Title
Consider/Discuss/Act on Water Service Line Replacement Program
Summary
COUNCIL GOAL: Operational Excellence
MEETING DATE: March 1, 2016
DEPARTMENT: Public Works
CONTACT: Morgan Dadgostar, Water Utilities Superintendent
RECOMMENDED CITY COUNCIL ACTION: Approval of water service line replacement program
ITEM SUMMARY:
* Proposal of a ten year plan to replace approximately 14,650 substandard copper water service lines (1,440 service lines per year) in order to mitigate water loss in the water distribution system.
* With approval of this item, $1,759,647 will be used for purchasing the necessary equipment in FY2015-2016.
* Thirteen new staff will be added starting FY17, for the annual cost of 900k - 1.1 M / year and approximately $300,000/year material and maintenance cost to perform the work.
* The water service line replacement program was presented to Council at the February 29, 2016 Work Session.
BACKGROUND INFORMATION:
* The City of McKinney is required to submit yearly a water loss report in March to NTMWD and in May to the Texas Water Development Board.
* Over the past five years, McKinney has not met the 12% target for water loss.
* The most recent report indicates a 23 percent water loss (approximately 2.4 billion gallons).
* It has been determined that a substantial portion of the water loss is due to leaks from service lines made of substandard copper.
FINANCIAL SUMMARY:
* Funding for the materials portion of this project is included in the Capital Improvements Program.
* With approval of this item, $1,759,647 will be used for purchasing equipment in FY16. Funding will come from a Budget Amendment in the Water/Wastewater Fund. The Water/Wastewater Fund was budgeted in FY16 to have $1,500,000 of revenues in excess of expenses. This program will expend this surplus and an additional $250,000 of Fund Balance. Water/Wastewater Fund Balance will remain well above requ...
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