The document presents a Reuse Master Plan for the City of Killeen. It outlines a strategic planning process that included evaluating customer demand projections, developing a capital improvement plan for reuse infrastructure, and conducting a financial evaluation. The plan concludes that fully implementing the reuse system would require $1.5-3.5 million in annual subsidies from water/sewer funds and would not be financially self-sustaining for over 35 years. It is recommended that the city not pursue additional reuse customers at this time but reevaluate in the future.

1. Reuse Master Plan
City of Killeen
November 1, 2016

2. Reuse Master Plan Process
STRATEGIC
PLANNING
CUSTOMER
EVALUATION
AND DEMAND
PROJECTIONS
REUSE
SYSTEM CIP
FINANCIAL
EVALUATION
REUSE MASTER
PLAN
PRESENTATION
2

3. Strategic Planning
• Identify Implementation Challenges & Solutions
• Document Regulations for Reuse
• Recommended Revisions to City Standards
• Coordination with Bell County WCID #1
• Benchmarking with 11 Local & National Utilities
3

4. Reuse Master Plan Process
STRATEGIC
PLANNING
CUSTOMER
EVALUATION
AND DEMAND
PROJECTIONS
REUSE
SYSTEM CIP
FINANCIAL
EVALUATION
REUSE MASTER
PLAN
PRESENTATION
4

5. Customer Evaluation
• Review historical wastewater plant flows for available supply
5
9.93
3.15
8.81
43.80
50.60
36.45
0
5
10
15
20
25
300
5
10
15
20
25
30
35
40
45
50
55
60
9/2009 11/2009 2/2010 5/2010 8/2010 11/2010 2/2011 5/2011 8/2011 11/2011 2/2012 5/2012 7/2012 10/2012 1/2013 4/2013 7/2013 10/2013 1/2014 4/2014 7/2014 10/2014 12/2014
Precipitation(in)
GrossEffluent(MGD)
Precipitation South WWTP Monthly Max South WWTP Monthly Average North WWTP Monthly Max North WWTP Monthly Average

6. Customer Evaluation
• Identify potential reuse customers
– Schools, Parks, Golf Courses, Commercial, Industrial
6

7. Customer Evaluation
7
229.7
11.9 9.0 7.2 6.5 11.9
115.3
7.4 0.5 6.6 5.9
11.4
7.4
155.8
5.8 0.8 4.5 6.5 6.7 5.8
0.0
50.0
100.0
150.0
200.0
250.0
Stonetree Golf
Course
Killeen High
School
Haynes
Elementary
School
Stone Creek
Apartments
Independence
Place
Apartments
Texas A&M
South Campus
Killeen
Community
Center
MillionGallons(MG)
2011 2012 2013
Large Irrigation Users

8. Customer Evaluation
• Demands are highly cyclical,
resulting in a small window each
year for generating revenue.
• Most utilities with successful
reuse systems have a year-round
base usage.
8
• Usage for Stonetree Golf
Course (current reuse
customer) is over 6 times
larger than all potential
customers combined.

9. Customer Demand Projections
• Customer demands developed on a weekly basis (example below)
9

10. Reuse Master Plan Process
STRATEGIC
PLANNING
CUSTOMER
EVALUATION
AND DEMAND
PROJECTIONS
REUSE
SYSTEM CIP
FINANCIAL
EVALUATION
REUSE MASTER
PLAN
PRESENTATION
10

11. Existing Reuse System
– Repurposed existing water line sliplined to 18” diameter line
– Pump Station at North WWTP
– Currently supplies irrigation for the Stonetree Golf Course to a pond (non-
pressurized)
– Not included in the financial analysis
11

12. Reuse Capital Improvement Plan
Development Process
• Delineate Service Areas based on ground elevations
• Determine reuse pumping, storage and water line requirements
• Evaluate sizing and phasing with reuse hydraulic model
• Eliminate potential projects with a high cost per million gallons
($/MG)
12

13. Buildout Reuse CIP

14. Reuse Capital Improvement Plan
Costs
Phase # Reuse Water System Capital Improvement Plan Cost
1 New Lower Service Area 3.0 MGD Pump Station and a 2.5 MG Ground Storage Tank 10,166,000$
2 8" and Slip Lined 18" Reuse Water Lines along 28th St. and Veterans Memorial Blvd. 3,154,540$
3 8" and 12" Reuse Water Line along 38th Street 684,830$
4 8" Reuse Water Line along Rancier Avenue 753,830$
5 8" & 16" Reuse Water Lines and Repurposing 0.25 MG Park St. EST 2,013,870$
6 8" Reuse Water Line along East Rancier Avenue 602,890$
7 8" Reuse Water Line along 60th Street 712,430$
8 6" Reuse Water Line along 48th Street 56,930$
9 8" Reuse Water Line along Roy Reynolds Drive 587,410$
18,732,730$
10 Lower Service Area 2.50 MGD Pump Station Expansion to 5.50 MGD at the North WWTP 747,500$
11
New Douglas Mtn Service Area 3.50 MGD Pump Station, 1.5 MG Ground Storage Tank and 18"
Reuse Water Transmission Line 9,792,550$
12 12", 16" and 24" Reuse Water Lines along Watercrest Road 4,271,970$
13 12" Reuse Water Line along Clear Creek Road 453,680$
14 8" Reuse Water Line along Robinett Road 243,230$
15,508,930$
15
Lower Service Area 2.5 MGD Pump Station Expansion to 8.0 MGD and 1.0 MG Ground Storage
Tank 1,868,750$
16
Douglas Mtn Service Area 1.5 MGD Pump Station Expansion to 5.0 MGD and 1.0 MG Ground
Storage Tank 1,569,750$
17 16" Reuse Water Line and Repurposing Douglas Mountain 0.66 MG GST 7,748,210$
18 8" Reuse Water Line along Clear Creek Road 543,380$
19 8" Reuse Water Line along SH 195 376,050$
20 6" Reuse Water Line along Stan Schlueter Loop 256,170$
21 8" Reuse Water Line along Illinois Avenue 568,390$
22 6" and 12" Reuse Water Lines along Cody Poe Road 1,411,920$
14,342,620$
48,584,280$Grand Total:
10Year
10 - 20 Year Total:
20 Year - Buildout Total:
20Year-Buildout10-20Year
10 Year Total:

15. Reuse Master Plan Process
STRATEGIC
PLANNING
CUSTOMER
EVALUATION
AND DEMAND
PROJECTIONS
REUSE
SYSTEM CIP
FINANCIAL
EVALUATION
REUSE MASTER
PLAN
PRESENTATION
15

16. Financial Evaluation
16
• Developed Reuse Rate Structure
– Break even analysis
– Impact to Water and Wastewater CIPs
– Potable Water Rate Structure
– Local Reuse Rates (Typically Between
$0.50 and $2.00/1,000 gal)
• Developed Revenue & Cost
Comparison
• Developed Cost & Rate Model
• Reviewed Two Financial Scenarios
– Complete Buildout of Reuse CIP
– Construction of 10 year CIP

17. Financial Evaluation:
Scenario 1 (Full CIP)
17
• Funding of entire Reuse CIP over 50 years
• Reuse Rate = $2.46/1,000 gal
– High rate compared to other utilities
– Study showed rates are typically $0.50-$2.00.
• Positive Cash Flow first 5 years
– $100,000 prior to bond issuance
– Result of reduced cost of water to serve Stonetree Golf Course
• Deficit in Reuse Fund
– Average $3.5 million per year for over 50 years
– Approximately 3.1% of current Water/Sewer Fund

18. Financial Evaluation:
Scenario 2 (10-year CIP)
18
• Funding of 10 year Reuse CIP over 40 years
• Reuse Rate = $2.46/1,000 gallons
• Positive Cash Flow first 5 years
– $100,000 prior to bond issuance
– Result of reduced cost of water to serve Stonetree Golf Course
• Deficit in Reuse Fund next 35 years
– Average $1.5 million per year
– Approximately 1.8% of current Water/Sewer Fund
• Small positive Cash Flow after 40 years

19. Reuse Master Plan Process
STRATEGIC
PLANNING
CUSTOMER
EVALUATION
AND DEMAND
PROJECTIONS
REUSE
SYSTEM CIP
FINANCIAL
EVALUATION
REUSE MASTER
PLAN
PRESENTATION
19

20. Reuse Master Plan Conclusions &
Recommendations
20
• A direct nonpotable reuse system would be dependent on
transfers from the Water/Sewer Fund, $1.5 – 3.5 million/year.
• Providing reuse water to the Stonetree Golf Course results in a
positive cash flow and should be continued.
• Analysis shows that full development of a reuse water system will
not result in cost savings to the city until after 35 years.
• Reuse may become more financially attractive over time as
alternative sources of supply become more expensive.
• At this time, it is recommended that the City not pursue
additional reuse customers, but reuse should be reevaluated in
the future for customers with large nonpotable water demands.

21. Questions
21