and disposal plant equipment 645,902 175,050 5,223 170,398 193,596 50,967 50,668 SUBTOTAL TREATMENT AND DISPOSAL 17,748,187 0 0 4,810,040 143,524 4,682,217 5,319,665 1,400,487 1,392,253 0 0 0 PERCENTAGE 0.00% 0.00% 27.10% 0.81% 26.38% 29.97% 7.89% 7.84% 0.00% 0.00% 0.00% SUBTOTAL COLLECTION, TREATMENT AND DISPOSAL 18,441,507 693,320 0 4,810,040 143,524 4,682,217 5,319,665 1,400,487 1,392,253 0 0 0 PERCENTAGE 3.76% 0.00% 26.08% 0.78% 25.39% 28.85% 7.59% 7.55% 0.00% 0.00% 0.00% TREATMENT PLANT FLOW WASTE TREATMENT CUSTOMER COSTS 37 CONVEYANCE Acct No. Alloc No. Account Description Average Balance Collection System Interceptor System Average Peak BOD TSS P NH-3 Billing Equivalent Meter Equivalent Service TREATMENT PLANT FLOW WASTE TREATMENT CUSTOMER COSTS GENERAL PLANT Gen Structure and improvements 819,800 30,821 0 213,826 6,380 208,144 236,481 62,257 61,891 0 0 0 Gen Office furniture and equipment 25,067 942 0 6,538 195 6,364 7,231 1,904 1,892 0 0 0 Gen Computers 47,520 1,787 0 12,394 370 12,065 13,708 3,609 3,588 0 0 0 Gen SCADA equipment 325,863 12,251 0 84,994 2,536 82,735 93,999 24,747 24,601 0 0 0 Gen Transportation equipment 397,393 14,940 0 103,651 3,093 100,896 114,632 30,179 30,001 0 0 0 8 Laboratory and monitoring equipment 5,879 0 0 3,528 0 1,176 1,176 Gen Other general equipment 17,256 649 0 4,501 134 4,381 4,978 1,310 1,303 0 0 0 Gen Communication equipment 83,805 3,151 0 21,859 652 21,278 24,175 6,364 6,327 0 0 0 1,722,583 64,541 0 447,762 13,361 439,391 495,203 131,546 130,780 0 0 0 TOTAL 20,164,091 757,861 0 5,257,803 156,884 5,121,608 5,814,868 1,532,033 1,523,033 0 0 0 38 Allocation of Debt to Service Cost Functions CONVEYANCE Acct No. Alloc No. Account Description Capital Financed through Debt Collection System Interceptor System Average Peak BOD TSS P NH-3 Billing Equivalent Meter Equivalent Service ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) INTANGIBLE PROPERTY Cust Misc. intangible property 0 0 COLLECTION SYSTEM Prop. Land and land rights 0 Serv. Service connections, traps and accessories 0 0 Coll Collecting mains 0 0 Int Interceptor mains 0 0 Int Force mains 0 0 Coll Structures and improvements 0 0 Coll Receiving wells 0 0 Coll Electric pumping equipment 0 0 Prop. Other power pumping equipment 0 Prop. Misc. pumping equipment 0 TREATMENT AND DISPOSAL PLANT Prop. Land and land rights 0 0 0 0 0 0 0 5 Structures and improvements 5,855,900 1,171,180 0 1,756,770 1,756,770 585,590 585,590 5 Electrical controls 0 0 0 0 0 0 0 3 Preliminary treatment equipment 1,318,700 857,155 0 0 461,545 0 0 2 Primary treatment equipment 0 0 0 0 0 0 0 5 Secondary treatment equipment 832,900 166,580 0 249,870 249,870 83,290 83,290 6 Advanced treatment equipment 1,750,000 0 0 875,000 700,000 87,500 87,500 8 Chlorination equipment 0 0 0 0 0 0 0 2 Sludge treatment and disposal equipment 1,147,400 573,700 0 114,740 458,960 0 0 2 Biogas equipment 0 0 0 0 0 0 0 1 Plant site piping 396,500 330,417 66,083 0 0 0 0 7 Flow metering equipment 0 0 0 0 0 0 0 1 Outfall sewer pipes 0 0 0 0 0 0 0 Prop. Other treatment and disposal plant equipment 279,700 76,698 1,636 74,158 89,769 18,720 18,720 SUBTOTAL 11,581,100 0 0 3,175,730 67,719 3,070,538 3,716,914 775,100 775,100 0 0 0 PERCENTAGE 0.00% 0.00% 27.42% 0.58% 26.51% 32.09% 6.69% 6.69% 0.00% 0.00% 0.00% TREATMENT PLANT FLOW WASTE TREATMENT CUSTOMER COSTS 39 CONVEYANCE Acct No. Alloc No. Account Description Capital Financed through Debt Collection System Interceptor System Average Peak BOD TSS P NH-3 Billing Equivalent Meter Equivalent Service TREATMENT PLANT FLOW WASTE TREATMENT CUSTOMER COSTS GENERAL PLANT Gen Structure and improvements 207,800 0 0 56,982 1,215 55,095 66,693 13,908 13,908 0 0 0 Gen Office furniture and equipment 0 0 0 0 0 0 0 0 0 0 0 0 Gen Computers 64,600 0 0 17,714 378 17,128 20,733 4,324 4,324 0 0 0 Gen SCADA equipment 145,400 0 0 39,871 850 38,550 46,666 9,731 9,731 0 0 0 Gen Transportation equipment 0 0 0 0 0 0 0 0 0 0 0 0 8 Laboratory and monitoring equipment 0 0 0 0 0 0 0 Gen Other general equipment 0 0 0 0 0 0 0 0 0 0 0 0 Gen Communication equipment 0 0 0 0 0 0 0 0 0 0 0 0 417,800 0 0 114,568 2,443 110,773 134,091 27,963 27,963 0 0 0 TOTAL 11,998,900 0 0 3,290,298 70,162 3,181,311 3,851,005 803,062 803,062 0 0 0 40 Summary of Allocation of Operating Costs to Service Cost Functions YEAR 2022 Retail Rate of Return 3.90% Net Asset Base 17,648,242 CONVEYANCE Operating Cost Total Collection System O&M Interceptor System O&M Collection System Replacement Average Peak BOD TSS P NH-3 Billing Equivalent Meter Equivalent Service ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Operation and Maintenance 1,922,322 236,334 0 264,100 18,573 523,124 427,361 106,227 97,019 20,851 228,733 0 Debt Service 784,117 0 0 215,018 4,585 207,896 251,659 52,479 52,479 0 0 0 City Sewer Collection System Replacement 60,379 60,379 North Hudson Collection System Allowance 11,501 11,501 Other Capital Improvements 253,207 0 0 68,623 2,048 66,800 75,894 19,980 19,863 0 0 0 Total 3,031,526 236,334 0 71,880 547,741 25,206 797,819 754,914 178,686 169,361 20,851 228,733 0 Wholesale Rate of Return 3.90% Net Asset Base 17,648,242 CONVEYANCE Operating Cost Total Collection System O&M Interceptor System O&M Collection System Replacement Average Peak BOD TSS P NH-3 Billing Equivalent Meter Equivalent Service ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Operation and Maintenance 1,922,322 236,334 0 264,100 18,573 523,124 427,361 106,227 97,019 20,851 228,733 0 Debt Service 784,117 0 0 215,018 4,585 207,896 251,659 52,479 52,479 0 0 0 City Sewer Collection System Replacement 60,379 60,379 North Hudson Collection System Allowance 11,501 11,501 Other Capital Improvements 253,207 0 0 68,623 2,048 66,800 75,894 19,980 19,863 0 0 0 Total 3,031,526 236,334 0 71,880 547,741 25,206 797,819 754,914 178,686 169,361 20,851 228,733 0 Overall Rate of Return 3.90% Net Asset Base 17,648,242 CONVEYANCE Operating Cost Total Collection System O&M Interceptor System O&M Other Collection System Average Peak BOD TSS P NH-3 Billing Equivalent Meter Equivalent Service ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Operation and Maintenance 1,922,322 236,334 0 264,100 18,573 523,124 427,361 106,227 97,019 20,851 228,733 0 Debt Service 784,117 0 0 215,018 4,585 207,896 251,659 52,479 52,479 0 0 0 City Sewer Collection System Replacement 60,379 60,379 North Hudson Collection System Allowance 11,501 11,501 Other Capital Improvements 253,207 0 0 68,623 2,048 66,800 75,894 19,980 19,863 0 0 0 Total 3,031,526 236,334 0 71,880 547,741 25,206 797,819 754,914 178,686 169,361 20,851 228,733 0 TREATMENT PLANT FLOW WASTE TREATMENT CUSTOMER COSTS TREATMENT PLANT FLOW WASTE TREATMENT CUSTOMER COSTS TREATMENT PLANT FLOW WASTE TREATMENT CUSTOMER COSTS 41 Customer Class Demand Allocation YEAR 2022 Billing Units - CCF Customer Class Annual Volume Average Day Volume System Percent (%) Collection Percent (%) Collection System Replace. Percent (%) Max Day / Average Day Ratio Extra Capacity Ratio Extra Capacity Volume Rate Per Day Percent (%) System Adjust. Percentage (%) Coll. Adjust. Percentage (%) Waste Strength (mg/l) Loadings (lbs) Percent (%) Waste Strength (mg/l) Loadings (lbs) Percent (%) Waste Strength (mg/l) Loadings (lbs) Percent (%) Waste Strength (mg/l) Loadings (lbs) Percent (%) Residential 345,061 94,537 44.72% 44.74% 57.63% 1.20 0.20 18,907 57.59% 57.59% 57.63% 300 863,343 57.62% 300 863,343 57.60% 8.0 23,022 57.60% 40.0 115,112 57.60% Multi-Family 67,171 18,403 8.71% 8.71% 11.22% 1.20 0.20 3,681 11.21% 11.21% 11.22% 300 168,062 11.22% 300 168,062 11.21% 8.0 4,482 11.21% 40.0 22,408 11.21% Commercial 160,720 44,033 20.83% 20.84% 26.84% 1.20 0.20 8,807 26.82% 26.82% 26.84% 300 402,123 26.84% 300 402,123 26.83% 8.0 10,723 26.83% 40.0 53,616 26.83% Industrial 3,328 912 0.43% 0.43% 0.56% 1.20 0.20 182 0.56% 0.56% 0.56% 300 8,327 0.56% 300 8,327 0.56% 8.0 222 0.56% 40.0 1,110 0.56% Public Authority 22,469 6,156 2.91% 2.91% 3.75% 1.20 0.20 1,231 3.75% 3.75% 3.75% 300 56,217 3.75% 300 56,217 3.75% 8.0 1,499 3.75% 40.0 7,496 3.75% Landfill Leachate 297 81 0.04% 0.00% 0.00% 1.30 0.30 24 0.07% 0.07% 0.00% 100 248 0.02% 300 744 0.05% 8.0 20 0.05% 40.0 99 0.05% Inflow / Infiltration 172,501 47,261 22.36% 22.37% 0.00% 1.00 0.00 - 0.00% 0.00% 0.00% - - 0.00% - - 0.00% - - 0.00% - - 0.00% Total 771,548 211,383 100.0% 100.0% 100.0% 32,833 100.0% 100.0% 100.0% 1,498,320 100.0% 1,498,816 100.0% 39,968 100.0% 199,842 100.0% BASE DEMAND EXTRA-CAPACITY MAX DAY DEMAND TREATMENT CATEGORIES BOD TSS P NH3 42 Consumer Costs Allocation Factors Number of Meters Customer Class 5/8 3/4 1 1 1/4 1 1/2 2 3 4 6 8 10 12 Total Meters Percent Total Residential 6,706 248 6 1 6,961 90.87% Multi-Family 11 7 17 18 19 6 1 79 1.03% Commercial 322 37 98 66 28 3 - 554 7.23% Industrial 10 2 7 5 2 26 0.34% Public Authority 15 - 7 7 4 5 2 - 40 0.52% Total 7,064 294 135 0 97 51 16 2 1 0 0 0 7,660 Equivalent Meters Allocation factor: Total Meter Size (Inches): 5/8 3/4 1 1 1/4 1 1/2 2 3 4 6 8 10 12 Equiv. Percent Equiv. Meters Ratio: 1 1.0 2.5 3.7 5 8 15 25 50 80 120 160 Meters Total Customer Class Residential 6,706 248 15 - 5 - - - - - - - 6,974 78.11% Multi-Family 11 7 43 - 90 152 90 - 50 - - - 443 4.96% Commercial 322 37 245 - 330 224 45 - - - - - 1,203 13.47% Industrial 10 2 18 - 25 - 30 - - - - - 85 0.95% Public Authority 15 - 18 - 35 32 75 50 - - - - 225 2.51% Total 7,064 294 338 0 485 408 240 50 50 0 0 0 8,929 100.00% Equivalent Services Allocation factor: Total Meter Size (Inches): 5/8 3/4 1 1 1/4 1 1/2 2 3 4 6 8 10 12 Equiv. Percent Equiv. Services Ratio: 1 1.0 1.3 1.7 2 3 4 5 6 7 8 9 Services Total Customer Class Residential 6,706 248 8 - 2 - - - - - - - 6,964 87.48% Multi-Family 11 7 22 - 36 57 24 - 6 - - - 163 2.05% Commercial 322 37 127 - 132 84 12 - - - - - 714 8.97% Industrial 10 2 9 - 10 - 8 - - - - - 39 0.49% Public Authority 15 - 9 - 14 12 20 10 - - - - 80 1.01% Total 7,064 294 176 0 194 153 64 10 6 0 0 0 7,961 100.00% 43 Allocation of Service Cost Functions to Customer Classes - Combined Retail and Wholesale ROI TEST YEAR 2022 CASH BASIS Total Residential Multi-Family Commercial Industrial Public Authority Landfill Leachate Infiltration / Inflow ($) ($) ($) ($) ($) ($) ($) ($) CONVEYANCE COSTS: Collection O&M 236,334 105,737 20,583 49,249 1,020 6,885 0 52,860 Interceptor O&M 0 0 0 0 0 0 0 0 Other Collection System 71,880 41,425 8,064 19,295 400 2,697 0 0 FLOW COSTS: Average Flow 547,741 244,968 47,686 114,099 2,363 15,951 211 122,463 Peak Flow 25,206 14,515 2,826 6,761 140 945 19 0 TREATMENT COSTS: BOD 797,819 459,709 89,489 214,121 4,434 29,934 132 0 TSS 754,914 434,844 84,648 202,539 4,194 28,315 375 0 P 178,686 102,926 20,036 47,940 993 6,702 89 0 NH-3 169,361 97,555 18,990 45,439 941 6,352 84 0 Billing 20,851 18,948 215 1,508 71 109 0 Equivalent Meters 228,733 178,662 11,336 30,819 2,165 5,751 0 Equivalent Services 0 0 0 0 0 0 0 SUBTOTAL COST before I/I 3,031,526 1,699,289 303,874 731,770 16,719 103,643 909 175,323 1 I/I Allocation % 70% 7% 19% 1% 3% 0% TOTAL COST after I/I 3,031,526 1,822,099 316,883 764,795 18,037 108,803 909 LESS OTHER REVENUE 41,837 24,891 4,451 10,719 245 1,518 13 59% 11% 26% 1% 4% 0% COST OF SERVICES 2,989,690 1,797,208 312,432 754,077 17,792 107,285 896 REVENUE AT PRESENT RATES 2,031,586 1,246,830 204,527 500,519 10,893 68,818 0 DIFFERENCE 958,104 550,378 107,905 253,558 6,899 38,467 896 PERCENT INCREASE/DECREASE 47.16% 44.14% 52.76% 50.66% 63.34% 55.90% #DIV/0! CUSTOMER COSTS: 44 General Service Charge Calculation Cost of Service Allocated I/I Units Annual Billing Periods Cost per Billing Cycle ($/Unit) Billing Cycle - Quarterly Billing Cost $20,851 $0 7,660 4 $0.68 Equivalent Meters $228,733 $0 8,929 4 $6.40 Equivalent Services $0 $175,323 7,961 4 $5.51 $249,584 $175,323 Size of Connection Billing Cost ($/unit) Equivalent Meter Ratio Meter Cost ($/unit) Equivalent Service Ratio Service Cost ($/unit) Calculated Charge ($/unit) Present Charge ($/unit) Proposed Service Charge ($/unit) No. Connections Revenues at Present Rates Revenues at Proposed Rates 5/8-inch $0.68 1.0 $6.40 1.0 $5.51 $12.59 $7.60 $12.80 7,064 $214,746 $361,677 3/4-inch $0.68 1.0 $6.40 1.0 $5.51 $12.59 $7.60 $12.80 294 $8,938 $15,053 1-inch $0.68 2.5 $16.01 1.3 $7.16 $23.85 $8.45 $24.10 135 $4,563 $13,014 1 1/4-inch $0.68 3.7 $23.70 1.7 $9.36 $33.74 $9.50 $34.10 - $0 $0 1 1/2-inch $0.68 5.0 $32.02 2.0 $11.01 $43.72 $10.35 $44.10 97 $4,016 $17,111 2-inch $0.68 8.0 $51.24 3.0 $16.52 $68.44 $11.15 $69.00 51 $2,275 $14,076 2 1/2-inch $0.68 12.0 $76.85 3.5 $19.27 $96.81 $11.70 $97.50 - $0 $0 3-inch $0.68 15.0 $96.07 4.0 $22.02 $118.77 $12.50 $119.50 16 $800 $7,648 4-inch $0.68 25.0 $160.11 5.0 $27.53 $188.32 $189.20 2 $0 $1,514 6-inch $0.68 50.0 $320.23 6.0 $33.04 $353.95 $355.00 1 $0 $1,420 8-inch $0.68 80.0 $512.37 7.0 $38.54 $551.59 $552.90 - $0 $0 10-inch $0.68 120.0 $768.55 8.0 $44.05 $813.28 $814.70 - $0 $0 12-inch $0.68 160.0 $1,024.73 9.0 $49.55 $1,074.97 $1,076.60 - $0 $0 Total 7,660 $235,337 $431,512 Cost of Service $424,906 Percent of Cost 101.6% 45 Volumetric and Surcharge Rate Calculation Total Residential Multi-Family Commercial Industrial Public Authority Landfill Leachate Allocated Cost - Volumetric $2,564,783 $1,476,788 $287,872 $688,724 $14,238 $96,265 $896 Billable Units CCF 599,047 345,061 67,171 160,720 3,328 22,469 297 Calculated Rate $ / CCF $4.28 $4.29 $4.29 $4.28 $4.28 $3.01 Proposed Rate $ / CCF $4.25 $4.25 $4.25 $4.25 $4.25 $3.08 Allocated Cost - BOD $797,819 Billable Units - 1,000 Gallons 222 Billable Units Pounds 1,069,090 Calculated Rate - 1,000 Gallons $4.03 Calculated Rate $ / lb. $0.746 Proposed Rate - 1,000 Gallons $4.11 Proposed Rate $0.76 Allocated Cost - TSS $754,914 Billable Units Pounds 1,069,090 Calculated Rate $ / lb. $0.706 Proposed Rate $0.72 Allocated Cost - Phosphorus $178,686 Billable Units Pounds 28,509 Calculated Rate $ / lb. $6.268 Proposed Rate $6.40 Allocated Cost - NH-3 $169,361 Billable Units Pounds 142,545 Calculated Rate $ / lb. $1.188 Proposed Rate $1.21 Estimated Revenues $2,545,602 $1,466,511 $285,477 $683,062 $14,144 $95,493 $915 46 Comparison of Current and Proposed Rate Schedules TEST YEAR 2022 Billing Cycle - Quarterly Billing Units - CCF Quarterly Flat Charge Connection Size Current Charge 2020 Percent Change 2021 Percent Change 2022 Percent Change 5/8 $7.60 $7.60 0% $9.28 22% $12.80 38% 3/4 $7.60 $7.60 0% $9.28 22% $12.80 38% 1 $8.45 $8.45 0% $17.46 107% $24.10 38% 1 1/4 $9.50 $9.50 0% $24.71 160% $34.10 38% 1 1/2 $10.35 $10.35 0% $31.96 209% $44.10 38% 2 $11.15 $11.15 0% $50.00 348% $69.00 38% 2 1/2 $11.70 $11.70 0% $70.65 504% $97.50 38% 3 $12.50 $12.50 0% $86.59 593% $119.50 38% 4 $0.00 $0.00 NA $137.10 NA $189.20 38% 6 $0.00 $0.00 NA $257.25 NA $355.00 38% 8 $0.00 $0.00 NA $400.65 NA $552.90 38% 10 $0.00 $0.00 NA $590.36 NA $814.70 38% 12 $0.00 $0.00 NA $780.14 NA $1,076.60 38% Usage Charges Units Current Rate 2020 Percent Change 2021 Percent Change 2022 Percent Change Domestic Sewage $/CCF $3.00 $3.00 0% $3.08 3% $4.25 38% Landfill Leachate $/CCF $0.00 $2.01 NA $2.23 11% $3.08 38% $/1,000 gals $0.00 $2.68 NA $2.98 11% $4.11 38% per load $0.00 $0.44 NA $0.49 11% $0.68 38% Surcharge Rates BOD $/pound $0.00 $0.50 NA $0.55 11% $0.76 38% TSS $/pound $0.00 $0.47 NA $0.52 11% $0.72 38% Phosphorus $/pound $0.00 $4.18 NA $4.64 11% $6.40 38% TKN $/pound $0.00 $0.79 NA $0.88 11% $1.21 38% 47 Comparison of Revenue at Present Rates, Cost-of-Service and Proposed Rates Cost of Service Customer Class Revenue at Present Rates Revenue Required Increase Over Present Rates Revenue Increase Over Present Rates Percent of Cost of Service Domestic Residential $1,246,830 $1,797,208 44.1% $1,823,310 46.2% 101.5% Multi-Family $204,527 $312,432 52.8% $300,744 47.0% 96.3% Commercial $500,519 $754,077 50.7% $731,695 46.2% 97.0% Industrial $10,893 $17,792 63.3% $17,271 58.6% 97.1% Public Authority $68,818 $107,285 55.9% $103,178 49.9% 96.2% Subtotal Domestic Retail $2,031,586 $2,988,794 47.1% $2,976,198 46.5% 99.6% Landfill Leachate $0 $896 $963 107.5% Subtotal Wholesale $0 $896 #DIV/0! $963 #DIV/0! 107.5% Total $2,031,586 $2,989,690 47.2% $2,977,161 46.5% 99.6% Volumetric Charges $1,724,399 $2,563,887 $2,544,686 Fixed Customer Charges $235,337 $424,906 $431,512 Hauled Waste $0 $896 $963 % Volumetric Charges 84.9% 85.8% 85.5% % Fixed Customer Charges 11.6% 14.2% 14.5% % Hauled Waste 0.0% 0.0% 0.0% Proposed Rates 48 ORDINANCE __ - 21 CITY OF HUDSON, WISCONSIN AN ORDINANCE AMENDING CHAPTER 198 OF THE MUNICIPAL CODE OF THE CITY OF HUDSON TO REVISE SEWER SERVICE CHARGES AND CONNECTION FEES WHEREAS, the City of Hudson caused a Sewer Rate Study and a Connection Fee Study for Sanitary Sewer Facilities to be prepared; and WHEREAS, these studies recommended changes to the City’s sewer rates and sewer connection fees; THE COMMON COUNCIL OF THE CITY OF HUDSON HEREBY ORDAINS AS FOLLOWS: SECTION 1. Section 198-10 of the Municipal Code is amended to read as follows: § 198-10. Sewer service charges and connection fees. A. A quarterly sewer service charge and meter charge are hereby imposed and shall be paid by the owner or occupants of each lot, parcel of land, building or premises served by the wastewater treatment works or otherwise discharging wastewater (including industrial waste) into the wastewater treatment works. It shall be the policy of the City to establish sewer service charges in such amount as to obtain sufficient revenues to pay operation and maintenance costs including contributions to a replacement fund, debt service, including any debt service reserves and coverage requirements, and annual capital outlay. Those aspects of sewer service charges relating to operation, maintenance and replacement fund shall be in accord with any relevant and applicable requirements imposed by the Wisconsin Department of Natural Resources or by federal law. The sewer service charge and meter charge shall be paid as herein provided in an amount determined as follows: (1) A sewer service charge is hereby imposed to recover the component of total operation, maintenance, and capital costs of the sewer system which relates to sewage flow attributable to users of the system. The sewer service charge shall be based on the cost of conveying and treating flow, BOD and suspended solids at the strength of domestic wastewater. The sewer service charge shall consist of a volumetric charge in terms of dollars per hundred cubic feet ($/ccf) for operation and maintenance of the collection system, and operation, maintenance, and replacement of the wastewater treatment works, and a surcharge in terms of dollars per hundred cubic feet ($/ccf) for trunk sewer line and lift station replacement. The sewer service charge for any parcel of land, building or premises served by the wastewater treatment works shall be based upon the quantity of water used as measured by the water meter in use. (2) Quarterly meter charge. (a) A quarterly meter charge will be imposed to cover customer costs, including billing and the maintenance cost of the meters and services. The meter charge will be imposed as a flat fee per meter based on meter size. (b) The minimum sewer meter charge will be based on the quarterly meter charge (prorated for new and closed accounts or for those with meter removals). (3) Measurement by meter; determination by Utility Director. (c) When a lot, parcel of land, building or premises discharging wastewater (including industrial waste) into the wastewater treatment works is a user of water not supplied by the City, the amount of water used shall be measured by a meter. (d) When it is impossible or impracticable to measure the amount of water being used, the Utility Director shall determine, in such manner as he finds practicable, the sewer service charge under Subsection A(1). Such determination may be appealed to the Council. In such cases, the Utility Director may, after approval by the Council, establish a flat rate for sewage services or authorize the installation, at the owner's expense, of a sewage meter. (4) Whenever the Utility Director determines that any lot, parcel of land, building or premises is discharging wastes of unusual volume, concentration or character or of greatly variable volume, a special rate shall be adopted for such user. The special rate is to ensure that all users pay their proportionate share of wastewater treatment cost. (a) The special rate shall be determined by the formula: Cu = (Vc x Vu) + (Bc x Bu) + (Sc x Su) + (Pc x Pu) Where: Cu = User charge in dollars per year. Vc = Cost of the wastewater treatment works attributed to 100 cubic feet of wastewater volume. Vu = Volume of wastewater from the user per year measured in hundreds of cubic feet. Bc = Cost of the wastewater treatment works attributed to 100 pounds of BOD. Bu = Amount of BOD from the user per year measured in hundreds of pounds. Sc = Cost of the wastewater treatment works attributed to 100 pounds of suspended solids. Su = Amount of suspended solids from the user per year measured in hundreds of pounds. Pc = Cost of the wastewater treatment works attributed to any unit of any pollutant. Pu = Amount of any pollutant from the user per year. (b) The minimum service charge rate shall be equal to the rate set under Subsection A(1). (c) "Domestic waste" shall be defined as follows: "normal domestic strength wastewater" shall mean wastewater with concentrations of BOD and suspended solids no greater than 300 milligrams per liter respectively. Discharges in excess of either of these concentrations shall be surcharged at the rate per pound determined by the formula contained in Subsection A(4)(a) through (c). (5) Wastewater contributions from users shall be reviewed at least biannually, and the sewer services charges shall be adjusted as required to recover actual costs. (6) Proportionate distribution of operation, maintenance, replacement, and capital costs shall be maintained among wastewater treatment work users. (7) Sufficient revenues to pay for total operation and maintenance costs including contributions to a replacement fund, debt service, including any debt service reserves and coverage requirements, and annual capital outlay shall be generated by the sewer service charge system. (7)(8) Operation and maintenance costs may include an allowance for North Hudson sewer collection system costs to the extent payment of such costs is required by contract. (8)(9) Sewer service charge rates, meter charge rates, and special rates, and a North Hudson sewer collection system allowance, if applicable, shall be established by resolution of the Common Council. B. Payment. (1) The sewage service charge shall be payable to the Clerk within 20 days of the billing date. (2) A late payment charge of 1% shall be added to all sewer bills not paid within 20 days from the billing date. Thereafter, a late penalty charge of 1% per month shall be added each month upon the unpaid balance. If any bill is not paid within 60 days from the billing date, the customer may be notified, in writing, that unless payment or satisfactory arrangement for payment is made within the next five days, the water services to the premises may be turned off. After such period, service may be discontinued and may not be restored until full payment of all sewer service charges and penalties due thereon. (3) Unpaid utility bills will be transferred to the tax roll pursuant to W.S.A. § 66.0809. C. Disposition of revenue. The amounts received from the charges authorized by this section shall be credited to a separate account which shall show all receipts and expenditures to the wastewater treatment works. The credits to such account shall be available for payment of: (1) Principal and interest of bonds which may be issued to provide funds for wastewater treatment works. (2) Cash funded capital outlay. (3) Any required cash reserve account payment. (4) Operation and maintenance of the wastewater treatment works, including a separate replacement fund. The replacement fund shall be a cash account to be used for future expenditures for obtaining or installing equipment, accessories or appurtenances which are necessary to maintain the capacity and performance of the wastewater treatment works through the service of life for which such works were designed and constructed. (4)(5) North Hudson sewer collection system allowance. D. Sewer service charges as a lien. All charges established hereunder shall be a lien upon the property served pursuant to W.S.A. § 66.076(7) and shall be collected in the manner therein provided. E. Sewer connection charge. (1) Sewer connection charges for buildings not presently connected to the wastewater treatment works, or for buildings that have a change in use that requires a larger water meter, shall be based on equivalent residential meters based on the following schedule. For buildings with a change in use the charge would be the difference between the amount for the existing meter size and the amount for the proposed meter size. Buildings connecting directly to the City’s collection system will be charged both the conveyance and treatment connection charges. Buildings connecting to the wastewater treatment works via a collection system outside of the City will be charged the treatment connection charge only. Meter Size Conveyance Charge Treatment Charge Total Charge 5/8 – inch $2,380 $1,479 $3,859 3/4 – inch $2,380 $1,479 $3,859 1 – inch $5,951 $3,697 $9,648 1 ½ - inch $11,902 $7,395 $19,297 2 – inch $19,043 $11,832 $30,875 3 – inch $35,705 $22,184 $57,889 4 – inch $59,509 $36,974 $96,483 6 – inch $119,018 $73,948 $192,966 8 – inch $190,429 $118,317 $308,746 10 – inch $285,644 $177,476 $463,120 12 – inch $380,858 $236,634 $617,492 (2) The sewer connection charge shall automatically increase effective each January 1 by a percentage equal to the percentage increase in the 20-City Construction Cost Index published by the Engineering News Record over the most recent 12-month period, unless the City, by resolution, limits the fee increase to a lesser percentage rate.shall be subject to review and establishment by the Common Council. F. Other charges may be imposed when a customer requests special services such as a special billing or meter reading outside of the normal schedule. Rates for special services will be the same as the rates ordered by the Public Service Commission for the water utility for Other Charges as shown on Schedule OC-1 of the Rate File. SECTION 2. SEVERABILITY. If a court of competent jurisdiction determines any section, clause, provision or portion of this ordinance to be unconstitutional or invalid for any reason, the remainder of this ordinance shall not be affected thereby. SECTION 3. EFFECTIVE DATE. This ordinance shall become effective upon adoption by the Common Council and publication as provided by law. Adopted this _________ day of _____________, 2021. APPROVED: ____________________________________________ Rich O’ Connor, Mayor ATTEST: ____________________________________________ Becky Eggen, City Clerk First Reading: ________________ Date Adopted: _______________ Date Published: ______________ To: From: Contract: Project: Owners Contract No. 42476 Engineer's Project No. Date of this Invoice: Invoice Work Period: Dec 1-31, 2020 1) Original Contract amount $10,055,600.00 2) Change Orders to date $324,214.94 3) Revised Contract amount $10,379,814.94 4) Value completed to date $1,941,083.52 5) Materials stored on site $454,756.03 6) Total Earned to date $2,395,839.55 7) Amount retained $119,791.98 8) Amount previously paid $1,440,729.64 Amount due this Payment $835,317.93 Accompaning Documentation: CONTRACTOR'S Certification: The undersigned CONTRACTOR certifies that (1) all previous progress payments received from OWNER on account of work done under the Contract referred to above have been applied on account to discharge CONTRACTOR'S legitimate obligations incurred in connection with Work covered by prior Applications for Payment numbered 1 through 1 inclusive; (2) title of all work, materials and equipment incorporated in said Work otherwise listed in or covered by this Application for Payment will pass to OWNER at time of payment free and clear of all Liens, security interest or encumbrance (expect such as are recovered by a Bond acceptable to OWNER indemnifying OWNER against any such Lien, security interest or encumbrance); and (3) all Work covered by this Application for Payment is in accordance by the Contract Documents and not defective. Magney Construction, Inc. (Contractor) By: Project Manager Payment of the above AMOUNT DUE THIS APPLICATION is recommended. Owner: Engineer: By: By: Date: Date: City of Hudson Short Elliott & Hendrickson 1/4/2020 Application for Payment No. 7 The City of Hudson, WI Magney Construction, Inc., 1401 Park Road, Chanhassen, MN 55317 Wastewater Treatment Plant 2020 Improvements HUDSO 149714 Jan. 5, 2021 Contractor:Magney Construction, Inc. Owner: City of Hudson, WI Project: Wastewater Treatment Plant 2020 Improvements APPLICATION FOR PAYMENT SCHEDULE Date of Application: Work Completed Through: Scheduled Work Completed Materials Total % Balance Spec. Value Previous This Presently Completed & Complete To Section Description of Work Application Application Stored Stored to Date Finish 06113 Bond & Insurance 140,300 $ 140,300.00 0.00 0.00 140,300.00 100% 0.00 12100 Allowances (Computer) 60,000 $ 0.00 0.00 0.00 0.00 0% 60,000.00 15100 Supervision & General Conditions 221,000 $ 65,000.00 13,000.00 0.00 78,000.00 35% 143,000. 00 17113 Mobilization 381,900 $ 190,950.00 0.00 0.00 190,950.00 50% 190,950.00 24113 Demolition: 0 Site Demolition 3,600 $ 0.00 0.00 0.00 0.00 0% 3,600.00 1 Influent and Lab Building 71,500 $ 8,000.00 0.00 0.00 8,000.00 11% 63,500.00 3 Garage 59,700 $ 59,700.00 0.00 0.00 59,700.00 100% 0.00 4 Activated Sludge 25,500 $ 0.00 0.00 0.00 0.00 0% 25,500.00 5 Control Building 16,700 $ 0.00 0.00 0.00 0.00 0% 16,700.00 6 Final Clarifiers 1 & 2 13,600 $ 0.00 0.00 0.00 0.00 0% 13,600.00 7 Final Clarifiers 3 &4 11,400 $ 0.00 0.00 0.00 0.00 0% 11,400.00 8 Pump Building 1,800 $ 0.00 0.00 0.00 0.00 0% 1,800.00 9 UV Structures 72,400 $ 61,500.00 8,500.00 0.00 70,000.00 97% 2,400.0 0 10 Sludge Conditioning Building 64,600 $ 0.00 2,500.00 0.00 2,500.00 4% 62,100.00 11 Sludge Storage 10,700 $ 0.00 0.00 0.00 0.00 0% 10,700.00 12 Centrate Tank 1,500 $ 0.00 0.00 0.00 0.00 0% 1,500.00 13 Vactor Pad 12,300 $ 0.00 0.00 0.00 0.00 0% 12,300.00 30130 Concrete Patching (200 SF @ $60/sf) 12,000 $ 0.00 0.00 0.00 0.00 0% 12,000.00 31000 Concrete Work: 1 Influent and Lab Building 23,200 $ 12,000.00 0.00 0.00 12,000.00 52% 11,200.00 2 Pretreatment Building 514,600 $ 117,148.14 65,350.00 0.00 182,498.14 35% 332,10 1.86 3 Garage 18,400 $ 16,400.00 2,000.00 0.00 18,400.00 100% 0.00 9 UV Structures 139,700 $ 0.00 85,623.00 0.00 85,623.00 61% 54,077.00 10 Sludge Conditioning Building 31,200 $ 4,500.00 0.00 0.00 4,500.00 14% 26,700.00 13 Vactor Pad 8,000 $ 0.00 0.00 0.00 0.00 0% 8,000.00 32000 Rebar 150,700 $ 34,304.68 13,000.00 12,421.00 59,725.68 40% 90, 974.32 34100 Plant Precast Structural Concrete 344,900 $ 0.00 0.00 20,200.00 20,200.00 6% 324,700.00 42000 Masonry Work: 1 Influent and Lab Building 6,300 $ 0.00 3,200.00 0.00 3,200.00 51% 3,100.00 2 Pretreatment Building 9,600 $ 0.00 0.00 0.00 0.00 0% 9,600.00 3 Garage 67,800 $ 67,800.00 0.00 0.00 67,800.00 100% 0.00 5 Control Builidng 9,900 $ 0.00 0.00 0.00 0.00 0% 9,900.00 9 UV Structures 68,100 $ 0.00 68,100.00 0.00 68,100.00 100% 0.00 10 Sludge Conditioning Building 29,300 $ 0.00 3,000.00 0.00 3,000.00 10% 26,300.00 55000 Structural and Misc. Metals 225,900 $ 24,711.00 4,500.00 0.00 29,211.00 13% 196,689.0 0 Page 1 Contractor:Magney Construction, Inc. Owner: City of Hudson, WI Project: Wastewater Treatment Plant 2020 Improvements APPLICATION FOR PAYMENT SCHEDULE Date of Application: Work Completed Through: Scheduled Work Completed Materials Total % Balance Spec. Value Previous This Presently Completed & Complete To Section Description of Work Application Application Stored Stored to Date Finish 61053 Rough Carpentry 24,700 $ 0.00 8,500.00 0.00 8,500.00 34% 16,200.00 71600 Cementitious Waterproofing 33,500 $ 0.00 12,500.00 0.00 12,500.00 37% 21,000.00 72100 Building Insulation - Below Grade 8,600 $ 0.00 3,200.00 0.00 3,200.00 37% 5,400.00 72700 Air Barrier 9,400 $ 0.00 3,000.00 0.00 3,000.00 32% 6,400.00 74113 Metal Wall and Roof Panels 64,200 $ 0.00 0.00 0.00 0.00 0% 64,200.00 74617 Metal Soffit and Fascia System w/74113 75400 Thermoplastic Membrane Roofing 169,500 $ 0.00 0.00 0.00 0.00 0% 169,500.00 75401 Patch Existing Roofs 31,500 $ 0.00 6,500.00 0.00 6,500.00 21% 25,000.00 76200 Sheet Metal Flashing & Trim w/75400 77200 Roof Accessories w/75400 77213 Safety Rail Assemblies w/75400 78400 Firestopping 1,200 $ 0.00 0.00 0.00 0.00 0% 1,200.00 79200 Joint Sealants 11,900 $ 0.00 0.00 0.00 0.00 0% 11,900.00 81113 HM Doors and Frames 25,000 $ 0.00 0.00 0.00 0.00 0% 25,000.00 83105 Access Hatches 7,700 $ 5,539.00 0.00 0.00 5,539.00 72% 2,161.00 83200 Overhead Sectional Door 4,600 $ 0.00 0.00 0.00 0.00 0% 4,600.00 83300 Coiling Doors and Grilles 13,700 $ 0.00 0.00 0.00 0.00 0% 13,700.00 84313 Aluminum Doors and Frames 15,900 $ 0.00 0.00 0.00 0.00 0% 15,900.00 84500 Translucent Wall and Roof Assemblies 14,200 $ 0.00 0.00 0.00 0.00 0% 14,200.00 87100 Door Hardware w/81113 88000 Glass & Glazing 1,300 $ 0.00 0.00 0.00 0.00 0% 1,300.00 92200 Non-Structural Metal Framing (Mansard) 24,200 $ 0.00 0.00 0.00 0.00 0% 24,200.00 92900 Gypsum Board and Framing (ceilings) 4,100 $ 0.00 0.00 0.00 0.00 0% 4,100.00 93000 Tiling 6,500.00 $ 0.00 0.00 0.00 0.00 0% 6,500.00 95113 Acoustic Panel Ceilings 5,900 $ 0.00 0.00 0.00 0.00 0% 5,900.00 96516 Resilient Flooring 30,700 $ 0.00 0.00 0.00 0.00 0% 30,700.00 99720 Painting 418,200 $ 0.00 0.00 0.00 0.00 0% 418,200.00 101419 Dimensional Letter, Signage and Plaques 4,800 $ 0.00 0.00 0.00 0.00 0% 4,800.00 101423 Panel Signage 600 $ 0.00 0.00 0.00 0.00 0% 600.00 102813 Toilet Accessories 4,900 $ 0.00 0.00 0.00 0.00 0% 4,900.00 104400 Safety Specialties (Fire Extinguishers) 1,300 $ 0.00 0.00 0.00 0.00 0% 1,300.00 105113 Metal Lockers (Remove and Reinstall) 1,600 $ 0.00 0.00 0.00 0.00 0% 1,600.00 123553 Laboratory Casework 29,300 $ 0.00 0.00 0.00 0.00 0% 29,300.00 220000 Plumbing 158,400 $ 42,000.00 0.00 0.00 42,000.00 27% 116,400.00 230500 HVAC 1 Mobilization & General Conditions 23,000 $ 5,800.00 0.00 0.00 5,800.00 25% 17,200.00 2 Testing Adjusting and Balancing 9,000 $ 0.00 0.00 0.00 0.00 0% 9,000.00 Page 2 Contractor:Magney Construction, Inc. Owner: City of Hudson, WI Project: Wastewater Treatment Plant 2020 Improvements APPLICATION FOR PAYMENT SCHEDULE Date of Application: Work Completed Through: Scheduled Work Completed Materials Total % Balance Spec. Value Previous This Presently Completed & Complete To Section Description of Work Application Application Stored Stored to Date Finish 3 Duct & Pipe Insulation 8,000 $ 0.00 0.00 0.00 0.00 0% 8,000.00 4 HVAC Controls 74,000 $ 0.00 0.00 0.00 0.00 0% 74,000.00 5 Hydronic and Refrigerant Piping 163,000 $ 0.00 0.00 0.00 0.00 0% 163,000.00 6 Demolition Material 1,000 $ 0.00 0.00 0.00 0.00 0% 1,000.00 7 Demolition Labor 15,000 $ 1,500.00 0.00 0.00 1,500.00 10% 13,500.00 8 Metal Ductwork - Material 27,500 $ 0.00 1,800.00 0.00 1,800.00 7% 25,700.00 9 Metal Ductwork - Labor 42,000 $ 0.00 2,000.00 0.00 2,000.00 5% 40,000.00 10 Non-Metal Ductwork - Material 23,000 $ 0.00 0.00 0.00 0.00 0% 23,000.00 11 Non-Metal Ductwork - Labor 11,000 $ 0.00 0.00 0.00 0.00 0% 11,000.00 12 Exhaust Fans and Ventilators - Material 19,000 $ 0.00 0.00 0.00 0.00 0% 19,000.00 13 Exhaust Fans and Ventilators - Labor 6,700 $ 0.00 0.00 0.00 0.00 0% 6,700.00 14 GRD & Louver - Material 6,000 $ 0.00 0.00 0.00 0.00 0% 6,000.00 15 GRD & Louver - Labor 3,300 $ 0.00 0.00 0.00 0.00 0% 3,300.00 16 Electric Unit Heaters - Material 54,000 $ 0.00 0.00 0.00 0.00 0% 54,000.00 17 Electric Unit Heaters - Labor 17,000 $ 0.00 0.00 0.00 0.00 0% 17,000.00 18 MAU-AHU-CU-Mini-Split A/C - Material 358,000 $ 0.00 0.00 0.00 0.00 0% 358,000.00 19 MAU-AHU-CU-Mini-Split A/C - Labor 10,000 $ 0.00 0.00 0.00 0.00 0% 10,000.00 260000 Electrical 1 Mobilization/Temp Power 11,000 $ 8,000.00 3,000.00 0.00 11,000.00 100% 0.00 2 Clean Up 7,000 $ 500.00 500.00 0.00 1,000.00 14% 6,000.00 3 Instrument and Control Package 1,150,000 $ 29,600.00 0.00 0.00 29,600.00 3% 1,120,400.00 4 Lighting Package 128,000 $ 0.00 0.00 125,359.00 125,359.00 98% 2,641.00 5 Structure #1 - Influent Building 82,000 $ 6,178.00 3,906.00 4,917.00 15,001.00 18% 66,9 99.00 6 Structure #2 - Pretreatment Building 144,500 $ 24,113.00 17,787.00 8,604.00 50,504.00 35% 93,9 96.00 7 Structure #3 - Garage 31,600 $ 6,442.00 0.00 1,844.00 8,286.00 26% 23,314.00 8 Structure #4 - Activated Sludge 21,000 $ 1,545.00 0.00 1,229.00 2,774.00 13% 18,226.00 9 Structure #5 - Control Building 33,800 $ 7,417.00 2,800.00 1,844.00 12,061.00 36% 21,7 39.00 10 Structure #6 - Final Clarifier 1 & 2 26,700 $ 1,930.00 0.00 1,536.00 3,466.00 13% 23,234.00 11 Structure #7 - Final Clarifier #3 & 4 13,700 $ 1,158.00 0.00 922.00 2,080.00 15% 11,620.00 12 Structure #8 - Pump Building 28,800 $ 2,317.00 0.00 1,844.00 4,161.00 14% 24,639.00 13 Structure #9 - UV Disinfection 42,000 $ 6,490.00 17,500.00 2,458.00 26,448.00 63% 15, 552.00 14 Structure #10 - Sludge Conditioning Building & DA F 78,000 $ 5,792.00 0.00 4,610.00 10,402.00 13% 67,598.0 0 15 Structure #11 - Sludge Storage Tanks & DAF Tanks 1 4,000 $ 772.00 0.00 615.00 1,387.00 10% 12,613.00 16 Structure #12 - Centrate Tank 6,100 $ 386.00 0.00 307.00 693.00 11% 5,407.00 17 Closing Documents 2,000 $ 0.00 0.00 0.00 0.00 0% 2,000.00 18 Demobilization 800 $ 0.00 0.00 0.00 0.00 0% 800.00 312210 Site Grading 28,600 $ 0.00 0.00 0.00 0.00 0% 28,600.00 Page 3 Contractor:Magney Construction, Inc. Owner: City of Hudson, WI Project: Wastewater Treatment Plant 2020 Improvements APPLICATION FOR PAYMENT SCHEDULE Date of Application: Work Completed Through: Scheduled Work Completed Materials Total % Balance Spec. Value Previous This Presently Completed & Complete To Section Description of Work Application Application Stored Stored to Date Finish 312310 Excavation - Pretreatment 89,700 $ 89,700.00 0.00 0.00 89,700.00 100% 0.00 312316 Backfill - Pretreatment 92,600 $ 19,000.00 5,000.00 0.00 24,000.00 26% 68,600. 00 312316 Backfill - UV Structure 66,500 $ 56,500.00 3,500.00 0.00 60,000.00 90% 6,500.0 0 312316 Backfill - Vactor Pad 11,000 $ 0.00 0.00 0.00 0.00 0% 11,000.00 312319 Dewatering 65,500 $ 45,000.00 0.00 0.00 45,000.00 69% 20,500.00 312320 Bypass Pumping and Piping 74,200 $ 0.00 0.00 0.00 0.00 0% 74,200.00 321228 Asphaltic Surfacing 36,800 $ 0.00 0.00 0.00 0.00 0% 36,800.00 321630 Concrete Curb & Gutter 9,900 $ 0.00 0.00 0.00 0.00 0% 9,900.00 323113 Chain Link Fences and Gates 34,700 $ 0.00 0.00 0.00 0.00 0% 34,700.00 329212 Seed and Sod 7,500 $ 0.00 0.00 0.00 0.00 0% 7,500.00 331100 Site Utilities 243,400 $ 27,335.00 0.00 0.00 27,335.00 11% 216,065.00 400559 Hydraulic Gates 33,800 $ 27,130.00 0.00 0.00 27,130.00 80% 6,670.00 402310 Process Pipe and Fittings 377,500 $ 77,087.70 4,500.00 13,748.03 95,335.73 25% 282, 164.27 402320 Process Valves 308,200 $ 63,990.00 1,200.00 40,798.00 105,988.00 34% 202 ,212.00 402330 Gauges 3,200 $ 0.00 0.00 0.00 0.00 0% 3,200.00 402340 Pipe Supports and Hangers 7,400 $ 0.00 0.00 0.00 0.00 0% 7,400.00 404213 Process Piping Insulation (Blower) 7,700 $ 0.00 0.00 0.00 0.00 0% 7,700.00 411213 Screw Conveyors 34,300 $ 0.00 0.00 0.00 0.00 0% 34,300.00 412200 Monorails,Hoists,Trolleys & Davit Cranes 51,20 0 $ 0.00 0.00 0.00 0.00 0% 51,200.00 431219 Blower Assemblies 92,100 $ 86,022.00 0.00 0.00 86,022.00 93% 6,078.00 432114 Torque Flow Pumps 24,600 $ 0.00 0.00 0.00 0.00 0% 24,600.00 432125 Submersible Pumps 37,000 $ 0.00 0.00 0.00 0.00 0% 37,000.00 432137 Progressive Cavity Pumps 91,000 $ 0.00 0.00 0.00 0.00 0% 91,000.00 432252 Magnetic Flowmeters 1,200 $ 0.00 0.00 0.00 0.00 0% 1,200.00 432253 Parshall Flume 2,500 $ 0.00 0.00 0.00 0.00 0% 2,500.00 432270 Automatic Sampler 8,300 $ 0.00 0.00 0.00 0.00 0% 8,300.00 432313 Horizontal Centrifugal Pumps 77,600 $ 0.00 0.00 0.00 0.00 0% 77,600.00 432331 Vertical Centrifugal Pumps 209,300 $ 0.00 0.00 0.00 0.00 0% 209,300.00 443100 Odor Treatment Equipment 130,400 $ 0.00 0.00 0.00 0.00 0% 130,400.00 444680 Tank Cleaning 55,600 $ 0.00 0.00 0.00 0.00 0% 55,600.00 446656 Ultra Violet Treatment Equipment 238,000 $ 0.00 0.00 211,500.00 211,500.00 89% 26,500.00 462139 Fine Screening Equipment 82,400 $ 0.00 0.00 0.00 0.00 0% 82,400.00 462323 Vortex Grit Removal System 64,200 $ 0.00 0.00 0.00 0.00 0% 64,200.00 462363 Grit Classifying and Washing 48,200 $ 0.00 0.00 0.00 0.00 0% 48,200.00 464123 Submersible Mixers 15,000 $ 0.00 0.00 0.00 0.00 0% 15,000.00 464321 Final Clarifier Equipment 285,300 $ 0.00 0.00 0.00 0.00 0% 285,300.00 465122 Fine Bubble Aeration 76,200 $ 0.00 0.00 0.00 0.00 0% 76,200.00 Page 4 Contractor:Magney Construction, Inc. Owner: City of Hudson, WI Project: Wastewater Treatment Plant 2020 Improvements APPLICATION FOR PAYMENT SCHEDULE Date of Application: Work Completed Through: Scheduled Work Completed Materials Total % Balance Spec. Value Previous This Presently Completed & Complete To Section Description of Work Application Application Stored Stored to Date Finish 467123 Dissolved Air Flotation 286,000 $ 0.00 0.00 0.00 0.00 0% 286,000.00 Contract Totals 10,055,600 $ Change Orders New Personnel Door at Garage -$ 0.00 0.00 0.00 0.00 #DIV/0! 0.00 Pretreatment Building Revisions 324,214.94 $ 65,000.00 58,560.00 0.00 123,560.00 38% 200,654.94 Change Order Totals 324,214.94 Totals 10,379,814.94 1,516,557.52 424,526.00 454,756.03 2,395,839.55 23% 7,983,975.39 Original Contract amount 10,055,600.00 Change Orders to date 324,214.94 Revised Contract amount 10,379,814.94 Value completed to date 1,941,083.52 Materials stored on site 454,756.03 Total Earned to date 2,395,839.55 Amount retained 119,791.98 Amount previously paid 1,440,729.64 Amount due this Payment 835,317.93 Page 5 January 12, 2021 HUDSON PUBLIC WATER UTILITY - PROJECT STATUS REPORT PENDING: PROJECT NAME LOCATION ACTION DATES STATUS % COMPLETED State Hwy 35 Sanitary Sewer and Front St. to Lake Mallilieu 8/14/18 Approved design phase LOE 90% Water Main Improvements with SEH 11/10/2020 Approved construction services LOE with SEH Wastewater Treatment Plant WWTP 5/26/2020 Approved bid from 50% Construction Magney Construction, Inc. 7/14/2020 Approved Magney Construction, Inc PR #1 8/11/2020 Approved Magney Construction, Inc PR #2 9/8/2020 Approved Magney Construction, Inc PR #3 10/13/2020 Approved Magney Construction, Inc PR #4 11/10/2020 Approved Magney Construction, Inc PR #5 12/8/2020 Approved Magney Construction, Inc PR #6 Lake Mallalieu Dam Re-hab 8/25/2020 Approved bid from Pember 50% Companies, Inc. 12/8/2020 Approved from Pember Companies, Inc PR #1 Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 3535 Vadnais Center Drive, St. Paul, MN 55110- 3507 SEH is 100% employee -owned | sehinc.com | 651.490.2000 | 800.325.2055 | 888.908.8166 fax MEMORANDUM TO: Kip Peters FROM: Caleb Weber and John Friel DATE: December 31, 2020 RE: Hudson WWTP Construction Summary - December 2020 SEH No. HUDSO 149714 14.00 The following is brief summary of the construction work completed by the General Contractor, Magney Construction and their subcontractors as part of the Hudson Wastewater Treatment Plant 2020 Improvements project. The purpose of this monthly construction summary is to provide an update of major construction work. The attached photographs summarize the progress to date. 1. NEW PRETREATMENT BUILDING – Continued construction of concrete wet well tank and pump room walls and vortex grit tank slab and walls. 2. GARAGE – Waste vent piping and HVAC ductwork completed. 3. UV DISINFECTION – Storage shed block walls were constructed. Wastewater channel walls continued construction. 4. SLUDGE CONDITIONING BUILDING – Miscellaneous block construction including new explosion proof window block-in. chw Progress Photographs \\sp3020-1.cst.sehinc.com\projects\fj\h\hudso\149714\7-const-svcs\71-mgmt\30-insp-note\50-monthly progress summaries\12 december 2020 construction summary.docx Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 3535 Vadnais Center Drive, St. Paul, MN 55110- 3507 SEH is 100% employee -owned | sehinc.com | 651.490.2000 | 800.325.2055 | 888.908.8166 fax Photograph 1 – Pretreatment Building concrete base slab and walls were poured. Photograph 2 – Garage vent piping and ductwork completed. Memorandum December 31, 2020 Page 3 Photograph 3 – UV storage shed block walls were constructed. Channel concrete floor constructed. Photograph 4 – Upstairs window blocked-in for new explosion proof window. HUDSON PUBLIC UTILITIES ISSUE SHEET DATE: January 12, 2021 SUBMITTED TO: PUC SUBMITTED BY: Utility Director Peters REGARDING: Upcoming agenda items for information only ISSUE: I wanted to inform the PUC of a few upcoming agenda items I am currently working on. This is for informational purposes only. 1. Evaluate options with PSC (Public Service Commission) and DNR (Department of Natural Resources) on moving forward with North Hudson becoming their own utility by 2022 or sooner. No communication has been received since “Notice of Termination of 1983 Water Agreement” letter was sent to the Village on September 29, 2020. 2. Cancelation/termination of the existing 1979 Wastewater Agreement with a 1991 amendment with North Hudson. a. The 1983 Water Agreement with North Hudson was noticed and terminated on January 1, 2021. Since the 1979 Wastewater Agreement is also outdated and vague, naturally this agreement should follow suit. 3. Cancelation/termination of the existing 1979 Interceptor Agreement with North Hudson. a. The 1983 Water Agreement with North Hudson was noticed and terminated on January 1, 2021. Since the 1979 Interceptor Agreement is also outdated and vague, naturally this agreement should follow suit. 4. Establishing a sewer rate/surcharge for the Village of North Hudson to recover outstanding and future expenses related to major repairs incurred at the Riverside Dr. lift station. APS ACCOUNTS PAYABLE CITY OF HUDSON12/16/2020 13:18:42 Schedule of Bills by Fund GL050S-V08.14 COVERPAGEGL540R Report Selection: RUN GROUP... 1216W COMMENT... PAYABLES DATA-JE-ID DATA COMMENT -------------- ------------------------ W-12162020-809 PAYABLES Run Instructions: Jobq Banner Copies Form Printer Hold Space LPI Lines CPI CP SP RT3 01 1 N S 8 068 10 APS ACCOUNTS PAYABLE CITY OF HUDSON12/16/2020 13:18:42 Schedule of Bills by Fund GL540R-V08.14 PAGE 1BY FUND FOR (A/P) VENDOR NAME DESCRIPTION AMOUNT ACCOUNT NAME FUND & ACCOUNT CLAIM INVOICE PO# F/P ID LINE WATER *************** QUADIENT MONTHLY LEASE 30.38 MAINTENANCE AGMT & LEASE 600.45.57580.298 379155 58061385 P 809 00001 VILLAGE OF NORTH HUDSON MAINTENACE OF MAINS 123,522.32 N H MAINTENANCE OF MAINS 600.45.57590.595 379154 12/9/2020 P 809 00003 XCEL ENERGY 16762 KWH WELL# 8 3,057.09 UTILITIES-ELECTRIC 600.45.57520.222 379153 711584671 P 809 00004 54 KWH FILLMORE VAULT 23.53 UTILITIES-ELECTRIC 600.45.57520.222 379153 711584671 P 809 00005 10920 KWH WELL#3 1,585.64 UTILITIES-ELECTRIC 600.45.57520.222 379153 711584671 P 809 00006 14240 KWH WELL#4 2,117.37 UTILITIES-ELECTRIC 600.45.57520.222 379153 711584671 P 809 00007 7240 KWH WELL #5 802.43 UTILITIES-ELECTRIC 600.45.57520.222 379153 711584671 P 809 00008 13040 KWH WELL #6 2,071.21 UTILITIES-ELECTRIC 600.45.57520.222 379153 711584671 P 809 00009 5351 KWH WELL # 7 977.94 UTILITIES-ELECTRIC 600.45.57520.222 379153 711584671 P 809 00010 18480 KWH WELL #10 2,161.72 UTILITIES-ELECTRIC 600.45.57520.222 379153 711584671 P 809 00011 186 KWH HANLEY RD 38.20 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00012 443 KWH COULEE VAULT 66.80 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00013 4240 KWH NH BOOSTER 672.01 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00014 56 THM NH BOOSTER 63.05 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00015 280 THM KWH WELL #3 173.71 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00016 248 THM WELL #4 142.26 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00017 206 THM WELL #5 154.28 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00018 224 THM WELL #6 152.17 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00019 162 THM WELL #7 127.52 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00020 735 KWH CARMICHAEL RD 101.61 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00021 273 KWH DEER PATH 47.88 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00022 71 THM O'NEAL TOWER 71.79 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00023 348 THM WELL #8 219.47 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00024 1560 KWH 910 WI STREET 190.31 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00025 357 THM WELL # 10 226.06 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00026 296 KWH 110 3RD STREET 53.14 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 00027 184 KWH WAREHOUSE 37.98 OPERATING SUPPLIES 600.45.57520.349 379153 711584671 P 809 0002815,335.17 *VENDOR TOTAL WATER 138,887.87 *************** APS ACCOUNTS PAYABLE CITY OF HUDSON12/16/2020 13:18:42 Schedule of Bills by Fund GL540R-V08.14 PAGE 2BY FUND FOR (A/P) VENDOR NAME DESCRIPTION AMOUNT ACCOUNT NAME FUND & ACCOUNT CLAIM INVOICE PO# F/P ID LINE SEWER *************** QUADIENT MONTHLY LEASE 30.38 MAINTENANCE AGMT & LEASE 610.47.57340.298 379155 58061385 P 809 00002 XCEL ENERGY BELLA ROSE LIFT STATION 161.27 UTILITIES-ELECTRIC 610.47.57321.222 379152 711665398 P 809 00029 SEWER 191.65 *************** APS ACCOUNTS PAYABLE CITY OF HUDSON12/16/2020 13:18:42 Schedule of Bills by Fund GL540R-V08.14 PAGE 3BY FUND FOR (A/P) VENDOR NAME DESCRIPTION AMOUNT ACCOUNT NAME FUND & ACCOUNT CLAIM INVOICE PO# F/P ID LINE REPORT TOTALS: 139,079.52 RECORDS PRINTED - 000029 APS ACCOUNTS PAYABLE CITY OF HUDSON12/16/2020 13:18:42 Schedule of Bills by Fund GL060S-V08.14 RECAPPAGEGL540R FUND RECAP: FUND DESCRIPTION DISBURSEMENTS---- ---------------------------- 600 WATER 138,887.87610 SEWER 191.65 TOTAL ALL FUNDS 139,079.52 BANK RECAP: BANK NAME DISBURSEMENTS---- ---------------------------- 1NAT FIRST NATIONAL - GENERAL AC 139,079.52 TOTAL ALL BANKS 139,079.52 THE PRECEDING LIST OF BILLS PAYABLE WAS REVIEWED AND APPROVED FOR PAYMENT. DATE ............ APPROVED BY ................................. ................................. ................................. APS ACCOUNTS PAYABLE CITY OF HUDSON12/23/2020 13:57:55 Schedule of Bills by Fund GL050S-V08.15 COVERPAGEGL540R Report Selection: RUN GROUP... 1222W COMMENT... PAYABLES DATA-JE-ID DATA COMMENT -------------- ------------------------ W-12232020-829 PAYABLES Run Instructions: Jobq Banner Copies Form Printer Hold Space LPI Lines CPI CP SP RT3 01 1 Y S 8 068 10 APS ACCOUNTS PAYABLE CITY OF HUDSON12/23/2020 13:57:55 Schedule of Bills by Fund GL540R-V08.15 PAGE 1BY FUND FOR (A/P) VENDOR NAME DESCRIPTION AMOUNT ACCOUNT NAME FUND & ACCOUNT CLAIM INVOICE PO# F/P ID LINE WATER *************** MARCO MARCO MONTHLY CONTRACT 111.44 MAINTENANCE AGMT & LEASE 600.45.57580.298 379236 28388124 P 829 00001 VERIZON WIRELESS NOVEMBER 10GB SHR 120.02 TELEPHONE 600.45.57551.225 379244 9868796445 P 829 00003 781-0217 ZS 11/11-12/10 48.90 TELEPHONE 600.45.57551.225 379244 9868796445 P 829 00004 781-2747 ZS11/11-12/11 40.01 TELEPHONE 600.45.57551.225 379244 9868796445 P 829 00005 716-0317 JF IPAD 40.01 OFFICE EQUIPMENT 600.45.57570.813 379244 9868796445 P 829 00006 716-0318 JB IPAD 40.01 OFFICE EQUIPMENT 600.45.57570.813 379244 9868796445 P 829 00007 381.3882-JF 11/11-12/10 49.58 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00008 381.3883-JB 11-1/12-10 49.58 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00009 381-3884 TT 11-1/12-10 49.58 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00010 381.3885-DO 11-11/12-10 49.58 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00011 3813886-FH11-10/12-10 65.04 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00012 716-6342 IPAD DS 40.01 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00013 4417179D.SMITH11/11-12/1 49.58 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00014 219-0378 K. P11/11-12/10 24.46 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00015 441-071611-12/12-10 DS 49.58 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00016 716-6228 IPAD - KP 20.00 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00017 MACHINE-MACHINE 40.01 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00018 781-8833 JT11/11-12/11 48.90 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00019 716-0419 JT IPAD 40.01 TELEPHONE 600.45.57580.225 379244 9868796445 P 829 00020864.86 *VENDOR TOTAL WATER 976.30 *************** APS ACCOUNTS PAYABLE CITY OF HUDSON12/23/2020 13:57:55 Schedule of Bills by Fund GL540R-V08.15 PAGE 2BY FUND FOR (A/P) VENDOR NAME DESCRIPTION AMOUNT ACCOUNT NAME FUND & ACCOUNT CLAIM INVOICE PO# F/P ID LINE SEWER *************** MARCO MARCO MONTHLY CONTRACT 111.44 MAINTENANCE AGMT & LEASE 610.47.57340.298 379236 28388124 P 829 00002 VERIZON WIRELESS 377-9529 JN 11-11/12-10 49.58 TELEPHONE 610.47.57323.225 379244 9868796445 P 829 00021 381-3890 JI11-11/12-10 49.58 TELEPHONE 610.47.57323.225 379244 9868796445 P 829 00022 381-7981 WK11/11-12/11 49.58 TELEPHONE 610.47.57323.225 379244 9868796445 P 829 00023 716-6509 IPAD JN 40.01 TELEPHONE 610.47.57323.225 379244 9868796445 P 829 00024 781-6991TS11/11-12/11 48.90 TELEPHONE 610.47.57323.225 379244 9868796445 P 829 00025 690-9608 JI IPAD 40.01 TELEPHONE 610.47.57323.225 379244 9868796445 P 829 00026 781-4690 KS11/11-12/10 48.90 TELEPHONE 610.47.57323.225 379244 9868796445 P 829 00027 293-6255 JET TRUCK 1/2 40.01 TELEPHONE 610.47.57323.225 379244 9868796445 P 829 00028 219-0378 K. PETERS 24.47 TELEPHONE 610.47.57340.225 379244 9868796445 P 829 00029 716-6228 IPAD - KP 20.01 TELEPHONE 610.47.57340.225 379244 9868796445 P 829 00030411.05 *VENDOR TOTAL XCEL ENERGY 200 N STREET - DAM 43.81 UTILITIES-ELECTRIC 610.47.57324.222 379237 711771474 P 829 00031 PROTECTIVE LIGHTING 9.45 UTILITIES-ELECTRIC 610.47.57324.222 379237 711771474 P 829 0003253.26 *VENDOR TOTAL SEWER 575.75 *************** APS ACCOUNTS PAYABLE CITY OF HUDSON12/23/2020 13:57:55 Schedule of Bills by Fund GL540R-V08.15 PAGE 3BY FUND FOR (A/P) VENDOR NAME DESCRIPTION AMOUNT ACCOUNT NAME FUND & ACCOUNT CLAIM INVOICE PO# F/P ID LINE REPORT TOTALS: 1,552.05 RECORDS PRINTED - 000032 APS ACCOUNTS PAYABLE CITY OF HUDSON12/23/2020 13:57:55 Schedule of Bills by Fund GL060S-V08.15 RECAPPAGEGL540R FUND RECAP: FUND DESCRIPTION DISBURSEMENTS---- ---------------------------- 600 WATER 976.30610 SEWER 575.75 TOTAL ALL FUNDS 1,552.05 BANK RECAP: BANK NAME DISBURSEMENTS---- ---------------------------- 1NAT FIRST NATIONAL - GENERAL AC 1,552.05 TOTAL ALL BANKS 1,552.05 THE PRECEDING LIST OF BILLS PAYABLE WAS REVIEWED AND APPROVED FOR PAYMENT. DATE ............ APPROVED BY ................................. ................................. .................................