March 17, 2015

Major Construction Project Update West Boise - EBNR and Struvite Dixie Drain Major NPDES Permit Issues Update Phosphorous, Temperature, Mercury, Ammonia Facility Plan Update IBC Requests TMSF Maintenance Building West Boise Major R/M Dixie Drain Fund Balance/Rates

West Boise Phosphorous Removal Projects EBNR Original Contract: $15,594,385 Project 88% Complete Estimated Completion Cost $16,374,000 (5% contract increase, $1.5M or 5% below budget) Project expected to be operational June months ahead of EPA requirement Struvite Operational since October 2012 Difficulty meeting federal regulations for Pathogen Removal Requirements- can’t dispose of material offsite Found equipment that can heat struvite without damage Anticipate fully operational July 2015

Dixie Drain Permits Acquired - NPDES, Water Rights and CUP major challenges CM/GC (McAlvain) under contract Earthwork and long lead items (pumps and liner) bid - Contract Award 3/24 Remainder of project 80% designed - Expect bid and award in April Construction completion July 2016 As expected, will require significant budget increase (discussed later)

Phosphorous EBNR, Struvite and Dixie will meet permit requirements economically and environmentally Temperature Optimistic we can find solution Progressing on EPA approval for discharge to canals during irrigation season Have agreement with Farmers Union for Lander St Looking at temperature credits (shading, channel modifications, etc.) Non-irrigation season likely cooling towers

Mercury Implemented Dental Amalgam recovery requirements, eliminated septage and conducted public awareness campaign Generally experiencing reduced mercury levels Still have had permit exceedence (likely from treatment plant channel cleaning operations) No technical method to remove mercury from influent Ammonia A challenge; in compliance last 18 months Operations training and procedures, EBNR improvements

Lander Street Business Case Evaluation - April 2015 RFP for Facilities Plan Update will be issued in April (Estimated Cost $1.5M) Lander Street Decision Temperature Dixie Drain Growth Reuse Administrative Facilities TMSF Pipeline Modeling

TMSF Maintenance Building West Boise Major R/M Dixie Drain All requests included in Fund Balance and Rate Analysis

Original Budget - $2.4M Requested Budget - $4.5M Bldg size, grading, inflation, misc. - $900K Net zero=$443K High Efficiency Const.- $300k, 30 yr NPV $546K Solar Panels- $143K, 40 yr. NPV $259K Truck wash - $90K, 40 yr. NPV $250K LEED cert (Gold/Silver) - $170K Fire suppression - $363K Landscaping, roof overhang, gates - $69K

$176K DAFT Building Roof Replacement Erroneously not included in 2014 year-end Rebudget Packet

Original Budget - $9.7M 2010 Concept Plan ($5.7M to $12.3M) Estimated Budget Need - $21.9M 5 years inflation Permitting/Pilot Testing Pond Liner Pumps/ 3 Phase Power Final Design versus Concept Design Will bring specific IBC request in April after all bids received Anticipated in Cash Flow Analysis Still Cost Effective

CityAvg Monthly Bill WBSD $ Nampa $ Kuna $ Star $ Boise $ Caldwell $ Eagle $ Meridian $ Spokane $ Garden City $ Seattle $ Portland $ Average $ 33.40

DFA staff will present information to approve IBC Requests for TMSF maintenance Building and West Boise Major R&M