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Home My WebLink AboutREVENUE BONDS ENGINEERS REPORT 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . REPORT ....\ Engineer's Report Water and Sewerage Revenue Bonds, Series 2002 Prepared for Augusta Utilities Department June 13, 2002 Prepared by CH2MHILL Utility Management Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Contents 1.0 In trod ucti on ....... ........ ........... ...... ............ ........ .... ........... ............... .... ........ ................... ....... 1-1 1.1 Authorization and Purpose .................................................................................. 1-1 1.2 References.............. ....................................................... .............. ................. ........... 1-2 1.3 Assumptions.. .......... ............... ..................................................... ...... ..................... 1-3 2.0 System History and Organization, and County Growth............................................ 2-1 2.1 Organizational Structure ....................................... ............................................... 2-1 2.1.1 Augusta. ............................. ........................................................................ 2-1 2.1.2 System Management ................................................................................ 2-1 2.2 Augusta-Richmond County Population Trends ............................................... 2-6 3.0 Water S ys tern..... ....................... .............. ....... ........... ............. .................. ..... ..... ........ ......... 3-1 3.1 Overview of Potable Water System..................................................................... 3-1 3.2 Water Service Area ................................................................................................ 3-1 3.3 Water Supply............. .................................. .............................. ............................. 3-1 3.3.1 Raw Water Pumping ................................................................................ 3-3 3.3.2 Raw Water Transmission and Storage................................................... 3-4 3.4 Water Treatment Facilities ..................... ............................................................... 3-5 3.4.1 Highland Avenue WTP System Processes ............................................ 3-5 3.5 Finished Water Storage, Chemical Feed Systems, and High Service Pumping.................................................................................................................. 3-6 3.5.1 Finished Water Storage ............. ................. ........... ............................. ...... 3-6 3.5.2 Chemical Feed Systems............. ..................... ..... ..................................... 3-7 3.5.3 High Service Pumping ............................ ...... .............. ............ ................. 3-7 3.6 Water Distribution System ................................................................................... 3-8 3.7 Water Quality ... ................................ ........................................................ ............ 3-13 3.8 Projected Water Demand.................................................................................... 3-13 3.9 Regulatory Impacts........ .................. ...... ......... ......... ......... ............... .................... 3-16 3.9.1 Existing Regulations ........................ ................. ...................................... 3-17 3.9.2 Recently Promulgated Regulations ......................................................3-18 3.9.3 Future Regulations ............................ .............. .............. ......................... 3-19 4. 0 Wastewater System .............. .................... ..... ....... ...................... .... ........ ..... ..... .................. 4-1 4.1 Overview of Wastewater System......................................................................... 4-1 4.2 Wastewater Collection and Conveyance ............................................................ 4-2 4.3 Wastewater Treatment Facilities ......................................................................... 4-3 4.4 Projected Wastewater Flows ................................................................................ 4-5 4.5 Regulatory Impacts.......................... ...................................................................... 4-7 4.5.1 Watershed Management ............................. ............................................. 4-7 4.5.2 Total Maximum Daily Load (TMDL) Development............................ 4-8 4.5.3 NPDES Permitting and Nutrient Management.................................... 4-8 4.5.4 Onsite Septage Systems ........................................................................... 4-9 4.5.5 Residuals Management and 503 Regulations ....................................... 4-9 4.5.6 General Permit for Stormwater Discharge Associated with Industrial Activity..................................................................................... 4-9 P:\161047\161047 AUD 2002 PMlBOND RNANCING REPORT\SEC1&2FINAL_6_13_02.DOC . . . . . . . . . . . . . . . . . . . It . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 4.5.7 Stormwater Pollution' Prevention-Plan ......................... ...... ................... 4-9 4.5.8 Spill Prevention, Control, and Countermeasures Plan...................... 4-10 4.5.9 Municipal Storm Water Discharge Permit ..........................................4-10 4.5.10 Security and Vulnerability......................... ........................... ................. 4-10 5.0 Proposed System CIP ........................................................................................................ 5-1 5.1 Planning Criteria and Assumptions.................................................................... 5-1 5.2 Cost Opinions for Recommended Projects ........................................................ 5-1 5.3 Summary of Capital Improvements.................................................................... 5-2 5.3.1 Water Treatment ................................... .................................................... 5-3 5.3.2 Water Distribution System ....................................... ............................... 5-6 5.3.3 Wastewater Treatment ............................................................................. 5-8 5.3 .4 Wastewater Conveyance.......................................................................... 5-9 5.3.5 System-wide Improvements ......................................... ........................ 5-11 5.4 Anticipated Future W ork.................................................................................... 5-12 6. 0 Financial Performance ........... ...... ........... ...... ........ ......... ........ ........ .... ........ ........... ............ 6-1 6.1 Historical Performance ........................... .............................................................. 6-1 6.2 Water and Sewer Rates ......................................................................................... 6-1 6.3 Financial Policies........................................... .................. .......................... ............. 6-4 6.4 Projected Operating Results ................................................................................. 6-5 6.4.1 Revenues....... .................................... ......................................... ................ 6-5 6.4.2 Expenses............................. .............................. .......................................... 6-7 6.4.3 Debt Service ......... ...................................................................................... 6-7 6.4.4 Debt Service Coverage ............................................................................. 6-8 6.4.5 Operating Fund Balances.... .......................................... ................... ........ 6-8 6.5 Capital Financing ............................................. ...... ........................ ...................... 6-10 6.6 Conclusions........................................................................... ................................ 6-10 Appendices A Acronyms B Population Growth within Census Tracts C Future Water Treatment Regulations D 10-Year Capital Improvement Plan Tables 2-1 Population Forecasts ........ .... ....................... ................................................. ...................... 2-8 3-1 Water Withdrawal Permits................................................................................................3-2 3-2 Existing Equipment at the Raw Water Pump Station.................................................... 3-4 3-3 Water Treatment Plants and Chlorination System ........................................................ 3-5 3-4 Summary of High Service Pumping ................................................................................ 3-7 3-5 Pressure Gradient Summary ..... ...................................... .................................................. 3-9 3-6 Surface Water Storage Facilities...................................................................................... 3-10 3-7 Surface Water Pumping Facilities................................................................................... 3-10 3-8 Groundwater System Storage Facilities......................................................................... 3-11 3-9 Groundwater System Pumping Facilities...................................................................... 3-12 IIIP:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC1&2FINAL_6_13_02.DOC III . . . . . . . . . . . . . . . . . . . It . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 3-10 Water Demand 2001...........................................~............................................................. 3-13 3-11 The 10 Largest Water Customers.................................................................................... 3-14 3-12 Projected Water Consumption........................................................................................ 3-15 3-13 Projected Water Usage by Customer Class ................................................................... 3-15 3-14 Summary of Stage 1 D /DBP Rule Limits ...................................................................... 3-19 4-1 Wastewater Treatment Plants Owned by Augusta........................................................ 4-3 4-2 J. B. Messerly WWTP Effluent Limitations ..................................................................... 4-4 4-3 Spirit Creek Effluent Limitations ....................... ............ ................................................... 4-4 4-4 Wastewater Flows, by Plant (mgd).................................................................................. 4-5 4-5 10 Largest Wastewater Customers....................................................................................4-6 5-1 Series 2002 Bond Projects-Summary of Estimated Costs............................................ 5-2 5-2 Series 2002 Bond Projects-Summary of Estimated Water Treatment Costs............. 5-4 5-3 Summary of Site Evaluation Findings for Selected Sites............................................... 5-5 5-4 Series 2002 Bond Projects-Summary of Estimated Costs for Water Distribution Projects................ ............................................. ....... ....................................... 5-6 5-5 Series 2002 Bond Projects-Summary of Estimated Wastewater Trea tment System Costs............................................................................ ...... ..... .............. 5-8 5-6 Series 2002 Bond Projects-Summary of Estimated Wastewater Conveyance System Costs ...................... ............................. ................. ............... .............. 5-9 5-7 Series 2002 Bond Projects-Summary of Estimated System-wide Costs.................. 5-12 6-1 Historical Water and Sewer System Operating Results ................................................ 6-2 6-2 Current Water and Sewer Rates (Effective 4/1/2002)................................................... 6-3 6-3 Comparison of Typical Monthly Residential Customer Bills....................................... 6-3 6-4 Water and Sewer System Operating Results .................................................................. 6-6 6-5 Additional Bonds Test........................................................................................................ 6-8 6-6 Operating Fund, Sources and Uses of Cash Flows ........................................................ 6-9 6-7 Funding Decisions ......... ............................. ....... .............................................. ................. 6-11 Figures 2-1 Location Map ........ ........ .................. ......... ................. ............. .............................................. 2-2 2-2 Utilities Department Organization Chart........................................................................ 2-5 2'-3 Population Growth by Region .......................................................................................... 2-7 3-1 Water Service Area and Major Water Distribution Lines ............................................. 3-2 3-2 Existing Wells and Water Treatment Plants ................................................................... 3-3 3-3 Water Pumping Stations .. ......................... ....................... .......................... ........................ 3-9 4-1 Wastewater Service Area and Treatment Plants ............................................................ 4-1 4-2 Drainage Basins.............................. ............................................ ......................................... 4-2 5-1 Proposed Capital Improvements - Water System ......................................................... 5-6 5-2 Proposed Capital Improvements - Wastewater System ............................................. 5-10 IVP:\161047\161047 AUD 2002 PMIBOND FINANCING REPORT\SEC1&2FINAL_6_13_02.DOC IV . . . . . lit . . . . . . . . . . . . . It . . . . . . . . . . . . . . . . . . . . . . . 1.0 Introduction 1.1 Authorization and Purpose CH2M HILL was retained to prepare this Engineer's Report ("the Report") as an analysis of the feasibility of issuing $149,820,000 Augusta, Georgia Water and Sewerage Revenue Bonds, Series 2002 (the "Series 2002 Bonds"). CH2M HILL has served as the overall program manager for both the $42 million water and sewerage (also referred to as "wastewater") capital improvement program in Augusta, funded by the 1996 bond issue, and the $94,000,000 water and sewerage capital improvement program in Augusta, funded by the 2000 bond issue. CH2M HILL also completed the Augusta Master Plan 2000, approved by the Augusta-Richmond County Commission on July 19, 2000, which presented a multiple phase capital improvement plan (CIP). This plan identified capital improvements to be financed through the Series 2000 Bonds and the Series 2002 Bonds. The proceeds of the Series 2002 Bonds will be applied in the following approximate amounts: $125,691,320 -which, combined with interest earnings, will finance improvements to the County water and wastewater system in the amount of $130,000,000; $ 8,432,512 -prepayment of the outstanding principal on one of three loans issued by the Georgia Environmental Facilities Authority (GEFA); $ 1,912,484 -costs of issuance (including underwriter's discount, legal fees, rating fees, and other miscellaneous costs associated with issuance of the Series 2002 Bonds); $ 654,802- net original issue discount; $ 1,193,714 -payment of the premium for a debt service reserve surety bond and bond InSurance; $ 11,930,438 -capitalized interest through April 1, 2004; and $ 4,730 -contingency associated with the preliminary sizing of the Series 2002 Bonds. The "System" is defined as the water and wastewater facilities that are owned and operated by Augusta, Georgia ("Augusta") together with all water and wastewater facilities acquired or used by Augusta in furnishing water and wastewater services. Major components of the System are referred to herein as the "Water System" and the "Wastewater System." This Report contains the following sections: · Section 1- Introduction - outlines authorization and purpose of the Report, study references, and assumptions. P:\161047\161047 AUD 2002 PMlBOND RNANCING REPORT\SEC1&2FINAL_6_13_02.DOC 1.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 · Section 2 - System History and Organization, and County Growth - provides an overview of the System's history, organization, management, and county population trends. · Section 3 - Water System - describes the current Water System service area, facilities, operations, and assets. · Section 4 - Wastewater System - describes the current Wastewater System's service area, facilities, operations, and assets. · Section 5 - Proposed System CIP - provides the planning criteria and assumptions used for identifying needed capital improvements and describes the purpose and function of categories of planned improvements · Section 6 - Financial Performance - describes historical and projected financial performance, Augusta's financial policies, and a funding analysis for the Series 2002 Bonds. 1.2 References CH2M HILL reviewed and relied upon information provided by the Augusta Utilities Department (the "Department"). As part of previous and current project assignments CH2M HILL has independently verified a significant portion of this information. Although CH2M HILL offers no assurances regarding information not independently verified, CH2M HILL has no reason to believe that the information is invalid for the purposes of this Report. Information used to complete this Report included: · Interviews with Department staff · Preliminary Official Statement, Augusta, Georgia Water and Sewerage Revenue Bonds, Series 2002, dated May, 2002. · Augusta Utilities Department, 2002 Budget Workbook · AUGUSTA-RICHMOND COUNTY, GEORGIA, Annual Financial Statements, 1997-2001 · AUGUSTA-RICHMOND COUNTY UTILITIES, Financial Statements and Accompanying Information for the year ended 1997-1999 · City of Augusta, Georgia and Richmond County, Georgia, Combined Water and Sewerage Funds, Combined Balance Sheets, 1997-2001. · Augusta-Richmond County Utilities, Miscellaneous Statistical Data for the years ended 1997-2001 (prepared by Augusta Utilities Department) · Augusta Canal Power Utilization and Raw Water Pumping Engineering Study, prepared by ZEL Engineers, July 6, 1998. · Augusta-Richmond County Comprehensive Land Use Plan (prepared by Augusta-Richmond County Planning Commission) P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC1&2RNAL_6_13_02.DOC 1-2 t t t t t t t ~ t t t t t ~ t t t t t ~ . t t t . t . ~ ~ . t t ~ . . t . . . . t . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 · The Regional Economic Forecast of Population and Employment Comprehensive Study, volume II., prepared by DRI/McGraw-Hill for the Georgia Department of Natural Resources (DNR), September 1996. · Georgia Office of Planning and Budget Projection-The Georgia County Guide, Eighteenth Edition 1999. Center for Agribusiness and Economic Development. Ed. Boatright, Susan R. Bachtel, and Douglas C. Bachtel. 1999. · Master Plan 2000 for Water and Wastewater Systems, Augusta Utilities Department, Technical Memorandum 1.2A: Population Distribution and Water and Wastewater Flow Projections, April 5, 2002 (An update to TM 1.2 prepared by Diane Reilly, Consultant) · Master Plan 2000 for Water and Wastewater Systems, Augusta Utilities Department, Technical Memorandum 2.1A: Water System Regulatory Compliance Review, April 4, 2002 (An update to TM 2.1 prepared by CH2M HILL) · Master Plan 2000 for Water and Wastewater Systems, Augusta Utilities Department, Technical Memorandum 2.2A: Wastewater Treatment Regulatory Review, April 4, 2002 (An update to TM 2.2 prepared by CH2M HILL) · Master Plan 2000 for Water and Wastewater Systems, Augusta Utilities Department, Technical Memorandum 5.1: James B. Messerly WWTP Evaluation, January 21,2000 (prepared by CH2M HILL) · Master Plan 2000 for Water and Wastewater Systems, Augusta Utilities Department, Technical Memorandum 5.2: Augusta-Richmond County Wastewater Conveyance System Evaluation, April 4, 2002 (prepared by CH2M HILL) · Master Plan 2000 for Water and Wastewater Systems, Augusta Utilities Department, Summary of Recommendations for Expansions and Improvements, February 4, 2000 (prepared by CH2M HILL) · Water Distribution System Analysis for Augusta-Richmond County, Georgia, September 2001 (prepared by CH2M HILL) · Highland Avenue Water Treatment Plant Preliminary Design Report, November 2001 (prepared by CH2M HILL) · Raw Water Intake and Water Plant Site Assessment, Technical Memorandum No.1, April 13, 2001 (prepared by CH2M HILL) · Raw Water Intake and Water Plant Site Assessment, Technical Memorandum No.2, September 26, 2001 (prepared by CH2M HILL) · Raw Water Intake and Water Plant Site Assessment, Technical Memorandum No.3, October, 2001 (prepared by CH2M HILL) 1.3 Assumptions CH2M HILL also made certain assumptions about future conditions with regard to the System. While these assumptions are reasonable for the purposes of this Report, actual P:\161047\161047 AUD 2002 PMlBOND RNANCING REPORT\SEC1&2FINAL_6_13_02.DOC 1-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 conditions may differ from those assumed. To the extent that future conditions differ from those assumed, results will vary from those forecast. CH2M HILL's principal assumptions regarding future conditions are: · Augusta's population will increase from the 2000 level of 199,775 to 242,150 by 2020, according to the Augusta-Richmond County Comprehensive Land Use Plan. In addition, many areas of the County are under new development as a result of a shift in growth patterns. This growing, shifting population will require that the Department expand service to new areas to provide water and wastewater utility service to new customers. · Augusta has adopted a policy to mandate conversion to central wastewater collection when service is available, The Department is developing plans to ensure enforcement but conservatively estimates that actual connections will occur over a period of 3 years following completion of new collection lines in unsewered areas. · System water consumption and wastewater flows will increase in proportion to the forecast increases in the number of water and wastewater accounts and per capita flows, with limited price elasticity adjustments to reflect responses to projected rate increases. · The Augusta-Richmond County Commission will adopt the rate increases necessary to implement the financial plan outlined in Section 6.p Additional assumptions used in preparing the CIP are described in Section 5. P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC1&2RNAL_6_13_02.DOC 1-4 . . . . . t a . t . . . . . . ., . . . . . . . . t . . . . . I . . . It . . . . . t . . 2.0 System History and Organization, and County Growth Augusta, Georgia (Augusta) is a political subdivision of the State of Georgia, created on January 1, 1996 pursuant to Acts of the General Assembly of the State of Georgia, which authorized the consolidation of the municipal corporation known as "The City Council of Augusta" and the political subdivision known as "Richmond County, Georgia" (the "Consolidation Charter"). See Figure 2-1 for the County's location in Georgia. Augusta owns the water supply, treatment, and distribution system, as well as the wastewater collection and treatment system. The Department is responsible for the operation and maintenance of the water treatment and distribution facilities (the "Water System"), as well as the wastewater conveyance and treatment facilities (the "Wastewater System") that serve Augusta's service area. In addition, the Department provides customer service functions including meter reading and customer billing, revenue collections, and inspection of new construction. 2.1 Organizational Structure 2.1.1 Augusta On January 1, 1996, Augusta was created as a consolidated city-county government, whose territorial jurisdiction extends to all of what was formerly Richmond County. Blythe and Hephzibah, small municipalities with populations of approximately 400 and 2,600, respectively, still hold their own municipal charters within the consolidated territory. The relationship between Augusta and Blythe and Hephzibah is similar to that of counties and municipalities within the territorial limits of such counties. As a result of consolidation, Augusta is able to provide public services throughout its territorial limits through a single organization and management structure. Augusta has a municipal form of government. Under the Consolidation Charter, the governing authority of Augusta is a board of commissioners designated as the Augusta- Richmond County Commission (the "Commission"). The Commission consists of a Mayor, who is the chief executive officer of the Commission, and 10 commissioners. 2.1.2 System Management The System is managed by Augusta through the Department. The Administrator of Augusta, who is appointed by the Commission upon recommendation of the Mayor, oversees the management of the operations and capital program of the Department. The chief managerial officer of the Department is the Director, who is appointed by the Commission. P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC1&2RNAL_6_13_02.DOC 2-1 . . It . II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 N A CH2MHILL Figure 2-1 location Map Augusta, GeOtgia Wll42002tl18ATLlhJguslal0tlhll ADMINISTRATOR. George R. Kolb, age 53, has been the Administrator of Augusta since May I, 2001. From April of 1992 to January of 2001, Mr. Kolb was the Deputy City Manager of the City of Richmond, Virginia. From August of 1989 to April of 1992, Mr. Kolb was the Assistant to the City Manager/Employee Services of the City of Saginaw, Michigan. From October of 1981 to October of 1988, Mr. Kolb was the City Manager of the City of Albion, Michigan. Mr. Kolb received a B.B.A. degree in Marketing from Eastern Michigan University in 1970 and a Masters of Public Administration in Urban Administration from the University of Michigan in 1971. Mr. Kolb also studied in the Senior Executives in State and Local Government graduate program at John F. Kennedy School of Government of Harvard University. DIRECTOR OF FINANCE. David Persaud, age 47, has been the Director of Finance of Augusta since June 3, 2002. Mr. Persaud was the Director of Finance for Chatham County, Georgia from November of 1985 through May of 2002. From August of 1984 through November of 1985, Mr. Persaud was the Director of Finance of the City of Mount Dora, Florida. From February of 1982 through August of 1984, Mr. Persaud was the accountant for Glynn County, Georgia. Prior to August of 1984, Mr. Persaud was employed in the private sector. Mr. Persaud received a B.S. degree in Business Administration and Accounting from the University of Coast California and a Masters degree in Public Administration from Savannah State University. P:\161 047\161 047 AUD 2002 PMIBOND FINANCING REPORT\SEC1&2FINAL_6_13_02,DOC 2-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 He is a Certified Government Financial Manager (CGFM) and has a Chartered Pension Executive (CPE) certification. DIRECTOR. N. Max Hicks, P.E., age 62, has been the Director of the Augusta Utilities Department since June 4, 1996. From 1991 to 1996, Mr. Hicks was the General Superintendent and the Assistant General Superintendent, respectively, of the City's Water Works Office. From 1989 to 1991, Mr. Hicks was Public Works Director for the City of Toccoa, Georgia. Prior to that, he was a partner, director, and vice president of the consulting engineering firm of Zimmerman, Evans, and Leopold, Inc., Augusta, Georgia. Mr. Hicks studied Engineering and English at Charlotte College (now University of North Carolina at Charlotte), Charlotte, North Carolina, and Economics and Accounting at the University of South Carolina at Aiken, Aiken, South Carolina. Mr. Hicks is a Registered Professional Engineer in Georgia and South Carolina. Mr. Hicks was the 1996 recipient of the Elizabeth McIntire Award for Outstanding Service in Water Supply from the Georgia Water and Pollution Control Association. ASSISTANT DIRECTOR OF FINANCE & ADMINISTRATION. Steven J. Little, c.P.A., age 45, has been the Assistant Director of Finance and Administration of the Augusta Utilities Department since December of 2001. From2000 to 2001, he was the Assistant to the Chief Financial Officer at the national headquarters for Electrolux Home Products, makers of Frigidaire appliances, located in Augusta, Georgia. Prior to that, he was the Chief Financial Officer for a start-up medical referral company and its sister corporation in Aiken, South Carolina. His previous experience includes over ,10 years of public accounting, with an emphasis in auditing local governments, and internal auditing for a private utility company. Mr. Little is a certified public accountant. He received a B.B.A. degree in Accounting from Iowa State University in 1982. ASSISTANT DIRECTOR, WASTEWATER TREATMENT. D. Allen Saxon, Jr., age 45, has been the Assistant Director of Wastewater for the Augusta Utilities Department since March 5,2001. Mr. Saxon previously served as the Supervisor of Water Pollution for the City for 17 years until September of 1994, when he resigned to further his education. He is an active member of the Georgia Water & Pollution Control Association and the Water Environment Federation. Mr. Saxon was Georgia's 1990 recipient of the William D. Hatfield Award from the Water Environment Federation. Mr. Saxon earned a RRA. degree in 1983 from Augusta College and an M.S. degree in 1996 from Georgia State University. Mr. Saxon is certified as a Class I Wastewater Treatment System Operator by the State of Georgia. ASSISTANT DIRECTOR, WATER PRODUCTION. Clifford A. (Drew) Goins, age 47, has been the Assistant Director of Water for the Augusta Utilities Department since May 29, 2001. Mr. Goins has been employed by the City for almost 20 years in various capacities. He began his employment with the City as a Resident Engineer in 1982 until his promotion to Assistant Commissioner of Public Works and Director of Engineering in 1990. From 1993 through 1996, Mr. Goins served as the acting Commissioner of Public Works and Director of Engineering while the Commissioner of P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC1&2FINAL_6_13_02.DOC 2-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 Public Works was reassigned to the position of acting City Administrator. After serving in that capacity, Mr. Goins served as the Assistant Director of Public Works and Engineering until he accepted his current position. Mr. Goins has been a 10th District Chapter Director for American Public Works Georgia and a committee member of the American Public Works National Engineering & Technology PET. He received a Bachelor of Civil Engineering Technology Degree from Southern Technical Institute in 1981. ASSISTANT DIRECTOR, ENGINEERING & CONSTRUCTION. Douglas A. Cheek, P.E., age 37, has been the Assistant Director of Engineering and Construction for the Augusta Utilities Department since May 29, 2001. From August of 1998 until June of 2001, Mr. Cheek served as the City/County Engineer for Augusta. From February of 1995 until July of 1998, Mr. Cheeks served as the Bridge Construction Liaison Engineer for the Georgia Department of Transportation's Metro Atlanta District Office. In June of 1998, Mr. Cheek received a Bachelor of Civil Engineering from the Georgia Institute of Technology in Atlanta, Georgia. He also studied Biology at Clayton State College in Morrow, Georgia from 1982 to 1984. Mr. Cheek is a Registered Professional Engineer in Georgia. CUSTOMER SERVICE SUPERINTENDENT. Alma Stephenson, age 53, has been the Superintendent of Sales, Collections, and Customer Service of the Augusta Utilities Department since June 4,1996. Ms. Stephenson was employed by the City for 27 years and was appointed Director of Consolidated Revenue/Manager of the Water Works Office and Sales Department in June of 1995, after serving for 8 years as the Assistant Director of Consolidated Revenue/Manager of the Water Works Office and Sales Department. The Department has 234 full-time equivalent positions authorized in its FY 2002 budget and had 12 vacancies as of March 31, 2002. Figure 2-2 illustrates the current organization of the Department. No employees of the System are represented by labor organizations or are subject to provisions of collective bargaining agreements, and the Commission is not aware of any union organizing efforts. The System's plant operators and maintenance and repair personnel are required to meet the certification levels prescribed by the State of Georgia Board of Certification of Water and Wastewater Operators. Augusta pays for continuing education programs to ensure that System personnel are qualified, and achieve and maintain certification of their qualifica- tions. The System's operators meet or exceed the minimum credentials required by the State of Georgia. Additionally, all field employees must attend safety meetings and participate in safety training programs; these cover shoring and trenching, confined space entry, lock-out/tag- out, and other safety topics. P:\161 047\161047 AUD 2002 PMlBOND ANANCING REPORT\SEC1&2FINAL_6_13_02.DOC 2-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f-f-'" ~tii~ Eb~:n a:a:_ en<a: a:Q..UJ tf1~:- zeno a~z z!:::O w::::!CC f-UJ =>=> <z f-UJ en> =>UJ (!)a: =>UJ <(!) < a: UJ ;: UJ en o z < a: UJ !;;c ;: .... c cu E 1:: II a. cu Q U) cu .- .... .- - .- .... :::) ~ " It 15....2 ~.!.!l 1!"~ 1i~C ]i ~ - - - c-- ~~ ~~ ~5 o~ EO ~clI III ~ .g~ ~~ c( ~~ ~ ~ " ~ ~ ~ J!! ~i ~ ~"" 158.2 ...... ~ Ill:! 1ii"C !I " a " --.!!!- .---- " ,,! Ii Q'E ~" ~: -~ t. " -2- a .. ~ . 0 m ~~ ~E ~ :;; a: 8 .>< ~E 0.0 % ii &:e i ,.'" :]'t U .o'" ~e :ID~ ~a: ",0. 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'/! :;; iG; :; -:- " ~~ wU ~1I go =~ wo oe < '-- ~ ~- " :;.!.. ~O .ll~ ~. w ,,- ." .55 w. ~a ~@ ~" < -,- ~ U') '" . . 0 10' 0 ~ ~ >w >w >w " >E >E >E 0 ~ :;'.9- ~,g. ~.g. " :I:~ r~ :1:' Jf Jf Jf ~ ~ ~ ~ a m ~ ~ .9 .9 .9 w ~ Ih eE eE eE ~g " ~ ~g -a ~~ -a ~ 00. 00. B'" B'" B'" a~ .0 .~ 0 we w w. 'Co ii~ " %i; .. :; Ill> .s-g, " " .> " .:1: .r ~; ~~ ~~ fi: uii: U" w oj w ~ ~~ 'C " ~w ~w :; ~ ~.2:: ~.2:: " ~~ ~~ om ,,> U b w .1i -l! ~ :; " w " :; " w ~ .>< .>< ~ ~ w -l! ~ w ~ ~ ~ " " ~ ~ '" U ~ :; ~ .~ 1Il U ~ '-- r- - h ~ 5 ~ a ~ ~ Vl U --,-- - ~ o ~ 0 0 >w >w >E >E lEE- ~.9- :I:~ :I:~ w 0 0 e >w >w >w >E >E ,> E :E.9- :::.g. a:l.2- :I:~ J:M :I:~ Jf w - ~- ~~ 0 ~ ~~ ~ 0 ~~ ~.~ 0 ~ 0 J:g :1:' " 0 Jf N ~, :; Q)=: 'C~ , c~ ~ ;' u~ ~ Z Vl U u:: -= =- ~ /' c (3 UJ j i i en ~ 1 ~ ~ i 0 "- UJ a: (!) ~ !' ~ I z .. - . (3 ~ B ~ ::;: ! - I I z Ii: E I I u:: 0 '5~'ll~ z IIII 0 CD ::E "- jaaaa '" .Iii! 8 '" Ci ~ S Li 0 => s.s s s s < ..... 1111i ~ 10 0..00 ~ ) 10 0: e ~ E 0. .~ W > > o ~ ;z: r=::; :!. ~ w fl~ .~~ Vl~ ~ '" ~ ~ ~ ~j; .~~ ~l '" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 2.2 Augusta-Richmond County Population Trends From 1990 to 2000, the total population of Richmond County grew by 5.3 percent, from 189,719 to 199,775 according to the US Bureau of the Census. Statewide, the population in Georgia increased by 26.4 percent during the 1990s. Despite the relatively slow growth, the County ranks seventh in the State in terms of total population, behind five metropolitan Atlanta counties (Fulton, DeKalb, Cobb, Gwinnett, and Clayton) and Savannah's Chatham County. While the growth rate of Richmond County has been relatively modest compared to the accelerated growth experienced elsewhere in the State, previously undeveloped areas of the County have experienced significant population growth. This redistribution of in- county population has precipitated some of the requirements for planned capital improvements. The general population shift within the County from more densely developed areas, which have infrastructure in place to support the water and wastewater demands of the population, to more rural areas, which previously had limited services or were unserved, will require the Department to expand System capacity in the growth areas. Appendix B shows population growth by Census Tract, illustrating the recent growth (in positive percent change) occurring in the less developed areas of the County (measured by 1990 density). The Department retained CH2M HILL to prepare the Master Plan 2000 for Water and Wastewater Systems to meet the needs of its shifting population efficiently and cost- effectively. Several population projections have been developed for the County and are presented in Table 2-1. The projections used by CH2M HILL in forecasting water and wastewater flows (see Sections 3.8 and 4.5) were based on the "High" year 2010 forecast presented in the Augusta-Richmond County Comprehensive Land Use Plan. The 2000 population estimate presented is from the U.S. Bureau of the Census. The 2020 projection is extrapolated based on the expected percentage change between 2000 and 2010 shown in Figure 2-3. Use of the Planning Commission's "High" 2010 projection will help ensure that the Department will have adequate infrastructure in place to support future growth. While growth is affected by factors that Augusta cannot directly control, such as growth in adjacent counties and the health of the Augusta Metropolitan Statistical Area's (MSA) economy, the pattern of population distribution that ultimately occurs will be heavily influenced by the economic development and growth management policies of the local government. The population distribution projections delineate a range of water and wastewater infrastructure needs, and related system financing options and constraints. P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC1&2FINAL_6_13_02.DOC 2-6 Q ~ j U N N << W N ~ ~ 0 ~ 0 . Z ~ ~ ,; ;0 N Q Q N ~ . :; a Q 'i f ~ i gl 0 0 ~ 0 ~ ~, i ;;;, <: ~ -J' 0 I < ~ Z Cl '" ~ u::: ll:: ~ ~ 0 " (!) g, ! U t- o;;; ~ UJ ll:: U " en 0 i ~ lJ.. "" "'" . 0 .EE ~ 0. UJ '" j a: "'" ;,0 C) 16..2 ".Q Z ~.S i3 Z 'tio~~ .J < Z ~e~ .J u::: -~ 0 ~ ~.~ J:~ Z 0 o.!2~ 91 ",,- Ii :::;; t::~~ 0. ~et; 8 (5 ~~ Ng '" t$!.Q 0 Z~ ::J ~c3 ~ < .... U~ ...,. ~ 0 <0 ;::: ...,. 0 <0 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-~'" ~UJ8 0.:::;;'" ~~~ en<a: c:8J~ ti1 ~ u:f ZUJO (5-Z z!=O w:::::!CD I-UJ ::J::J <z I-UJ en> ::JUJ C)a: ::JUJ <C) < a: UJ ;J: UJ en o z < a: UJ !;;: ;J: z~ Qi " "- ~~ ~ .... '" '? 5 cn~ .~ N.-tio 0 ell ~e!N" SD:::I-'..c<!l C) >. CJ) g> s~ i!.o~o~ ~lB,sg> oUo<l; <958 c o.N 0:J <ll ~alg> ~~~ &@.~ o "" ro :; 0. o Q. cf. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 TABLE 2-1 Population Forecasts Augusta-Richmond County, 1990 (estimate) through 2020 Forecast Augusta-Richmond County Planning Projection used for this Analysis Percent Change Augusta-Richmond County Planning Commission2 Low 189,719 Percent Change Moderate Percent Change High Percent Change "Building Permit" Projection3 Percent Change Regional Economic Forecast4 Percent Change Georgia Office of Planning and BudgetS Percent Change Sources: 1 US Bureau of the Census, 2000 Census. 2 Augusta-Richmond County Comprehensive Land Use Plan, prepared by Augusta-Richmond County Planning Commission) 3The Building Permit Projection uses the August-Richmond Planning Commission's 1998 population estimate, based on building permit activity, as a starting point and then applies the moderate projection's growth rate (from the Comprehensive Land Use Plan) , 4The Regional Economic Forecast of Population and Employment Comprehensive Study, Volume II. prepared by DRI/McGraw-HiII for the Georgia Department of Natural Resources (DNR), September 1996. sGeorgia Office of Planning and Budget projection- The Georgia County Guide, Eighteenth Edition 1999. Center for Agribusiness and Economic Development. Ed. Boatright, Susan R. and Douglas C. Bachtel. 1999. 1990 (estimate) 189,719 2000 (projected) 199,7751 2010 (projected) 222,497 5.3% 11.4% 196,465 203,450 3.6% 3.6% 189,719 199,990 213,826 5.4% 6.9% 189,719 204,439 222,497 7.8% 8.8% 189,719 208,022 222,414 9.6% 6.9% 189,719 207,261 230,423 9.2% 11.2% 189,719 211,688 234,582 11.6% 10.8% P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORT\SEC1&2FINAL_6_13_02.DOC 2020 (projected) 242,150 8.8% 233,745 5.1% 260,904 13.2% 2-8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0 Water ~System 3.1 Overview of Potable Water System Augusta owns and operates a potable water system serving 58,246 residential and 7,424 commercial and industrial customers as of December 31, 2001.The Water System's surface water supply is the Savannah River, supplemented by groundwater wells throughout the County. Water from the Savannah River is treated at the Highland Avenue Water Treatment Plant (WTP). Water from the wells is treated at one of three groundwater treatment plants (GWTPs). Water transmission and distribution facilities convey treated water from these plants throughout the Water System service area. 3.2 Water Service Area The Water System supplies water to residential, commercial, and industrial customers located within the County. The service area encompasses approximately 210 square miles (approximately 88 percent of the land area of the County exclusive of Fort Gordon) containing an estimated population in excess of 180,000. The water systems of Fort Gordon and the Cities of Blythe and Hephzibah provide water service within their respective jurisdictions in the County. Figure 3-1 presents the areas currently served by the Water System with overlays of existing major water distribution lines. Generally, the service area can be characterized as having complete water service coverage for potential customers who wish to connect to the Water System. Projects defined in Section 5 as part of the CIP will continue to enhance the Water System's ability to serve this area. 3.3 Water Supply The Water System's primary source of raw water is the Savannah River, withdrawing directly from the river as well as from the Augusta Canal, which is fed by and located parallel to the river. The Water System has four raw water intakes on the canal, two primary and two secondary, plus an additional diesel-engine-driven standby raw water pump that can pump from either the canal or the river. The raw water supply is pumped from the Water System's raw water facilities located between the Augusta Canal and the Savannah River to the Highland Avenue WTP through a system of parallel raw water lines. There are four raw water transmission lines: a 30-inch-diameter cast iron pipe, 36-inch steel pipe, 60-inch ductile iron (DI) pipe, and an inactive 42-inch pre-stressed concrete cylinder pipe. The Georgia Water Quality Control Act authorizes the DNR Environmental Protection Division (EPD) to regulate the withdrawal of water from lakes, streams, and aquifers in Georgia. Augusta holds permits for raw water sources as noted in Table 3-1. P:\161 047\161 047 AUD 2002 PMlBONO RNANCING REPORT\SEC3&4FINAL_6_13_02.DOC AO 733055.1 3-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 LEGEND: N A ~ Augusta Water SelVice Atea' N Major Water Unes N Streets . Augusta Service AlBa does not include Forl Gott1on, Hephzibah or Blythe. 8000 80IXlFeet I""""""" CH2MHILL Figure 3-1 Water Service Area and Major Water Dislribution Lines AU!1us1a. Geoiyia 'Ml420020tBATLlAuguslal03.t18 Souroe:FIlIPMll:h~~_eng_I8POfI.!llI".o..:'8Apr2Oll2.lJMr.tf.ICU)RV,2002Ell:3.1WawPP*'e TABLE 3-1 Water Withdrawal Permits Permitted Withdrawal (mgd) Raw Water Source Monthly Average 24 hour Max. Day Surface Water: Primary Source: Savannah River/Augusta Canal EPD Permit No. 121-0191.06 60.0 60.0 North Location: Savannah River EPD Permit No. 121.0191-09 (being relocated to the new intake site) Groundwater: 15.0 18.5 Monthly Average Annual Average 26 Active Wells - located at GWTP Nos. 1, 2, and 3 plus three individual sites (Rural Chlorination Sys.) EPD Permit No. 121-0007 Note: mgd = million gallons per day 18.4 17.4 In 1991 EPD issued to the former County a permit for withdrawal of raw water from the Savannah River of 30 mgd monthly average and 37 mgd maximum daily capacity. The P:\161 047\161 047 AUD 2002 PM\BOND FINANCING REPORT\SEC3&4FINAL_6_13_02 .DOC AO 733055.1 3-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 intake was located just north of Interstate 20 where a new WTP was initially planned (EPD Permit No. 121-0191-09), referred to as the North Location. The plant at this location was not constructed. After the consolidation of the former City of Augusta and Richmond County, all permits were also consolidated. In June 2000, EPD approved the transfer of 15 mgd monthly average capacity to the current secondary raw water intake (EPD Permit No. 121- 0191-06), increasing the monthly average/24-hour maximum day withdrawal capacity from the Savannah River to 60 mgd. The remaining 15-mgd capacity from this North Location will be relocated to a new WTP intake discussed further in Section 5. In addition, Augusta is permitted to withdraw supplemental raw water from the Tuscaloosa Formation aquifer through 32 wells: 26 actively producing, 5 deactivated, and 1 inactive. The Water System is currently permitted to withdraw groundwater under EPD Permit No. 121-0007 to pump 18.4 mgd maximum month average; and 17.4 mgd maximum annual average. See Figure 3-2 for the location of the wells and WTPs in the service area. LEGEND: ~ Ground Water Treatment Plant IJ Surface Water Treatment Plant o Wells @ Wells (Kept on Rural Chlonnation) .... RWI 8OOO_~~Feet FIGURE 3-2 Existing Wells and Water Treatment Plants Augusta, Georgia 3.3.1 Raw Water Pumping Withdrawal of raw water from Augusta's primary raw water supply is accomplished via a raw water intake (RWI) that has an aggregate pump capacity of 88 mgd and is located on the Augusta Canal. Raw water pumping is accomplished primarily using two pumps, Units 1 and 4, with capacities of 20 mgd and 30 mgd, respectively. Units 1 and 4 are powered by water-driven turbines, originally constructed in 1952 and 1975, respectively, and improved in 1993 and 1999. Unit 1 is a two-stage centrifugal pump and Unit 4 is a single-stage centrifugal pump. Units 2 and 3 are older pumps, each with a capacity of 9.0 mgd, which are P:\161 047\161 047 AUD 2002 PM\BOND FINANCING REPORT\SEC3&4FINAL_6_13_02 .DOC AO 733055.1 3-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 used as supplemental supply for peak demands and when one of the other units is taken out of service for maintenance. These pumps were originally constructed in 1898, were improved in 1939, and received major upgrading in 1999. A fifth unit, Unit 5, is a standby diesel-engine-driven raw water pump, with a water intake which can be used in the Augusta Canal or the Savannah River, and a raw water pumping capacity of 20 mgd. This standby auxiliary pump was originally constructed in 1975 and is housed in the same building as Unit 4, which received major upgrading in 1999. See Table 3-2 for detailed information on the five raw water pumps. Table 3-2 outlines information on the existing raw water pump station equipment as well as its general condition. The Department maintenance staff has rated the pumps based upon equipment age, performance, and reliability. Those rated" good" are considered reliable for continuous. use with little maintenance, while those rated "fair" are older and considered reliable for occasional use only. For pumps rated "fair", maintenance is more difficult due to age of equipment and wear. Upgrading of the pump station is part of the planned capital improvements described in Section 5. TABLE 3-2 Existing Equipment at the Raw Water Pump Station Pump Flow Capacity Turbine Flow Installed No. (mgd) (cfs) Capacity Comments NO.1 20 550 1,650 hp Good condition NO.2 9 250 750 hp Fair condition NO.3 9 250 750 hp Fair condition NO.4 30 814 2,500 hp Good condition NO.5 20 (17 if withdrawing water directly from the river) o (Diesel-driven) 2,000 hp Good condition Source: Technical Memorandum 4.2: Highland Avenue Filtration Plant Evaluation, December 18,1999 Note: cfs = cubic feet per second 3.3.2 Raw Water Transmission and Storage Raw water is currently transmitted from the existing PS to the raw water reservoirs at the Highland Avenue WTP via three pipelines: 30-inch cast iron and 36-inch steel pipes and a recently completed 60-inch DI transmission line. (An existing 42-inch concrete pipeline has been taken out of service to be evaluated for possible use as a backup supply line.) The pipelines have a total capacity range of 102.15 to 163.40 mgd or a firm carrying capacity with the 6D-inch line out of service of 38.7 to 61.88 mgd, at typical velocity ranges of 5 to 8 feet per second (fps) for pumped flow, respectively. Augusta has raw water storage capacity of approximately 379 acre-feet or 124 million gallons (MG) at two raw water storage reservoirs that serve the Water System. They provide pre-settling of suspended matter in the raw water as well as storage during times of low river or canal flows. Water flows by gravity from these reservoirs to the WTP. P:\161047\161047 AUD 2002 PMlBONO FINANCING REPORT\SEC3&4RNAL_6_13_02.DOC AO 733055.1 3-4 I I . I I I I I I I I I I I I I . I I I I I I I I I I I I I I. I I I I I I . I I I . I ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 3.4 Water Treatment Facilities Augusta: owns four WTPs and a rural chlorination system, as summarized in Table 3-3. TABLE 3-3 Water Treatment Plants and Chlorination System Rated Plants Capacity for 2001 Production Date of EPD Operating Permit Treatment of of Treated Water Original Dates of No. CS2450000 Raw Water (maximum day) Construction Improvements Highland Avenue WTP 60.0 mgd 40.50 mgd 1939 1949,1954,1987, Permitted to 60 mgd but 1994,2000 improvements, currently under design, are necessary before plant can sustain that production level. Current sustainable capacity 45 mgd. Peach Orchard (GWTP No.1) 5.0 mgd 6.49 mgd 1966 1969, 1996 Original capacity of 10 mgd reduced to 5 mgd in 2001; the new GWTP No. 3 replaced lost capacity. Highway 56 Loop (GWTP No.2) . 10.0 mgd 8.95 mgd 1979 1985, 1992, 1996 Old Waynesboro Road (GWTP 5.0 mgd 6.08 mgd 2001 No.3) Rural Chlorination System 3.7 mgd 1.77 mgd 1972 Each year since 1981 Totals 83.7 mgd 63.79 mgd* *Current operating limit 78.4 mgd The rural chlorination system is served by three wells identified as Brown Road, Plantation Road, and Kimberly-Clarke Wells; at each well there is a chlorine solution feed system for disinfection, a caustic soda solution feed system for pH adjustment, and fluoridation via addition of hydrofluosilicic acid. Results of regular water quality sampling at the wells are in compliance with state (EPD) permit requirements. 3.4.1 Highland Avenue WTP System Processes The following processes used by the Department are standard for similar water treatment systems and comply fully with current regulatory requirements. Using this treatment technology results in a treated water that complies with permit criteria and satisfies user demands for a high quality, reliable water supply. Pre-Flash Mixing and Flow Splitting: Pre-treatment chemicals are added just downstream of the raw water venturi meter and control valve. These chemicals include chlorine, lime, and alum. (Polymer, when added, is injected upstream of the flow meter.) Flocculation: Flocculation is provided through six flocculation basins-the effluents from the first two are combined and split among sedimentation basins 1, 2, and 3. Each of the remaining four sedimentation basins has its own flocculation basin. P:\161047\161047 AUD 2002 PMlBOND RNANCING REPORT\SEC3&4RNAL_6_13_02.DOC AD 733055.1 3-5 I I I I I I I I . . I . . I . . I . I . I I . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 Sedimentation Basins: Flow into sedimentation basins 1, 2, and 3 is through a series of 12 inlets for each basin. Settled water from these first three basins enters a settled water flume that is separate from the one serving the other basins. The two settled water flumes combine in the filter influent flume. Sedimentation basins 4, 5, 6, and 7 each receive flow from their respective flocculation basin. Influent into the basins is through a series of 10 openings in the bottom of the respective inlet flume. The effluent from basins 4, 5, 6, and 7 combines in a single settled water flume, which flows to the filter influent flume. Filtration: From the sedimentation basins, settled water flows through two separate channels (one from sedimentation basins 1 through 3; the second from sedimentation basins 4 through 7) to the filter influent flume. The Highland Avenue WTP includes 10 dual-media, two-celled filters, each with a surface area of approximately 1,050 square feet (fF). At the current rated capacity of 60 mgd, the filtration rate is 4.0 gallons per minute (gpm)/ft2 with all filters in service. Each filter includes Leopold underd~ains, 8 inches of gravel, 9 inches of sand, and 20 inches of anthracite. Backwash troughs are cast-in-place concrete. Rotary surface wash arms with nozzles are included for cleaning the expanded media during backwashing. Filter effluent piping includes a rate-of-flow controller for each filter. Post Flash Mixing: Post flash mixing occurs in a two-compartment basin, with each compartment having a pitched blade turbine mixer. Post-treatment chemicals (fluoride, lime, phosphate, and chlorine solution) are added as the filtered water enters the basin in the transition piece from a 72-inch pipe to a 6-foot by 4-foot rectangular opening. 3.5 Finished Water Storage, Chemical Feed Systems, and High Service Pumping Once the water is treated, distribution throughout the system requires high service pumping and storage in order to maintain a reliable, continuous supply for residential, commercial, and industrial customer uses. The systems described below are maintained at a level to provide operating pressures throughout the system that exceed EPD requirements of 35 psi minimum line pressure (measured at remote fire hydrants located in residential areas). The Department generally maintains line pressures of 60 psi to 120 psi (measured at the remote fire hydrants located in residential areas as described above), which is within the American Water Works Association (A WW A) guidelines, promotes high levels of customer satisfaction, and provides adequate fire protection in the system. 3.5.1 Finished Water Storage The Highland Avenue WTP finished water storage tanks (clearwells) supply the lower pressure zones directly by gravity while the remaining capacity is pumped to the Water System's storage facilities located in various pressure zones. The treated water is then fed by gravity or pumped throughout the water distribution network. P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORT\SEC3&4FINAU_13_02 .DOC AD 733055.1 3-6 I I I . I . . . . . . . I . I I . . I I I . . . I I I . . . . I . . I I . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 There are five clearwells at the Highland Avenue WTP, with a total storage capacity of 15.45 MG: · Clearwell No.1 -1.25 MG · Clearwell No.2 - 3.0 MG · Clearwell No.3 - 5.0 MG · Clearwell No.4 - 1.6 MG · Clearwell No.5 - 4.6 MG Clearwell No.2 was modified in 2000 to add baffling for disinfection concentration multiplied by time (CT). This will facilitate continued compliance with Safe Drinking Water Act (SDW A) regulations. The current modifications will result in all treated water being directed through Clearwell No.2. Two additional 3D-inch influent pipes were added from the post flash mix basin into this clearwell. Several pipes connect Clearwell No.2 with the four other finished water clearwells. 3.5.2 Chemical Feed Systems The chemical feed system at the Highland Avenue WTP includes: a liquid lime system that has two bulk tanks and three lime slurry feed pumps; a dry lime system used as a backup to the liquid feed system: a chlorination system with five chlorine containers on-line and five that serve on a standby basis; a polymer feed system used when required by high turbidity levels; a powdered activated carbon (PAC) system used when required for taste and odor problems; and a phosphate feed system. Also, the liquid alum system includes two bulk tanks, a day tank, and new feed pumps. 3.5.3 High Service Pumping There are three sets of high service pumps at the Highland Avenue WTP: the generator building pumps (also identified as the old Fort Gordon high service pumps), the filter gallery pumps, and the auxiliary pumps plus the Central Avenue Booster Pump Station (BPS). An additional set of high service pumps is located at the Wrightsboro Road BPS. Table 3-4 lists each system's pumping capacities in gpm, elevation of the pressure zone served (nominal mean sea level [msl], feet) and the difference in elevation the pumps must pump against (head, feet). The pressure zone is designated in elevation (ft msl) of the water surface in storage tanks serving the area when the water is at the full tank level. Reworking of the high service pumps is included as part of the Highland Avenue WTP improvements listed in Section 5. TABLE 3-4 Summary of High Service Pumping From To Head (ft) Flow Elevation Elevation Total Dynamic Head Location (msl) (msl) (TDH) gpm Central Avenue BPS 433 420 66 3,000 Aux. High Service Pump 433 564 173 8,100 Aux. High Service Pump - Diesel 433 564 173 8,100 --------- - High Service Pump - Diesel 433 564 160 2,000 P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC3&4RNAL_6_13_02 .DOC AO 733055.1 3-7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 TABLE 3-4 Summary of High Service Pumping From To Head (ft) Flow Elevation Elevation Total Dynamic Head Location (msl) (msl) (TDH) gpm High Service Pump 433 564 160 5,600 High Service Pump - Backup 433 564 160 2,000 High Service Pump 433 564 160 3,500 Fort Gordon Pump 433 630 or 598* 310 1,250 Fort Gordon Pump 433 630 or 598* 300 2,500 Fort Gordon Pump 433 630 or 598* 300 2,500 Fort Gordon Pump 433 630 or 598* 300 1,250 Wrightsboro Road Pump 564 630 100 700 Wrightsboro Road Pump 564 630 100 900 Wrightsboro Road Pump 564 630 100 900 *This station can pump to either pressure zone. 3.6 Water Distribution System The water distribution system includes approximately 1,010 miles of pipelines ranging in size from 6 inches to 24 inches in diameter. Most of the pipelines are made of cast iron or ductile iron (DI). Approximately 20 percent of these pipelines have been in service for 50 years or more, with the oldest pipelines installed approximately 140 years ago. Finished water is distributed from the Highland Avenue WTP by gravity and by pumping. Finished water is pumped using the Filter Gallery PS, the Auxiliary High Service PS, and the Fort Gordon PS. Gravity flow is used to supply the 417-ft msl gradient (Intermediate- North) and the 31D-ft msl gradient (Low). The Auxiliary High Service PS is used to supply the northern part of the system, which has pressure zone elevations of 564 ft msl and 500 ft msl. The Fort Gordon PS is used to supply the western part of the Water System and can supply either the 598-ft msl system or the 63D-ft msl system. The Wrightsboro Road PS has been recently refurbished to supply the 630-ft msl pressure zone. Finished water is pumped from GWTP No. 1 into the Intermediate-South pressure gradient (417 ft msl) and from GWTP No.2 into the Pine Hill pressure gradient (457 ft msl). Distribution system PSs situated at various locations are used to feed isolated higher pressure zones. See Figure 3-3 for the locations of the PSs and pressure zones. P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORT\SEC3&4RNAL_6_13_02 .DOC AD 733055.1 3-8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS. SERIES 2002 LEGEND: ~ Ground Water Treatment Plant IJ Surface Water Treatment Plant tJ. Water Pumping Slalons D Pressure Zones eooo 0 eooo F'" ~ N A / ~ ~~ \ CH2MHILL FigUfll 3-3 Water Pumping Stations Augusta, Georgia WlM2002011L'1lL lAugu!tll105.118 Sage: F:lII PaIII: ~:'Qro.'edsJ'~r.iaptI~ocho:e".2Oll2_eng_~po1., De: 16fg 2002. VB: Nl4OWRV,2002ER ~WIIIffPu"", 5131'0" Water levels in the finished water clearwells at the Highland Avenue WTP and system pressure requirements at the 417-ft msl gradient limit gravity flow from the clearwells into the 417-ft msl (Intermediate-North) pressure zone. Areas in the 417-ft msl (Intermediate- South) pressure zone not served from the Highland A venue WTP are supplied from GWTP No. I. In addition to the pressure zones listed above, the distribution system contains several smaller pressure zones created by the significant variations in elevation throughout Augusta. These isolated pressure zones are fed using individual wells, BPSs, or pressure reducing valves (PRVs) to meet the Department's operating pressure requirements. A summary of pressure zones is presented in Table 3-5. TABLE 3.5 Pressure Gradient Summary System Surface Water Plant Pressure Zones Super High High Adjusted High Intermediate-North Low Overflow Elevation (1t) Water Source 630 564 500 433/417 310 Fort Gordon PS or BPS from the 564 pressure zone High Service and Auxiliary High Service PS PRV from the564 pressure zone Gravity or BPS from the 433/417 pressure zone PRVs from the 433 pressure zone P:\161 047\161047 AUD2002 PM\BOND FINANCING REPORT\SEC3&4FINAL_6_13_02 .DOC AO 733055.1 3-9 . I I I It I I . . . It I I . I . It . I I It I . I I . I . I It I, I . . I . . . I It It . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 TABLE 3-5 Pressure Gradient Summary System Groundwater Plant Pressure Zones High Pine Hill High Pine Hill Intermediate-South Overflow Elevation (ft) Water Source 597 521 457 433 BPS from the 417 pressure zone or the Fort Gordon Ps GWTP No 3 GWTP No 2 and Pine Hill Wells 1 and 2 GWTP No. 1 or BPS from the 433 pressure zone In addition, the distribution system is equipped with several storage tanks and BPSs. A summary of the distribution system storage facilities for the surface water plants is presented in Table 3-6. A summary of the surface water system pumping facilities is presented in Table 3:'7. TABLE 3-6 Surface Water Storage Facilities Location Location Elevation Pressure Systems Served Gallons Capacity Highland Ave WTP Clearwell1 433 1,250,000 Highland Ave WTP Clearwell 2 433 3,000,000 Highland Ave WTP Clearwell 3 433 5,000,000 Highland Ave WTP Clearwell 4 433 1,600,000 Highland Ave WTP Clearwell 5 433 4,600,000 ------------------------------------------------------------------------------------------------------------------------- Total Clearwells 433 All 15,450,000 Berckmans Road 417 4331417 500,000 Highland Ave Tank 564 564 500,000 Highpoint Tank 564 564 1,000,000 Walton Way Extension 500 500 750,000 Belair Road 630 630 1,000,000 Total Elevated Storage 3,750,000 TABLE 3-7 Surface Water Pumping Facilities Head Rate (ft) (gpm) 66 3,000 173 8,100 0 0 173 8,100 160 2,000 3-10 Location Summary of Surface Water System Pumping Central Avenue BPS ------ Aux. High Service Pump Aux. High Service Pump - Future Aux. High Service Pump - Future Aux. High Service Pump -- Diesel High Service Pump - Diesel From To 433 433 433 433 433 433 417 564 564 564 564 564 P:\161047\161047 AUD 2002 PM\BOND FINANCING REPORT\SEC3&4FINAL_6_13_02 .DOC AO 733055.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARlMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 TABLE 3-7 Surface Water Pumping Facilities Head Rate Location From To (ft) (gpm) Summary of Surface Water System Pumping High Service Pump 433 564 160 5,600 High Service Pump - Backup 433 564 160 2,000 High Service Pump 433 564 160 3,500 Fort Gordon Pump 433 630 or 597 310 1,250 Fort Gordon Pump 433 630 or 597 300 2,500 Fort Gordon Pump 433 630 or 597 300 2,500 Fort Gordon Pump 433 630 or 597 300 1,250 ----- Wrightsboro Road BPS 564 630 100 900 Wrightsboro Road BPS 564 630 100 900 Wrightsboro Road BPS 564 630 100 700 Total Pumping 42,300 Table 3-8 presents a summary of groundwater system storage facilities. TABLE 3-8 Groundwater System Storage Facilities Location Elevation System Gallons Groundwater System Ground Storage GWTP NO.1 Clearwell 162 417 500,000 GWTP NO.2 Clearwell 128 457 1,000,000 GWTP No.3 Clearwell 240 521 2,000,000 Faircrest Avenue 436 597 5,000,000 Faircrest Avenue 417 597 500,000 Windsor Spring Road 417 417 500,000 Richmond Hill Road 417 597 500,000 Golden Camp Road 417 597 250,000 Algernon 417 417 2,000,000 Morgan Road 470 597 5,000,000 Cedar Ridge 417 521 1,000,000 Pine Hill 457 521 300,000 Rose Hill 412 457 2,000,000 Wallie Drive 457 457 300,000 Total Ground 20,850,000 Groundwater System Elevated Storage Pine Hill 521 521 150,000 Highway 56 457 457 500,000 Tobacco Road 597 597 500,000 Fairington Drive 597 597 250,000 Georgetown 597 597 500,000 Lumpkin Road 597 597 250,000 Old Waynesboro Road 521 521 500,000 P:\161 047\161 047 AUD 2002 PMlBOND RNANCING REPORT\SEC3&4FINAL_6_13_02 .DOC AO 733055.1 3-11 . . ENGINEER'S REPORT . AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 . . TABLE 3-8 . Groundwater System Storage Facilities . Location Elevation System Gallons Greenland Road 597 597 500,000 . Total Elevated 3,150,000 . . Table 3-9 presents a summary of groundwater system pumping facilities. . TABLE 3-9 . Groundwater System Pumping Facilities . Location From To Head (ft) gpm . Summary of Groundwater System Pumping GWTP NO.1 - Pump 1 162 417 310 1,400 . GWTP NO.1 - Pump 2 162 417 310 1 ,400 . GWTP No.1 - Pump 3 162 417 310 1 ,400 . GWTP NO.1 - Pump 1 162 417 310 1 ,400 . GWTP NO.1 - Pump 5 162 417 310 1 ,400 --- GWTP No.2 - Pump 1 128 457 352 1,800 . GWTP NO.2 - Pump 2 128 457 352 1,800 . GWTP NO.2 - Pump 3 128 457 352 1,800 . GWTP No.2 - Pump 4 128 457 352 1,800 . GWTP NO.2 - Pump 5 128 457 352 1,800 -- GWTP NO.3 - Pump 1 240 521 337 1,850 . GWTP No.3 - Pump 2 240 521 337 1,850 . GWTP NO.3 - Pump 3 240 521 337 1,850 . GWTP No.3 - Pump 4 240 521 337 1,850 -------- --- . Morgan Road BPS 417 597 180 2,300 Morgan Road BPS 417 597 180 2,300 . Cedar Ridge 417 521 1,000 . Cedar Ridge 417 521 1,000 . Brown's Road BPS 457 521 124 1 ,400 . Brown's Road BPS 457 521 124 1 ,400 Faircrest BPS 417 597 285 1,050 . Faircrest BPS 417 597 285 1,050 . Faircrest BPS 417 597 285 1,050 . Faircrest BPS 417 597 285 1,050 . Richmond Hill BPS 417 597 280 1,060 Richmond Hill BPS 417 597 280 1,060 . Richmond Hill BPS 417 597 280 1,060 . Norton Road BPS 433 417 59 1,360 . Norton Road BPS 433 417 59 1,360 . Norton Road BPS 433 417 52 2,350 Golden Camp BPS - Vertical 417 597 285 1,050 . Golden Camp BPS 417 597 236 1,100 . . P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORT\SEC3&4FINAL_6_13_02.DOC 3-12 . AO 733055.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 TABLE 3.9 Groundwater System Pumping Facilities Location Summary of Groundwater System Pumping Golden Camp BPS (spare) Golden Camp BPS (spare) Total Groundwater Pumping From To Head (ft) gpm 417 417 597 597 700 700 48,800 The distribution system delivers water to customers through meters at each point of service connection, which are read once per month for billing purposes. The 2001 ratio of non-billed water to purchased water or unaccounted for water (representing water that was lost because of unmetered usage or leaks), was approximately 9.5 percent (monthly average). This lost and unaccounted for rate is not unusual for water systems of Augusta's vintage. The significant number of older, large meters contributes significantly to this amount of unaccounted for water usage. The Department is in the process of replacing all older meters, including the smaller residential units. 3.7 Water Quality As a retail water system, Augusta is required to conduct appropriate testing of distribution system water quality. The results of this testing indicate that the Water System's program is in compliance with regulatory criteria. The system's raw water supply has been of such high quality that it is considered to be ideal for the surface water treatment processes used by Augusta. See Section 3.9 on regulatory impacts for further discussion of water quality requirements 3.8 Projected Water Demand During 2001, Augusta billed customers for approximately 13,364 million gallons of water. See Table 3-10 for the number of customers by class and average daily water consumption. The total revenue of the 10 largest customers represented 14.28 percent of 2001 sales. The 10 largest water customers of the System are presented in Table 3-11. No independent investigation has been made of the stability or financial condition of any of the customers listed in Table 3-11. Consequently, no definitive representation can be made as to whether such customers will remain major customers of the Water System. Total water sales for year ending December 31, 2001, were $17,810,769. TABLE 3-10 Water Demand 2001 Actual 2001 water consumption, metered and billed (million gallons) ) Water Demand Average Daily, delivered from WTPs (mgd) Maximum Daily, delivered from WTPs (mgd) 13,364 40.5 59.1 P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORT\SEC3&4RNAL_6_13_02.DOC AO 733055.1 3-13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 TABLE 3-10 Water Demand 2001 Actual 2001 water consumption, metered and billed (million gallons) ) Number of Water Connections (End of Year) Residential Commercial and Industrial Total 13,364 58,246 7,424 65,670 TABLE 3-11 The 10 Largest Water Customers (for the 12-month period ending December 31,2001) Thousand Gallons Annual % of Total Water Customer (kgal) Metered Billing Revenues Nutra Sweet 604,304 753,462 4.23% Huron Tech 195,414 244,260 1.37% Castleberry 193,245 245,293 1.38% MCG 173,785 246,668 1.38% Shapiro 160,141 200,166 1.12% Monsanto Dairy 145,276 184,039 1.03% Avondale 143,469 179,276 1.01% Searle 142,804 178,921 1.00% Kendall 129!612 162,318 0.91% University Hospital 114,893 150,822 0.85% Total of 10 Largest Water Customers 2,002,943 2,545,225 14.28% Augusta's projection of future water production needs is based on the County's anticipated total population, excluding Fort Gordon. The geographical distribution of population is not a factor in plant-level planning but is important planning water transmission as part of the hydraulic distribution of water to customers. EPD requires utility systems to consider water conservation in their planning efforts and Augusta continues to practice passive conservation rather than a more aggressive conservation program. With the current level of conservation, Augusta is expected to experience a small increase in per capita use over the next few years. The Technical Memorandum prepared to analyze the projected water demand (Technical Memorandum 1.2A: Population Distribution and Water and Wastewater Flow Projections, April 5, 2002), estimates that the Water System will experience a 2 percent (0.09 percent per year) increase in per capita water usage by the year 2020 largely due to the availability of water service and pressures for previously deferred uses (e.g. irrigation). P:\161 047\161 047 AUD 2002 PMlBOND RNANCING REPORT\SEC3&4RNAL_6_13_02 .DOC AD 733055.1 3-14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 Table 3-12 presents Augusta's 2000 and projected per capita water usage in gpd. This usage rate is determined by total water produced divided by population. This rate then includes both customer-billed usage plus unaccounted for water. The per capita needs include residential and commercial usage. Industrial needs are presented separately because they are not directly linked to population growth. The projected annual average production in mgd and maximum day production are planning-level estimates (e.g. +/-10%) of the future needs of the Department's service area. TABLE 3-12 Projected Water Consumption 2000 to 2020 Total Population Per capita Water Usage, gpd (commercial and residential) Industrial Usage, mgd Annual Avg. Water Usage, mgd Max. Day Water Usage, mgd IUS Bureau of the Census, 2000 Census 2000 199,7751 151 10.3 41.3 61.1 2010 222,497 153 10.5 44.5 71.2 2020 242,150 154 10.7 48.0 77.0 While the Department is taking actions to encourage conservation, it should be noted that the development pattern and population distribution will also affect the level of water consumption. This includes both per capita water usage and the maximum day production, factors that are held constant in these projections. For example, the northeastern part of the service area, the former City of Augusta, is expected to have limited population growth in most areas and with implementation of water conservation, the net increase in demand should be relatively low. However, other areas are projected to have significant growth which will increase water demand even with conservation measures. Residential and commercial water usage is projected to be directly related to population growth. Industrial needs, however, generally develop independently of population growth. It is assumed that industrial water usage, exclusive of conservation, will increase by 5 percent over the planning period (2000 through 2020). Table 3-13 summarizes water usage by customer class. TABLE 3-13 Projected Water Usage by Customer Class 2000 to 2020 Class 2000 2010 2020 Residential Avg. Annual Water Usage 18.6 20.4 22.4 Max. Day Water Usage (Peaking factor: varies) 36.0 44.4 48.4 Commercial Avg. Annual Water Usage 12.4 13.6 14.9 Max. Day Water Usage (Peaking factor: 1.2) 14.8 16.3 17.9 Industrial Avg. Annual Water Usage 10.3 10.5 10.7 P:\161047\161047 AUD 2002 PMlBOND RNANCING REPORT\SEC3&4FINAL_6_13_02 .DOC AO 733055.1 3-15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 TABLE 3-13 Projected Water Usage by Customer Class 2000 to 2020 Class Max. Day Water Usage (Peaking factor: 1.0) Total Avg. Annual Water Usage 41.3 44.5 Max. Day Water Usage 61.1 71.2 Source: Technical Memorandum 1.2A: Population Distribution and Water and Wastewater Flow Projections, April 5, 2002. 2000 10.3 2010 10.5 2020 10.7 48.0 77.0 The peaking factor defined in Technical Memorandum 1.2A: Population Distribution and Water and Wastewater Flow Projections, April 5, 2002, for industrial usage is assumed to be 1.0; in other words, maximum day and average annual needs are assumed to be, for analytical purposes, roughly the same. Commercial consumption is expected to have a maximum day peaking factor of 1.2 times average day demand. All additional peak day needs are assumed to be associated with residential consumption. These peaking factors are employed to determine the peak day requirements for capacity sizing in the Department's facilities. System-wide maximum day needs are currently 1.47 times average annual usage. By 2010, the system-wide peaking factor is expected to increase to 1.6 as additional water becomes available for irrigation. System-wide maximum day demands are projected to be 71.2 mgd as a consequence, representing roughly a 16 percent increase in required maximum day delivery capacity. The major growth is anticipated in areas where residential lots are large and home irrigation systems are becoming predominant. New developments that will use the significant open spaces will also have irrigation of common grounds and recreation areas such as golf courses. This increase in per capita demand will be somewhat offset by conservation measures, but the net result is expected to still be a significant increase in average and maximum day consumption. It is assumed that total Augusta water demands will increase by as much as 16 percent over the next 8 years. To meet projected demands, the Department has authorized design of upgrades to the Highland Avenue WTP and started construction of a new (15 mgd) WTP. The current withdrawal permits for raw water from the Savannah River will be sufficient to meet surface water supply needs for both facilities, as discussed in Section 5. 3.9 Regulatory Impacts The Department has responded to the challenges of the 1996 Amendments to the SDW A to produce drinking water that is in compliance with all applicable rules. However, drinking water regulations have recently been changed imposing still more stringent regulations, with additional regulations planned for the near future. The recently promulgated and planned SDW A regulations will have an impact on the drinking water treatment plants and distribution system. The Department is currently in compliance with all of the primary and secondary standards as promulgated by the SDW A. P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC3&4RNAL_6_13_02 .DOC AO 733055.1 3-16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 The Department has taken a proactive approach for compliance with the recently promulgated and the proposed regulations by developing water quality goals that are more stringent than current regulations. The developed water goals will position the Department to meet the future regulations. Drinking water regulations that impact the Department can be divided into three categories: · Existing regulations · Recently promulgated regulations · Future regulations. The following is a brief discussion of each category and the impact on the Department drinking water supply system. 3.9.1 Existing Regulations EPD has issued rules (Rules and Regulations of the DNR, Chapter 391-3-5- Safe Drinking Water) to establish policies, procedures, requirements, and standards for implementing the drinking water regulations. 3.9.1.1 Surface Water Treatment Rule The Surface Water Treatment Rule (SWTR), promulgated in 1992, establishes treatment techniques instead of maximum contaminant levels (MCLs) for the control of Giardia, viruses, heterotrophic plate count (HPC) bacteria, and Legionella. The SWTR required all water systems to maintain a filtered water turbidity of 0.5 Nephelometric Turbidity Unit (NTU) and to provide a minimum level of inactivation of Giardia and viruses by maintaining adequate contact time with the primary disinfectant. In addition, the SWTR required all water systems to maintain a detectable chlorine residual in the distribution system. The Department is currently in compliance with all of the SWTR requirements. 3.9.1.2 Total Coliform Rule The Total Coliform Rule was promulgated on June 29,1989. Total coliforms include both fecal coliforms and E. coli. Compliance with the Coliform Rule is based on the results of sampling in the distribution system. The frequency and number of collected samples are a function of the system size (number of people served). The Department has maintained compliance with the Total Coliform Rule by (1) maintaining adequate distribution system disinfectant residual and (2) frequently flushing low flow areas. 3.9.1.3 Primary Contaminants EPD currently regulates a list of 83 contaminants that includes inorganic and organic compounds. These contaminants do not occur at concentrations of concern in most surface waters that are not subject to contamination. Surface waters used by the Department, from the Savannah River, have concentrations of regulated contaminants well below US Environmental Protection Agency (EP A) prescribed limits. 3.9.1.4 Lead and Copper Rule On June 7, 1991, the EP A published Action Limits (ALs) and national primary drinking water regulations for lead and copper. Under this regulation, lead and copper levels must P:\161 047\161 047 AUD 2002 PMlBOND RNANCING REPORT\SEC3&4FINAL_6_13_02 .DOC AD 733055.1 3-17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 not exceed ALs of 0.015 mg/L and 1.3 mg/L, respectively, in 90 percent of the samples collected. Actions required for AL exceedances include collecting source water samples, conducting public education, conducting a corrosion control study, and establishing a corrosion control program. This Rule also requires that lead and copper be monitored at consumers' taps every 6 months. Samples at consumers' taps must be taken at high-risk locations, which include homes with lead solder installed after 1982, lead service lines, and lead interior piping. Revisions to the Lead and Copper Rule were promulgated in April 2000. The revisions reduced the frequency of monitoring required for low lead and copper tap levels and updated the analytical methods used for analyzing lead and copper levels. The Department currently controls the corrosivity of its finished water by adding a phosphate-based corrosion inhibitor. The Water System has continuously been in compli- ance with the lead and copper ALs. 3.9.1.5 Risk Management Plans (RMPs) The EP A set a deadline of June 21, 1999 for all utilities that store hazardous chemicals (including chlorine gas) above a specified threshold limit, to prepare a risk management plan (RMP). The regulation outlines requirements for preventing or minimizing the conse- quences of catastrophic releases of toxic, reactive, flammable, or explosive chemicals. The threshold level for chlorine is 2,500 pounds. The RMP must include evaluations of buildings and equipment to protect the safety of workers around chlorine facilities and to develop an emergency response plan if a leak occurs. Key information developed will be submitted to the EP A and posted on the internet for public access. The Department has prepared an RMP for the Highland Avenue WTP. In addition, the Department is improving the existing safety program that provides guidance to operators on correct chlorine operations and maintenance procedures and the emergency response plan to be used if there is a leak. The Department is planning to install onsite chlorine generation at the Highland Avenue Plant and the proposed Tobacco Road Plant to eliminate safety and security concerns associated with chlorine gas. 3.9.1.6 Residuals Management The State of Georgia currently prohibits the direct discharge of water treatment residuals to a receiving stream. A National Pollutant Discharge Elimination System (NPDES) permit is required which specifies an acceptable pH and total suspended solids (TSS) concentration for the discharge of any waste or decant stream from WTPs. The Highland Avenue WTP is currently discharging all of the waste streams to Turknett Pond. An NPDES permit was obtained by the Department to allow discharge of decant from the Turknett Pond. Settled sludge in the pond is dredged when needed by the Department. 3.9.2 Recently Promulgated Regulations 3.9.2.1 Interim Enhanced Surface Water Treatment Rule (IESWTR) The IESWTR was promulgated in December 1998 and established a 2-log Cryptosporidium removal requirement for filtered systems. Under this rule, conventional treatment is assumed to meet the Cryptosporidium removal requirement by maintaining a filtered turbidity of 0.3 NTU 95 percent of the time and at no time exceed 1.0 NTU. The IESWTR also P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC3&4RNAL_6_13_02.DOC AO 733055.1 3-18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTlUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 requires individual filter monitoring and additional requirements related to distribution system tank covers. The Highland Avenue Plant is in compliance with the IESWTR requirements. 3.9.2.2 Disinfectants and Disinfection Byproducts (D/DBP) Rule - Stage 1 Stage 1 D /DBP Rule limits resulted in the final maximum contaminant level (MCL) requirements shown in Table 3-14. The Department has taken these requirements into consideration in both the upgrade of the Highland WTP and the new WTP currently under a design contract with the intent of maintaining full compliance. TABLE 3-14 Summary of Stage 1 DIDBP Rule Limits Final Stage 1 MCLs Total Trihalomethanes (TTHMs): 80 micrograms per liter (~g/L) Haloacetic Acids (HM5): 60 ~g/L Bromate: 1 0 ~glL Chlorite: 1.0 mglL Final Stage 1 Maximum Residual Disinfectant Levels Free Chlorine: 4.0 mglL as CI2 Chloramine: 4.0 mglL as CI2 Chlorine Dioxide: 0.8 mg/L as CI02 3.9.2.3 Filter Backwash Rule The Filter Backwash Rule was promulgated in June 2001 and applies to all systems that use conventional or direct filtration and that recycle spent filter backwash water. The Highland Avenue WTP does not practice recycling. The proposed Tobacco Road WTP will discharge all produced waste streams, including backwash, to the wastewater treatment plant (WWTP). Therefore, the Filter Backwash Rule is not expected to have any impact on the existing or proposed water plants. 3.9.2.4 Arsenic Rule The Arsenic Rule was promulgated on January 22, 2001. This rule established an MCL of 0.01 mg/L. The Arsenic Rule applies to both Community and Non-Transient, Non- Community Water Systems. Systems must meet this requirement by January 2006. Despite the new lower limit, it is not anticipated that the arsenic regulations will have an impact on the Department. Arsenic is not expected to occur in the surface water supply at concentrations of concern. 3.9.3 Future Regulations The EP A is currently in the process of developing additional regulations related to microbial and disinfection byproducts. The planned regulations are being developed as a follow up to the IESWTR and Stage DBPs. See Appendix C for a detailed discussion of these regulations. P:\161047\161047 AUD 2002 PMlBOND RNANCING REPORT\SEC3&4FINAL_6_13_02.DOC AO 733055.1 3-19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.0 Wastewater System 4.1 Overview of Wastewater System The Wastewater System serves approximately 44,048 residential and 5,591 commercial and industrial customers, as of December 31, 2001. The Wastewater System provides sewer services to an area of approximately 106 square miles with an estimated population in excess of 150,683. Figure 4-1 shows the areas currently served by the Wastewater System with overlays of existing wastewater collection lines and location of WWTPs. Augusta has the non-exclusive right to provide water and wastewater service within the County. The wastewater systems of Fort Gordon and the Cities of Blythe and Hephzibah provide wastewater service within those jurisdictions in the County. The Department's service area includes all or parts of eight drainage basins shown in Figure 4-2. LEGEND: ~ Augusta Sewerage Service Area' /'v Sewerage Unes ... Wastewater Treatment Plant N A * Augusta Service Al8a does not include Fori Gordon, H.phzibah or Blyth.. 8000 8000 Feel I""""""'! CH2MHILL Figure 4-1 Wastewater Service Area and Treatment Plants Augusla, Georgia W042002016ATL \~106Jh8 SolIIn:e:FiePilIh:h:\p<tljeds:f.lugusllla~~_er'9_.JI!1'0I!.apr.~.:1&Ap'2002.Usr.NMOUDRY.2002ER4-1Se1oe'5erYiI:.II!IArw P:\161 047\161 047 AUD 2002 PM\BOND FINANCING REPORT\SEC3&4FINAL_6_13_02 .DOC AO 733055.1 4.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 9000 Feel ,.........................................., '................................................... ...................................................... .......................................................... v..,......................,......,......................... ,......,..........,................................................ ........................................,...............'............. .,...'-,............'.............................,.......'....... ..........................................................................., ......................................,........................................ ......'.............'.,............'..................................... .,...'-...............',.................................................. '......................,..............................................' ..............................,.........'..................................-. . :::::::::::::::::::::::::::::::::::::::::::::::::::::::::~:::::::". .Ii' ...,........................................................," ,.. ..................................,.....................' .....................".................................. .........v............,..................,. ........................................... N A !lOOO I""""'""'" Figure 4-2 Drainage Basins Augusta, GeoIgia CH2MHILL W042002018An lAugu5l;l107.1h8 Soource:F~ePalh:~~stI\aprs\nldlolll\2002_tftQ....'~.OlQ:18Apr:ZOO2.Uwr:NUOUORY.2002ER4.2~aasns 4.2 Wastewater Collection and Conveyance Augusta's wastewater collection system dates from storm water drains constructed in downtown Augusta prior to 1900. Over time, wastewater was diverted into the storm water drains, and Augusta's downtown storm water drains evolved into a combined storm and wastewater collection system. Until 1968, this system emptied into the Savannah River without treatment. In the 1980s and early 1990s, Augusta eliminated all known combined sewers by constructing trunk wastewater mains to keep wastewater separate from storm water. It is possible that undocumented interconnections of the two systems were not eliminated and remain. As a result, the Department has an ongoing program to verify complete separation of the storm water drain and wastewater collection systems. Augusta's wastewater collection and conveyance system consists of 8 drainage basins, 28 wastewater pumping stations, and approximately 640 miles of collection pipes which transport primarily sanitary sewage. Approximately SO percent of the wastewater collection system is drained by gravity; the remainder requires pumping at least once. The wastewater collection system includes pipes ranging in size from S-inch to 72-inch diameter. Approximately 20 percent of the wastewater collection system has been in service for 50 years or more. The wastewater collection system includes standby pumps and a standby power system. The piping in the wastewater collection system was constructed using a wide variety of materials, including clay, brick, concrete, and polyvinyl chloride (PVC), creating significant problems for maintenance of the system. In a recent system evaluation of the Spirit, Butler, and Rocky Creek basins, major infiltration and inflow (I/I) has been identified. An P:\161 047\161047 AUD 2002 PM\BOND FINANCING REPORT\SEC3&4FINAL_6_13_02 .DOC AO 733055.1 4-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 estimated 10 percent of the current wastewater flows are contributed by 1/1. Rehabilitation is underway for portions of these basins, but significant reduction of 1/1 will require a continuous 1/1 program. The CIP (Section 5) addresses additional corrections to the problems encountered in these basins. 4.3 Wastewater Treatment Facilities Augusta owns two WWTPs as summarized in Table 4- L TABLE 4-1 Wastewater Treatment Plants Owned by Augusta Permitted 2001 Treated Treatment Date of Wastewater Capacity Original (Maximum Dates of Receiving Plant (Monthly Avg) Construction Day) Improvements Stream James 8. Messerly (also 46.1 mgd 1968 36.8 mgd 1976, 1984, Butler Creek known as the Butler Creek 1995,1997, WWTP) 2001,2002 Spirit Creek 2.24 mgd 1988 3.2 mgd 1995 Spirit Creek Totals 48.34 mgd 40.0 mgd The J. B. Messerly WWTP has two separate treatment trains, the North Plant and the South Plant. The North Plant, constructed in 1976, was originally designed to provide only pri- mary treatment.1 Later, an oxidation ditch was constructed to provide secondary treatment capacity of approximately 17.8 mgd.ln 1984, the South Plant was constructed with a design capacity of 28.4 mgd. Flow equalization basins were added in 1995. In 1997, the first stage of a wetlands system was constructed to provide additional ammonia-nitrogen removal. In 2001 the second stage of the wetlands system was completed along with the first phase of various retrofit projects to significantly improve plant performance. These retrofits included improvements to secondary clarifiers, primary clarifiers, sludge pumps, and various mech- anical and electrical systems throughout the plant. In 2002 the third stage of the wetlands will be completed and the second phase of retrofit projects will begin. Effluent flows from the wetlands to the Savannah River by way of Butler Creek. The J. B. Messerly WWTP receives domestic wastewater from the surrounding community as well as a significant load (3,120 million gallons in 2001) from 18 major industrial con- tributors. The J. B. Messerly WWTP was originally rated, based on "normal strength" wastewater, to have a treatment capacity of 46 mgd, and is currently permitted for a capacity of 46.1 mgd (monthly average). The influent strength of the wastewater has increased over the years as a result of additional industrial waste and reduction in collection system III. This increased organic loading has reduced the effective capacity. Recent upgrades and further improvements discussed in Section 5 will restore the full capacity of the J.B. Messerly WWTP. 1 The primary treatment system includes the primary clarifiers, primary sludge pumps, and scum pumps. This system removes settled solids from screened and degritted wastewater. The secondary treatment system includes aeration basins, aeration blower systems, and secondary clarification. P:\161047\161047 AUD 2002 PM\BOND FINANCING REPORT\SEC3&4RNAL_6_13_02 .DOC AO 733055.1 4-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 The Department's planned improvements to the wastewater treatment sy~tem are expected to maximize use of existing plant components and increase the level of reliability in meeting stringent effluent limits. See Section 5 for a description of the capital improvements. The J. B. Messerly WWTP discharges under NPDES Permit GA0037621, which was issued in 1996, was modified in January 2002, and expires in June 2006. Table 4-2 presents the plant's permit information. TABLE 4-2 J. B. Messerly WWTP Effluent Limitations Parameter Flow - m3/day (mgd) BOD 5-day--mg/L (kg/day) TSS-mg/L (kg/day) Ammonia as N--mg/L (kg/day) Fecal Coliform Bacteria Total Residual Chlorine--mg/L Daily maximum limitations. m3/d cubic meters per day mL milliliters mg/L milligrams per liter kg/day kilograms per day The Spirit Creek WWTP consists of primary treatment shredding and screening, secondary treatment in aerated lagoons, disinfection, and polishing lagoons. The Spirit Creek WTP discharges under NPDES Permit GA0047147, which was issued in 1999 and expires in October 2004. A detailed Wastewater Treatment Master Plan will be funded by the Series 2002 Bonds to address future permit compliance needs. Table 4-3 presents the plant's permit information. Discharge Limitations Monthly Average Weekly Average 174488 (46.1) 218016 (57.6) 10(1,747) 15(2,184) 30 (5243) 45 (6551) 1.5 (262) 2.25 (328) 200/100 mL 400/100 mL 0.013 0.013' TABLE 4-3 Spirit Creek Effluent Limitations Discharge Limitations Parameter Flow - m3/day (mgd) BOD 5-day mg/L (kg/day) TSS mg/L (kg/day) Ammonia as N mg/L (kg/day) Fecal Coliform Bacteria Total Residual Chlorine mg/L Monthly Average 8,478 (2.24) 30 (255) 30 (255) 17.4 (148) 200/100 mL 0.24 Weekly Average 10,598 (2.80) 45 (318) 45 (318) 26.1 (185) 400/100 mL 0.24' * Daily maximum limitations. cubic meters per day milliliters milligrams per liter kilograms per day m3/d mL mg/L kg/day P:\161047\161047 AUD2002 PMlBOND FINANCING REPORT\SEC3&4FINAL_6_13_02 .DOC AO 733055.1 4-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 4.4 Projected Wastewater Flows To estimate future wastewater flows, the projected population and proportion of water accounts connected to the wastewater system in each WWTP's service area were considered. WWTP service area population projections were constructed through an allocation of year 2000 Census population by tract. Population projections for the service areas were developed assuming that those Census tracts with population growth will continue to receive a constant proportion of the population increase associated with growing tracts. This population increase will come from either new population growth or from population shifts within the County. For tracts with declining population, the rate (percentage) of decline is projected to remain stable through the planning period. Wastewater flows were projected based on the estimated proportion of households connected to the Wastewater System, using the 1990 Census as a basis2. This proportion is expected to change over time as new residences and businesses, as well as some portion of the existing residences not served currently, connect to the Wastewater System. It is assumed that residential and commercial wastewater flows will grow in proportion to the growth in the sewered population. However, if the Department implements a successful III reduction program, a reduction in future per capita wastewater flows of 2 percent may be achieved by 2020. Table 4-4 presents the sewered population and percentage change in sewered population in each WWTP's service area, as well as projected annual average flows and maximum month, flows. The maximum month flows were calculated as 120 percent of the annual average ' flow based on historical flows. TABLE 4-4 Wastewater Flows, by Plant (mgd) (a) 2000 to 2020 Plant Spirit Creek WWTP (Capacity: 3 mgd) Sewered Population Percent Change 2000 2010 2020 10,950 24,924 35,577 14.2% 127.6% 42.7% 3.4 7.2 10.0 4.0 8.6 12.0 Average Annual Flow Max. Month Flow (b) J. B. Messerly WWTP (Capacity: 46.1 mgd) Sewered Population Percent Change 139,732 156,548 165,603 2.8% 12.0% 5.8% 31.5 34.8 36.7 37.8 41.8 44.1 Average Annual Flow Max. Month Flow (b) 2 The 2000 Census did not collect information on the source of wastewater disposal. P:\161 047\161047 AUD 2002 PMlBOND RNANCING REPORT\SEC3&4RNAL_6_13_02.DOC AO 733055.1 4-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONOS, SERIES 2002 TABLE 4-4 Wastewater Flows, by Plant (mgd) (a) 2000 to 2020 Plant 2000 2010 2020 Total WWTP Flows (Capacity: 49.1 mgd) Sewered Population 150,683 181,472 201,179 Percent Change 3.6% 20.4% 10.9% Average Annual Flow 33.4 42.0 46.7 Max. Month Flow (b) 46.3 50.4 56.1 (a) The figures presented in this table will be impacted by changes to the overall level of III in the WWTP service areas. (b) The maximum day flows are 120 percent of the annual average flows based on historical relationships. Major 1/1 improvements have begun within the collection system serving the Spirit Creek WWTP that will significantly reduce flows. Assuming the WWTP service area remains the same, however, the Spirit Creek WWTP will need to be significantly expanded in the near future to meet the demands of the growing population in the southern census tracts. An evaluation of expansion options is now underway with recommended expansion to be funded in future years (see Section 5). The J. B. Messerly WWTP is the larger of the two plants in the Wastewater System. Increases in wastewater flows to this plant are the result of expanding service areas, as well as a growing population. Based on current service areas, however, the Messerly WWTP has sufficient capacity to treat maximum month wastewater flows. The combined volume of the 10 largest customers represented 23.56 percent of 2001 sales. The 10 largest wastewater customers of the Wastewater System are presented in Table 4-4. No independent investigation has been made of the stability or financial condition of any of the customers listed in Table ~5. Consequently no representation can be made as to whether such customers will continue as major customers. TABLE 4-5 10 largest Wastewater Customers (for the 12-month period ending December 31, 2001) Annual Billing % of Total (based upon water consumption plus Sewer Customer kgal Metered additional sewer surcharges) Revenues Nutra Sweet 604,304 1,409,137 7.89% Castleberry 243,847 344,708 1.93% EKA Noble, Inc. 187,396 462,911 2.59% Shapiro 177,655 482,104 2.70% Amoco 162,460 369,880 2.07% P:\161047\161047 AUD 2002 PMIBOND ANANCING REPORT\SEC3&4ANAL_6_13_02.DOC AO 733055.1 4-6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 TABLE 4-5 10 Largest Wastewater Customers (for the 12-month period ending December 31, 2001) Annual Billing % of Total (based upon water consumption plus Sewer Customer kgal Metered additional sewer surcharges) Revenues Procter & Gamble 148,372 208,573 1.17% Monsanto Dairy 144,225 247,259 1.38% Avondale 143,469 221,407 1.24% Searle 142,804 212,273 1.19% Kendall 129,612 252,139 1.41% Total of 10 Largest Wastewater Customers 2,084,144 4,210,391 23.56% Total sewer charges including industrial sewer surcharges (unaudited number) for year ending 12/31/2001 were $17,868,934. 4.5 Regulatory Impacts The following regulatory issues affecting the Wastewater System are discussed below: · Watershed Management · Total Maximum Daily Load (TMDL) Development · NPDES Permitting and Nutrient Management · Onsite Septage Systems · Residuals Management and 503 Regulations · General Permit for Stormwater Discharge Associated with Industrial Activity · Stormwater Pollution Prevention Plans (SWP3s) · Spill Prevention, Control, and Countermeasures Plan · Municipal Stormwater Discharge Permit · Security and Vulnerability 4.5.1 Watershed Management The EPD has formulated a policy to require municipalities to conduct watershed assessments and develop watershed management programs to address non-point pollution sources. These studies are required for new, or the renewal of, NPDES discharge permits. In addition, EPD requires a Source Water Assessment Plans (SWAP) for water supply watersheds to assess the potential for water supply contamination. The Department is conducting a watershed assessment for the entire County area that drains into the Savannah River. Initial implementation of the recommended management plan to be funded by the Series 2002 Bonds is expected to begin later this year. This will allow Augusta to meet the next cycle of NPDES permit renewals which will likely require P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC3&4FINAL_6_13_02.DOC AO 733055.1 4-7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 watershed management implementation benchmarks. Simultaneously, the Department is conducting a SWAP for the Savannah River watershed upstream of the current water intake. Recommendations for source water protection will be developed in the next phase of study, as required by the SDW A. 4.5.2 Total Maximum Daily Load (TMDL) Development The Clean Water Act (CW A) provides a trigger mechanism for requiring development of TMDLs when a water body does not meet water quality standards. When setting a TMDL, the regulatory agency must consider the designated uses of the water body, water quality standards, various pollutant sources, and the ability of the water body to assimilate pollutants. The State of Georgia has a court-mandated schedule for development of TMDLs that is the most aggressive in the country. The proposed TMDLs for the Savannah River basin must be developed by June 2004. The current 303d list of impaired water bodies lists fecal coliforms, dissolved oxygen (DO), and metals as the water quality parameters not meeting standards in portions of the Savannah River basin. Results of the watershed assessment and the recommendations in the watershed management plan will provide Augusta with an approach for watershed management to meet the anticipated TMDLs. 4.5.3 NPDES Permitting and Nutrient Management The NPDES is a federal program for regulating the discharge of pollutants to the waters of the United States. In Georgia, the EPD has been delegated the authority to administer the program. EPD has adopted a "zero tolerance" policy for permit violations and is imposing penalties or issuing Consent Orders specifying actions that the permittee must take when violations occur. Augusta facilities were not designed with a "zero tolerance" perspective, and therefore do not have the level of redundancy that would be included in a facility designed today. Although operational excursions and facility bypasses are expected to be infrequent, Augusta's infrastructure will be evaluated for modifications that would prevent overflows and bypasses, retain pollutants, or upgrade treatment capabilities to enhance the ability to achieve 100 percent compliance with permit conditions. As a result of interstate discussions on water resources, EPD decided to mandate maximum retention of a community's water consumption to minimize the amount of water lost. This, will require the Department to increase efforts to rehabilitate system facilities, including replacement of some major lines. EPD expects to be working on the implementation strategy and policy in the next year. Permit conditions may change to restrict the consumptive retention of water which may necessitate the elimination of onsite septage systems where feasible and a revision to the water pricing structure. EP A's proposed Capacity, Maintenance, Operation, and Management, also referred to as CMOM, program will require increased accountability for operation and maintenance of wastewater collection systems. This proposed program has been in development for several years, and has been undergoing federal administrative review since January 2000. It is anticipated that when the CMOM program is implemented, it will use NPDES permits as the enforcement vehicle. The Department has begun implementation of CMOM elements. Currently, the State of Georgia requires nutrient removal only in basins where water quality in lakes downstream of a discharge is found to be adversely impacted by the discharge. P:\161 047\161 047 AUD 2002 PMlBOND RNANCING REPORT\SEC3&4FINAL_6_13_02 .DOC AD 733055.1 4-8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 However, the federal EP A is currently considering the possible need for nationwide nutrient discharge limitations due to concerns about off-shore waters. The greatest concern is in the Gulf of Mexico, but any shallow waters such as those along the Georgia coast could be affected by this possible policy change. 4.5.4 Onsite Septage Systems The design of septage systems is regulated by the Georgia Department of Health (Georgia Code Chapter 290-5-26). Local jurisdictions establish minimum lot requirements for septage systems and requirements for connection to a central wastewater collection system. With the increasing emphasis on minimizing water consumption and water quality issues in watershed management, it will be necessary to evaluate policies related to septage systems and prepare for an expanded role for central wastewater collection systems in the future. Augusta has adopted a policy to mandate conversion to central wastewater collection when service is available and is implementing a program to extend service to 10,000 new customers in the next 10 years. This policy and program will limit the potential impacts of pending regulations related to onsite septage systems. 4.5.5 Residuals Management and 503 Regulations The EP A mandates that wastewater residuals be managed in compliance with its 503 regulations. Since 1993, these regulations have required that utilities obtain 503 permits and provide annual documentation of compliance with regulatory requirements. The 503 regulations identify different classes of sludge and mandate minimum practices for treatment, handling, and disposal of each class of sludge. 4.5.6 General Permit for Stormwater Discharge Associated with Industrial Activity In 1993, EPD issued NPDES Permit 000000 - Authorization to Discharge Under the National Discharge Elimination System Stormwater Discharges Associated with Industrial Activity. This permit requires properties with certain activities - those included in a specific list of SIC Codes -- to file a Notice of Intent for coverage under the permit and to prepare and maintain a Stormwater Pollution Prevention Plan (SWP3) and a Spill Prevention, Control, and Countermeasures Plan (SPCCP). In 1998, EPD issued a new general permit, GAROOOOOO, and mandated that any entity with an intent to use that general permit would have to update its plans and conform to the new requirements of the permit. The Department plans to update and modify all SWP3s to conform to the additional conditions in the 1998 storm water permit, and identify new locations which might be subject to an SWP3. 4.5.7 Stormwater Pollution Prevention Plan As part of the compliance requirements for the General Permit for Industrial Activity, EPD requires that covered properties prepare a SWP3. This plan describes the stormwater discharge points, the potential pollution sources on the site and the material handling and housekeeping practices used to prevent contamination of stormwater runoff. EPD has issued a general storm water permit that can be used by any location wishing to conform to the permit conditions, as opposed to applying for a site-specific permit. During the original P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORT\SEC3&4RNAL_6_13_02.DOC AD 733055.1 4-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 rOll!ld of storm water permit issuance, the Department complied with the general conditions for its storm water permitting. '. 4.5.8 Spill Prevention, Control, and Countermeasures Plan The EP A, through 40 CFR Part 112, mandates that an SPCCP be prepared for any facility or location where one of several threshold oil-based material storage triggers are exceeded: any tank of 660-gallon capacity or greater; 1,320 gallons of total onsite storage; or a 20,000-gallon underground tank of petroleum-based product. This requirement is administered by EPD through the General Permit for Stormwater Discharges Associated with Industrial Activity. In addition to the SWP3, any facility meeting the material storage triggers mentioned above must prepare an SPCCP. An SPCCP provides documentation on oil-based products and specifies reporting and documentation requirements for best management practices (BMPs). The Department has implemented a formal inspection of all system facilities and document the tanks and quantities of oil-based products stored onsite. This review will either (1) identify those locations that need an SPCCP or, (2) if no SPCCP is required, satisfy the regulatory requirements and thus provide legal protection. The Department will also prepare a statement for each facility as to whether that facility needs an SPCCP and what basis was used to determine the applicability for each facility. 4.5.9 Municipal Storm Water Discharge Permit EPD currently requires municipalities with populations generally over 100,000 (Phase 1 communities) to obtain an NPDES permit to operate a Municipal Separate Storm Sewer System (MS4). In 2003, a general permit will be prepared (Phase 2 Regulations), which will cover communities in other "urbanized areas." Each Phase 2 community, including Augusta-Richmond County, will be required to submit a Notice of Intent to be covered by the general permit, and must implement a stormwater management program that addresses the six "minimum control measures of the MS4 program: · Public education and outreach · Public participation/ involvement · Illicit discharge detection and elimination · Construction site runoff · Post-construction runoff control · Pollution prevention/ good housekeeping The stormwater management program must be phased in over the initial5-year permit period. 4.5.10 Security and Vulnerability As a consequence of recent terrorist acts against the US, there are several pending Federal and State requirements dealing with security and vulnerability. The Department is currently conducting an assessment of security and vulnerability to ascertain what actions and precautions should be implemented. P:\161047\161047 AUD 2002 PMlBOND RNANCING REPORT\SEC3&4FINAL_6_13_02.DOC AO 733055.1 4-10 . . . . . . . I I . I . . . . . . . . . . . . . . . . . . . . . . . . ~ ~ ~ ~ ~ ~ ~. ~ 5.0 Proposed System CIP Proceeds of the Water and Sewerage Revenue Bonds, Series 2002 program (2002 Program) will be used to fund a 5-year Capital Improvement Plan (CIP) that will assist in eliminating current System deficiencies, meeting current and future regulatory requirements, and accommodating future demands related to system growth. It is anticipated that construction associated with the CIP will be completed in 2006. The 2002 Bonds are being issued to qualify for the 5-year spending period provided for in the Treasury Regulations for certain capital projects involving a substantial amount of construction expenditures and for which a construction period longer than 3 years is necessary. 5.1 Planning Criteria and Assumptions The Department's Master Plan 2000, which defines CIP needs through 2020, uses a number of planning criteria for identifying the facilities necessary for the System. The Master Plan includes Technical Memoranda (TMs) that document a baseline approach to evaluating the System facilities with respect to water demands, wastewater conveyance needs, and treatment requirements. Some of these TMs have been updated to reflect new information such as the 2000 Census and changes in regulations. The major planning criteria and assumptions used for development of the CIP include: · Population in Augusta is shifting from developed areas to undeveloped areas where water and sewer services were previously unavailable. · Water and wastewater system demand will increase as the population grows in Augusta. Projected water demands for the design year of 2020 are for average day demand of 48 mgd and maximum day demand of 77 mgd. Wastewater flow projections are for an average day flow of 46.7 mgd and a maximum month flow of 56.1 mgd. · Water and wastewater treatment improvements and expansions must be planned for compliance with all current regulatory requirements, as well as changes to these requirements that are anticipated in the next 5 years. A significant number of the CIP projects defined in the Master Plan 2000 began and will be completed within the Water and Sewerage Revenue Bonds, Series 2000 program (2000 Program). Other projects were only designed under the 2000 Program, anticipating that construction would be funded under the 2002 Program. The CIP projects planned for the 2002 Program are discussed in the following paragraphs. 5.2 Cost Opinions for Recommended Projects A cost opinion was prepared for each of the recommended projects to establish an initial construction budget for projects to be funded by the Series 2002 Bonds. The cost P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC5FINAL_6_13_02.DOC AO 733056.1 5-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 opinions also include, as indirect costs, engineering and other technical services. Other designated projects may include only planning or special services and not include construction costs. The cost opinions were prepared using 2001 construction costs from similar projects in the Augusta area and the State of Georgia. The cost opinions were based on recent design engineering estimates or inspection of facilities and projections of equipment and facility needs, experience with similar projects, and manufacturer prices for recommended equipment. By necessity, some project cost opinions were developed in advance of detailed engineering work including preparation of specifications and detailed design drawings. For these projects, all of the required information concerning the nature and full scope of the project has not yet been obtained so cost opinions are based upon similar facilities constructed recently in this area. Rehabilitation of an existing facility (e.g., Messerly WWTP or the Highland Avenue WTP) could encounter a variety of unforeseen factors that can affect project costs and schedule. Examples of these factors include contaminated soils, piping and duct banks not located in the same locations as indicated on drawings, concealed defects in existing construction, need to upgrade facilities to current codes, and incomplete demolition of former structures (or abandoned in place rather than removed as shown on the record drawings). For this reason, contingencies are included to cover unforeseen costs. This cost opinion also includes cost values for construction allowances. These are known scope activities that cannot be quantified at this stage of cost estimation and as such, are defined through the use of allowances. These allowances have been developed as percentages of construction cost based on experience with numerous other projects and range from 10 percent to 25 percent. These allowances, at a Program level, are anticipated to be more than sufficient to meet project requirements. 5.3 Summary of Capital Improvements The 5-year CIP is summarized in Table 5-1 and further described in the following sections. It will provide for upgrades and development of the water treatment and distribution system, wastewater conveyance, and wastewater treatment facilities. For the Water System, the CIP provides for significant improvements to the existing Highland Avenue WTP, improvements to the water distribution system, and construction of a new WTP. For the Wastewater System, the CIP provides for significant improvements to the J.B. Messerly WWTP and expansions and extensions to the wastewater conveyance system. TABLE 5-1 Series 2002 Bond Projects-Summary of Estimated Costs Recommended Improvements Note: All estimated costs in 2002 dollars Water Treatment Facilities (Section 5.3.1) Water Distribution System (Section 5.3.2) Wastewater Treatment Plants (Section 5.3.3) Wastewater Conveyance System (Section 5.3.4) System-Wide Projects (Section 5.3.5) TOTAL SYSTEM Estimated Costs 57,829,000 14,739,000 8,867,800 41,219,200 7,345,000 130,000,000 P:\161047\161047 AUD 2002 PM\BOND FINANCING REPORT\SEC5FINAL_6_13_02.DOC AO 733056.1 5-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUT1ES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 The Series 2002 Bonds projects are discussed below. Planning-level cost estimates have been developed from available information for guidance in project evaluation. Final project costs will depend on actual labor and material costs, competitive market conditions, actual site conditions, implementation schedules, and other variables. Detailed engineering design plans have been completed for some projects and the proceeds of the Series 2002 Bonds will fund their construction. Other projects for which detailed engineering design plans have not yet been developed will involve both design and construction funded by the proceeds of the Series 2002 Bonds. Project budgets are based upon either the completed engineering plans or conceptual layouts for those yet to be designed. An allowance has been added to all construction costs to cover legal, administrative, financial, engineering, and program management costs. The construction costs are based on Augusta and Atlanta area market conditions, as of the first quarter of 2002. 5.3.1 Water Treatment The existing Highland Avenue WTP has a rated capacity of 60 mgd and the three existing Ground Water Treatment Plants (GWTP) together add 20 mgd: GWTP No.1 with a capacity of 5 mgd (located at Peach Orchard Rd.), GWTP No.2 with a capacity of 10 mgd (located at the Highway 56 Loop), and GWTP No.3 with a capacity of 5 mgd (located on Old Waynesboro Rd.). A portion of Well Field No.1 (5 mgd) was phased out and replaced by GWTP No.3 and Well Field No.3. The strategy for meeting the 2020 water needs defined in Master Plan 2000 for the Augusta Utilities Department recommends surface water as the primary water source. This requires expansion and modification of the Highland Avenue WTP to increase reliability and efficiency, and to sustain operation capacity of 60 mgd. The design for this expansion and upgrade of the raw water pumping system serving the Highland Avenue WTP is underway. The first phase of the construction will be funded by proceeds of the Series 2002 Bonds. In addition, design and construction of a new 15-mgd SWTP is underway to meet additional demand and minimize reliance upon groundwater supply. A contract for both design and construction of this facility was authorized in 2001 covering the initial phase. This new SWTP will be completed with proceeds of the Series 2002 Bonds. Upon completion of this 15-mgd facility, the remaining wells serving GWTP No.1 will be taken off-line. The system will then have a total production capability of 75 mgd from surface water supply only, as required by EPD to meet the projected 77- mgd maximum day demand. A reserve capacity of 18 mgd will be available from the GWTPs. Implementation of this strategy began with the completion of GWTP No.3 and the initial design of the Highland Avenue WTP upgrade and the new SWTP (currently identified as the Tobacco Road WTP). 5.3.1.1 Improvements to the Water Treatment Plants Improvements to the water treatment system to be funded by the Series 2002 Bonds are shown in Table 5-2. P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORT\SEC5FINAL_6_13_02.DOC AO 733056.1 5-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 The Highland Avenue WTP improvements currently being designed include upgrades to and expansion of the plant to meet anticipated regulatory needs and future demands. These improvements will enable the treatment plant to serve as a primary water supply for Augusta, with production capacity of 60 mgd. Upon completion of design, the Series 2002 Program will fund initial construction of the recommended components noted in Table 5-2. TABLE 5-2 Series 2002 Bond Projects-Summary of Estimated Water Treatment Costs Recommended Improvements Note: All estimated costs in 2002 dollars Highland Avenue WTP Phase 1: New Treatment System Pre-flash Mixing New ChemicaVFilter/Administration Bldg. Pumping Systems UV Treatment System Electrical, Instrumentation and Controls Site Work General Conditions Total for Phase 1 Improvements Estimated Costs 150,000 8,000,000 1,200,000 1,800,000 3,050,000 1,500,000 629,000 16,329,000 Upgrade Raw Water Pumping - Diesel Auxiliary System $10,000,000 Total Highland Avenue WTP Improvements $26,329,000 New SWTP Raw Water Pump Station Treatment Facility UV Treatment System Raw Water Storage 2,400,000 21,500,000 3,200,000 4,400,000 Total New WTP $31,500,000 $57,829,000 Total Water Treatment System The raw water pump station will be upgraded in two phases. The first phase, funded by Series 2002 bonds, will include an engine-powered pumping station with three diesel engine-driven vertical turbine pumps; interconnection to the existing piping; and installation of two new lines crossing the Augusta Canal. This project will provide redundancy in pumping capacity to further assure reliable supply of raw water to the Highland Avenue WTP. Phase 2, to be constructed later, will replace the current hydropowered pumping system. Augusta has been instructed by EPD to move toward use of surface water supply as its primary water supply source and away from groundwater due to the shallow depths of its older well fields No. 1 and 2, the reduction of aquifer recharge areas from development activity, and the EPD policy of minimizing groundwater reliance if quality surface water is available. In order to meet projected water demands and commit Augusta to surface water as its primary supply source (with groundwater as reserve capacity), an additional source of water supply is required. Augusta has begun the design and construction a new 15-mgd SWTP which will withdraw water from the Savannah River. Development of the new plant required location of a second RWI along the Savannah River. Augusta has two permits for P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORl\SEC5FINAL_6_13_02.DOC AO 733056.1 5-4 t t t t t t t t t t t t t t t t t t t t t . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 withdrawing water from the Savannah River, one on the Augusta Canal for the Highland Avenue WTP at 60 mgd (EPD Permit No. 121-0191-06) and another on the Savannah River for 15 mgd (EPD Permit No. 121-0191-09) to be assigned to the new SWTP intake location. A systematic approach was adopted in selecting the optimum site for the new RWI and SWTP. The process provided Augusta with maximum flexibility in evaluating and screening the available options. Impacts on the distribution system, raw water pipeline, future growth, and many other factors were part of the process. The findings from the evaluation of the selected sites are summarized in Table 5-3. The locations shown on Figure 5-1 were determined to provide Augusta with the best combination for the new SWTP. TABLE 5-3 Summary of Site Evaluation Findings for Selected Sites Evaluation Criteria Selected Sites Impact on Distribution System Will eliminate capital projects and provide needed relief in projected growth areas. Land Availability and Zoning Geotechnical and Topographic Conditions Environmental Issues Raw Water Pipeline Raw Water Intake Raw Water Quality Permitting River-side property is City-owned. Industrial area, zoning, and aesthetics requirements expected to be minimal for the RWI and the SWTP. Typical construction conditions will be used for the RWI and the SWTP with only limited special construction methods. Additional field investigations at the RWI site and SWTP site found no environmentally sensitive areas. Significantly less expensive than the other altemative and will involve shorter construction schedule and minimal impact on traffic. Will allow design consideration of multiple configurations to determine most cost- effective alternative. Upstream of the industrial area and wastewater discharges from neighboring systems. Existing withdrawal capacity of 15 mgd from the Savannah River will be transferred to meet initial requirements but a new withdrawal permit will be needed for ultimate requirements of 60 mgd. P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORT\SEC5FINAL_6_13_02.DOC AO 733056.1 5-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 LEGEND: [=:::J Augusta Water Service Area. N MajorWaterUnes Sl1eets N Water Distrbulion Projects . Water SupPy Projects . -. SM<o""'does""",*"",FodGMIon. HephZ1bahor/:f)'the. N A I Kings O\apel Road I ~_o IlXXIteel ,-- ) ---i Hwy5624"WaterMain I ~fJ (21~ . (~- 7J''/~\ ,. - \ f" \1. !, \\'r< ~^ --(J. 0\ !\J J"-~' 0-c? r "'-0'> )/ , '--~....---/-_/ FIGURE 5-1 Proposed Capital Improvements-Water System Augusta, Georgia 5.3.2 Water Distribution System Table 5-4 is a summary of water distribution system improvements to be funded by the 2002 Program. The construction projects are shown on Figure 5-1. TABLE 5.4 Series 2002 Bond Projects-Summary of Estimated Costs for Water Distribution Projects Recommended Improvements Note: All estimated costs in 2002 dollars Estimated Costs Primary Supply System Central Connector GWTP No.3 - 20" Main Hwy 56 24" Water Main Hwy 56 20" Water Main Rose Hill lines - Windsor Spring Rd. 3,800,000 2,710,000 1,250,000 800,000 1,250,000 9,810,000 Other System Improvements 4,929,000 Total Water Distribution System 14,739,000 5.3.2.1 Primary Supply System Improvements The Master Plan identified several distribution system improvements that will be completed as part of a program to maintain adequate system pressure and improve reliability and operating conditions. The Water Distribution System Analysis further clarified the improvements and identified others. The following list identifies the most P:1161047\161047 AUD 2002 PMIBOND FINANCING REPORT\SEC5FINAL_6_13_02.DOC AO 733056.1 5-6 . . . . . . . . . . . . . It . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 critical projects from Table 5-4; these are major improvements to be completed within the next 5 years. These projects will strengthen delivery capability throughout the system. · The Central Connector will improve hydraulic capacity from the Highland Avenue WTP to GWTP No.1 and the 417 ft service area: the GWTP No.1 high service pumps will serve as a booster station after the well field is taken out of service. The 12-inch Old Savannah Rd. line, and the Central Avenue 24-inch pipeline, or its alternative, the White Rd. extension, are also part of this project, which is designed to increase flow capacity into the 433 ft zone and increase pressures during peak hour conditions. · Service will be improved in the rapidly growing southern water service area of Augusta by expanding the distribution system supplied by the recently completed GWTP No.3. This line, the GWTP No.3 20-inch main, will stabilize pressures throughout the area now that sufficient supply is available. · The Highway 56 20-inch and 24-inch water mains will be installed from the new WTP along Highway 56 north to add flow capacity from the new WTP towards GWTP No.1 to ensure effective distribution of the new WTP flows to the 417 ft zone. · Additional new lines will be required to allow gravity feed from the 521 zone to the western part of the 457 ft zone, which is currently served by the Rose Hill Pump Station. This will include 16-inch and 12-inch lines referred to as the Rose Hill Lines- Windsor Spring Road. 5.3.2.2 Other System Improvements Other system improvements include multiple water distribution line improvements listed in the Master Plan and Water Distribution System Analysis to complete pressure distribution, strengthen supply, and support fire protection in the city. Refitting and replacing all water meters with meters fitted for radio-read will improve meter reading and billing efficiency and eliminate older meters that are no longer reliable. These various distribution system improvements include the following: Other System Improvements 500 Zone Elev Storage 1.5MG (site acquisition) Dennis Rd 3.0 MG GS & PS Meter Replacement Program Pleasant Home Rd Kings Chapel Wrightsboro Road System Upgrade SCADA Systems/CMMS 100,000 1,500,000 2,500,000 60,000 144,000 125,000 100,000 4,529,000 State highway improvements require the Department to relocate water lines prior to roadway improvements. These relocations allow for accelerated improvement to related water system assets and location of new assets away from roadways where repair and maintenance can be costly. Highway projects to be built are: P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORT\SEC5FINAL_6_13_02.DOC AO 733056.1 5-7 . . . . . . . . . . . It . . . . . . . . . . . . . . . It . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 Other System Improvements: State Highway Projects 1-20 11-520 Crossings and Improvements St. Sebastian 1 Greene Street System US 25 Improvements Total Highway Projects: 160,000 160,000 80,000 400,000 5.3.3 Wastewater Treatment Planned improvements to the J.B. Messerly WWTP will result in increased treatment capacity from the addition of new facilities, will maximize the use of existing plant components, and will increase the level of reliability in meeting stringent effluent limits. The prioritized projects summarized in Table 5-5 address components of the J. B. Messerly facility that are most susceptible to failure and that pose limitations to future growth and development. These projects are a continuation of ongoing improvements and will be implemented following completion of an updated portion of the Master Plan 2000 that focuses specifically on this facility (identified as the Wastewater Treatment Master Plan). TABLE 5-5 Series 2002 Bond Projects-Summary of Estimated Wastewater Treatment System Costs Recommended Improvements Note: All estimated costs in 2002 dollars Messerly WWTP Solids Handling System Secondary Treatment Systems Effluent Disinfection System Electrical and Control Systems Miscellaneous Improvements Total WWTP Improvements Estimated Costs 1,200,000 5,869,000 528,000 840,000 430,800 8,867,800 The Master Plan 2000 suggested prioritization of improvements and continues as the general guide for the following projects to be funded by the Series 2002 Bonds. Solids Handling System: This system will be upgraded with the rerouting of filtrate to one of the equalization basins; the addition of a transfer pumping station; modification of equalization inlet and outlet piping to accommodate filtrate/ centrate and feed back into the plant for treatment; and replacement of the digester control system. Secondary System: An additional 5 MG of aeration basin volume will be provided which should give sufficient capacity through year 2010. The additional aeration basin volume will also require modifications to the plant flow splitting scheme, yard piping (both liquid and air), and controls. The blowers will be replaced and upgraded with an additional 8,700 scfm of blower capacity to match the additional aeration basin capacity for year 2010 conditions. In addition to the blowers, the blower control systems will be replaced and the blower buildings upgraded, including new HV AC systems, lights, and air inlet louvers. Effluent Disinfection: Replacement of the effluent disinfection system has been recommended for safety and security reasons rather than as a capacity-related issue. The gas chlorination system will be replaced with a liquid sodium hypochlorite disinfection system. P:\161 047\161 047 AUD 2002 PMlBOND RNANCING REPORT\SEC5FINAL_6_13_02.00C AO 733056.1 5-8 . . . . . . . . . . . . . . . . . . . . . . . . . . It . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 Electrical and Control Systems: Many existing flow measurement devices are out of service and will be repaired or replaced. Additional flow measurement devices will be installed for flow streams that should be measured for process control but are not currently measured. Flow meters will be integrated with the plant control system. Miscellaneous Improvements: To improve operating conditions and safety for personnel, most plant doors and handrails will be replaced and the plant air system will be upgraded. A detailed Wastewater Treatment Master Plan will be developed to address current and future needs, making adjustments for upgrades that have been completed and evaluating the needs for those previously planned and noted above. This plan will also include recommendations regarding the Spirit Creek WWTP. 5.3.4 Wastewater Conveyance Table 5-6 is a summary of wastewater conveyance system improvements to be funded by the Series 2002 Bonds. The construction projects are shown in Figure 5-2. TABLE 5-6 Series 2002 Bond Projects-Summary of Estimated Wastewater Conveyance System Costs Recommended Improvements Note: All estimated costs in 2002 dollars Estimated Costs Planning/Operations/Monitoring Interceptor Upgrades Infiltration/Inflow Reduction Unsewered Pockets Expansions/Extensions 840,000 17,613,200 3,260,000 12,506,000 7,000,000 Total Conveyance System Improvements 41,219,200 P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORT\SEC5FINAL_6_13_02.DOC AO 733056.1 5-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 LEGEND: I2:2J Augusta Waler SeMce ma' 11IIIII Conveyance Projects N Sewerage Lines N line Extensions/Upgrades . Wastewater Treatment Plants 8COO 0 BCOOFeet ~ N A * Augusta SelVice Area does not indude Fort GorOOn. Hephzibah or Blythe. Butler Collector Extension CH2MHIll Figur. 5-2 Proposed Capilallmprovemenls - Wastewater Syslem Augusta. Georgia Wl)oI2002016A1lIA.lguslil109.1h8 Soorte:FoIePalll:n:'4lro~Ll~\nIcho.lIe1200L!Il1g_report,spr.Date:'6A1X2002.lJlIef:NMOtJIlRY.2002ERH~Capotd~ 5.3.4.1 PlanninglOperationslMonitoring The 2002 Program includes initial Planning/Operations/Monitoring projects that will provide immediate benefit by identifying previously undetected problems and developing baseline information for the Department's system-wide hydraulic capacity management plan. Projects to be funded by the 2002 Program include: Planning/Operations/Monitoring Wetlands Study and Scope of Mitigation Flow Monitoring & Modeling SCADA Systems/CMMS Total Planning/Operations/Monitoring 60,000 450,000 330,000 840,000 5.3.4.2 Interceptor Upgrades The Butler Creek and Rae's Creek interceptors will be upgraded with new lines to replace or supplement current pipes. The required areas have been defined by previously completed designs. Interceptor Upgrades Butler Creek Interceptor Sewer Rae's Creek Relief Sewer Main Interceptor Sewer Total Interceptor Upgrades 3,650,000 8,863,200 5,100,000 17,613,200 P:\161047\161047 AUD 2002 PM\BOND FINANCING REPORT\SEC5FINAL_6_13_02.DOC AO 733056.1 5-10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . It . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 5.3.4.3 Infiltration/Inflow Reduction The collection systems in the following basins will have ongoing infiltration/inflow (1/1) reduction projects funded by this program. The result will be reduced external flow, resulting in more capacity for wastewater flow and fewer maintenance problems. The allocation among basins is estimated to be as follows: In Reduction Interceptor Rights-ot-way Clearing Butler Creek Rocky Creek Spirit Creek Total I" Reduction 320,000 980,000 r 980,000 980,000 3,260,000 5.3.4.4 Pocketed Sewers Throughout the existing collection system, there are various "pockets" of unsewered areas. These are locations ranging in size from one block long to entire subdivisions that were bypassed when sewers were first built in a neighborhood and are now adjacent to or surrounded by sewered areas. These projects will enhance environmental protection through reduced reliance on septic systems and will provide additional customer connections to the system. Projects that will provide sewer service to the following pockets have been identified for the 2002 Program: Unsewered Pockets Farrington Sewer Jamestown Sewer Ridge Forest Drive Horsepen Collection Phase 2 Olive Road Wimberly Park Meadowbrook Drive Total Pockets 4,700,000 2,000,000 1,300,000 1,381,000 1,450,000 350,000 1 ,325,000 12,506,000 5.3.4.5 Expansions and Extensions "Expansion" is defined as providing sewer service to basins not currently having access to sewer systems. An "extension" is defined as lengthening a line beyond its current point of terminus to unsewered areas. These projects will enhance environmental protection through reduced reliance on septic systems and will provide additional customer connections to the system. The proposed areas for sewer expansion and extensions are listed below: Expansions/Extensions Butler Interceptor Improvements Butler Creek Collector Extension Industrial PS / FM Total Expansion/Extension Projects 2,000,000 3,700,000 1 ,300,000 7,000,000 5.3.5 System-wide Improvements System-wide improvements are summarized in Table 5-7. P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORT\SEC5RNAL_6_13_02.DOC AO 733056.1 5-11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 TABLE 5-7 Series 2002 Bond Projects-Summary of Estimated System-wide Costs Recommended Improvements Estimated Note: All estimated costs in 2002 dollars Costs System-wide Projects New Utility Admin.!Maint. Facility Program Management Legal, Advertising, Other Professional Watershed Assessment Implementation 2,000,000 5,000,000 130,000 215,000 7,345,000 A new Utility Administration/Maintenance Building, currently under design, will be constructed with Series 2002 Bond funds. This building will relieve space constraints for administrative and engineering operations, and is being designed to address the Department's needs for the next 10 years considering both space requirements and implementation of new management and communication technologies. To continue effective implementation of the CIP, various professional services will be required to assist the Department, including Program and Construction Management (Program Management) and legal support related to land and rights-of-way acquisition. 5.4 Anticipated Future Work The system will require continued investment to meet projected demands throughout the service area, address regulatory requirements, and meet its commitment to deliver quality services. Priority capital improvement funding needed to meet projected demands and address system deficiencies is summarized in Appendix D, Table 0-1. Series 2002 Bonds will fund the completion of: · Projects begun under the 2000 Program and other key facilities that are most susceptible to failure, · Projects that will alleviate potential limitations to future growth and development, and · Projects that will provide service to areas that need water and sewer infrastructure immediately. Improvements planned for later years will continue strengthening and expanding the water distribution and sewer collection network. Work will also include completing projects initiated with funds from the Series 2002 Bonds such as the upgrades to the' Highland Avenue WTP, the J. B. Messerly WWTP, and the Spirit Creek WWTP. P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC5FINAL_6_13_02.DOC AO 733056.1 5-12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.0 Financial Performance This section presents an overview and evaluation of the historical and projected financial performance of the System for the study period 2002 through 2011. 6.1 H istorical Performan~:e Table 6-1 presents the financial performance of the Department for the past 5 years, 1997- 2001. System revenues increased from $29.5 to $38.3 million during this period, an increase of 29.8 percent. Operations and maintenance (O&M) expenses increased 65.1 percent, from $19.2 million to $31.7 million. This large increase was a result of increased depreciation as new capital projects were finished, costs associated with improvements to the WWTP operations, and rising personnel costs. After deducting depreciation and other expenses, net revenues available to pay debt service totaled between $14.6 and $18.2 million. Over the 5-year period, the Department received sales tax proceeds of approximately $21.0 million. During that same period, the Department made net transfers to Augusta's General Fund totaling $11.4 million. These transfers were eliminated in 2000 as a result of restrictions imposed by the bond resolution in 2000. The Department's minimum debt service coverage requirement for the issuance of additional debt is 1.25 times maximum annual debt service. Additionally, the Department has an annual rate covenant of 1.10 times debt service payments. Between 1997 and 2000, actual debt service coverage ranged from 3.07 to 4.32. Following issuance of the Series 2000 Bonds, actual debt service coverage remained substantially in excess of the minimum requirement at 1.65 times actual debt service for 2001. 6.2 Water and Sewer Rates The Department's current water rate structure consists of a monthly customer charge and a two-tiered volumetric rate. For residential customers with metered consumption exceeding 3,000 gallons per month, the current monthly customer charge is $7.28. The volumetric rate is $1.00 per kgal for the first 3,000 gallons and $1.12 for each additional kgal. For customers using less than 3,000 gallons per month, a $10.51 customer charge applies with no volumetric charges. The Department's current sewer rate structure is based on monthly gallons of water used and also consists of a monthly customer charge and volumetric rate. 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ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 current monthly customer charge is $13.24 and the volumetric rate is $1.22 per kgal. For customers using less than 3,000 gallons per month, a $9.44 customer charge applies with no volumetric charges. Customer charges and volumetric rates by meter size for both residential and non-residential customers are shown in Table 6-2. TABLE 6-2 Current Water and Sewer Rates (Effective 4/1/2002) Water Customer Rate Charge (per kgal) RESIDENTIAL RATES $10.51 NA $7.28 $1.00,$1.12' NON-RESIDENTIAL RATES 5/8" & %" NA $7.90 $1.28,1.41' $13.95 $1.54 1" NA $11.19 Same $19.94 Same 1-1/4" & 1-1/2" NA $18.55 Same $33.31 Same 2" NA $26.64 Same $48.12 Same 3" NA $44.58 Same $81.00 Same 4" NA $64.58 Same $117.35 Same 6" NA $108.89 Same $198.33 Same 8" NA $157.95 Same $287.95 Same 10" NA $210.96 Same $384.90 Same 12" NA $273.76 Same $487.47 Same · The first charge is applied to each of the first 3 kgals of metered consumption; the second charge is applied to each additional kgal. Meter Size Kgals Metered Sewer Customer Charge Rate (per kgal) All Meters All Meters Less than 3 Greater than 3 $9.44 $13.24 NA $1.22 The current monthly water bill for a typical residential water customer is $17.00, and the residential sewer bill is $24.221. A coinparison of typical residential monthly water and sewer bills for customers of various systems throughout Georgia is presented in Table 6-3. This table indicates that Augusta's existing water and sewer rates are relatively low compared to those of other Georgia communities. TABLE 6-3 Comparison of Typical Monthly Residential Customer Bills Monthly Billing Local Jurisdiction Water* Sewer* Total Clayton County 18.00 18.90 36.90 City of Cumming (inside City limits) 19.20 20.10 39.30 Augusta $17.00 $24.22 $41.22 City of Lawrenceville 12.78 30.19 42.97 City of Gainesville 22.50 33.98 56.48 Henry County 30.21 30.21 60.42 Cherokee County 31.50 31.50 63.00 Fayette County 35.60 31.50 67.10 Gwinnett County 31.60 36.73 68.33 Douglas County 29.44 39.73 69.17 City of Roswell 22.20 48.75 70.95 Fulton County 25.50 45.75 71.25 Rockdale County 35.63 40.55 76.18 Forsyth County 33.24 43.56 76.80 Paulding County 38.75 38.75 77.50 *Based on average consumption of 9,000 gallons per month. Data source: State of Georgia Water and Sewerage Systems Rate Comparisons 2000/2001 1 Both water and sewer bills are based on average consumption of 9,000 gallons per month. P:\161047\161047 AUD 2002 PMlBOND RNANCING REPORT\SEC6FINAL_U3_02.DOC AO 733090.1 6-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 For purposes of this analysis, equal percentage water and sewer rate increases are projected and are assumed to be applied urLiformly across customer classes2. Two 11 percent rate increases have already been adopted in 2001 and 2002, and 11 percent per annum increases are scheduled in 2003 through 2007 followed by 3 percent per annum increases in 2008 through 2011. These planned rate increases will be applied to all water and sewer customer charges, volumetric rates, and industrial surcharge rates and will increase the typical residential customer's monthly water bill in 2011 to $32.30 ($24.76 in 2002 dollars) and monthly sewer bill to $45.91 (or $35.19 in 2002 dollars)3. While this represents a total increase of 89.7 percent in combined monthly bills over the 10-year forecast period, the combined monthly bill in current dollars ($59.95) is below the median of the range of typical monthly bills presented in Table 6-3, without accounting for prospective increases in these communities' water and sewer rates. Water and sewer tap fees are $350 per service for residential connections4. The water and sewer tap fees assessed to new customers connecting to the system are conservatively assumed to remain constant throughout the forecast period. 6.3 Financial Policies The Department uses a system of fund accounting to track water and sewer system revenues and expenditures. There are three funds: the Operating Fund, the Renewal Fund, and the Bond Fund. With the exception of sales tax proceeds, all revenues are deposited into the Operating Fund. Operating Fund expenses include all O&M expenses, transfers to the Renewal Fund for capital projects, and transfers to the Bond Fund for capital projects funded through debt proceeds. Bond proceeds are deposited into a Construction Fund, a restricted asset of the Operating Fund. As indicated in the Bond Resolution, the Department is required to maintain a minimum balance in the Operating Fund of the lesser of $2,500,000 or 5 percent of the preceding fiscal year's operating revenues. The Operating Fund's cash and investment balance as of January 1,2002, was $24,888,031. Throughout the forecast period, Operating Fund cash balances are projected to range from a low of $4.0 million to $25.1 million. In the past, the Department has made transfers from the Operating Fund to Augusta's General Fund. In 1997, 1998, and 1999 these transfers totaled approximately $5.2 million, $3.7 million, and $2.5 million, respectively. Conversely, over the same period, the Department has received sales tax revenues totaling approximately $21.0 million. To ensure financial integrity and self-sufficiency, the Bond Resolution contemplates, and this analysis assumes, that the Department will not make transfers to Augusta's General Fund other than payments in lieu of taxes and franchise fees, nor receive sales tax revenue in the future. 2 The Department established a uniform water and sewer rate schedule for the System effective April 1, 1996. 3 A 3.0 percent discount rate was used. 4 Tap fees vary depending on water meter and tap sizes. Cost does not include additional fees assessed for road crossing or sidewalk replacement. P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SEC6FINAL_6_13_02.DOC AO 733090.1 6-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 6.4 Projected Operating Results Table 6-4 presents projected operating results for the System, including projected revenues, expenses, debt service, and debt service coverage through 2011. 6.4.1 Revenues Projections of new customers, water and sewer consumption by cUStomer class, and proposed rate increases are used to forecast water and sewer sales revenues over the plan- ning period. As of December 31, 2001, the System provided service to 65,670 active water accounts and 49,639 active sewer accounts. Growth of residential water customers is based on projected population growth and is consistent with historical customer growth patterns. Annual water system growth is expected to range between 0.83 and 1.21 percent-an increase of between 600 and 800 new water accounts per annum. Total water accounts are projected to increase 10.5 percent over the 10-year study period. Sewer customer growth projections are established from a detailed analysis of the proposed extension of sewer service to isolated pockets of water customers within the Department's service area. Annual sewer customer growth is expected to fluctuate between 1.02 percent in 2011 and 3.22 percent in 2004 as collection lines are extended to these as well as new System customers. New sewer accounts are projected to increase between 600 and 1,725 annually; the total number of sewer accounts is projected to increase 20.1 percent over the forecast period. This analysis assumes that revenue collection for one-half of annual new customers is delayed until the following year. In addition, water and sewer commercial and industrial customer accounts are projected to remain constant over the forecast period. Weighted average monthly consumption estimates by customer class were developed from customer billing information and are consistent with historical revenues. However, to account for reduced consumption in response to proposed rate increases, consumption estimates across all customer classes are forecast using an elasticity of demand factor of 0.155. The elasticity factor is also applied to industrial surcharge revenues which are subject to the proposed rate increase schedule. Annual water sales revenues are forecast to increase from $19.8 to $36.9 million and sewer sales and industrial surcharge revenues from $19.7 to $38.7 million. Water and sewer tap fees are projected based on new accounts resulting from system growth and expansion. These fees are expected to generate $6.1 million between 2002 and 2011. Cut-on fees, set to recover administrative costs associated with new accounts, and other miscellaneous revenues are assumed to remain unchanged over the study period. These fees and revenue items are expected to total $11.5 million between 2002 and 2011. Interest revenues are assumed to earn 3.5 percent on bond proceeds in the Construction Fund and 1.51 percent on balances in the Operating Fund. 5 Price elasticity of demand is equal to the percentage change in quantity demanded divided by the percentage change in price. An elasticity factor of 0.15 indicates that, for every 10% increase in price, demand (consumption) will decrease by 1.5%. P:\161047\161047 AUD 2002 PMlBOND RNANCING REPORT\SEC6FINAL_6_13_02.DOC AO 733090.1 6-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f-f-'" a:zo ow~ 0..::;; en Wf-w a:a:_ en<a: - 0.. W a:wen Wo _ ~ffi~ ~E~ UJ::::!CI) ~~ <z f-W en> =>w CIa: =>w <el < a: W :;;: W en o z < a: W ~ :;;: en CD :;;: (]) en ~ "0 chfa w..... ...J(]) m....... ~~ .11 "S en (]) a: ~ o o~ C\lC') O~ ..-0 o~ C\lC') ~~ o~ C\lC') ~~ o~ C\lC') r---* 00 o 0 C\l;: cocfl. 00 ~;: LO'if? 00 o " C\l;: vf/!. 00 o . C\l;: (t)cfi. 00 o . 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(t)......fFJ.ll) 01'- I'- MeD oi .-0> 0 I'-C\l 0 oi (fl 0 (fl ..- (fl CI> o 02: CI> 00 :l5C1> C1>~_Q .Q",2: 2: '0 CI> <De:OO 000- _00.0 .0 C\l oCl> CI> C1>0 0 00'0'- Ol C\l <D 2: :Em~~ .~ or: .0 15 XCD_Ql wOOQ..o (ij (5 I- <0 W CD C"! It) C"! ~ C"! Q) C"! It) C"! .... '<l; o ~ C\l U! o ~ <.> o o N o , M ;;;, ....J' <<: z IT: <0 <.> W ~ a: o 0.. w a: el z U z < z IT: o z o ~ ::;; 0.. '" o o '" o => < ;g-: ~o <0"" ~o '::::", ~~ ~O 0.:< Q) U! o :;::; ell a: Gl Cl ell ... Gl > o () Gl U ~ Gl (f) 15 Gl o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ENGINEER'S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 In 2011, total revenues of $77.2 million are projected to be comprised of water sales (47.8 percent), sewer sales (50.1 percent), other revenues (1.5 percent), and water and sewer tap fees (less than 1 percent). Total revenues are expected to grow 87.4 percent from $41.2 million in 2002 to $77.2 million in 2011. Of the $36.0 million differential, nearly $35.5 million is attributed to water and sewer rate increases (98.6 percent) and $0.5 million to system growth and expansion (1.4 percent). 6.4.2 Expenses Total system O&M expenses for 2001 were $31.7 million and are projected to be $35.7 million in 2002. System operating expenses have been developed with a forward looking perspective and include incremental costs related to the installation of new capital facilities. Expenses are stated in 10 categories: Administration (includes payments to the General Fund in lieu of Franchise Fees and Taxes), Customer Service, Construction and Maintenance, Raw Water, Surface Water Treatment, Groundwater, Messerly Treatment Plant, New Programs and Positions, New WTP, and Depreciation. The escalation rate for these categories is computed as the annual rate of inflation (3 percent) plus half the rate of annual residential customer growth; for water-related categories, 3.58 percent, for sewer- related categories, 4.05 percent6. Operating capital, excluded from the debt service coverage calculation, is expected to total $4.2 million in 2002 and is escalated at 3.82 percent per annum throughout the forecast period. Additional O&M expenses attributed to the capital improvement program are included in the fiscal year 2002 budget for each category and include additional staffing expenses and recurring costs related to process changes, system expansions, and other circumstances. Two of the cost centers, New Programs and Positions and New WTP, are projected to total $19.0 million over the 10-year period and are comprised exclusively of incremental operating costs required for new facilities. Total operating expenses are expected to grow 61.3 percent from $35.7 to $57.6 million over the study period. Of the $21.9 million differential, $11.1 million (50.7 percent) is attributed to increases in O&M costs and $10.8 million (49.3 percent) is attributed to rising depreciation costs as new projects are placed into service. 6.4.3 Debt Service Projected debt service includes debt service for both existing and proposed revenue bond issues. Currently, the Department is repaying four revenue bond issues: Series 1996A Bonds, Series 1996B Bonds, Series 1997 Bonds, and Series 2000 Bonds. The combined annual principal and interest payment for the existing revenue bonds ranges between $9.7 and $11.7 million over the forecast period. The 1996B Bonds will be retired in 2002, the 1997 Bonds in 2021, the 1996A Bonds in 2028, and the 2000 Bonds in 2030. Using $8.4 million of proceeds from the Series 2002 Bonds, the Department will repay the outstanding principal on one of three loans issued by the Georgia Environmental Facilities Authority (GEFA). Subject to the bond resolution, these loans are not included in the parity coverage requirements and are therefore not included in debt service coverage calculations. 6 For categories such as Administration and Customer Service, 3.82 percent is used-an average of the two escalation rates. Exceptions are: depreciation is escalated based on the installation of new capital; payments in lieu of franchise fees are escalated at 3.0 percent per annum; and payments in lieu of taxes are not escalated. P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORT\SECGFINAL_6_13_02.DOC AO 733090.1 6-7 . It . . . It . . . . . . . . It . It . It . It . . . . It It . . It It It It . It It . . It It It . . ENGINEER'S REPORT AUGUSTA UTIUTIES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 Proposed bond amounts were selected to fund the capital program, maintain appropriate Operating Fund reserves, meet debt service coverage criteria, and minimize rate impacts. In addition to existing debt service and the projected debt service schedule for the Series 2002 Bonds, annual debt service includes payments associated with a scheduled debt issue of $127.0 million in 2005. This future debt issue assumes a 30-year term, an interest rate of .6.0 percent, an issuance cost of $750,000, and an underwriter's discount equal to 0.5 percent of the par amount. The future debt issue also assumes a debt service reserve surety bond premium equal to 2.5 percent of debt service requirements and a bond insurance cost equal to 30 basis points of total debt service. Capitalized interest on the Series 2002 Bonds and the subsequent issue in 2005 totals $16.3 million. Annual debt service costs are budgeted at $10.0 million in 2002. Future debt service costs are projected to increase to $30.9 million in 2011 under the proposed bond issuance schedule. 6.4.4 Debt Service Coverage Debt service coverage is evaluated in terms of the System as a whole (combined water and sewer). For new debt issues, the System has a minimum parity coverage requirement of 1.25 times maximum annual debt service during the forecast period. Additionally, the system has an annual rate covenant of 1.10 times debt service payments. System debt service coverage is estimated to be 1.69 in 2002 and projected to range from 1.34 to 1.70 over the study period as shown in Table 6-4. As indicated in Table 6-5, under rate projections established in the Bond Resolution for the Series 2002 Bonds and upon completion of the construction period, the System will generate net revenues available for debt service in excess of maximum annual debt service requirements in ratios ranging from 1.36 to 1.78, and above Bond Resolution requirements of 1.25 for Additional Bonds. TABLE 6-5 Additional Bonds Test* 2006 2007 2008 2009 Net Revenues Available $31,275,879 $36,446,559 $38,628,437 $39,676,378 Maximum Debt Service 23,001,470 23,001,470 23,001,470 23,001,470 Debt Service Coverage 1.36 1.58 1.68 1.72 *The Additional Bonds test shows debt service coverage ratios for the forecast period following completion of construction using the maximum annual debt service payment (which occurs in 2025). 2010 $40,839,602 23,001,470 1.78 6.4.5 Operating Fund Balances Operating Fund cash flows are presented in Table 6-6. In addition to operating expenses and debt service payments, uses of cash include current revenue financing of planned capital improvements, GEF A loan payments, Renewal and Extension project funding, and the Department's budgeted requirements for operating capital. Expenditures for Renewal and Extension projects are budgeted at $2 million and are escalated at 3.0 percent annually. These funds are used for minor or miscellaneous capital improvements to existing infrastructure. Scheduled rate increases provide for compliance with the Bond Resolution requirement to maintain Operating Fund balances equal to the lesser of $2.5 million or 5 percent of the preceding fiscal year's operating revenues. Operating fund balances range from $4.0 million to $25.1 million over the forecast period and reflect the effect of debt service payments inclusive of all other cash requirements of the Department. 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ENGINEER'S REPORT AUGUSTA UTIUTlES DEPARTMENT WATER AND SEWERAGE REVENUE BONDS, SERIES 2002 6.5 Capital Financing The capital improvement program will require approximately $285.5 million ($267.5 million in 2002 dollars) in total funding over the 10-year period, as discussed in Section 5 and shown in Appendix D and Table 6-7. Three sources of funds will be used to fund the capital program: bond proceeds (86.5 percent), current revenues (8.7 percent), and interest in the Construction Fund (4.8 percent). Just over $247 million in bond proceeds will be generated by separate issues in 2002 ($127.3 million) and 2005 ($120.0 million). Current revenue transfers totaling $25.0 million will be made from the Operating Fund over the forecast period and are expected in 2004 ($20 million) and 2006 ($5 million). Interest in the Construction Fund is projected to total $13.9 million over the 10-year period. Proposed water and sewer rate increases are projected to generate nearly $197.4 million in additional revenues over the forecast period; tap fees are projected to generate $6.1 million. Use of these funds provides an appropriate matching of revenues to capital expenses (including debt service payments) planned to accommodate system growth and extension of sewer service to unsewered areas. In the event that actual growth in the Department's water and sewer systems is less than projected, project deferrals may be employed without degradation of services to ensure adequate matching of system revenues and projected capital expenditures. 6.6 Conclusions CH2M HILL's projection of the financial performance of the System for the 10-year period 2002 through 2011 is summarized as follows: · Total revenues are projected to increase 87.4 percent over the 10-year period. Operating expenses, including incremental expenses attributed to planned capital expenditures, are projected to increase by 61.3 percent over the forecast period. · Projects identified in the Department's 10-year CIP reflect priority needs of the system and, after adjusting for inflation, are expected to total $285.5 million. These expenditures will be funded through a combination of debt issues in 2002 and 2005 ($247.3 million), current revenues ($25.0 million), and interest on the Construction Fund ($13.9 million). · Financing of the planned 10-year capital program will be enabled by planned system- wide water and sewer rate increases of 11 percent per annum from 2003 through 2007, and 3 percent increases from 2008 through 2011. The typical residential bill for both water and sewer service is projected to increase 89.7 percent over the forecast period as a result of these rate increases. 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Appendix A Acronyms AWWA BPS CIP CMOM DI D/DBP DNR DO EPA EPD FM GEFA fps gpm/ fF gpd GWTP IDSE IESWTR 1/1 kgal LAS LRAA LT1ESWTR LTIESWTR MCC MCL(G) MG mgd msl NPDES American Water Works Association booster pump station ' Capital Improvement Plan Capacity, Maintenance, Operation, and Management ductile iron Disinfectants/Disinfection Byproducts Rule Department of Natural Resources Dissolved Oxygen United States Environmental Protection Agency State of Georgia, Department of Natural Resources, Environmental Protection Division force main Georgia Environmental Facilities Authority feet per second gallons per minute per square foot gallons per day groundwater treatment plant Initial Distribution System Evaluation Interim Enhanced Surface Water Treatment Rule infiltration and inflow 1,000 gallons land application system Locational Running Annual Average Long-Term 1 Enhanced Surface Water Treatment Rule Long-Term 2 Enhanced Surface Water Treatment Rule motor control center maximum contaminant level (goal) million gallons million gallons per day mean sea level National Pollutant Discharge Elimination System P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORnAPPEND_6_13_02.DOC A-1 t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t NTU O&M PS PSI PVC RMP SCADA sefID SDWA SWAP SWTR TTHM WTP WWTP Nephelometric Turbidity Unit Operations and maintenance pump station pounds per square inch polyvinyl chloride risk management plan Supervisory Control and Data Acquisition standard cubic feet per minute Safe Drinking Water Act Source Water Assessment Plan Surface Water Treatment Rule total trihalomethanes water treatment plant wastewater treatment plant P:\161 047\161047 AUD 2002 PMlBOND FINANCING REPORlW'PEND_6_13_02.DOC A.2 t t t t t Appendix B t Population Growth within Census Tracts t t t t Population Growth within Census Tracts (a) Augusta-Richmond County, 1990 to 2000 t 1990 t 1990 1990 Density 2000 2000 Change, Census Census Population (persons Census Population 2000 1990 to t Tract Acres population Share per acre) Population Share Density 2000 t 1 1,152 4,672 2.6% 4.06 4,237 2.2% 3.68 -9.3% 2 640 3,260 1.8% 5.09 3,204 1.7% 5.01 -1.7% t 3 320 1,963 1.1% 6.13 1,739 0.9% 5.43 -11.4% 4 384 783 0.4% 2.04 920 0.5% 2.40 17.5% t 6 512 2,691 1.5% 5.26 3,051 1.6% 5.96 13.4% 7 320 1,837 1.0% 5.74 1,264 0.7% 3.95 -31.2% t 8 384 1,022 0.6% 2.66 685 0.4% 1.78 -33.0% t 9 320 3,394 1.9% 10.61 2,664 1.4% 8.33 -21.5% 10 512 3,311 1.8% 6.47 3,412 1.8% 6.66 3.1% t 11 512 1,753 1.0% 3.42 1,829 1.0% 3.57 4.3% 12 960 4,808 2.7% 5.01 4,826 2.5% 5.03 0.4% t 13 448 1,748 1.0% 3.90 1,512 0.8% 3.38 -13.5% 14 384 2,755 1.5% 7.17 2,953 1.5% 7.69 7.2% t 15 320 2,411 1.3% 7.53 1,636 0.9% 5.11 -32.1 % t 16 2,112 8,876 4.9% 4.20 8,316 4.3% 3.94 -6.3% 101.01 1,280 3,994 2.2% 3.12 4,062 2.1% 3.17 1.7% t 101.02 1,984 6,274 3.5% 3.16 6,884 3.6% 3.47 9.7% 101.04 1,920 3,466 1.9% 1.81 3,845 2.0% 2.00 10.9% t 101.05 1,216 5,654 3.1% 4.65 5,333 2.8% 4.39 -5.7% 102.01 1,472 5,356 3.0% 3.64 5,275 2.7% 3.58 -1.5% t 102.03 1,216 4,014 2.2% 3.30 4,432 2.3% 3.64 10.4% t 102.04 8,000 4,480 2.5% 0.56 7,930 4.1% 0.99 77.0% 103 1,280 5,899 3.3% 4.61 5,337 2.8% 4.17 -9.5% t 104 1,216 4,987 2.8% 4.10 4,259 2.2% 3.50 -14.6% 105.04 3,136 7,541 4.2% 2.40 6,836 3.6% 2.18 -9.3% t 105.05 2,368 8,126 4.5% 3.43 8,255 4.3% 3.49 1.6% 105.06 1,280 5,282 2.9% 4.13 4,661 2.4% 3.64 -11.8% t 105.07 1,728 6,701 3.7% 3.88 6,059 3.2% 3.51 -9.6% t 105.08 768 3,844 2.1% 5.01 3,331 1.7% 4.34 -13.3% 105.09 1,024 4,602 2.5% 4.49 4,455 2.3% 4.35 -3.2% t 105.10 1,344 5,456 3.0% 4.06 5,103 2.7% 3.80 -6.5% 105.11 1,792 3,796 2.1% 2.12 3,855 2.0% 2.15 1.6% t 106 17,856 6,512 3.6% 0.36 5,840 3.0% 0.33 -10.3% 107.03 3,008 8,210 4.5% 2.73 9,602 5.0% 3.19 17.0% t 107.04 5,504 6,859 3.8% 1.25 9,845 5.1% 1.79 43.5% t 107.05 4,032 7,363 4.1% 1.83 9,881 5.1% 2.45 34.2% 107.06 7,616 3,548 2.0% 0.47 5,225 2.7% 0.69 47.3% t 109.Q1 37,824 5,508 3.1% 0.15 8,166 4.3% 0.22 48.3% 109.02 44,800 7,823 4.3% 0.17 11 ,302 5.9% 0.25 44.5% t Total (b) 207,167 180,579 100% 1.11 196,685 100% 1.21 8.9% t (a) Source: US Bureau of the Census. t (b) Excludes Census Tract 108 (Fort Gordon), which had an estimated 9,140 persons in 1990 and 7,754 in 2000. t t t P:\161047\161047 AUD 2002 PM\BOND FINANCING REPORnAPPEND_6_13_02.DOC B-1 t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t Appendix C Future Water Treatment Regulations Long-Term 2 Enhanced Surface Water Treatment Rules (L T2ESWTR) The LTIESWTR, incorporates system-specific treatment requirements based on a Microbial Framework approach. This approach generally involves assignment of systems into one of several categories (or bins) based on results of source water Cryptosporidium monitoring. Additional treatment requirements depend on the bin to which the system is assigned. Systems will then chose technologies to comply with additional treatment requirements from a toolbox of options. To determine bin classification for systems greater than or equal to 10,000 customers, source water Cryptosporidium monitoring must be conducted using EP A Method 1622/23 and no less than 10-L samples. Cryptosporidium, E. coli, and turbidity source water sampling must be carried out on a predetermined schedule for 24 months with two choices: · Bin classification based on the highest 12-month running annual averages of monthly samples or · Optional bin classification based on 2-year mean if facility conducts twice-per-month monitoring for 24 months. Systems with at least 2 years of historical Cryptosporidium data that are equivalent in sample number, frequency, and data quality (volume analyzed, percent recovery) to data that would be collected under the LTIESWTR may use those data to determine bin classification by submitting the data to the State/Primacy Agency. Systems that provide 2.5 logs of treat- ment for Cryptosporidium in addition to conventional treatment are exempt from monitoring for purposes of selecting bin placement. "Conventional treatment" is defined as coagulation, flocculation, sedimentation, and granular media filtration. Action bins (for conventional treatment plants) have been structured considering the total Cryptosporidium oocyst count, uncorrected for recovery, as measured using EP A Method 1623 and lO-L samples. Systems have 3 years following initial bin classification to meet the treatment requirements associated with the bin (see Table C-l). The State/Primacy Agency may grant systems an additional2-year extension to comply when capital investments are necessary. Systems currently using ozone, chlorine dioxide, ultraviolet (UV) treatment, or membranes in addition to conventional treatment may receive credit for those technologies towards bin requirements. The additional treatment requirements in Table C-l are based in part on the assumption that conventional treatment plants in compliance with the IESWTR achieve an average of 3 logs removal of Cryptosporidium. The total Cryptosporidium removal P:\161047\161047 AUD 2002 PMlBOND RNANCING REPORl\APPEND_6_13_02.DOC C-1 t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t requirements for the action bins with 1 log, 2 log, and 2.5 log additional treatment correspond to total Cryptosporidium removals of 4,5, and 5.5 log, respectively. Meeting the log treatment requirements identified for each "action bin" in Table C-l may necessitate one or more actions from an array of management strategies which include watershed control, reducing influent Cryptosporidium concentrations, improved system performance, and additional treatment barriers. Based on available information, the Federal Advisory Committee (FAC) recommended in its September Agreement that LTIESWTR use a "toolbox" approach, and that the specific tools (when properly designed and imple- mented) receive log credit (or range of credit) as shown in Table C-2. EPA must use the best information available in developing the final rule and will request comment on the pro- posed log credits shown in Table C-2. EP A will also provide guidance for determining if toolbox options are properly designed and implemented. TABLE C-1 Bin Requirements as Set Forth in September 2000 Agreement in Principle Average Cryptosporidium Concentration Bin Number Additional treatment requirements for systems with conventional treatment that are in full compliance with IESWTR Cryptosporidium < 0.075/L No action 2 0.075/L:s; Cryptosporidium 1-log treatment (systems may use any technology or combination of < 1.0/L technologies from toolbox as long as total credit is at least 1-log) 3 1.0/L :s; Cryptosporidium 2.0-log treatment (systems must achieve at least 1-log of the required < 3.0/L 2-log treatment using ozone, chlorine dioxide, UV, membranes, bag/cartridge filters, or in-bank filtration) 4 Cryptosporidium > 3.0/L 2.5 log treatment (systems must achieve at least 1-log of the required 2.5-log treatment using ozone, chlorine dioxide, UV, membranes, bag/cartridge filters, or in-bank filtration) In the next few years, the anticipated Stage 2 D /DBP Rule and the anticipated L TESWTR are expected to require increased levels of Giardia and Cryptosporidium removal! inactivation, while at the same time effectively limiting the maximum free chlorine CT for the disinfection process. As a result, many utilities may need to consider an alternative primary disinfectant, such as ozone or UV, in order to balance the requirements of the two upcoming regulations. The Department has incorporated the design and construction of UV facilities at the Highland Avenue and the Tobacco Road WTPs. The UV facilities will be sized based on research data currently available and based on draft copies of the proposed LTIESWTR that have been released by the EP A for public comment. In addition, a filtered water turbidity goal of 0.1 NTU is also being established for both water plants to ensure compliance with possible future reduction and potential inactivation credits of Cryptosporidium. P:\161 047\161 047 AUD 2002 PMlBOND RNANCING REPORnAPPEND_6_13_02.DOC C-2 OFF-STREAM RAW WATER STORAGE 3.1.1.1.1. WI DETENTION - X DAYS (1) Off-Stream Raw Water Storage wi Detention - Y weeks (1) Pre-Settling Basin wlCoagulant X Lime Softening (1) In-Bank Filtration (1) Improved Treatment Peer Review I Other Demonstration I Validation or System Performance Peer Review Proaram (ex. Partnership Phase IV) Performance studies demonstrating reliable specific log removals for technologies not listed above. This provision does not supercede other As demonstrated inactivation re uirements. Kev to table svmbols: (X) indicates potential log credit based on proper design and implementation in accordance with EPA guidance. Arrow indicates estimation of potential log credit based on site-specific or technology-specific demonstration of performance. Table footnotes: (1) Criteria to be specified in guidance to determine allowed credit, (2) Inactivation dependent on dose and source water characteristics, (3) Additional monitoring for Cryptosporidium after this action would determine new bin classification and whether additional treatment is required. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ t ~ ~ ~ t ~ ~ ~ t t ~ t ~ ~ ~ t t ~ ~ ~ ~ t t ~ ~ t ~ t t t t TABLE C-2 Microbial Toolbox Components to be Used in Addition to Existing Treatment (from Stage 2 M-DBP, FAC Agreement in Principle, September Signature Copy) APPROACH Watershed Control WATERSHED CONTROL PROGRAM (1) Reduction in oocyst concentration (3) Reduction in viable oocyst concentration (3) Alternative Source INTAKE RELOCATION (3) Change to Alternative Source of Supply (3) Management of Intake to Reduce Capture of Oocysts in Source Water (3) Managing Timing of Withdrawal (3) Managing Level of Withdrawal in Water Column (3) Pretreatment LOWER FINISHED WATER TURBIDITY (0.15 NTU 95 PERCENTILE IN COMBINED FILTERED EFFLUENT) Slow Sand Filters (1) Roughing Filter (1) Membranes (MF, UF, NF, RO) (1) Bag Filters (1) Cartridge Filters (1) Improved Disinfection CHLORINE DIOXIDE (2) OZONE (2) UV (2) D/DBP Rule - Stage 2 PotentialloQ Credit 0.5 ~I 1 I 2 ~ X As measured As measured As measured As measured As measured As measured As measured X X X X X X X X X X X X X X Considerable debate resulted from the proposed Stage 2 D /DBP Rule with TTHM and HAA limits of 40 and 30 f..lg/L, respectively. As a result, EP A and various stakeholders formed the F AC to address concerns of interested parties. The result is the September 12 Signature P:\161 047\161 047 AUD 2002 PMlBOND FINANCING REPORl\APPEND_6_13_02.00C C-3 t t t t t t t t t t t t t t t t t t t t t t t . t t t t t . t t t t t t t t t t t t t Copy of the Stage 2 M-DBP Agreement in Principle (Agreement). Table C-3 summarizes the proposed Stage 2 D /DBP Rule limits that resulted from the Agreement TABLE C-3 Summary of Stage 2 D/DBP Rule Limits Parameter Timeline Action Monitoring IDSE Monitoring Phase 1 Phase 2 Phase 2 Monitoring Bromate MCL Conduct Cryptosporidium and Initial Distribution System Evaluation (IDSE) monitoring and submit results to State/Primacy Agency IDSE: monitor bimonthly (on regular schedule of approximately every 60 days) for one year at 8 distribution sites per plant (at sites that are in addition to Stage 1/DBP compliance monitoring sites). For plants with chlorine distribution systems, sites will include: . One near distribution system entry point . Two at average residence time, . Five at points representative of highest THM and HAA5 concentrations . THM/HAAs of 80/60 I!g/L running annual average (AM) . THM/HAAs of 120/100 I!g/L locational running annual average (LRAA) . Based on Stage 1 monitoring sites THM/HAAs of 80/60 I!g/L LAM based on all new sampling sites based on IDSE Monitor quarterly (on a regular schedule approximately every 90 days) at 4 sites: · One representative average from among current Stage 1 locations . One representative of highest HAA5 identified under IDSE · Two at highest TTHM identified during IDSE At least one quarterly sample must be taken during the peak historical month for DBP levels. . 0.010 mg/L for purposes of Stage 2. Under review to 0.005 mg/L as part of 6-year review . a Plus 2 years for systems requiring capital improvements P:\161 047\161 047 AUD 2002 PM\BOND FINANCING REPOR1\APPEND_6_13_02.DOC 2 years and 2-~ years, respectively after promulgation 3 years after promulgation 6 years after promulgation 6 years after promulgation C-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t . . . . . . t . . . . . Appendix D 10-Year Capital Improvement Plan Cost Estimates for 10-Year Capital Improvement Plan Recommended Improvements Note: All estimated costs in 2002 dollars. 2002 2005 2008 Water Treatment Facilities 57,829,000 38,500,000 2,000,000 Water Distribution System 14,739,000 13,700,000 1,500,000 Wastewater Treatment Plants 8,867,800 33,100,000 15,200,000 Wastewater Conveyance System 41,219,200 20,000,000 4,200,000 System-Wide Projects 7,345,000 7,200,000 2,100,000 10-Year CIP Projects Estimated Costs 130,000,000 112,500,000 25,000,000 P:\161047\161047 AUD 2002 PMlBOND FINANCING REPORnAPPEND_6_13_02.DOC 0-1 CH2MHILL TRANSMITTAL To: Clerk of Commissions 530 Greene Street, Room 806 Augusta, GA 30911 From: Larry ScottlCH2M HILL 360 Bay Street, Suite 100 Augusta, GA 30901 706-303-2426 Attn: Lena Bonner Date: November 2, 2005 Re: Engineer's Report for 2002 & 2004 We Are Sending You: "HAND DELIVERED" ~ Attached Under separate cover via Shop Drawings Documents Tracings Prints ~ Contract Documents Copy of letter Other: Quantity 1 EA Engineer's Report for 2002 1 EA Engineer's Report for 2004 Description If material received is not as listed, please notify us at once Remarks: Per Mr. Hicks request. cc: N. Max Hicks - AUD (No Attachments) File 12-07-05 LBONNER.DOC