Department of Public Works and Engineering FY11 Budget Presentation

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Department of Public Works and EngineeringFY11
Budget Presentation
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PWEMISSION OVERVIEW

• We plan, design, construct, operate and maintain
  Houston's critical public infrastructure systems
  and administer the Citys building and
  development codes in a coordinated manner to
  provide excellent drinking water and wastewater
  collection and treatment, effective storm water
  drainage, safe buildings and streets and we do
  so responsively, efficiently and in an
  environmentally responsible fashion.

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PWE BUDGETFY11 OVERVIEW
Budget FY2010 Adopted FY2010 Current FY2010 Estimate FY2011 Proposed
OM 646.2M 639.3M 621.8M 629.9M
Debt Service 421.7M 402.1M 401.7M 458.3M
Equipment 23.3M 18.8M 17.0M 23.1M
Revenue 854.4M 854.4M 824.6M 989.1M
FTEs 4,182.9 4,162.3 3,978.9 4,098.5
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BUDGET REDUCTION IMPACTFUND 1000

• RIGHT OF WAY (ROW) and TRAFFIC TRANSPORTATION
  (TT) GENERAL FUND OM DIVISIONAL BUDGETS

FY10 Adopted FY10 Current FY10 Estimate FY11 Proposed Variance from Adopted
BUDGET 50.5M 49.2M 48.8M 48.8M (1.7M)
FTEs 514.6 495.5 488.0 486.1 (28.5)

• PWE has two major General Fund operating
  divisions that were significantly impacted by the
  FY10 and FY11 budget reductions as follows
• ROW Division (1.1M)
• Total concrete usage for repairs of base failures
  and buckles in streets decreased from 326,000
  cubic feet in FY10 to 262,000 in FY11.
• Lane miles of Asphalt Overlay decreased from 185
  in FY10 to 140 in FY11. 185 lane miles was
  budgeted in FY10 but decreased to 165 as part of
  the FY10 budget reductions. Additional 25 miles
  is further reduced in FY11.
• TT Division (0.6M)
• Sign installations decreased from 26,000 in FY10
  to 20,000 in FY11.
• New fabrication of street signs decreased from
  21,000 in FY10 to 18,000 in FY11.

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TRAFFIC TRANSPORTATION OVERVIEW FUNDS 1000,
1001, 2304 2402

• RESOURCES OM Budgets

FY10 Adopted FY10 Current FY10 Estimate FY11 Proposed
BUDGET 21.7M 21.3M 21.2M 22.3M
FTEs 214.9 204.7 198.6 207.6

• MAJOR PROGRAMS
• Maintain over 1,000,000 street name and traffic
  control signs
• Maintain traffic signals at over 2,400
  intersections
• Maintain over 1,650 school zone beacons
• Monitor 140 railroad crossings
• Manage permitting process for lane and sidewalk
  closures
• Apply 4.2M linear feet of paint and 100,000
  linear feet of thermoplastic striping for
  pavement markings
• Coordinate Mobility Response Team activities
• Manage Neighborhood Traffic Management Program
• Manage Houston TranStar

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RIGHT OF WAY (ROW) MAINTENANCEOVERVIEW- FUND 1000

• RESOURCES OM Budgets

FY10 Adopted FY10 Current FY10 Estimate FY11 Proposed
BUDGET 32.3M 31.5M 30.8M 31.2M
FTEs 313.7 304.8 302.7 301.5

• MAJOR PROGRAMS
• - Maintain a total of 15,850 lane miles of
  streets by
• Applying 16,000 tons of asphalt to potholes and
  street skin patches
• Overlaying 140 lane miles of streets
• Applying 262,000 cubic ft of concrete to repair
  failures and buckles
• - Inspect and repair 1,350 bridges
• - Replace 8 bridges
• - Maintain 2,500 dead-end barricades

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ROW FLEET MAINTENANCEOVERVIEW FUND 1005

• RESOURCES OM Budgets

FY10 Adopted FY10 Current FY10 Estimate FY11 Proposed
BUDGET 24.5M 24.5M 24.6M 25.8M
FTEs 96.9 96.9 94.3 96.9

• MAJOR PROGRAMS
• Revolving Fund used to service vehicles citywide
• Maintain 4,700 (4,200 PWE) vehicles/equipment for
  17 departments at 8 repair facilities located
  Citywide
• Maintain a 95 vehicle availability rate
• Maintain/operate 17 vehicle fuel sites,
  dispensing 2.6M gallons of unleaded and diesel
  fuel
• Manage 30 contracts with outside vendors for
  specialty vehicle
  repairs

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ROW - STORMWATER MAINTENANCEOVERVIEW FUND 2302

• RESOURCES OM Budgets

FY10 Adopted FY10 Current FY10 Estimate FY11 Proposed
BUDGET 32.7M 30.9M 30.8M 33.0M
FTEs 374.3 374.3 375.6 378.6

• MAJOR PROGRAMS
• Maintain 2,800 miles of roadside ditches
• Maintain over 3,600 miles of storm sewer lines,
  100,000 inlets and 60,000 manholes
• De-silt/re-grade 275 miles of roadside ditches
• Inspect 60,000 unique inlets and/or manholes
• Inspect 240 miles of storm sewer main lines
• Mow off-road ditches (3 cycles)
• Comply with requirements of National Pollutant
  Discharge Elimination System permit (NPDES)
  1,400 storm water investigations, sweep
• 21,500 miles of gutter, collect 8,500 cubic
  yards of litter and 650,000 lbs of household
  hazardous waste

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ENGINEERING CONSTRUCTION OVERVIEW FUND 1001

• RESOURCES- OM Budgets

FY10 Adopted FY10 Current FY10 Estimate FY11 Proposed
BUDGET 24.3M 24.3M 22.9M 24.7M
FTEs 254.5 254.5 235.6 252.4

• MAJOR PROGRAMS
• Manage 343 design/construction projects currently
  in progress
• 78 water projects (252 million)
• 77 wastewater projects (104 million)
• 143 storm sewer projects (203 million)
• 45 street/bridge projects (97 million)
• Initiate 481 million in new projects for FY11 CIP

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PLANNING DEVELOPMENT SERVICES OVERVIEW FUNDS
1000, 1001, 2301 8300

• RESOURCES OM Budgets

FY10 Adopted FY10 Current FY10 Estimate FY11 Proposed
BUDGET 61.2M 56.1M 53.0M 55.0M
FTEs 641.6 637.6 613.9 597.7

• MAJOR PROGRAMS
• Examine over 35,000 construction plans for
  compliance with building code and ordinances
  issue over 175,000 building permits and conduct
  over 496,000 building code inspections
• Provide over 1,300 engineering reviews for
  private development in the City manage
  development in the flood plain provide basis for
  FEMA flood insurance rating
• Plan for Citys future water/wastewater needs
  issue 5,500 wastewater capacity reservations
• Provide Real Estate support for the annual CIP
• Perform periodic inspections of multi-family
  properties (over 1,000 complexes)

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COMBINED UTILITY SYSTEM COST REDUCTIONS

• FY11 Major Cost Reductions
• -8.7M Electricity reduction due to lower prices,
  implementing McKinsey recommendations to perform
  more preventative maintenance on pumps, less
  groundwater and more surface water pumping due to
  completion of the Metro Condition Assessment
  project.
• -2.3M Natural Gas reduction due to lower prices,
  implementation of the McKinsey recommendation to
  utilize more than one centrifuge to a dryer which
  allows more solid waste to be treated for optimal
  results, as well as, utilizing high efficiency
  gas dryers at the Almeda Sims Treatment plant.
• -2.5M Water Authority Contract Debt reduction
  due to paying down the principal on the Coastal
  Water Authority debt.
• 4.5M Personnel increased primarily due to HOPE,
  PFP and Health Benefit increases of 5.7M
  however, through attrition and McKinsey
  efficiencies, the Department has been able to
  absorb 1.2M of these costs.

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PUBLIC UTILITIESOVERVIEW FUND 8300

• RESOURCES OM Budgets

FY10 Adopted FY10 Current FY10 Estimate FY11 Proposed
BUDGET 303.2M 303.2M 295.8M 286.9M
FTEs 1,504.7 1,504.7 1,442.8 1,504.0

• MAJOR PROGRAMS
• Operate/maintain 3 surface water and 89 ground
  water pump stations, 174 groundwater wells,
  producing 142 billion gallons/year
• Operate/maintain 39 wastewater treatment plants
  and 420 lift stations, treating 90 billion
  gallons sewage/year
• Maintain 7,000 miles of water mains and over
  6,700 miles of sanitary sewer collection lines,
  performing 13,000 repairs/year
• Maintain 54,000 fire hydrants and 182 water
  tanks/towers
• Provide water and/or sewer service to
  approximately 2.8 million regional residents

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RESOURCE MANAGEMENTOVERVIEW FUNDS 1000, 1001,
8300 8305

• RESOURCES- OM Budgets

FY10 Adopted FY10 Current FY10 Estimate FY11 Proposed
BUDGET 123.5M 124.6M 122.5M 120.2M
FTEs 545.2 545.2 522.1 534.2

• MAJOR PROGRAMS
• Manage 16.0 billion in fixed assets
• Bill and collect over 880 million annually in
  water sewer revenue and read and maintain over
  465,000 meters.
• Maintain/operate 9 warehouse facilities at 7
  different locations with 8,512 unique commodities
  available provide inventory support to four
  departments.
• 4,600 construction, engineering and testing
  invoices processed
• Purchasing and receiving for 6,160 purchase
  orders, 130 active service contracts, 400 active
  project contracts, 154 active supply contracts
  and 330 P-Card users.

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OTHERSHR, IT AND DIRECTORS OFFICE FUND 1000,
1001, 2301, 2302, 8300

• RESOURCES OM Budgets

FY10 Adopted FY10 Current FY10 Estimate FY11 Proposed
BUDGET 23.1M 22.9M 20.2M 30.9M
FTEs 236.6 236.6 193.3 225.6

• MAJOR PROGRAMS
• Manage Safety and Environmental programs
• Provide HR services for approximately 4,000 PWE
  employees
• Provide Security Management for PWE employees and
  facilities
• Provide IT support for 80 Applications unique to
  PWE and support 2,600 Users within PWE Department
• Manage and support the Pay or Play (POP) Program
• Perform 16 internal audits per year

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DEBT SERVICEOVERVIEW

• Water/Wastewater Debt Service - 449.3M, up
  44.3M from the FY10 Adopted Budget (405M)
• Pension Obligation Bonds Debt Service - 5.2M
• Special Fleet Equipment Financing
• Fleet Equipment - 135 thousand
• Fleet Equipment General Fund - 1.0M
• Milling Machine Debt Service 227 thousand
• Special Revenue Financed Equipment
• ILMS Debt Service - 266 thousand
• 1002 Washington Avenue Debt - 578 thousand
• LED Retrofit Traffic Signal Upgrades 1.7M
• Total Outstanding Debt - 6.0 billion (All Funds)

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MAJOR REVENUE SOURCESOVERVIEW FY 2011

• 441.5 million water sales (8300)
• 411.0 million sewer sales (8300)
• 9.3 million impact fees (8301)
• 35.4 million building and sign permits (2301)
• 1.0 million plan reviews (2301)
• 9.1 million sale of streets/land (1000/8300)
• 47.6 million METRO contributions (1000)
• 13.2 million Interest Income (All Funds)
• 21.0 million Other (All Funds)
• 989.1 million Total

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Efficiencies

• Traffic
• Purchase of truck mounted thermoplastic
  applicator to replace paint application with
  thermoplastic material for road striping which
  results in an increase in life expectancy from 6
  months to 3 years.

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Efficiencies

• Resource Management
• Continue to implement McKinsey recommendations to
  increase consumer adaptation to web based
  payments and billings thereby reducing paper
  billings and check processing.
• Continue to implement McKinsey recommendations to
  accelerate the installation of endpoints (76,900
  for FY11), thereby improving the accuracy of the
  meter reads and revenue billings, as well as,
  minimizing operating costs.
• Planning Development
• Implementation of the Integrated Land Management
  System web based program will enhance
  contractors ability to manage projects, permits,
  and inspections online thereby improving the
  efficiency and quality of information exchanges.
• Co-location of 10 permitting departments from
  several locations citywide to the 1002 Washington
  Avenue Central Permit Facility thereby
  increasing productivity and reducing operating
  costs. Grand opening targeted for July 2011.

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Efficiencies

• Public Utilities
• Continue to optimize chemical dosage through
  improved sensor monitoring and training, as well
  as switching to less costly alternatives.
• Continue to implement McKinsey recommendation
• Optimize electricity by performing more
  preventative maintenance on pumps.
• Reduce natural gas consumption by utilizing high
  efficient dryers at the Almeda Sims Treatment
  Plant, as well as, utilizing more than one
  centrifuge to a dryer which allows more cost
  effective operation.
• Finalize roll out of reduction of crew size from
  three person to two person that will allow more
  time for preventive maintenance repairs in an
  effort to reduce corrective maintenance costs and
  extend equipment life.

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Efficiencies

• Information Technology
• Continue to implement and support department wide
  wireless WIMAX initiatives for automated water
  meter reading , traffic signal and SCADA
  communications.
• Continue to replace PWE legacy telephones with
  VOIP telephones, thereby allowing increased
  efficiency of the data circuits by utilizing less
  data lines.
• Engineering Construction
• Utilize manpower analysis as a basis for level of
  effort required for CIP Cost Recovery and
  personnel levels.
• Continue coordination with divisions for overall
  asset inventory for proper planning and
  allocation between Capital and Operation
  Maintenance expenditures.

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Efficiencies

• Right of Way
• Continue to utilize the Data Collection Mobile
  Unit (DCMU) system that automatically detects and
  rates pavement distresses thereby allowing the
  department to better target the utilization of
  limited resources, as well as, improving the
  efficiency and quality of data collection.

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PWE BUDGETFY11 OVERVIEW

• Funds included
• 1000 General Fund
• 1001 CIP Cost Recovery Fund
• 1005 Fleet Management Fund
• 1800 Equipment Acquisition Fund
• 2301 Building Inspection Fund
• 2302 Storm Water Utility Fund
• 2304 Mobility Response Fund
• 2402 Houston TranStar Fund
• 8300 Water and Sewer System Operating Fund
• 8301 Combined Utility System Operating Fund
• 8305 Combined Utility System General Purpose Fund

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Department of Public Works and EngineeringFY11
Budget Presentation