HomeMy WebLinkAbout2000-03-20 City Council (22)City of Palo Alto
City Manager’s Report
TO:THE HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:
SUBJECT:
MARCH 20, 2000 CMR:141:00
PROPOSED FY 2000/2005 WATER CAPITAL IMPROVEMENT
PROGRAM
This is an informational report and no Council action is required. The purpose of this
report is to alert Council that an additional $15.7 million dollars ( 1999 dollars) is being
proposed by staffin the FY 2000-05 Water Capital Improvement Program to improve the
emergency supply and fire fighting capabilities of the City’s water system.
Improvements will also be constructed to improve normal water system operations and to
prepare the distribution system for disinfectant conversion from chlorine to chloramine
disinfectant in 2003.
BACKGROUND
The need to improve Palo Alto’s emergency water supply facilities has been identified for
almost two decades. In July 1982, the City of Palo Alto authorized James Montgomery
Consulting Engineers, Inc. to prepare an engineering report on the City’s water system.
This report, completed in 1983, recommended that a 2 million gallon storage reservoir be
built and the City maintain 5 existing wells in service, as standby emergency water
sources but not ;provide additional treatment of the well water at that time. The James
Montgomery Report also recommended that the City increase its storage and pumping
facilities to meet Palo Alto’ peak water demands. The more costly capital improvement
recommendations for reservoir construction from the James Montgomery Report were
not pursued because of the financial impact on the water system. In 1998, the Utilities
Department hired Carollo Engineers to perform the "Water Well, Regional Storage and
Distribution System Study" (Study) f~r the City of Palo Alto Water Utility. The recently
completed Study makes similar improvement recommendations that are urgently
necessary to improve the emergency water supply capability of the Palo Alto water
distribution system.
CMR:141:00 Page 1 of 6
Accelerated Infrastructure Water Main Replacement Program
In March 1990 (CMR: 183:0), staff presented a comprehensive view of the infrastructure
needs for the water distribution system. In FY 1993/1994, the City Council approved
additional funding for an accelerated Water Main Replacement Program which increased
the water main replacement rate from 1 to 3 miles a year for water mains. That Council
action lowered the rate at which the water distribution mains would be replaced from a
200-year cycle to a more reasonable 75-year cycle. The 75-year cycle is more in line with
the useful design life of the materials used to construct the City’s water system. The
accelerated program was targeted to replace the deteriorated 4-inch cast iron mains, then
focus on 6-inch cast iron mains. To date, the Water Utility has replaced nearly 20 miles
of the most deteriorated 4-inch cast iron mains. There are still 4 inch cast iron mains
remaining in the water distrbution system that need to be abandoned and or/replaced.
The Water Utility is currently in the seventh year of constructing these accelerated water
main replacement projects. The attached map (Exhibit A) of the water distribution system
shows the water main breaks which have occurred on City distribution mains since
approximately 1970, except for main breaks which occurred on mains that have since
been replaced. A graph showing the number of water main breaks per year for each type
of main material used on the system is also attached (Exhibit B). The City’s water main
break rate continues to fluctuate and will only increase as the cast iron mains in the
system continue to age and deteriorate.
State Department Of Health Services (DHS) Changes To Storage Requirements
In 1997, the DHS required the City to determine whether the City water distribution
system has the capacity to supply 8 hours of maximum day demand plus required fire
flows in each of the City’s nine pressure zones from sources other than the San Francisco
Public Utilities Commission Hetch Hetchy pipelines. Only City wells and storage
reservoirs were used to analyze the City system’s ability to maintain distribution system
pressures, and to quantify the duration for which the maximum day demands and fire
flows could be met. The City reservoirs have three distinct purposes: supplying fire
fighting demands, supplying emergency demands, and meeting peak daily demands. The
analysis of the City’s system showed that storage and emergency supply for the lower
elevations of the City distribution system are deficient to meet the DHS-recommended 8-
hour period. Furthermore, since the maximum day demands for these areas can not be
met during a shutdown of the SF.PUC Hetch Hetchy system, the maximum needed fire
flow for this area can not be meet either. The DHS recommendation is reasonable and is
on the low end of criteria typically used by other water agencies. If Palo Alto met the
minimum DHS requirement, Palo Alto would store 33 percent of its maximum day
demand, while other agencies typically store 50 percent to 100 percent of their maximum
daily demand. In the future, the current DHS recommendation for emergency storage
may become a requirement for water utilities.
CMR: 141:00 Page 2 of 6
DISCUSSION
The Carollo Engineers Study improvements recommended in the proposed FY 2000/2005
Capital Improvement Program are for: SFPUC chloramine conversion; improvements to
normal operations; and capital improvements necessary for the City to supply water
during an 8-hour emergency without any external water supply source.
In early 2003, the SFPUC will change the disinfectant used in the San Francisco Hetch
Hetchy water supply from chlorine to chloramine. When this occurs, the City will not be
able to keep water in its reservoirs or distribution system for more than 20 days from the
time the water enters the Palo Alto system. If the chloraminated water is not used up by
Palo Alto water system demand within 20 days of receiving the water from the SFPUC,
water quality problems are very likely to occur in the distribution system. Nitrogen
eating bacteria could begin to grow in stored water reservoirs and in rusty cast iron water
mains. This operational change by the SFPUC will require the Water Utility to pump
and move stored water in and out of foothill reservoirs at a much quicker rate than has be
done in the past. The Study recommendations for foothill pump and control valve
improvements are necessary to fully optimize the operational efficiency of the foothill
storage reservoirs and maintain system water quality.
The main focus of the Carollo Study was to consider the consequences to the City’s water
service levels during an emergency. Palo Alto is facing two major problems, long-term
water supply needs and the existing emergency water supply. The City’s current water
system does not meet the minimum DHS emergency water supply recommendation for
supplying emergency water (reservoir water or well water) during an 8-hour period
without normal system supply (Hetch Hetchy) under maximum day conditions with a fire
demand in each pressure zone. The system improvements recommended in the Carollo
Study will help the City meet its water demand during an emergency, as defined by the
DHS, and for emergency periods longer than 8 hours. The well improvements
recommended can be used as long term supply if the well water is treated and meets State
water standards.
The recommendations of the Carollo Study were developed into five different capital
program scenarios. Each of the scenarios includes all the projects recommended in the
Study with some timing adjustments made to the water main replacement program.
Scenario 1 (Staff Recommendation)
The Utilities Department’s recommendation (Exhibit C) is to design and construct all
improvements from FY 2000-01 to 2004-05 with the exception of the Mayfield Reservoir
Pump Station work being completed in FY 2005-06. This scenario also continues the
water main replacement program currently approved by Council. The removal and
replacement of the 4-inch cast iron mains is necessary to prevent water quality problems
in the distribution system when the Hetch Hetchy supply is converted to chloramine.
CMR: 141:00 Page 3 of 6
The rationale for choosing this alternative is because of rates. SFPUC has released its
Facilities Reliability Program Phase II - Regional System Overview Executive Summary.
The proposed improvements on the SFPUC Hetch Hetchy System are not anticipated to
affect the wholesale water rates to the City of Palo Alto until FY 2003-04 at the earliest.
The City of Palo Alto’s rate projections contained in Exhibit H include a midpoint of the
City projected costs due to the SFPUC capital projects. The 10 year projected effect on
the customer water rates for this scenario is shown in Exhibit H, "Impact of CIP
Scenarios on an Average Customer’s Bill in Dollars." Scenario 1, Exhibit C, gives the
City Water Utility the best opportunity to install the Carollo Study recommendations to
improve the overall emergency reliability and service level of the Palo Alto water system
before future SFPUC water supply costs are included in Palo Alto’s water rates.
Exhibits D through G show alternative scenarios two through five.
Scenario 2
Exhibit D includes constructing all of the Study recommendations within a five-year
period with the exception of the Mayfield Reservoir Pump Station work, which will be
completed in FY 2005-06, but modifies the main replacement program. In this scenario,
however, only the design work is completed on Water Main Replacement Projects 15-19,
with the construction deferred until FY 2006-07 to FY 2009-10 respectively. The City
would design and construct Water Main Replacement Projects 20, 21, 22, 23, and 24
during F¥2006-07 to FY2009-10. This proposal defers construction of planned water
main projects from the second through fifth fiscal years but doubles the construction
effort in the last four fiscal years of the ten-year period. The 10-year projected effect on
the customer water rates for this scenario is shown in Exhibit H.
Scenario 3
Exhibit E is the third scenario, which includes constructing all the Study
recommendations within, the first five years with the exception of the Mayfield Reservoir
Pump Station work being completed in F¥ 2005-06. Scenario 3 defers the design and
construction of Water Main Replacement Projects 15, 16, 17, and 18 until FY 2005-06
through F¥ 2009-10. This proposal would also double the City’s main replacement rates
through F¥ 2005-06 to F¥ 2009-10 from the current three miles per year to six miles of
water main replacements per year. The 10-year projected effect on the customer water
rates for this scenario is shown in Exhibit H.
Scenario 4
Scenario 4 (Exhibit F) includes all of the recommended improvements being designed
and constructed during the first 5 years of the program with the Mayfield Reservoir Pump
Station work being constructed in F.Y 2005-06. Scenario 4 proposes a modification to the
water main replacement program that reduces the program from 3 miles to 1.5 miles of
water main replacements in F¥ 2001-02 to F¥ 2004-05. The 1.5 miles of mains that are
deferred from these fiscal years would be designed and constructed in FY 2005-06
CMR: 141:00 Page 4 of 6
through FY 2009-10. This proposa! would increase the water main replacement level to 4
.5 miles in FY 2006-07 to FY 2009-10. The 10-year projected effect on the customer
water rates for this scenario is shown in Exhibit H.
Scenario 5
Scenario 5 (Exhibit G) spaces the design and construction of the improvements over the
entire 10-year period. The improvements for the normal distribution system operation and
the chloramine conversion projects are started in FY 2000-01. Design of most of the.
emergency 8-hour improvements is started in FY 2003-04. The construction of these
improvements is spaced out through F¥ 2005-06 through FY 2009-10. The 10-year
projected effect on the customer water rates for this scenario is shown in Exhibit H.
RESOURCE IMPACT
The CIP recommended in Scenario 1 will add approximately $15.7 million dollars to
Water Capital Improvement program during FY 2000-05 (1999 dollars).
The financial impacts on the Water Fund are shown on the attached Exhibits C through
G. The rate variance on the average residential water customer’s monthly bill for each of
these Exhibits is in Exhibit H. For all of the scenarios (1-5) presented and the rate
impacts in Exhibit H staff has assumed the proposed CIP would be paid directly from
water rate revenues. Exhibit C is also shown in Exhibit H with an option for bond
financing. Exhibit D through G as shown on Exhibit H, assume that the proposed CIP, as
it has been the practice in the past, will be paid for through rates. Exhibit C assumes
bond financing as an option to fund the proposed water CIP. Presently, staff is evaluating
the option of bond financing.
EXHIBITS
Exhibit A: Map of Water Main Breaks Since 1970
Exhibit B: Chart of Water Mains Breaks by TypeofPipe, 1997 to 1999
Exhibit C: 10Year Projection FY 2000-2010 with 5-Year Consultant Recommended
Work - WMR Program remains as Council Approved
Exhibit D: 10Year Projection FY 2000-2010 with 5-Year Consultant Recommended
Work - Years 1-5 WMR Design Work Only; Years 6-10 double construction
Exhibit E: 10Year Projection FY 2000-2010 with 5-Year Consultant Recommended
Work - Years 2-5 No WMR Work; Years 6-10 double WMR Program
Exhibit F: 10Year Projection FY 2000-2010 with 5-Year Consultant Recommended
Work - Years 2-5 HalfWMR Program; Years 6-10 One and 1/2 WMR Program
Exhibit G: 10Year Projection FY 2000-2010 with 10-Year Consultant Recommended
Work - WMR Program remains as Council Approved
CMR: 141:00 Page 5 of 6
Exhibit H: Impact of CIP Scenarios On the Average Customer’s Bill In Dollars
PREPARED BY: Roger Cwiak, Manager, W/G/W Engineering
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
,~irect°~ilities
CMR: 141:00 Page 6 of 6
LEGEND:
~ATER, MAIN BREAKS~
2000)
LU
W°
01/24/2000, 04"50 PM
EXHIBIT C
2000-2010 CAPITAL IMPROVEMENT PROJECTS
WATER FUND (10 - Year Projection, with 5 year compressed consultant recommended work)
W~ATER FUND
Distribution ~System - Customer Design and Connection
~ervices
Water System Extensions (8013)
"ull Relmbursment by Customer
Yet Subtotal Distibution System - Customer Design and $02onnectlon Se~ices
Distribution System - System Improvements
$334,000 $320,000 $287,000 $296,~0 $305,000 $314,000 $323,000 $332,000 $341,000 $350,000 $3,202,000
~33~000)($320,000)($28~000)($296,000)($305,000)($314,000)($323,000)($332,000)($341,000)($35~000)($3,202,000)
$0 $0 $0 $0 $0 $0 $0 SO $0 $0
Water Main Replacements Phase 14
$2,327,000
N $1,821,000 $1,821,000
Water Main Replacements Phase 15 (0106)N -$192,000 $t,867,000 $2,059,000
Water Main Replacements Phase 16 (0203)St96,500 $1,913,200 $2,109,700
Water Main Replacements Phase 17 (0304)$201,500 $1,960~000 $2,161,500
Water Main Replacements Phase 18 (0401)$206,400 $2,010,000 $2,216,400
Service and Hydrant Replacement (8014)S75~000 $77~000 $80,000 $82~500 $85,500 $88,500 $91,500 $94,500 $97,500 $100,500 $872,500
Water Meters (8015)$190,0~0 $195,0~0 $200~000 $206,000 $213,000 $220,000 $227,000 $234,0~0 $241,000 $248,000 $2,174,660
$5,400,950 $5,873,500 $3,876,700 $11,059,900 $2,520,500 $3,825,500 $2,650,500 $2,726,500 $2~793,500 $2,868~00 $43~596,050Net Subtotal Distribution System - System Improvements
I’OTAL NET WATER DISTRIBUTION FUND
REQUESTS $5,400,950 $5,873,500 $3,876,700 ~11,059,900 $2,520,500 $3,825,500 $2,650,500 $2,726,500 $2,793,500 $2,868,500 $43,596,050
BUDGETS 295~
COST DIFFERENCE FROM PREVIOUS YEAR $2,436,700 $2,983,500 $945,950 58,061,290 n/a n/a n/a n/a n/a n/a
~82.20%103.24%32.28%268.83%nla n/a n/a n/a n/a n/a
N= Normal and Fire Suppression Demand
C = Chloramine Improvements
8 = 8 hour DHS storage recommendation Water Quality Enhancement costs EXCLUDE $200,000 reservoir cleaning - NON CIP; an operations function
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0112412000, 05:07 PM
EXHIBIT D
2000-2010 CAPITAL IMPROVEMENT PROJECTS
¯ WATER FUND (10 - Year Projection, with 5 year compressed consultant recommended work)
YEARS l-5 WMR DESIGN WORK ONLY; YEARS 6-10, CONSTRUCTION
WATER FUND
Distribution System - Customer Design and Connection
Services
Water Sysiem Extensions (8013) $334,000 $320,000 $287,000 $296~000 $305,000 $314,000 $323,000 $332,000 $341,000 $350,000 $3,202,000
Full Reimburstnent by Customer ($334,000)($320,000)($287,000)($296,000)($305,000)($314~000)($323,000)($332,000)($34I~000)($350,000)($3,202,000)
Net Subtotal Distibutilm System - Customer Design and $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Connection Selwices
$68,750
Water Main Replacements Phsse 14 (14)N $1,821,1 $1,821,1
Water Main Replacemen~ Phase 15 (0106)N $192,~$I,867,~$2,059~
Water Main Replacem~ts Phase I6 (0203)$196,5~$l,913,2~
Water Msln Replacements Phase 18 (~01)$2~,4~$2,010,~$2,216,4~
¯ OTAL NET WATER DISTRIBUTION FUND
REQUESTS $5,400,950 $4,006,500 $L963,5~$9,099,900 $510,500 $3,825,500 $4,517,500 $4,639,700 $4,753,500 $4,878,500 $43,596,050
COST DIFFERENCE FROM PREVIOUS YEAR $2,436,700 $1,116,500 ($967,250)$6,101,290 n/s n/a n/a n/a n/a rda
~z~F.~~82.20%38.63%-33.00%203.47%n/a n/a n/a n/a n/a n/a
N = Normal and Fire Suppression Demand
C = Chloramine Improvements
8 = 8 hour DHS storage recommendation
Water Quality Enhancement costs EXCLUDE $200,000 reservoir cleaning - NON CIP; an operations function
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01/24/2000, 05:10 PM
EXHIBIT E
2000-2010 CAPITAL IMPROVEMENT PROJECTS
WATER FUND (10 - Year Projection, with 5 year compressed consultant recommended work)
YEARS 2-5 WMR NO WORK; YEARS 6-10, DESIGN & CONSTRUCTION
NATER FUND
[~istribution ~iystem - Customer Design and Connectionervkes
Water System Extensions (8013) $334,000 $320,000 $287,000 $296,000 $305,000 -$314,000 $323,000 $332,000 $341,000 $350,000 $3~202,000
FullRelmbursmentbyCustomer ($334,000)(5320,000)(~287,000)($296,000)($305,000) ($314,000)($323,000)($332,000)($341,000)($350,000)($3,202,000)
Net Subtotal Disfbution System - Customer Design and $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
~onnection Services
Distribution System - System Improvements
Water Main Replacements Phase 14 (0004)
Water Maln Replacements Phase 15 (0106)S192,000 $1,867,000 $2,059,000
Water Main Replacements Phase 16 (0203)
Water Main Replacements Phase 17 (0304)
Water Main Replacements Phase 18 (0401)
Service and Hydrant Replacement (8014)
Water Meters (8015)
Net Subtotal Distribution System - System Improvements
TOTAL NET WATER DISTRIB UTION FUND
REQUESTS
$396,500 SI,913,200 S2,109,700
$206,400 $2,010,000 $2,216,400
$75,000 $77,1~0 $80,0~0 $82,500 $85,500 $88,500 $91,500 $94~500 $97,500 $100,500 $872,500
$190,000 SI95,000 $200,0~O $206,000 $213,000 $320,000 S227,000 $234,000 $241,000 S248,000 $2,174,000
S5,208,950 $3,810,0~}$1,762,000 $8,893,500 $510,500 $4,017,500 $4,714,000 $4,841,200 $4,959,900 $4,878,500 $43,596,050
$5,208,950 $3,810,000 $1,762,000 $8,893,500 $510,500 $4,017,500 $4,714,000 $4,84t,200 $4,959,900 $4,878,500 $43,596,050
BUDGETS
COST DIFFERENCE FROM PREVIOUS YEAR $2,244,700 $920,0~0 ($1,168,750) $3,894,890 n/a n/a n/a ~n/a nla n/a
75.73%31.83%-39.88%196.59%n/a nla n/a - n/a nla
N = Normal and Fire Suppression Demand
C = Chloramine Improvements
8 = 8 hour DblS storage recommendation
Water Quality Enhancement costs EXCLU_DE $200,000 reservoir cleaning - NON CIP; an operations function
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01/24/2000, 05:12 PM
EXHIBIT F
2000-2010 CAPITAL IMPROVEMENT PROJECTS
WATER FUND (10 - Year Projection, with 5 year compressed consultant recommended work)
YEARS 2-S WMR 1/2 DESIGN AND CONSTRUCTION WORK; YEARS 6"-10, DESIGN & CONSTRUCTION
VATERFUND
D]stribution System - Customer Design and Connectioniet-vlces
~Vater System Extensions (8013)
~ull Relmbursmenl by Customer
let Subtotal Distibution System - Customer Design and $0Connection Services
Distribution System - System Improvements
$334,000 $320,000 $287~000 $296,000 $305,000 $314,000 $323,000 $332,000 $341,000 $350,000 $3,202,000
($334,000)($320,000)($287,000)($296,000)($305,000)($314,000)($323,000)($332,000)($341,000)($350,000)($3,202,000)
$0 $0 $0 $9 $0 $o $o $o $0 $o
Nater Main Replacements Phase 15 (0106)i N $96,000 $933,500
!Water Main Replacements Phase 16 (0203)
Water Main Eeplacement~ Phase 17 (0304)
Water Main Replacements Phase 18 (0401)
Service and Hydrant Replacement (8014)
$96,000 $933,500 $2,059,000
$98,250 $956,600 $98,250 $956,600 $2,109,700
$100,750 $980,0~0 S100,750 $980,000 $2,161,500
$103,200 $1,0~5,000 $103,200 $t,005,000 $2,216,400
$75,000 $77,0~0 $80,000 $82,500 $85,500 $88,500 $91,500 $94,500 $97,500 $100~500 $872,560
$190,000 $195,000 $200,000 $206,000 $213,000 $220,000 $227,000 $234~000 $241,000 8248,000 $2,174,000
$5,304,950 $4,841,750 $2,819,350 $9,976,700 $1,SI5,500 $3,921,500 $3,682,250 $3,783,850 $3,876,700 $3,873,500 $43,596,050
$5,304,950 $4,841,750 $2,819,350 $9,976,700 $1,515,500 $3,921,500 $3,682,250 $3,783,850 $3,876,700 $3,873,500 $43,596,050
Water Meters {8015)
Net Subtotal Distribullon System - System Improvements
TOTAL NET WATER DISTRIBUTION FUND
REQUESTS
BUDGETS
COST DIFFERENCE FROM PREVIOUS YEAR $2,340,700 $l,951,750 ($111,400)$6,978,090 n/a n/a n/a n/a n/a n/a
?8.96%67.53%-3.80%232,71%n/a n/a n/a n/a n/a n/a
N = Normal and Fire Suppression Demand
C = Chloramine hnprovelnents
8 = 8 hour DHS storage recommendation
Water Quality Enhancement costs EXCLUDE $200,000 reservoir cleaning - NON CIP; an operations function
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01/24!2000, 05:t6 PM
EXHIBIT G
2000-2010 CAPITAL IMPROVEMENT PROJECTS
WATER FUND (10 -Year Projection)
WATER FUND
Services
i~/ater System Extensions (8013) $334,000 $320,000 $287,000 $296,000 $305~000 $314,000 $323,000 $332,000 $341,000 $350,000 $3,202,000
FidlRelmburstnent by Customer ($334,000)($320,000)($287,000)($296,000)($305,000)($314,000)($323,000)($332,000)($341,000)($350,000)($3,202,000)
Net Subtotal Distibutlon System - Customer Design and $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Distribution System- System Imp ...... ts . I [’
L;/!l~l:l~i!d~j IID;+=~r~lli~n,,... ,- .~,,:.~ ....I’iI’~ ’I.~.,~.,~<=>_~<<. ’~l;i:~:~<i Wil llii’;:::~’~ IliI::Iel ~I~i I ~it,i~l~.~l,i~,, ...:;~<~=~"
Water Main Replacement~ Phase 14 (~)N $1,821,~$1,821,~
Water Main R~latem~ Phase 15 (0106)N $t92,~$1,867,~$2~059,~
Water Main Replacemen~ Phase 16 (0203)$196,5~$1,913,2~$2,1~,7~
Water Main Replacemen~ Phase 17 (0304)$201,5~$1,960,~$2,161,5~
Water Main Replacements Phase 18 (0401)$2~,4~
Net Subtotal Distribution System - System Improvements $3,725,950 $3,674,~ ~3,134,7~ $7,756,9~ $2,520,5~ ~,905,5~ $7,545,5~ $2,883,5~ $4,143,~ ~,368,5~ $44,659,050
¯ OT~ NET WATER DISTRIBUTION FUND
REQUESTS ~,725~950 $3,674,500 $3,134,700 $7,756,900 $2,520,500 $4,905,500 $7,545,5~$2,883,500 $4,143,500 $4,368,500 $44~659,050
¯ *25.70%27.15%6.96%158.68%n/a ~a n/a n/a ’n/a n/a
N = Normal and Fire Suppression Demand
C = Chloraraine Improvements
8 = 8 hour DHS storage recommendation Water Quality Enhancement costs EXCLUDE $200,000 reservoir cleaning - NON CIP; an operations function
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