2010 Eighty-first Comprehensive Annual Report

Document Sample
2010 Eighty-first Comprehensive Annual Report Powered By Docstoc
					2010
                         Eighty-first
                      Comprehensive
                       Annual Report
For the year ended December 31, 2010




Madison Metropolitan Sewerage District
        Madison, Wisconsin
                                                      Table of Contents
INTRODUCTION ........................................................................................................................................... 3 
ORGANIZATION .......................................................................................................................................... 4 
  Time and Place of Meetings ........................................................................................................................ 4 
  Commissioners and Executive Staff ............................................................................................................ 4 
  Present and former Commissioners ............................................................................................................. 4 
OPERATION OF WASTEWATER FACILITIES ......................................................................................... 6 
  Sources of Wastewater ................................................................................................................................ 6 
  Interceptor Service ...................................................................................................................................... 6 
  Quantity of Wastewater ............................................................................................................................... 7 
AVERAGE DAILY QUANTITIES OF WASTEWATER ............................................................................. 7 
  Wastewater Treatment ................................................................................................................................. 8 
METROGRO OPERATION ......................................................................................................................... 13 
ACCOUNTING AND CLERICAL ACTIVITIES........................................................................................ 15 
INFORMATION SYSTEMS ACTIVITY .................................................................................................... 15 
RESEARCH .................................................................................................................................................. 16 
INDUSTRIAL PRETREATMENT PROGRAM .......................................................................................... 20 
ACCEPTANCE OF SEPTAGE AND ATYPICAL WASTES ..................................................................... 20 
LAGOON SITE SUPERFUND PROJECT................................................................................................... 21 
WATERSHED PROJECTS .......................................................................................................................... 21 
  Yahara River Watershed Monitoring Program .......................................................................................... 21 
  Sugar River and Badger Mill Creek Monitoring Program ........................................................................ 24 
  Upper Yahara River Watershed Monitoring Program ...............................................................................26 
  Grass Lake Monitoring Program ............................................................................................................... 27 
  Phosphorus-Related Initiatives .................................................................................................................. 27 
MONITORING STREAM FLOWS.............................................................................................................. 27 
LABORATORY ACTIVITIES ..................................................................................................................... 28 
MAINTENANCE OF DISTRICT FACILITIES........................................................................................... 28 
  Building and Grounds Section................................................................................................................... 29 
  Mechanical Maintenance Section .............................................................................................................. 30 
  Electrical Maintenance Section ................................................................................................................. 31 
  Inventory Control/Purchasing ................................................................................................................... 32 
  Monitoring Services/Sewer Maintenance Section ..................................................................................... 32 
INTERCEPTOR TELEVISING AND CLEANING ..................................................................................... 33 
USER-CHARGE MONITORING AND BILLING ...................................................................................... 33 
SEWERAGE SERVICE CHARGES ............................................................................................................ 34 
TRAINING ACTIVITIES ............................................................................................................................. 35 
PUBLIC EDUCATION ................................................................................................................................ 36 
PROFESSIONAL PARTICIPATION DURING 2010 ................................................................................. 37 
LITIGATION ................................................................................................................................................ 39 
STRATEGIC PLANNING INITIATIVES ................................................................................................... 40 
ENGINEERING AND CONSTRUCTION IN 2010 .................................................................................... 42 
  Solids Handling Facilities Plan/11th Addition ........................................................................................... 42 
  Collection System Facilities Plan .............................................................................................................. 42 
  Pumping Stations 6 & 8 Rehabilitation ..................................................................................................... 43 
  Northeast Interceptor-PS10 to Lien Road Relief/Replacement ................................................................. 44 
  Far East Interceptor-Cottage Grove Extension Liner ................................................................................ 44 
  Badfish Creek Farm Bridge Replacements ............................................................................................... 44 
  West Interceptor – MH05 to MH05-021 Liner.......................................................................................... 45 
  Process Control System Upgrade .............................................................................................................. 45 
  Crosstown Forcemain Relocation-High Speed Rail Station ...................................................................... 45 
CLEAN WATER FUND LOANS ................................................................................................................ 46 
  West Interceptor Extension Replacement.................................................................................................. 46 
  Pumping W Stations No. 6 and 8 Rehabilitation ....................................................................................... 46 
  Northeast Interceptor – PS 10 to Lien Road Relief/Replacement ............................................................. 46 
NINE SPRINGS ENERGY USE PROFILE ................................................................................................. 47 
ANNEXATIONS TO THE DISTRICT ........................................................................................................ 49 
FINANCES ................................................................................................................................................... 51 
SALARIES AND WAGES ........................................................................................................................... 51 
RETIREMENT OF DISTRICT EMPLOYEES ............................................................................................ 51 
                         EIGHTY-FIRST ANNUAL REPORT
                         OF THE COMMISSIONERS OF THE
                   MADISON METROPOLITAN SEWERAGE DISTRICT
                         FOR THE CALENDAR YEAR 2010

                                      INTRODUCTION

The Eighty-First Annual Report of the Madison Metropolitan Sewerage District is dedicated to
Jon W. Schellpfeffer, Chief Engineer and Director. After 36 years with the District, 9 years as
the Chief Engineer and Director, Jon retired in December, 2010. Jon developed the District’s
User Charge program and billing system. His work in this area resulted in his recognition as an
expert in the field of service rate development. Jon also developed the District’s Sewer Use
Ordinance and worked with all of the District’s municipal customers to help them to develop
similar ordinances to protect their systems as well as the District’s collection system and
treatment plant. Jon worked closely with the Department of Natural Resources grants and loan
programs to obtain the financing to construct numerous additions to the treatment plant and
collection system. He also worked closely with the Dane County Regional Planning Commission
on long range studies for interceptor expansions. Jon served for over 30 years with the National
Association of Clean Water Agencies (NACWA), formerly the Association of Metropolitan
Sewerage Agencies. In addition to serving on the Board of Directors of NACWA, Jon was the
author of two national financial surveys and produced the national sewer service charge survey
for ten years. As the District’s Chief Engineer and Director, Jon oversaw several treatment plant
expansions, numerous collection system upgrades, the District’s 50-year Master Planning effort,
the District’s responses to increasingly stringent phosphorous limits, and most recently, the
development of Leadership Expectations for the District staff. We will miss Jon’s leadership and
calm personality.




                                               3
                                      ORGANIZATION

Madison Metropolitan Sewerage District (the District) is a body corporate with the powers of a
municipal corporation for the purpose of carrying out the provisions of Sections 200.01 to 200.15
of the State of Wisconsin statutes. It was created by judgment of the county court for Dane
County, entered on the 8th day of February 1930. Its existence was validated and confirmed by
Chapter 132 of the Laws of 1969, effective August 2, 1969. The constitutionality of that Law
was sustained by the Wisconsin Supreme Court in Madison Metropolitan Sewerage District vs.
Stein, 47 Wis. 2nd 349, 177 N.W. 2nd 131 (1969).

Time and Place of Meetings

The Commissioners of the District meet once or twice each month, at the office of the
Commission at 1610 Moorland Road, Madison, Wisconsin. Special meetings are held upon call
of any member of the Commission.

Commissioners and Executive Staff

The District is governed by five Commissioners, each appointed by the Dane County Executive
and approved by the County Board for five-year terms.

                        John Hendrick (term ending June 30, 2011)
                        Edward V. Schten (term ending June 30, 2012)
                        Caryl E. Terrell (term ending June 30, 2013)
                        Ezra Meyer (term ending June 30, 2014)
                        Thomas D. Hovel (term ending June 30, 2015)

Jon W. Schellpfeffer served as the Chief Engineer and Director until his retirement at the end of
2010. In December, the Commissioners announced that they had selected D. Michael Mucha as
the next Chief Engineer and Director and that he would begin that role in early to mid-January
2011. Dave Gawenda, the Treasurer of the City of Madison serves as treasurer of the District.
Griffin Dorschel of Axley Brynelson is attorney for the District.

Present and former Commissioners

   Ernest N. Warner                                          February 15, 1930 – July 9, 1930
   Frank C. Blied                                       February 15, 1930 – February 1, 1951
   Charles V. Seastone                                February 15, 1930 – September 26, 1940
   John C. White                                        February 6, 1931 – February 15, 1946
   Lewis H. Kessler                                     October 11, 1940 – February 15, 1945
   Henry J. Hunt                                            April 29, 1942 – January 15, 1945
   James G. Woodburn                                     February 15, 1945 – August 17, 1972
   William B. Sarles                                       May 25, 1946 – February 15, 1949
   William J. Polk                                         May 19, 1949 – February 15, 1970
   George A. Nelson                                         February 9, 1951 – May 17, 1971
   Henry E. Reynolds                                     February 23, 1970 – March 31, 1979
   Lawrence B. Polkowski                                        May 17, 1971 – May 24, 1995
   Robert K. Hamm                                         August 17, 1972 – January 18, 1979
   J.W. Bill Clark                                        August 17, 1972 – February 1, 1982
   H. Gladys Swope                                         August 17, 1972 – August 30, 1982


                                               4
David E. Mergen             January 18, 1979 – December 31, 1980
Harold Lautz                       April 1, 1979 – October 7, 1993
John G. Schutz                    January 1, 1981 – April 19, 1983
Elizabeth E. Salmon               February 1, 1982 – July 17, 1986
Edward V. Schten                   August 30, 1982 – Now Serving
Gordon C. Johnson               May 2, 1983 – November 15, 1990
Eugene O. Gehl                    July 17, 1986 – January 23, 1997
Stephen Hiniker           November 15, 1990 – September 18, 1991
Thomas D. Hovel                September 18, 1991 – Now Serving
Caryl E. Terrell                   October 7, 1993 – Now Serving
Paul M. Berthouex               July 13, 1995 – September 1, 2009
Scott McCormick                  January 23, 1997 – May 21, 1998
John Hendrick                        May 21, 1998 – Now Serving
Ezra J. Meyer                      October 1, 2009 – Now Serving




                      5
                      OPERATION OF WASTEWATER FACILITIES

Sources of Wastewater

The District receives and treats wastewater from the Cities of Fitchburg, Madison, Middleton,
Monona and Verona; the Villages of Cottage Grove, Dane, DeForest, Maple Bluff, McFarland,
Shorewood Hills and Waunakee; and from sanitary and utility Districts and other areas in the
Towns of Blooming Grove, Burke, Dunn, Madison, Middleton, Pleasant Springs, Verona,
Vienna, Westport and Windsor. The District also accepts septic tank wastes and similar wastes
from unsewered areas located primarily in rural Dane County. The total area of the District is
179.5 square miles.

Interceptor Service

The District provides interceptor sewer service through main and intercepting sewers. The
District operated and maintained 95.98 miles of gravity sewers and 28.93 miles of raw
wastewater force main at the end of 2010. Cities, villages and town sanitary and utility districts
own and operate the wastewater collection systems that connect to the Districts interceptor
system.

The District treats all wastewater at the Nine Springs Wastewater Treatment Plant located at 1610
Moorland Road, Madison, Wisconsin, located approximately one mile south of Lake Monona.
The easterly part of the District is served by the East Interceptor, the Southeast Interceptor, the
Northeast Interceptor and the Far East Interceptor. The westerly part of the District is served by
the Lower Badger Mill Creek Interceptor, the West Interceptor, the Southwest Interceptor, the
South Interceptor, and the Nine Springs Valley Interceptor.
The transmission of wastewater from the metropolitan area to the Nine Springs Wastewater
Treatment Plant requires the operation of 129 pumping stations, not including 429 small grinder
pump installations. The following two tables list the number of pumping stations operated and
maintained by individual communities and the District.

     PUMPING STATIONS OPERATED AND MAINTAINED BY COMMUNITIES

                                                           Number of             Number of
                       Owner                             Pumping Stations      Grinder Stations
 City of Middleton                                             8
 City of Monona                                                7
 Village of Cottage Grove                                      4
 Village of Dane                                               1
 Village of DeForest                                           1
 Village of McFarland                                          4                       1
 Village of Shorewood Hills                                    1
 Village of Waunakee                                           2
 Town of Blooming Grove Waunona S. D. No. 2                    1
 Town of Dunn Kegonsa Sanitary District                        5                      354
 Town of Pleasant Springs Sanitary District No. 1              9                      55
 Town of Vienna Utility District No. 1                         1


                                                6
                                                       Number of            Number of
                      Owner                          Pumping Stations     Grinder Stations
 Town of Vienna Utility District No. 2                      1
 Town of Westport Utility Districts                        10                    15
 Town of Windsor Sanitary District No. 1                    3
 Town of Windsor Morrisonville S. D. No. 1                 1
 State of Wisconsin:
 University of Wisconsin Campus                               6                   4
 University of Wisconsin Arboretum                            1
 Dane County - Rodefeld Landfill                              1
 Dane County - Vilas Zoo                                      1
 Total                                                       68                  429

              PUMPING STATIONS OPERATED AND MAINTAINED BY
                              THE DISTRICT

                         Owner                           Number of Pumping Stations
  Madison Metropolitan Sewerage District                             17
  City of Madison                                                    29
  City of Verona                                                      1
  Village of Maple Bluff                                              3
  Town of Dunn Sanitary District No. 1                                4
  Town of Dunn Sanitary District No. 3                                3
  Town of Madison                                                     3
  Dane County Lake Farm Park                                          1
  Total                                                               61

Quantity of Wastewater

The District received slightly more than 15 billion gallons of wastewater at the Nine Springs
Wastewater Treatment Plant in 2010. This was a 5.4% decrease from 2009. The average daily
quantities of wastewater received from each municipality and through infiltration into the
District’s intercepting sewers in 2010 were as follows:

               AVERAGE DAILY QUANTITIES OF WASTEWATER



                    Municipality                       2010 (GPD)       % of Total
  City of Fitchburg                                      1,951,000        4.54
  City of Madison                                       28,618,000        66.60
  City of Middleton                                      1,917,000        4.46
  City of Monona                                           993,000        2.31
  City of Verona                                           893,000        2.08
  Village of Cottage Grove                                 618,000        1.44
  Village of Dane                                           54,000        0.13
  Village of DeForest                                      783,000        1.82



                                             7
  Village of Maple Bluff                                 204,000          0.47
  Village of McFarland                                   607,000          1.41
  Village of Shorewood Hills                             171,000          0.40
  Village of Waunakee                                  1,600,000         3.72
  Town of Blooming Grove                                   7,400          0.02
  Town of Blooming Grove San. Dist. No. 2                179,000          0.42
  Town of Blooming Grove San. Dist. No. 10                19,000          0.04
  Town of Burke Util. Dist. No. 2                          4,300         0.01
  Town of Burke Util. Dist. No. 6                          1,100         <0.01
  Town of Dunn San. Dist. No. 1                          233,000          0.54
  Town of Dunn San. Dist. No. 3                           70,000          0.16
  Town of Dunn San. Dist. No. 4                           13,000          0.03
  Town of Dunn Kegonsa San. Dist.                        159,000          0.37
  Town of Madison                                        846,000          1.97
  Town of Middleton San. Dist. No. 5                      21,000          0.05
  Town of Pleasant Springs San. Dist. No. 1               59,000         0.14
  Town of Verona                                             800         <0.01
  Town of Verona Util. Dist. No. 1                        22,000          0.05
  Town of Vienna Util. Dist. No. 1                        89,000          0.21
  Town of Vienna Util. Dist. No. 2                        34,000          0.08
  Town of Westport Util. Dist. No. 1                     158,000          0.37
  Town of Westport Util. Dist. No. 2                     401,000          0.93
  Town of Westport Util. Dist. No. 3                      13,000         0.03
  Town of Westport Util. Dist. No. 4                      12,000         0.03
  Town of Westport - Cherokee Golf & Tennis                5,100          0.01
  Town of Windsor San. Dist. No. 1                       305,000          0.71
  Town of Windsor San. Dist. No. 3                           500         <0.01
  Town of Windsor - Illinois Foundation Seed                 100         <0.01
  Town of Windsor - Hidden Springs San. Dist.              4,900          0.01
  Town of Windsor - Lake Windsor San. Dist.               29,000          0.07
  Town of Windsor - Morrisonville San. Dist.              64,000         0.15
  Town of Windsor - Oak Springs San. Dist.                31,000          0.07
  Total Wastewater                                    41,193,000         95.86
  Infiltration into District Interceptors              1,780,000         4.14
  Total Received at the Treatment Plant               42,972,000          100

Wastewater Treatment

The Nine Springs Wastewater Treatment Plant is located in the Town of Blooming Grove at the
intersection of South Towne Drive and Moorland Road.




                                            8
Preliminary treatment includes influent wastewater fine screening and grit removal. Fine
screening is accomplished with three rotating band screens with 5 mm openings and a vortex grit
system is used for grit removal. Variable speed drives for the band screens are used to control the
influent well level and to maintain a minimum level above the influent flow meters. Grit is
removed continuously from three vortex grit chambers. The dewatered grit and screenings are
conveyed to dumpsters and hauled by a contractor to landfill three to five times per week.

All material removed by the fine screens is conveyed to a screenings processing well. Two to
four times a day the grit must be removed from the well with an operator present to oversee the
pumping operation. The grit and accompanying rags are pumped to a separate settling basin
(termed a “Snail”) which had previously been used by the District in a primary sludge degritting
process. The material settled in the snail is conveyed to the larger dumpsters with grit and
screenings.

Improvements to the fine screening operation were under investigation in 2010. A 30 psi spray
bar with nozzles continually sprays the rotating 5 mm openings on the screens to push debris into
a sluicing channel, and prevents the debris from continuing to the effluent side of the screen. It
was found that the spray nozzles were not covering the entire screen and leaving areas were rags
and debris were pushing through to the effluent side of the screen. New nozzle configurations
were being tested with the manufacturer’s assistance to mitigate the problem.

Following preliminary treatment, nineteen primary settling tanks are used to remove floatable and
settleable material from the wastewater. The wastewater from primary settling is then
biologically treated in the activated sludge system. The activated sludge system consists of tanks
with anaerobic, anoxic and aerobic zones configured for biological phosphorus removal,
ammonia removal and decomposition of organic material. The secondary clarifiers are a
combination of center feed/peripheral draw off and peripheral feed/peripheral draw off
configurations and efficiently remove the suspended bacterial solids to meet advanced secondary
standards. Most of the solids, which contain the microbial culture, are pumped back to the
aeration tanks. A certain percentage is wasted every day to maintain a desired bacterial growth
rate. An eight-to ten-day solids retention time is normally maintained in the process.

During 2010, the secondary portion of the Nine Springs Wastewater Treatment Plant was
operated as four separate plants. Effluent from the individual plants was monitored to ensure
adequate process control and to provide information on differing operating modes.

The treated water is disinfected by ultraviolet irradiation from April 15th through October 15th and
pumped to Badfish Creek and Badger Mill Creek. In 2010, approximately 40.63 million gallons
per day (mgd) on average were pumped to Badfish Creek and 3.57 mgd were pumped to Badger
Mill Creek.

The open-channel ultraviolet disinfection system has met the effluent fecal coliform
concentration standard since start-up in 1997. All lamp banks are cleaned with citric acid in the
winter months when disinfection is not required. Lamp and ballast replacement is also
accomplished during this period.

The primary sludge is removed from the 19 primary settling tanks on a continuous basis and
pumped to two gravity-thickener tanks. The solids concentration from the gravity thickeners
averaged 4.4% in 2010. The waste-activated sludge is thickened in two dissolved-air-flotation
(DAF) units. The solids concentration from these units averaged 4.2% in 2010. When a new
gravity belt thickener was added in 2006 for thickening anaerobically digested sludge, the


                                                 9
existing gravity belt was modified so it could either thicken waste-activated sludge or
anaerobically digested sludge. From January to July, 2010, a portion of the waste-activated
sludge was thickened to approximately 5.0% on the GBT to relieve the loadings to the DAF
thickeners.

The anaerobic digestion process was operated as a single-stage mesophilic digestion system
throughout 2010. All digesters were fed and heated to a temperature of approximately 100
degrees Fahrenheit. Digester foaming problems plagued the digestion system from January until
June, 2010. This has been a winter problem since the late 1990’s. Operation with an acid phase
digester preceding temperature phased thermophilic/mesophilic digesters was attempted in 2007
and 2008. This followed the 10th Addition digestion system modifications as a way to address the
foaming problem. However, due to several operational problems, the configuration was
abandoned. The detailed design phase of the 11th Addition for further upgrades to the digestion
system was in progress in 2010, but interim operation as a single-stage mesophilic digestion
system will continue until upgrades are made to the system.

In an attempt to mitigate the digester foaming problem, piping additions were completed in
November 2009, which allowed a different feeding pattern for the digesters. 100% of the primary
sludge and less than 50% of the waste-activated sludge were fed to the east digesters which have
gas mixing systems. The remainder of the waste activated sludge was fed to the west digesters
along with some of the effluent sludge from the east digesters. The west digesters have less
capacity, but have mechanically mixed systems less susceptible to foaming. The purpose of this
feeding method was to reduce the foaming problem in the east, gas mixed digesters. This feeding
pattern was implemented and continued throughout 2010.

The digested biosolids concentration averaged 2.4% in 2010. The digested biosolids were
thickened from 2.4% to an average concentration of 5.8% by the addition of polymer on gravity
belt thickener # 2. An average of 22.5 tons/day of digested biosolids was thickened in 2010. The
polymer used for thickening was a liquid emulsion polymer.

The thickened and digested biosolids are either pumped directly to loading facilities or to the
Metrogro storage tanks. During the winter, all biosolids are stored in the Metrogro storage tanks.
The tanks have a storage capacity of 19.5 million gallons. All biosolids are hauled and applied to
cropland as a soil conditioner and fertilizer. The digested biosolids are marketed by the District
under the name of “Metrogro.”

As a by-product of the anaerobic digestion process, gas is produced that is approximately 60%
methane. The District supplements digester gas production with natural gas purchased from
Madison Gas and Electric. Digester gas usage averaged 636,000 cubic feet per day in 2010. Part
of the digester gas was used to fuel boilers for plant heating and to fuel a 650 horsepower blower
engine, which provides air to aeration tanks. The remainder of the gas is used to fuel two
generator engines in Sludge Control Building #2. Prior to use in the engines and boilers, the gas
is treated by a gas treatment system started up in May 2008. The gas treatment system removes
moisture, hydrogen sulfide and siloxanes from the gas. An average of 14,256 kW-hrs of
electricity was generated each day in 2010; and the engine blower saved the purchase of
approximately 4,460 kW-hrs per day of electrical energy.

The District takes advantage of the heat recovered from the engines to heat anaerobic digesters
and most plant buildings. Jacket water heat and engine exhaust heat are recovered from all three
engines when available. Lube oil heat is recovered from the generator engines, but not from the
blower engine.


                                               10
All three engines were shut down in December 2010, when the District discovered WDNR air
emission operating permits were required for the engines and boilers. Based on the size of the
engines and the amount of fuel being used in them, WDNR felt that a construction permit should
have been obtained at the time that the engines were installed in 1991. Modeling and testing were
required for determination of emission limits for engine operation. Until limits could be
determined, and modifications made to assure those limits could be met, the District decided only
plant boilers would be operated to provide heat for the buildings and digesters.

The District hired the firm of RMT, Inc. to submit a permit application. The District also retained
attorney Linda Bochert of Michael Best & Friedrich, LLP to represent the District in future
negotiations with DNR. A preliminary permit application was submitted to DNR in November
and a stack emissions test was performed on one of the engines in January 2011. An update to
the permit application is expected to be submitted in March 2011. Since preliminary modeling
indicated that the exhaust stacks on the engines would need to be raised, Strand Engineers, Inc.
was hired to provide structural plans to support the extended stacks.

The DNR has determined that a number of other treatment plants in the State may also be
operating combustion equipment without a permit. Representatives of the District have been
meeting with DNR staff and representatives of the Racine Water and Wastewater Utility to
develop a survey that will be sent to all treatment plants in the State. This survey will be used by
DNR to establish categories of facilities and emission thresholds to define which facilities are
exempt from the requirement to obtain an air permit and which facilities need an air permit.

The 2010 wastewater treatment data are reported in accordance with the District’s WPDES
Permit and a summary of this information is shown in the table “Yearly Log-Plant Operations.”
Monitoring data for effluent metals are reported in the table “Influent and Effluent Metal
Concentrations.”




                                                11
                                             Madison Metropolitan Sewerage District
                                            Influent and Effluent Metal Concentrations
                                                              For 2010
                              Cadmium (T)                    Chromium (T)                    Copper (T)                 Lead (T)                Mercury (T)                    Nickel (T)                    Zinc (T)
Date of      Effluent               (PPB)                          (PPB)                         (PPB)                     (PPB)                      (PPT)                        (PPB)                      (PPB)
Sample        MGD            Inf             Eff             Inf            Eff            Inf           Eff         Inf            Eff         Inf           Eff            Inf            Eff        Inf        Eff


1/5/10       40.91          q 0.15         < 0.09           4.14          < 1.2           70.9        q 6.26        10.6           < 1.1       64.7       1.17             3.30         q 1.22       137           49.8

2/2/10       40.64          q 0.13         < 0.09           2.93          < 0.6           68.4        q 6.05       q 3.15          < 1.1       148        1.02          q 2.41          q 1.81       118           48.9

3/2/10       41.64           0.35          q 0.17           4.06          q 0.73          77.6        q 8.74        3.83           < 1.1       109        1.41          q 2.39          q 1.23       151           57.9

4/6/10       48.18          q 0.16         < 0.09           3.93          < 0.6           72.7        q 6.29        5.91           < 1.1       188        1.59             3.89            < 0.8     165           42.9

5/4/10       42.80          q 0.15         < 0.07           3.78          < 0.8           82.1        q 7.68        4.25           < 0.7       72.4       1.28          q 2.26             < 0.8     144           40.2

6/1/10       42.40          q 0.08         < 0.07           2.82          < 0.8           81.7        q 7.90        3.77           < 0.7       144        1.10          q 2.53          q 1.33       154           43.2

7/6/10       46.69           0.26          q 0.17           3.25          < 1.6           91.3        q 8.08        3.66           < 0.7       152        1.85          q 1.80             < 0.8     153           50.5

8/3/10       49.34          q 0.18         < 0.07          q 2.02         < 0.8           72.4        q 5.44      q 2.19           < 0.7       198        1.42             2.72         q 1.48       136           54.0

9/7/10       49.21          q 0.19         < 0.07          q 2.62         < 1.6           62.8        15.6         q 2.29          < 0.7       67.7       1.48          q 2.37          q 0.95       119           34.8

10/12/10     44.16          q 0.21         q 0.09          q 2.74         < 0.8           70.6        q 4.03      q 1.66           < 0.7       118        1.02             3.07            < 0.8     138           47.1

11/9/10      41.28           0.23          < 0.07          q 2.62         < 0.8           76.1        q 3.66        2.86           < 0.7       81.1       0.954            2.77         q 0.94       126           35.6

12/7/10      41.17          q 0.18         q 0.11          q 2.73         < 0.8           77.3           9.35       2.75           < 0.7       82.4       1.27          q 2.67             < 0.8     131           50.9
"<" validation code indicates that sample concentration is less than the method detection limit
"q" validation code indicates that sample concentration is less than the limit of quantitation and above the method detection limit



                                                               Madison Metropolitan Sewerage District
                                                              Nine Springs Wastewater Treatment Plant
                                                                YEARLY LOG -- PLANT OPERATIONS
                                                                               2010
                                   BFC              BMC                     BOD                            TSS                            Nitrogen                     Phosphorus                  Effluent           Min Hr
                 Influent      Effluent         Effluent            RAW           Effluent         RAW          Effluent      RAW              Effluent             RAW            Effluent         FCOLI          Effluent
Month             Flow             Flow             Flow            BOD            BOD             TSS            TSS          TKN            Ammonia                TP              TP            MPN/100              D.O.
                 (MGD)             (MGD)           (MGD)           (MG/L)         (MG/L)          (MG/L)         (MG/L)       (MG/L)            (MG/L)              (MG/L)         (MG/L)          Mean(1)            (MG/L)
Jan - 10          40.28            37.16            3.40            226             4.0            208            4.0          38.9              0.07                5.5            0.21                                6.90
Feb - 10          39.94            36.51            3.59            243             3.7            243            3.4          39.9              0.07                6.0            0.17                                8.12
Mar - 10          42.17            40.35            3.59            229             3.8            209            4.4          38.5              0.08                5.7            0.21                                6.30
Apr - 10          42.76            41.01            3.54            243             3.6            239            3.6          38.7              0.19                5.6            0.20             45                 7.59
May - 10          42.21            39.66            3.54            245             3.0            233            3.1          39.3              0.09                5.6            0.24             45                 6.12
Jun - 10          46.97            44.84            3.59            198             3.5            199            3.8          34.3              0.11                5.1            0.41             65                 5.58
Jul - 10          47.95            46.21            3.59            185             3.9            190            4.2          32.5              0.15                4.8            0.32             168                5.58
Aug - 10          47.41            44.88            3.60            178             3.6            183            4.4          33.2              0.10                4.8            0.40             268                5.11
Sep - 10          45.09            43.26            3.60            188             3.2            185            4.6          36.1              0.08                5.2            0.33             128                6.73
Oct - 09          41.92            39.88            3.59            211             3.2            216            3.8          38.7              0.13                5.6            0.35             135                6.94
Nov - 10          39.75            37.03            3.59            229             3.6            218            4.1          40.9              0.11                5.7            0.25                                5.86
Dec - 10          39.02            36.81            3.60            248             4.2            221            4.7          40.9              0.09                5.6            0.27                                6.20


Average           42.96            40.63            3.57            218             3.6            212            4.0          37.6              0.11                5.4            0.28             122                6.42


BFC is to Badfish Creek Outfall
BMC is to Badger Mill Creek Outfall
(1) Geometric mean




                                                                                                 12
                                             METROGRO OPERATION

The District recycles biosolids to agricultural land through its Metrogro Program. Summary
hauling and cost information for each of the past six years is given in the following table.

          Year                          2005          2006            2007        2008          2009         2010
 Gallons Recycled (MG)                    34.0          35.9            38.2        38.1        41.5         37.5
 Dry Tons Recycled                       7,086         7,185           7,380       7,720        8,219        7580
 Acres Applied                           4,376         4,431           4,758       4,566        5,129        4646
 Program Cost ($000)                    $1,238        $1,301          $1,335      $1,453       $1511        $1364
 $/1000 Gallons                         $36.39        $36.23          $35.13      $38.16       $36.41       $36.40
 $/Capita                                $3.86         $3.94           $4.05       $4.31        $4.45        $4.01
 $/Dry Ton                               $175          $181            $181        $188         $184         $180

The District continues to produce a high quality biosolids product. Metal concentrations in 2010
were below the concentrations used by EPA to define an exceptional quality biosolid.
(Note: WDNR uses the term “high quality" in NR 204).

                               Metrogro Biosolids Quality-2010 Average Values

    Parameter              Concentration            EPA EQ Limit*              EPA Ceiling Limit                  Units
                                                                                                              (Dry Weight)
 Total Solids                             5.0                           NA                           NA                   %
 TKN                                      8.0                           NA                           NA                   %
 NH3-N                                    3.4                           NA                           NA                   %
 Total-K                                  0.7                           NA                           NA                   %
 Total-P                                  4.3                           NA                           NA                   %
 Arsenic                                  6.8                            41                           75              mg/kg
 Cadmium                                  1.4                            39                           85              mg/kg
 Chromium                               52.6                            NA                           NA               mg/kg
 Copper                                  538                          1,500                        4,300              mg/kg
 Lead                                   42.2                            300                          840              mg/kg
 Mercury                                   .9                            17                           57              mg/kg
 Molybdenum                             18.8                            NA                            75              mg/kg
 Nickel                                 21.8                            420                          420              mg/kg
 Selenium                                 6.6                           100                          100              mg/kg
 Zinc                                    704                          2,800                        7,500              mg/kg
 PCB                                  <0.013                            NA                           NA               mg/kg
*
 EQ means “exceptional quality”
NA means not applicable
< data qualifier is used if one or more of the monthly values used to calculate the yearly average is reported as below the analytical
limit of detection.


Environmental monitoring to support the Metrogro program continued in 2010. Approximately
650 water samples were collected from private wells, with samples being analyzed for a number
of parameters, including nitrate nitrogen and coliform bacteria. Soil samples were also collected,
with the soil test recommendations being used to determine Metrogro application rates.




                                                                 13
A change was made to the spring yield guarantee program in 2009 in an effort to control costs. A
standard payment structure was instituted based on the date at which application to a given field
is completed. This change was made in an effort to control costs. Payments in 2010 were 12%
less than payments in 2009. This reduction was mainly due to most of the spring application of
biosolids being completed by May 15th.

MetroMix Program

The District’s goal is to diversify its overall biosolids management program by developing a soil-
like product(s) called MetroMix. MetroMix will be produced by combining dewatered biosolids
with materials such as sand and sawdust to provide bulk and texture. Wide scale production and
distribution of MetroMix will not occur until after completion of the 11th Addition to the Nine
Springs Wastewater Treatment Plant.

The District is in the research and development phase of the MetroMix Program. The District is
providing laboratory support and other in-kind contributions for a 4 year field research project
being conducted jointly by the University of Wisconsin-Madison and the Virginia Polytechnic
Institute and State University (Virginia Tech) that is funded by USDA. This project is evaluating
use of biosolids (including MetroMix) in sod production as an alternative to traditional
production systems that use commercial fertilizer. Specific research objectives include the
following:

       Evaluating the agronomic benefits or drawbacks to using biosolids, composted biosolids,
        or de-watered biosolids for sod production compared to traditional production systems.
       Quantifying soil loss or gain during traditional and biosolids-based sod production and
        harvesting.
       Determining short and long term impacts of using biosolids for sod production on soil
        physical, chemical, and biological properties.
       Quantifying changes in fertilizer and pesticide inputs along with disease and insect pest
        susceptibilities.
       Calculating the economic advantages or disadvantages of using biosolids for sod
        production compared to traditional methods.
       Identifying the potential social barriers to producer and consumer acceptance of sod
        grown using biosolids and identifying how potential barriers might be overcome.

Should the economics and other issues associated with biosolids use for sod production prove to
be favorable, a seventh objective of this project would be to develop a comprehensive outreach
program to communicate the results of this project to stakeholders and to facilitate the adoption of
more economically and environmentally sustainable sod production systems throughout the
United States.

Biosolids were initially applied to the research plots in the fall of 2009, with a second application
being made in the fall of 2010. Preliminary data is promising, showing that biosolids applied at
high rates produced sod with color, density, and quality similar to or better than the fertilized
controls.




                                                 14
                       ACCOUNTING AND CLERICAL ACTIVITIES

The District’s Accounting/Clerical work group provides clerical support and accounting functions
for all District departments. Routine tasks include receptionist duties; telephone answering;
typing of commission meeting minutes, agenda and resolutions; managing the septage receiving
database; records management including scanning incoming and outgoing general office
correspondence for electronic storage; and accounting functions including administering accounts
receivable, accounts payable, general ledger, payroll, investments and employee benefits.

Notable activities in 2010 include the following:

        1. Joyce Williams joined the Accounting Department staff in December 2010. This
           enabled Stephanie Calkins to get involved in higher level accounting duties and
           Janelle Werner to dedicate additional time to OnBase (Electronic document retention
           system) support. Stephanie and Janelle were also involved in more of the business
           planning for the department and helped to establish training plans for their additional
           responsibilities. Debi Iglesias assisted in implementing new workflows for OnBase
           scanning and created outlines and flow charts for the structure in OnBase. Debi has
           been putting more of our permanent documents, such as Commission meeting
           minutes into OnBase for retention.

        2. The OnBase document management system continued to be a focus area in 2010.
           We completed scanning employee-reviewable human resource records into OnBase,
           and gave employees access to their own information. This allows employees to view
           information such as personal development plans and records, performance review
           documents, pay and tax information, and current benefits. We also worked with the
           Engineering department to document their workflows for OnBase and improve the
           workflow for pay requests and consultant invoices.

        3. Asset Management was a focus for the group in 2010. Since the CMMS system now
           has asset depreciation functionality available, we plan to import our FAMS (current
           depreciation system) assets into CMMS. With the help of several people we have
           matched up asset to asset and populated all necessary fields for import. Once
           completed, this will make future asset additions, retirements, and write-offs much
           easier and will also provide more information for asset replacement and capital
           budget. All of the worksheets of District assets have been converted to an electronic
           form which is searchable by project.

                           INFORMATION SYSTEMS ACTIVITY

The District’s Information Technology (IT) workgroup provides infrastructure support and the
Information Systems (IS) workgroup provides software support for the following existing
applications: 

Administration:
      Budgeting, Document and Records Management, Email, Microsoft Office Desktop,
      Pretreatment, Pump Station Billing, Rate Setting, Security, User Change Billing, and
      Web Site Management.




                                                15
Engineering:
       Change Order Management, Construction Plan Holders, Geographical Information
       System (GIS), and Hydrology Modeling.

Operations & Maintenance:
       Metrogro Hauling and Land Application, Operations (Regulatory) Reporting, Laboratory
       Analysis, Process Control Data Transfer and Analysis, Oracle Work and Asset
       Management.

The Staff were also involved in the following activities in 2010:

       An upgrade to the Oracle Work and Asset Management (Work Order, Purchasing, and
        Timekeeping) system was completed.
       The IS staff continue to make software improvements to the in-house Lab Information
        Management System (LIMS) application.
       The telephone system was upgraded.
       Normal budgeted replacement of servers, PCs, and laptops

                                          RESEARCH

UW Soils Department/State Laboratory of Hygiene Research

A long term objective of the District is to produce a biosolid that meets the USEPA and
Wisconsin Department of Natural Resources definition of a Class A biosolid with respect to
pathogens. Class A production requires the use of a treatment process that consistently reduces
pathogens to below detectable levels. Current state and federal regulations require the production
of a Class A biosolid for end uses anticipated in the MetroMix Program.

Regulatory agencies have identified six different methods that can be used to demonstrate
compliance with the Class A pathogen reduction requirements. One method is to demonstrate on
a site-specific basis that operating conditions result in pathogen reduction levels equivalent to
defined processes known to reduce pathogen levels to below detectable levels, which are
commonly referred to as processes to further reduce pathogens (PFRPs). In order to obtain PFRP
equivalency, a facility must demonstrate that its process is capable of achieving a 3 log
inactivation of fecal coliforms with final density <1,000 MPN/g dry wt, a 3 log inactivation of
enteric viruses, and a 2 log inactivation of helminth ova. This must be done both at the
laboratory-scale and full-scale. In the U.S., viruses and helminth ova are often present at such
low levels that this degree of inactivation cannot be demonstrated from natural incoming levels.
Quarterly sampling of digester feed and digested biosolids indicates that this is the case for the
District.

Research being led by Professor Sharon Long (UW-Madison/Wisconsin State Laboratory of
Hygiene) is exploring whether appropriate surrogates can be identified for virus and helminth
ova. If the surrogates are demonstrated to correlate with spiked pathogens at the laboratory scale,
those surrogates can be tested at full scale and the relationship with pathogens can be used to
support that the required degree of pathogen inactivation for a Class A determination is being
obtained. Since surrogate organisms can be enumerated more rapidly than pathogens, testing for
them would also allow for more frequent process monitoring.




                                                16
Results to date suggest that, male-specific coliphages and enterococci may be useful as surrogates
for virus destruction. Surrogates have yet to be identified that correlate well with helminth ova
destruction. Work will continue on this project in 2010.

MMSD Golf Course Demonstration Project

Working in cooperation with the City of Fitchburg and the Nine Springs Golf Course, effluent is
being used to irrigate a 5,200 square foot area on the 7th hole of the golf course, which includes
the former green and portions of the adjacent fairway. This demonstration project began in 2004
as part of the District’s on-going effort to evaluate opportunities to promote the beneficial reuse
of effluent. The following table shows various application statistics for the past five years.

                        Golf Course Irrigation Summary Information

      General information         2006          2007        2008         2009          2010
   Demonstration area (ft2)          5,200        5,200        5,200        5,200         5,200
   Irrigation period              16 June-      7 May-      16 May-      26 June-       11 Jun-
                                   26 Sept        6 Oct      27 Sept      24 Sept        12 Oct
   Days irrigated                       53           71           79           45            46
   Total volume (gallons)           50,610      56,460        69,750       39,240       40,110
   Total gallons/acre             424,000      473,000      584,000      327,000       336,000
   Total gallons/acre/day*           8,000        6,662        7,400        7,267         7,305
   Precipitation equivalent           15.7         17.5         21.6         12.1          12.4
   (in)
     Commercial fertilizer
            additions
   Total Nitrogen (lbs/acre)          15.6           33           11          174          174
   Total Phosphorus                      0            0            0            0            0
   (lbs/acre)
   Total Potassium                     5.4            8            5           87            87
   (lbs/acre)
       Effluent additions
   Total Nitrogen (lbs/acre)            60            66          77            48           48
   Total Phosphorus                    1.6           1.8         1.6           1.1          1.0
   (lbs/acre)
   Total Potassium                      48           54           67           38            35
   (lbs/acre)

There was no evidence of salt damage or nutrient deficiencies in the turf grass based on visual
observations made throughout the growing season. District staff will explore opportunities to
expand the irrigation project to a larger portion of the golf course in 2011.

Groundwater Recharge

MMSD recently completed a 50-year master plan. Two recommendations from the planning
effort were that the District should consider watershed balancing and opportunities for effluent
reuse in future facilities planning projects. One potential approach to accomplish both watershed
balancing and effluent reuse is to use highly treated effluent for groundwater recharge.




                                                17
The District, in partnership with the City of Fitchburg, supports a yearlong practicum (2010/2011
school year) conducted by the University of Wisconsin-Madison Water Resources Program that is
exploring opportunities for groundwater recharge. Students participating in the practicum are
examining a wide range of engineering, water quality, regulatory, and social issues that need to be
considered before a potential groundwater recharge project could move forward. Much of the
focus during the first semester was spent on collecting baseline information and conducting a
literature review. Specific tasks moving forward include the following:

       Identifying desired site characteristics (soil physical properties, etc) and using these
        characteristics to identify preferred sites within the City of Fitchburg.
       Evaluating potential impacts on water quality and quantity (including impacts on
        groundwater levels).
       Evaluating the current regulatory structure to determine if changes are needed to ensure
        that recharge is conducted in a manner that protects human health and environmental
        quality.
       Developing a generic design for a recharge project, including planning-level cost
        estimates.
       Identifying social barriers to a potential groundwater recharge project and identifying
        specific information/education/outreach efforts to effectively address these barriers.

UW Engineering Department/Struvite Control

In 2010, under the direction of Professor Daniel Noguera of the UW Civil and Environmental
Engineering Department, graduate student Cheng Ji conducted research to investigate the
reduction in struvite formation in anaerobic digesters following Waste Activated Sludge (WAS)
phosphorus release before digestion. Two digester trains were operated for this study. One train
digested WAS combined with primary sludge and no special treatment, the other digested WAS
from which the phosphorus had been released and primary sludge. This portion of the study
demonstrated that releasing phosphorus from WAS prior to anaerobic digestion resulted in
phosphorus levels inside the digester about 10-15% lower than that from digesters fed with
untreated WAS.

Also examined in this research are the effects of cooling the sludges and understanding the
precipitates that are formed. This was a significant problem first observed during 10th Addition
operation of tube and shell heat exchangers used for cooling thermophilic sludge to mesophilic
temperatures. Constant heat exchanger cleaning was required to remove what was assumed to be
struvite from the heat exchanger tubes. The purpose of the research is to understand the
precipitation reaction associated with cooling of thermophilic sludge to mesophilic temperatures
so the precipitation can be reduced or better controlled.

With research still under way at the end of the year, it appears that the previous assumption of
struvite being virtually the only precipitant associated with digested sludge cooling may have
been incorrect. Other related, but different precipitants, may be formed during sludge cool
down. Work is continuing in this area to collect more data, confirm early observations, and to
better understand the processes involved.

UW Engineering Department/Digester Foaming

Under the direction of Sharon Long of the UW College of Agriculture and Life Sciences,
graduate student Amanda Siebels investigated causes and potential cures for anaerobic digester



                                                18
foaming experienced at the Nine Springs Wastewater treatment plant. Foaming in the digesters
has been a serious operational problem since the late 1990’s. The foam has the potential to cause
extensive damage to the digester and gas handling equipment.

Various test methods were developed for measuring the foaming potential in the digesters and in
the feed sludge, and biological tests were under development for identifying filamentous bacteria
normally associated with foaming. Testing was conducted November 2009 through April 2010,
on bench-scale mesophilic and series acid-phase/thermophilic digesters to evaluate the process
impacts on foaming potential. The research confirmed that time of year and the quality of the
feed solids were the most important factors in triggering of our foam events, based on the
observations of the bench scale digesters. The research also concluded that while the acid-
phase/thermophillic digester combination was successful in decreasing filamentous organisms,
due to the presence of the destroyed cell walls, the foaming potential was not reduced, and in fact
was shown in the lab to have increased foaming potential.

Since this research can only be effectively done while the Nine Springs plant is experiencing
foaming, bench research was suspended during the summer months and was re-started in mid-
November. The purpose of this phase of research will be to investigate mitigation techniques in
light of the findings from the previous work.

Phosphorus Release from Waste Activated Sludge (WAS)

Research work continued using in-house staff and laboratory resources to evaluate possible
alternatives to the phosphorus release method proposed by the University research, which was the
combination of the WAS and primary sludges to release phosphorus. This applied research work
demonstrated at bench scale that introduction of a small recycle stream of acid phase digester
sludge to the WAS is capable of a higher phosphorus release percentage than combining WAS
and primary sludge. Added benefits of this method of phosphorus release are decreased liquid
volume to thicken (and thus less equipment required) and a more concentrated phosphorus stream
to send to the harvesting equipment being added in the 11th Addition upgrade. Based on this
bench-scale work, design for the 11th Addition is proceeding around this method as the primary
basis for reducing phosphorus prior to anaerobic digestion.

Additional work in this area during the year determined that addition of a small amount of a
supplement (similar to molasses) from Quality Liquid Feeds (QLF) is capable of equaling the
observed release percentage obtained from acid phase sludge addition. Unlike acid phase digester
sludge—which is being designed into the 11th Addition and will be available on-site—the QLF
supplement (or similar) if used would need to be purchased and transported in. However, it does
appear, based on bench scale work, that it will offer another viable option for operation if acid
phase sludge cannot be used for any reason. Research evaluating the effectiveness of a
combination of acid phase digester sludge and QLF appears to show at bench-scale that it may
offer even greater effectiveness than either additive independently.




                                                19
                       INDUSTRIAL PRETREATMENT PROGRAM

In 2010, the Industrial Pretreatment Program continued to implement state and federal
requirements regarding permitting activities directed towards industrial users. Additionally,
pollution prevention and source control measures continued to serve as vital components of the
working relationships with non-permitted users.

Industrial permits for Carnes Company, Fristam Pumps USA, Placon Corp., and Bell
Laboratories were all reissued. All industrial permittees received annual inspections, and
District-led compliance monitoring of regulated wastewater discharges occurred in both semi-
annual periods. No third party or regulatory audits of the pretreatment program were conducted
in 2010.

District staff continued to perform waste-acceptance reviews and to respond to non-permitted
industrial, hauled waste, and other waste acceptance requests. Septage permits were issued to
several new waste haulers and annual septage permits were reissued to more than 30 hauling
companies. Eleven mid-level (NTO) permits were reissued to entities including landfill owners
and industrial/institutional dischargers. Pollution prevention efforts continued to focus on
mercury with some outreach directed towards future chloride reduction measures.

Activities in the fourth year of the Mercury Pollutant Minimization Plan remained focused on the
dental sector. Over 100 dental clinics, where dental amalgam is placed or removed, continued to
operate amalgam separation equipment. The fourth annual report of dental best management
practices by dental clinics resulted in improved response rates over previous years. Additional
dental sector activities included performing site visits at 20 dental clinics. District staff
performed site visits at hospitals and UW Madison to support mercury minimization activities at
those institutions.

                 ACCEPTANCE OF SEPTAGE AND ATYPICAL WASTES

Septage has been accepted at Nine Springs Wastewater Treatment Plant since 1986. During
2010, the District accepted waste from 21 permitted septage haulers and six non-typical haulers
(organizations or consultants) via special discharge permits. The septage receiving facility
handled nearly 9,500 loads in 2010. The septage haulers are charged a specific rate for each
category of septage that reflects the District’s cost of treating the wastes.

The following table lists the five domestic septage categories, the number of gallons of septage
received during 2010 and the percent of increase or decrease in volume from 2009 to 2010.

                 Septage Types Received, Summary Information

  Septic Tank        Holding Tank      Grease Trap       Settling Basin   Portable Toilet
   7,167,000          14,430,000         428,000            223,000          227,000
  32% increase       15% increase      6% decrease       10% decrease      2% decrease

The septage receiving facility is the discharge point for other wastewater not characterized by the
five domestic categories. During 2010, other wastewater included:




                                                20
                          Other Wastes                        Volume (Gallons)
             Groundwater from Remediation Projects                  15,600
               Refuse Hideaway Landfill Leachate                    476,000
                   Middleton Landfill Leachate                       16,000
                    Verona Landfill Leachate                         69,000
                    Ice Cream from Schoep’s                         148,000
             Annatto Oil Residue from Danisco USA                     4,500
              Tissue Digester Residue from WVDL                      32,000
             Diluted Glycol from HVAC Contractors                    11,000
                   Other Industrial Wastewater                        3,000

The District continued cooperative efforts with regional wastewater treatment plants by providing
transportation and treatment services for biosolids. The District transported 84 loads of biosolids
from the Village of Brooklyn totaling 413,000 gallons and 134 loads of biosolids from the Village
of Belleville totaling 666,000 gallons. Other wastewater generated outside of the District service
area and transported by permitted septage haulers included: 95,000 gallons of pet food
manufacturing waste from NFP of rural Lake Mills, and 613,000 gallons of meat packing
wastewater from Dairyland Beef of rural Cottage Grove and Country Meat Cutters of rural
Reeseville. Acceptance of wastewater generated outside of the District is in accordance with
District policy, and generators are assessed surcharges that escalate quarterly.

                          LAGOON SITE SUPERFUND PROJECT

Routine O&M activities continued in 2010. These activities included monthly visual inspections
of capped areas and containment dikes, dike stability monitoring, water management and
vegetation control. The cap continues to perform as intended and routine O&M activities will
continue in 2011. The District received permission from EPA to move from a semi-annual
reporting frequency to an annual reporting frequency. EPA agreed that a reduced reporting
frequency is warranted given the low maintenance requirements and the low level of activity
associated with the capped area. EPA also determined that dike stability monitoring using sondex
and inclinometer instrumentation only needs to be conducted during times when significant work
takes place (e.g. raising dike elevations as part of routine maintenance).

                                  WATERSHED PROJECTS

Yahara River Watershed Monitoring Program

Monitoring to determine the impact of the District’s treated discharge upon the main receiving
stream, Badfish Creek, continued in 2010. During 2010, water-quality sampling of Badfish
Creek, its tributaries and the Yahara and Rock Rivers continued semi-annually at established
sampling points.




                                                21
Aquatic macroinvertebrate samples were collected from three sites on Badfish Creek and one site
on the Oregon Branch of Badfish Creek twice during 2010 (April and October). Three samples
were taken at each site, producing a total of 24 samples. Biological indices continue to suggest
that the District’s effluent water quality is not inhibiting organisms from living in Badfish Creek.
Preliminary data show fair to good water quality classification for all sites.

Staff collected fish at three sites along Badfish Creek in July using the District’s walk-along,
stream-shocking boat. Each site sampled had four 100-yard sections shocked for data analysis.
Results continue to show a diverse population of fish inhabiting Badfish Creek. A total of 45
different species of fish has been collected since fish shocking was started in 1983, with 19


                                                22
species being collected in 2010. At Site 1, northern pike were again collected being found 5 of
the last 6 surveys at this uppermost site on Badfish Creek. Twenty-six brown trout were collected
at Site 2 which is the most collected since the inception of fish shocking in May 1983. The
blacknose dace, brown trout, hornyhead chub, white sucker, and golden shiner all showed an
increase in the collections during this survey at Site 3.

The green sunfish was again the dominant fish collected at Site 1. At Sites 2 and 3, the white
sucker was again dominant. The information collected continues to suggest that water quality is
not a limiting factor in the viability of fish living throughout Badfish Creek. The lack of fish
habitat and the addition of non-point pollution sources along the 20 miles of Creek, may continue
to cause fewer game fish and other fish species to be collected during future surveys. The aquatic
plant, Eurasian water milfoil, was seen for the sixth year at all fish shocking sites. There is a
concern that this species of aquatic plant will form dense mats on the surface of the water,
affecting dissolved oxygen values which are critical for the survival of fish and other aquatic life.
Eurasian water milfoil is now quite prevalent at Site 2. This highly invasive exotic plant will be
closely monitored during future surveys.




                                                 23
Sugar River and Badger Mill Creek Monitoring Program




The Sugar River and Badger Mill Creek, both within the Sugar River Watershed, were sampled
chemically and biologically in 2010 to determine water quality.

During 2010, water samples were collected bimonthly at established sites within the watershed
and chemically analyzed.

Aquatic macroinvertebrates were collected at two sites on the Sugar River and three sites on
Badger Mill Creek in April and October. Aquatic macroinvertebrates were collected similarly to


                                             24
the ones in Badfish Creek with three kick samples taken at each site, producing 30 samples.
Preliminary data for 2010 show a fair-to-good macroinvertebrate community at all of the sites,
which is similar to 2009.

A fish survey completed in July used the District’s walk-along stream-shocking boat on four 100-
yard sections at two sites on Badger Mill Creek and two sites on the Sugar River. This survey
produced 23 different species of fish. Since 1994, there have been 39 species of fish found in the
Sugar River Watershed; 29 species in Badger Mill Creek and 36 species in the Sugar River. The
brown trout had the 2nd greatest number of individuals collected at all sites since 1994 (346).
Water chemistry has not changed; however, stream habitat (substrate) appears to be changing
from a more coarse gravel to a finer-grained mud. It is recommended for future studies to use the
same shocking crews to aid in data analysis.




                                               25
Upper Yahara River Watershed Monitoring Program




In July 2002, monthly water sampling was initiated in the Upper Yahara River Watershed on
Token Creek, Six Mile Creek, Spring Creek and the Yahara River. For each water body, water


                                           26
samples were taken at sites near their headwaters and at sites closest to their entrance to Lake
Mendota. Samples were taken to characterize water quality conditions in the Upper Yahara River
Watershed. In July 2003, after a year of monthly testing, sampling was reduced to quarterly. The
number of sample sites was also reduced, with remaining sampling taking place closest to each
stream entry to Lake Mendota. During 2009, four samples were taken at these sites. Results
continue to show similar values for the twenty-three chemical parameters monitored. Sites have
also been chosen for fish and aquatic macroinvertebrate sampling, although no collections were
made in 2009.

Grass Lake Monitoring Program

Numerous times during the year, relief operators and the District Biologist went to the Grass Lake
dike to monitor its integrity and gather water level information from the lake and the Badfish
Creek effluent channel. Although water sampling was discontinued in 1995, the District still
monitors lake levels and maintains the dike as required by the NR 30.12 permit issued by the
Department of Natural Resources in 1988.

Phosphorus-Related Initiatives

The Natural Resources Board adopted administrative rule revisions related to phosphorus in June
2010, that are collectively aimed at controlling phosphorus discharges to waters of the state.
These revisions included establishing numeric water quality criteria for phosphorus, developing
an implementation framework for point dischargers, and establishing new provisions to control
runoff from nonpoint sources.

In a separate effort, the Wisconsin Department of Natural Resources (WDNR) and EPA have
jointly issued a draft Total Maximum Daily Load (TMDL) for phosphorus and total suspended
solids for the Rock River Basin. A TMDL is a calculation of the maximum amount of a pollutant
that a water body can receive and still meet water quality standards. The TMDL allocates the
pollutant load between point sources and nonpoint sources. DNR has also begun to develop an
implementation plan for the TMDL, with assistance from stakeholder groups. District staff are
participating in the development of the implementation plan.

These phosphorus-related initiatives will impact the District by requiring that phosphorus loads
associated with effluent discharge either be reduced by adding advanced treatment at the Nine
Springs Plant, offset through water quality trading, or addressed using a combination of these
approaches.

The Natural Resources Board also directed DNR staff to develop a statewide framework to
support water quality trading. DNR formed a workgroup to provide assistance in developing this
framework, and District staff is participating in this effort. The District, in cooperation with Dane
County, also formed a workgroup to help evaluate opportunities for trading at the local level.

                              MONITORING STREAM FLOWS

An agreement signed in June 1977, with the United States Geological Survey (USGS) for
monitoring stream flows in Badfish Creek near Cooksville and the Yahara River near Fulton, was
renewed for another year. In September 1996, an agreement was also signed with the USGS to
monitor stream flows, stage, specific conductance, dissolved oxygen and water temperatures in
Badger Mill Creek near Bruce Street in Verona. This agreement was also renewed for another



                                                 27
year. In April 2009, a new monitoring site was added to the Sugar River at HY 69 near Verona.
This site monitors stream flows, stage, specific conductance, dissolved oxygen, water
temperatures and pH.

                                 LABORATORY ACTIVITIES

During 2010 the District Laboratory performed a total of 61,005 analyses on 13,100 samples.
These analyses included:

                           PARAMETERS                                    QUANTITY
    Nutrients (TKN, TP, NH3-N, NO2-N, PO4-P, WEP)                                17,899
    Solids (Suspended and Total)                                                 16,348
    Biochemical Oxygen Demand                                                     5,201
    Anions (C1, NO3-N, SO4)                                                       4,002
    Field Measurements (pH, TEMP, COND, DO)                                       4,247
    Metals                                                                        9,021
    Bacteria (FCOLI, TCOLI, ECOLI, Salmonella)                                    1,436
    Volatile Fatty Acids (VFA)                                                    1,781
    Misc. Testing (Alkalinity, Density, Oil and Grease, CN, WET)                  1,070

The District laboratory was also involved in the following activities:

       Continuing its relationship with the UW and providing analytical support on three UW
        research projects. One project was designed to assess the performance of anaerobic
        digesters fed “normal” sludge versus anaerobic digesters fed “phosphorus-released”
        sludge. The second study was designed to assess the issue of foaming in the digesters.
        The third study is a research project conducted by the UW-Soils Department that is
        evaluating the use of biosolids to support turf production. These studies will continue
        into 2011.
       Analyzing numerous samples in support of in-house research to help determine the
        efficiency of phosphorus release using acid sludge.
       Analyzing samples from the City of Middleton for TKN, NH3-N and TSS analysis.
        During wet weather conditions, the city pumps water out of a retention pond and must
        have the discharged water analyzed for reporting to the DNR. During the year the
        District analyzed twelve samples of this type.
       Analyzing samples from the City of Madison Engineering Department from their
        monitoring program. The City collects samples from various points throughout the
        collection system to use for billing purposes. The District analyzed 137 samples for
        TKN, TP, CBOD5, TSS, and pH. This partnership will continue in 2011.

                        MAINTENANCE OF DISTRICT FACILITIES

The maintenance workgroups of the Operations and Maintenance Department are responsible for
the maintenance of the Nine Springs Wastewater Treatment Plant, the District pumping stations,
the non-District pumping stations covered by maintenance agreements, and the District’s
interceptor system. This work is performed by the Mechanical Maintenance Section, the
Electrical Maintenance Section, the Building and Grounds Section, the Monitoring
Services/Sewer Maintenance Section, and the Purchasing/Inventory Section.




                                                 28
Training of craftsmen continued to be an important function in 2010. Maintenance Department
personnel serve on the Joint Apprenticeship Training Committee (JATC) which oversees the
activities of the apprenticeship programs for electricians and mechanics. Additional training
courses attended by Maintenance Department supervisors and craftsmen included: MMSD
Supervisory Training Program, Underground Storage Tank Operator training, Full Circle WAM
user conference, Smart Pressure Transmitter training, and the Collection System Seminar

Following are more detailed listings of the activities performed by each of the maintenance
sections.

Building and Grounds Section

The section spent the majority of the year maintaining the District and non-District pumping
stations and the Nine Springs Wastewater Treatment Plant buildings and grounds, odor control
equipment, roads, and small equipment. Routine work includes landscaping projects, cutting
grass, plowing snow, cleaning plant buildings and galleries, maintaining lagoon and dike roads,
and painting and carpentry projects. This section performs preventive maintenance work on the
District’s electrical manholes, process tanks, roofs, floors, and HVAC units.

There were significant personnel changes within the Building and Grounds Section in 2010.
Early in the year, Art Errthum moved to an Apprentice Electrician position and Steve Klein
moved to an Apprentice Mechanic position. Ross Hollfelder, Brady Lessner, and Jeremy Olson
joined the District with the Building and Grounds crew in March.

In 2010, the Building and Grounds Crew assisted the Operations and Engineering staff with
various projects. Major projects accomplished in 2010 were:

              Cleared trees off of the Grass Lake Dike.
              Continued working with the City of Madison on a non-intrusive well cleaning
               procedure. The procedure minimizes entry into confined spaces and allows the
               grease that is removed to be taken directly to the landfill.
              Performed preventive maintenance on Primary Tanks 1, 2, 13, and 14.
              Performed preventive maintenance on Aeration Tanks 1 through 9.
              Performed preventive maintenance on Final Clarifiers 1, 2, and 7.
              Painted and landscaped at the treatment plant.
              Changed the media in one of the siloxane removal vessels of the gas treatment
               system.
              Replaced the roof, siding and entrance doors at the City of Madison Truax pump
               station.
              Performed minor painting at several lift stations.
              Replaced the leaking and cracked skylight windows above the Operations
               Building east stairwell with a new roof.
              Installed new entrance doors at the Town of Madison Mayflower Pump Station
               and District Stations 13 and 14.
              Removed and installed a new sluice gate valve for final Clarifier 7




                                              29
The following services were contracted with support provided by the Building and Grounds
Crew:

               Media blasted and recoated the metal components for Final Clarifiers 1 and 2
                with Sherglass to extend the life of the components.
               Replaced the hatch covers and support structures on Digesters 1 and 2.
               Repaired a leak in Final Clarifier 3.
               Repaired failing concrete on the effluent step aerator for Final Clarifiers 1-3 by
                cutting off several feet, tying in, and pouring a new section.
               Repaired the road to the parking area north of the Effluent Building.
               Removed the asbestos ceiling covering in the Service Building garage area.
               Replaced a roof on the Service Building.
               Removed, painted, and reinstalled the exhaust piping for the Blower engine.
               Fabricated a new stainless steel sluice gate for Final Clarifier 7
               Increased the height of the wall under the conveyor in the MetroMix storage
                building.
               Repaired the concrete base for the blower engine.
               Replaced the septic system tank for the District property at 1243 Moorland Road

Mechanical Maintenance Section

The goals of the Mechanical Maintenance Section are to: 1) verify proper operation and
effectively maintain the pumping stations of the District and its contract customers; 2) ensure that
all collected wastewater is conveyed to the treatment plant; 3) effectively maintain and support
operation of the treatment plant equipment and facilities while working with operations personnel
to meet the District’s goal of meeting or exceeding the WPDES permit; and 4) develop section
staff members to their best professional and personal ability through the District’s apprenticeship
program, other training programs, and wellness opportunities.

Mark Ripp completed his apprenticeship and became a journeyman maintenance mechanic.
Zenon Kochan and Steve Klein were enrolled in the Maintenance Mechanic Apprenticeship
Program. They continue to gain valuable work experience by working with the District’s
journeymen. Three mechanics are also participating in the District’s Supervisory Training
Program. Several mechanics have begun to work on their Personal Learning Plans.

In addition to many planned and scheduled maintenance activities, major accomplishments
completed in 2010 included:

       Removed and reinstalled three effluent cone valves when they were sent for rebuilding.
       Rebuilt an ACB2 return sludge pump.
       Repaired digester draft tube mixers and mixing compressors.
       Rebuilt Pumps A and B at Pump Station 17.
       Installed two new pumps at the City of Madison Cherokee pump station.
       Installed one new pump at the City of Madison Atlas pump station.
       Replaced the compressor at the City of Madison Diemer pump station.
       Removed and reinstalled the Waukesha blower engine when it was sent out for an
        overhaul.




                                                30
Electrical Maintenance Section

The Electrical Maintenance Section devoted a majority of the year to providing the support
necessary to assure a high level of electrical reliability to District facilities and the facilities
owned by others and maintained by the District. This was accomplished with a mix of preventive
maintenance, normal day-to-day support, staff training, and planned improvement and
construction projects. Examples of preventive maintenance tasks developed by the section
include: calibration of electrical and instrumentation equipment, thermographic testing of
switches and motors, repair and testing of fixed and portable gas detectors, and operational
inspections and cleaning of electrical and electronic equipment. The section continued to make
progress in identifying problems by tracking data with the use of the Computerized Maintenance
Management System (CMMS). The CMMS has continued to aid with maintenance scheduling
and daily work orders.

Steve Hering completed his apprenticeship and received his journey worker certificate. Carl
Wright retired from the District. Jeff Kroning and Jeff Fuller continued their progression in the
Industrial Electrician Apprenticeship program. Art Errthum joined the electrical maintenance
group and enrolled in the apprenticeship program.

In addition to normal maintenance tasks connected with the operation of the District’s wastewater
collection and treatment facilities, the following planned improvements or projects were
completed or continued in 2010.

       Completed upgrade of the electrical distribution system and pump controls at the Town
        of Madison Mayflower Pump Station.
       Assisted with the rehab projects at District pump stations 6 & 8.
       Completed the upgrade of the level control system at District Pump Station 7.
       Assisted with the Process Control System facility planning project.
       Prepared the pumping station control panels for summer and winter operation.
       Continued with the upgrading and documentation of electrical drawings for the District
        and non-District facilities.
       Provided electrical cross-training to the District’s mechanics.
       Assisted with the startup of City of Madison Midtown pump station.
       Continued with the in-house training of the apprentice electricians on electrical and
        instrumentation theory and hardware.
       Continued updating of the documentation for the District’s phone system.
       Continued to modify the Johnson Control software to accommodate the Operations
        Building HVAC system.
       Operated District generators to provide power to various pumping stations during
        planned and unplanned power outages.
       Assisted with the operation building HVAC control system rehab project.
       Assisted the Engineering Department with submittal review for pumping station and
        Plant rehabilitation and upgrade projects.
       Continued with the replacement of Power Quality Monitors at the Nine Springs Facility
        and various District pump stations.
       Completed installation of new anode field for the cathodic protection system at the City
        of Madison Veith lift station.
       Completed installation of new anode field for the cathodic protection system at the
        Village of Maple Bluff Baywood lift station.



                                                31
       Assisted with startup and installation of a new District phone system to include training
        for new system.
       Continued with modification of control systems at City of Madison and District lift
        stations to allow proper station operation when the PLC or UPS has failed.
       Completed upgrade of Operations Building sump controls.
       Completed the flow meter replacement for primary effluent flow to Aeration Tank 24.
       Assisted Mechanical maintenance group with Blower engine and Generator engine
        removal and rehab.
       Assisted with the preventive maintenance testing of electrical equipment at the Nine
        Springs facility and District pump stations.
       Assisted with the thermographic inspection of electrical equipment at the Nine Springs
        facility and District pump stations.

Inventory Control/Purchasing

The primary goal of the Inventory Control/Purchasing Section is to centralize purchasing and
inventory control functions for the District to reduce costs. One major component is the
scheduling and completing of physical inventories. Three partial inventories were conducted in
April, July, and October based on usage. In December, a full physical inventory was conducted to
reconcile all inventory quantities.

Grouping orders together and taking advantage of price breaks at price and quantity levels have
helped to reduce purchasing costs. Internet purchasing is being used to take advantage of the
latest technology. Expanding the vendor base and finding alternative sources and products for
District purchases have resulted in shorter ordering times and a reduction in District inventory.

During 2010 the Inventory Control/Purchasing section performed the following:

       Took over responsibility for purchasing and inventorying of safety equipment.
       Assisted with the testing of new releases for the Computerized Maintenance Management
        System known as WAM
       Attended the WAM user group conference
       Received certification as Class A and B underground storage tank operators.
       Increased the number of parts being manufactured by local machine shops rather than
        purchasing them from the equipment supplier.
       Began working with a second machine shop to manufacture replacement parts.
       Obtained membership in the Madison Plant and Facilities Maintenance Association
        (PFMA).

Monitoring Services/Sewer Maintenance Section

Following the retirement of Don Lythjohan, John Podebradsky was selected to fill the Collection
System Supervisor position. Later in the year, Derek Steinhorst was selected to fill John’s
position on the crew. A major portion of the work performed by this section is the collection of
wastewater samples and flow information from the communities and sanitary districts that are
served by the District. The crew also inspects portions of the District’s collection system each
year. Repair needs found by the crew are either made by the crew members or by contractors. In
addition to the inspections performed by the crew, crewmembers work with contractors to
televise and clean portions of the interceptor system. During 2010, the following activities were
performed by the crew:


                                               32
      Inspected and maintained the air relief valves on several of the pumping station
       forcemains. Worked with the Engineering Department and equipment vendors to
       determine if modifications could be made to reduce the plugging problems that have been
       experienced.
      Made repairs to several manholes that had been damaged by snowplows or mowers.
      Inspected the following interceptors:
           o Southeast Interceptor McFarland Relief and Sigglekow Extension
           o Nine Springs Valley Interceptor Highway 14 Extension, Granada Way leg, and
                Ski Lane leg
           o Northeast Interceptor manholes10-101 to 10-112.
           o West Interceptor Randall Relief
           o Northeast Interceptor Waunakee Extension
      Worked with a contractor to smoke test and remove an abandoned line that ran through
       manholes 02-032 through 02-038.
      Inspected stop log and flap gate structures.
      Exercised buried valves at several pumping stations.
      Removed the flow splitting gate in manhole 4-313.
      Worked with a contractor to clean the siphons.
      Installed inside seals on manholes 12-104 through 12-106.

                     INTERCEPTOR TELEVISING AND CLEANING

MMSD's collection system includes 93 miles of MMSD-owned gravity interceptors and
approximately 1,200 manholes. MMSD’s interceptor inspection program includes annual
cleaning and televising of approximately 10% of this system each year. This program is intended
to keep MMSD current on the physical condition and hydraulic adequacy of its interceptors and
to allow for well-informed decisions regarding the need for significant underground repair or
replacement projects. The 2010 televising and cleaning was performed by Visu Sewer, Inc. The
following areas were cleaned and televised:

       West Interceptor                                11,818 ft
       Northeast Interceptor                            1,710 ft
       Southeast Interceptor                            7,810 ft
       East Interceptor – Monona Extension              1,326 ft

The contractor must repeat televising for 3,880 ft of the Northeast Interceptor because of
technical problems with the recording system. That work will be completed in 2011.

                     USER-CHARGE MONITORING AND BILLING

User-charge billing of the District’s thirty-seven municipal customers is performed quarterly
using data collected at Nine Springs Wastewater Treatment Plant and within the collection
system. The monitoring services/sewer maintenance (MS/SM) crew supports quarterly billing by
providing sampling and flow measurement at key points in the collection system. In 2010, the
MS/SM crew collected data and samples at 92 field sampling points each quarter, thereby
generating 2704 samples throughout the year. The analysis of the user-charge field samples and
Nine Springs influent samples by the District lab generated 12,463 sample results used in the
user-charge billing process.




                                              33
                              SEWERAGE SERVICE CHARGES

Prior to the beginning of each calendar year, the District furnishes a written estimate of the cost of
sewerage service for the ensuing year to each municipality in the District. This estimate is based
on the previous year’s wastewater contributions, any anticipated changes that may alter the
municipality’s prevailing water use trends, and the service charge rates for the ensuing year.

The District’s 2010 service charge rates, shown in the following table, were adopted on October
26, 2009.

                          Service Charge Rate Summary Information

                         Parameter                 Rate              Units
                 Volume                            $440.36     per million gallons
                 CBOD                             $0.12347     per pound
                 Suspended Solids                 $0.18778     per pound
                 TKN-Nitrogen                     $0.33234     per pound
                 Total Phosphorus                 $2.06383     per pound
                 Actual Customers                   $18.72     per year
                 Equivalent Meters                    $9.93    per year

The 2010 rates included a 0.90% surcharge to recover the DNR NR101 effluent fees.

Wastewater volumes, CBOD loadings, suspended solids loadings, total Kjeldahl nitrogen (TKN)
loadings and total phosphorus loadings are determined each quarter for each community. These
determinations are based on a minimum of seven consecutive days of monitoring data for the
current quarter and previous quarter’s discharge data for each community.

Meter equivalencies are based on the capacities of the different sizes of water meters used
throughout the District. A 5/8-inch water meter has a capacity of twenty gallons per minute and
is defined as one equivalent meter. The capacities of larger water meters are divided by the
twenty-gallon per minute capacity of a 5/8-inch water meter to determine their meter
equivalencies. An actual customer is defined as one water meter without regard to size. The
numbers of equivalent meters and actual customers in each municipality are set by counting the
number of each size of water meter in service in each municipality where water meters are used.
In municipalities where water meters are not used, the number of each size water meter that
would be required is estimated.

In 2010, the average annual residential service charge in the District was about $245. This
amount includes $133 for services provided by the District and $112 for services provided by the
municipality (e.g. the City of Madison). A survey of 165 of the nation’s largest municipalities
indicated that the typical residential service charges in the District in 2010 were 65% of the
national average of $376.

Operating costs per million gallons of treated wastewater for the years 2006 through 2010 were as
shown in the table below. Several accounting policy changes in 2008 affect comparisons with
prior years. First, benefit costs that had previously all been charged as an administration or
treatment expense were charged to all cost centers. The effect of this change is to reduce
administration costs and increase collection labor costs. Second, some planning costs are no
longer charged to the collection and treatment cost centers, but are included under administration


                                                 34
costs. The effect of this change is to increase administration costs and reduce collection and
treatment costs. The combined effect of the accounting policy changes is to show an overall
decrease in the 2007 operating costs of 0.7%. To enable a “same basis” comparison, column
2007(2) shows 2007 costs using the same accounting policies as were used for 2008 and
succeeding years. These changes would increase the 2007 administration costs by 3%, and
decrease the collection costs by 9% and treatment costs by 1%.

In comparison with the 2008 costs, 2009 overall operating costs increased 3.7% with
administration costs increased 12.9%, collection costs increased 0.3%, treatment costs increased
1.9%, and debt service costs increased 3.4%. The large percent increase in administration costs
was associated with recognizing liability for other post-employment benefits (OPEB); this is the
first year that these costs are reflected in operating expenses. The cost per million gallons
increased by 12.9% compared to the 2008 because of the moderate increase in costs combined
with a large volume decrease of 8.1%.

In comparison with the 2009 costs, 2010 overall operating costs increased 4.0% with
administration costs increased 5.8%, collection costs decreased 6.5%, treatment costs increased
5.1%, and debt service costs increased 4.8%. The relatively high increase in administration cost
was associated with additional demolition costs. The large percentage decrease in collection
costs was due to lower labor and repair service costs. The cost per million gallons increased by
9.9% compared to 2009 because of the moderate increase in costs combined with a significant
volume decrease of 5.4%.

                        Costs per Million Gallons of Wastewater Treated

        District Function       2006      2007         2007(2)    2008    2009       2010
        Administration           $170      $202          $209      $165     $203      $227
        Collection                104       115           105       118      129       127
        Treatment                 545       569           564       544      603       669
        Debt Service              450       436           436       408      459       509
        TOTAL                  $1,269    $1,322        $1,314    $1,235   $1,394    $1,532

                                    TRAINING ACTIVITIES

During 2010, District employees completed over 5491 hours of training. As a whole, District
employees averaged over 65 hours of training per employee during the year.

Notable training during 2010 include:

         Vendor training conducted for Pump Stations 6 & 8, and new Blower engine controller.
         District employees averaged over 14 hours of safety training each during 2010. Safety
          training is held monthly throughout the year.
         The District continued phase two of the Manager Supervisor Training Program for the
          new and prospective Managers and Supervisors. A total of 25 people signed up for the
          second phase of the training which started early in 2008. Training sessions for the
          program are a mix between courses taught by District staff and courses taught by
          Madison Area Technical College instructors. The program has been very well received
          and is a model training program for which other agencies have requested information.




                                                  35
                                           2010 Average Training Hours by Workgroup

       Training Hours per Employee
                                     180
                                                                           Average of 65 hours per employee
                                     160
                                     140
                                     120
                                     100
                                      80
                                      60
                                      40
                                      20
                                      -




                                                              Workgroups



                                                 PUBLIC EDUCATION

MMSD 2010 Tour Summary

In 2010, 53 tours took place with a total of 1741 total participants. Compared to 2009, 34 tours
took place with a total of 1008 total participants. Helping with our public education efforts by
serving as tour guides were: Paul Nehm, Roy Swanke, Steve Reusser, Jim Post, Jon Schellpfeffer,
Ralph Erickson, Matt Allen, Ryszard Zolnik, Dave Taylor, Mike Northouse, and Jeff Brochtrup.
Terry Gent and others in the Building and Grounds crew assisted tour efforts by setting up the
Multipurpose Room for tours and by keeping the facility “Park Like and Parlor Clean.” Monty
Baker and others in the Lab helped by setting up the Lab display and exhibits.

For nearly every tour, Jeff Steven hosted the tour area in the Effluent Building displaying the
many species of fish found in streams receiving the District’s plant effluent. To highlight the
quality of the effluent produced at the Nine Springs Wastewater Treatment Plant, the 50-gallon,
flow-through aquariums showcased in the Effluent Building public education room. In addition
to the fish tank, this display area includes maps, drawings and pictures of all water, aquatic
macroinvertebrate and fish surveys. The tank that houses fish contains species that are commonly
collected along Badfish Creek, Badger Mill Creek and the Sugar River. Effluent flows through
the aquarium prior to being pumped to Badfish Creek and Badger Mill Creek. Survival, growth
rates, and activity of the fish, which are living in 100% effluent, continued to be normal. The



                                                         36
display area is a favorite attraction of the many tour groups that routinely visit the Nine Springs
Plant. It also acts as a “canary in a mine shaft” scenario to show if the effluent is acutely toxic to
some of the biological inhabitants prior to the effluent’s discharge to the receiving streams. Tour
participants also receive a pencil as a reminder that we need everyone’s help in doing the right
thing when using water. Tour groups are asked to keep inorganic wastes, chemicals, mercury, and
unused medicines out of the wastewater stream to help protect the environment, reinforcing the
concept that “a toilet is not a waste basket”. Time is spent during each tour encouraging people to
consider higher education and apprenticeships working towards careers in environmental fields.

Interceptor and Fact Sheet News Letters

In 2010 two Interceptor newsletters and one Fact Sheet were produced. The Interceptor is a
newsletter that is distributed to District employees and sent to our customer communities,
regulators, consultants, vendors, retirees, sister agencies and colleagues. The Interceptor keeps
everyone updated about activities here at the District. The Fact Sheet newsletter is an internal
publication that helps keep the District’s employees up to date on issues that affect them. Many
people help produce these newsletters, Roy Swanke is the main editor and producer of the Fact
Sheet. Jon Schellpfeffer and Matt Allen are the main editors of the Interceptor newsletter. The
Interceptor is put together by a 3rd party graphic artist. In addition, many District employees
contribute articles to the newsletters.

MMSD Radio Advertising Campaign for Public Education in 2010

During spring time 2010, as part of a five initiative action plan to help reduce inflow (clean
water) into the MMSD collection system, the District, for the second year, produced and aired
public education radio commercials. The commercials targeted homeowners by encouraging them
to check their gutter and downspout systems to make sure the systems would direct water away
from their foundations and keep the rainwater from getting into their basements. The radio spot
also included information about proper basement sump pump connections and a focus, new in
2010, on conserving water. Complementing the advertising, the District dedicated a webpage to
inflow reduction resources in an effort to help educate customers how to prevent rainwater from
getting into the sanitary sewer system. To view the webpage and listen to the commercials log on
to:

http://madsewer.org/RainGuttersDownspoutsBasements.htm

                     PROFESSIONAL PARTICIPATION DURING 2010

The Commissioners of the District support and encourage participation by District employees in
activities that promote the knowledge and enhance the image of the water quality field. District
employees were very active in professional societies as officers, committee members, presenters,
and attendees at various meetings. Some of these activities are:

Mark Anderson – Member Society of Environmental Toxicology and Chemistry (SETAC).
Attended SETAC Annual Conference. Represents Madison Metropolitan Sewerage District at
EnAct Board meetings.

Monty Baker – Provided training of laboratory techniques to Central States Operator Challenge
Teams in preparation for competition at WEFTEC. Attended the annual Midwest Water Analysts
seminar. Member of the WWOA and attended the 44rd Annual WWOA Conference in Wisconsin
Dells.


                                                 37
Stephanie Calkins – Attended the WICPA (Wisconsin Institute of Certified Public Accountants)
Governmental Accounting and Auditing Update Seminar.

Shirley Fox – Attended Full Circle 2010 – Work and Asset Management(WAM) User Group
Meeting in Vancouver, WA. Attended Oracle Customer Advisory Board (CAB) meeting in Las
Vegas, NV – Head of Water/Wastewater Special Interest Group. Participated in the League of
Wisconsin Municipalities annual meeting for clerks, treasurers and finance officers.

Alan Grooms – Participated as a mentor for the University of Wisconsin, College of Engineering
Senior Capstone Design Class during Fall Semester. Participated as a member of the Central
States Water Environment Association (CSWEA) Anaerobic Digester Foaming Committee.
Presented on struvite recovery and how it factors into biosolids phosphorus management at the
28th Annual WWOA Spring Biosolids Symposium.

Dan McAdams –Served as Chair for the District’s Joint Apprenticeship Training Committee
(JATC). Served on the District’s Safety Committee

Paul Nehm – Member of the Wisconsin Section of CSWEA 2010 Management Seminar
Planning Committee. Presented “Engineering Effects on Operations and Maintenance” to UW
Civil and Environmental Engineering class.
 
Steve Reusser – Served as Technical Program Committee Chairman for the Central States Water
Environment Association meeting held in May, 2010. Received the 2010 Central States
Radebaugh Award for the paper, “Caution --- Advanced Digestion Processes”, a paper presented
at the 2009 Central States Water Environment Association meeting. Participated in 2010 as a
member on the Central States Water Environment Association ad hoc Anaerobic Digester
Foaming Committee. Participated as an instructor for the University of Wisconsin, College of
Engineering Department of Engineering and Professional Development course, “Understanding
Water Chemistry for Practical Application”, held March 9th & 10th, 2010. Participated as an
instructor for the University of Wisconsin, College of Engineering Department of Engineering
and Professional Development course, “Wastewater Treatment Plants: Process, Design and
Operation”, held from September 8-10, 2010. Shared with Alan Grooms serving as a mentor
and meeting weekly for a UW Civil/Environmental Engineering Capstone course in the fall, 2010
semester.

Rhonda Riedner – Member of the Association of Laboratory Managers (ALMA). Attended
Pittcon, The Pittsburgh Conference on Analytical Chemistry and Applied Spectroscopy, held in
Orlando, Florida, March, 2010.

Curt Sauser – Member of Wisconsin Society of Land Surveyors (WSLS): attended WSLS
Annual Institute held in Wisconsin Dells in February. Member of Madison Area Surveyor’s
Council (MASC). Member of International Right-of-Way Association (IRWA): attended IRWA
Advanced Business Relocation seminar held in Madison in December.

Mike Simon – Member of the IEEE (Institute of Electrical and Electronics Engineers) Technical
Book Coordinating Committee’s (TBCC) Maintenance, Operations, and Safety Working Group
(former Yellow Book Working Group) and Project Chair for the recently published IEEE
Recommended Practice for the Operation and Management of Industrial and Commercial Power
Systems. Co-authored Overview of Changes to IEEE 902, Guide for Maintenance, Operation,
and Safety of Industrial and Commercial Power Systems for presentation at the IEEE Safety


                                             38
Workshop held in January 2011. Member of the TBCC’s Reliability, Grounding, and First
Principles Working Groups. A member of the Industrial Application Society (IAS) of the IEEE
and the Madison Section - IEEE. Attended the Industrial and Commercial Power System
(I&CPS) conference in Tallahassee, FL in May. Member of WEF and WWOA. Member of
CSWEA Management Seminar planning committee. Presented “Wastewater Facility – Electrical
Design Considerations” for UW Civil Engineering students (CEE 426) in December.

Jeff Steven – Taught biology, collection and identification techniques of fish and aquatic
macroinvertebrates and basic water chemistry to grade school, high school and numerous college
students and adult groups. Presentations and participation during MMSD tours and the North
American Benthological Society Annual Meeting; Member Wisconsin Association of
Environmental Educators (WAEE), Member NACWA Water Quality Committee Biocriteria
Workgroup, Member WERF Watershed Management and Water Quality Committee, Previous
member WDNR Technical Advisory Committees on Thermal Standards (Committee Chair) and
Water Body Use Designation (WBUD).

Dave Taylor - Member and co-chair of the National Association of Clean Water Agencies
(NACWA) Biosolids Committee; member and co-chair of the National Biosolids Partnership
Advisory Committee; member of the National Biosolids Partnership Steering Committee;
member of board of directors for the Wisconsin State Laboratory of Hygiene; member of the
Wisconsin Section Government Affairs Committee; Member of the Spring Biosolids Symposium
Planning Committee; member of Wisconsin Department of Natural Resources (WDNR)
Phosphorus Technical Advisory Committee; Member of WDNR Water Quality Trading
Workgroup; Presented “Biosolids and Watershed Management Activities” to UW Civil
Engineering students (CEE 426). Presented “Phosphorus Regulation Update” at 2010
Government Affairs Seminar.

Janelle Werner –Fulfilled her PLP goal of obtaining a Master of Business Administration degree
in Human Resources from Concordia University, attended the Naviant conference for OnBase,
and continues to participate in the MMSD Supervisory Training Program.

                                         LITIGATION

On September 17, 2009, the District filed a suit in Dane County Circuit Court against Giles
Engineering Associates, Inc. and GLS Utility, LLC and their respective insurance companies to
recover costs associated with the repair of the Pump Station 6 force main, damaged by Giles in
January 2009. Giles subsequently filed a counterclaim against the District related to the incident
that they later withdrew. The District received a total of $125,000 from Giles Engineering
Associates, Inc. and GLS Utility, LLC on November 16, 2010 and the court subsequently ordered
the case dismissed on December 14, 2010.

On December 3, 2010, Contract Dewatering Services, Inc. filed a suit in Dane County Circuit
Court naming Morgan Contracting, Inc. and the District as co-defendants. Contract Dewatering
Services alleged that Morgan Contracting failed to pay for dewatering services related to the
District’s Northeast Interceptor – Pumping Station 10 to Lien Road Project. Contract Dewatering
Services also alleged that the District was withholding $232,289.98, the amount of the claim,
from payment to Morgan Contracting. District counsel responded to the claim on December 17,
2010. At yearend, the District still retained the $232,289.98, in addition to the normal contract
retainage amount, from payment to Morgan Contracting awaiting direction from legal counsel.
Upon payment of the claim amount to Melli Trust in February 2011, the court dismissed the



                                               39
District from the case as a defendant and referred the case to mediation/arbitration to be settled
between Morgan Contracting and Contract Dewatering Services.

At midyear the District was notified by the Department of Natural Resources Air Quality
Division that an operating permit was required for the operation of its engines and boilers that use
digester gas at the Nine Springs Wastewater Treatment Plant. Based on the size of the engines
and the amount of fuel being used in them, a construction permit should have been obtained at the
time that the engines were installed in 1991. The District has retained Linda Bochert of Michael
Best & Friedrich, LLP to represent the District in future negotiations with DNR related to the air
quality permits and any potential penalties. Please see the Wastewater Treatment section of this
Annual Report for further details related to the air quality permit.

                           STRATEGIC PLANNING INITIATIVES

The District conducts a thorough review of its strategic plan and planning process as part of a
five-year strategic planning cycle. The latest of these reviews occurred in 2007. As necessary,
minor plan and process adjustments may be adopted on an annual basis in between the formal
review cycles. For each year, focus area action plans are developed and implemented based upon
the key challenges and objectives identified within the strategic plan and the organizational
priorities for the present year.
The directors and the organization adopted seven focus areas during 2010, the third year in the
implementation phase of the District’s five-year strategic planning cycle. The focus areas were
selected based upon the District’s four key challenges and their supporting objectives identified
during the 2007 strategic planning review. The District’s four key challenges are providing great
customer service, providing exceptional performance, maintaining a strong financial position, and
developing a sustainable workforce. (Further details of the key challenges and their supporting
objectives may be found in the third edition of the District’s Vision, Goals, and Strategies
document.) Each of the seven focus areas helps address an objective or objectives related to one
or more of the District’s key challenges. Highlighted below are the seven focus areas for 2010
with a brief discussion of related progress during the year:
    1. Eleventh Addition.
        The Eleventh Addition design began in 2010 following completion of the Solids
        Handling Facilities Planning process. At year end, the design was between 50 and 75
        percent completed. Value engineering services were provided by CH2M Hill at the 50
        percent completion level. Further details on the Eleventh Addition are included under the
        Engineering and Construction section of this Annual Report.
    2. Master Planning and Follow-up.
        The District and its consultants completed the District’s 50-year Master Plan in 2009. A
        key recommendation in the Master Plan was that the District evaluate effluent reuse
        options during future facilities planning efforts. The District is currently working with
        the City of Fitchburg and the University of Wisconsin-Madison to evaluate the potential
        use of effluent for groundwater recharge. Further details regarding this effort are
        included under the Research section of this annual report.
    3. Phosphorous Management.
        The Wisconsin Department of Natural Resources undertook several initiatives related to
        phosphorus that could impact District operations. The Natural Resources Board adopted
        administrative rule revisions related to phosphorus in June 2010. In a separate effort, the



                                                40
   Wisconsin Department of Natural Resources (WDNR) has issued a draft Total Maximum
   Daily Load (TMDL) for phosphorus and total suspended solids for the Rock River
   Basin. These two initiatives could significantly impact the District. The District may be
   required to make improvements that reduce the level of phosphorous in its effluent and/or
   assist in funding non-point source practices that provide a similar benefit (trading).
   WDNR also formed a workgroup to assist in developing a statewide framework to
   support water quality trading. District staff has been involved in this effort. The District,
   in cooperation with Dane County, formed a workgroup to help evaluate opportunities for
   trading at the local level. A more detailed discussion of the above initiatives can be
   found in the “Watershed Projects” section of this annual report.
4. Personal and Organizational Learning and Growth.
   During 2010, the District undertook a number of activities related to personal and
   organizational learning and growth.
          Leaders Forums, periodic training sessions for the District’s managerial and
           supervisory employees, were conducted throughout the year and culminated in a
           document titled Leadership Expectations that identified expected values, skills,
           and attributes for District leaders.
          The District conducted an organizational assessment as a follow-up to the first
           assessment conducted in 2007. The Human Resources Group administered the
           assessment, surveying employees and giving them an opportunity to rate District
           management and provide feedback.
          For the second year in a row, District supervisors conducted employee
           performance reviews for the non-represented employees using the new forms and
           process developed during 2008 by the Performance Review Workgroup.
          Phase 2 of the Supervisory and Management Training Program continued
           throughout 2010 nearing completion by yearend. The Supervisory and
           Management Training Program was originally developed for all District
           supervisors and managers, most of whom participated during the programs initial
           phase. This second phase includes newer supervisors and other future leaders of
           the District.
5. Asset Management.
   At the end of 2010, District staff had made little substantial progress to complete a Plant
   Asset Management Plan; however, the update of Collection System Facilities Plan was
   roughly 80% completed. A draft of the Collection System Facilities Plan is anticipated to
   be completed in the March 2011 timeframe with a mid-year project completion. At this
   time, completion of an initial Plant Asset Management Plan is anticipated later in 2011.
6. Workforce/Succession Planning.
   Workforce and succession planning are ongoing processes that have been a standard part
   of the directors’ annual planning. Due to the demographics of the District’s workforce,
   the rate of employee retirements has increased and will most likely continue at higher
   rates for the foreseeable future. During action plan implementation, the directors
   developed some new tools, including essential functions worksheets to assist with
   knowledge capture, employee training, and transition planning, that they integrated into
   the District’s routine planning and management processes. Although this area is unlikely
   to be a focus area for 2011, the directors will continue to closely monitor workforce
   demographics, trends, and pending retirements.


                                            41
    7. Develop Organizational Performance Measures.
        The directors proposed this focus area with the intent to develop organizational
        benchmarks or measures that are more formal. The priority of this focus area was
        considered subordinate to the other focus areas and therefore, it received little attention in
        2010. At this time, the directors are uncertain whether this initiative will be pursued any
        further.

                      ENGINEERING AND CONSTRUCTION IN 2010

Solids Handling Facilities Plan/11th Addition

Following completion of the 10th Addition, a series of operational difficulties was encountered
with the Nine Springs Treatment Plant digestion facilities. These included foaming in the
thermophilic digesters (especially during winter months), heat exchange problems (due to grease
and rag build-up within heat exchangers), and struvite formation in pumps and piping.
To alleviate these problems, the District embarked on a Solids Handling Facilities Plan in 2008.
The primary objective of the Solids Handling Facilities Plan was to review available solids
handling process alternatives and provide a detailed recommendation of facilities necessary to
assure a reliable, sustainable process for producing Class A biosolids.
The team of Applied Technologies and Carollo Engineers was retained to complete the Solids
Handling Facilities Planning work. The Solids Handling Facilities Plan was completed in 2010
and was formally approved by the WDNR.

Detailed design of the Solids Handling Facilities Plan recommendations began in 2010. Since the
scope of the work was extensive, it was decided to name the project the 11th Addition. At the end
of 2010, the Preliminary Design Report for the project was complete, and contained numerous
technical memos regarding improvements included in the 11th Addition. Final detailed design
was also in-progress at the end of 2010, and was approximately 50% complete. Detailed design
will continue through the first half of 2011, with construction anticipated to last from 2011 to
2014. The estimated construction cost for the project is $36 million.

Collection System Facilities Plan

The 2002 Collection System Facilities Plan continued to guide MMSD’s implementation of
significant collection system improvements during 2010. The 2002 Collection System Facilities
Plan provides an assessment of the condition and hydraulic capacity of MMSD’s collection
system facilities, including 95 miles of gravity interceptors, 43.8 miles of wastewater and effluent
forcemains, and 17 regional pumping stations.

The 2002 Facilities Plan provided a timetable for recommended collection system projects
through 2020. The estimated total cost for the recommended projects through 2020 was
approximately $84 million. As of year-end 2010, the following projects discussed in the
Facilities Plan had been completed or were in progress during the previous three years:

       Pump Stations 13 &14 Firm Capacity Improvements – completed
       Lower Badger Mill Creek Interceptor : Phase 2 Construction – completed
       West Interceptor Extension Replacement – completed
       Pumping Stations 6 & 8 Rehabilitation – in progress



                                                 42
       Northeast Interceptor Truax Area Liner – completed
       West Int. Campus Relief Phases V+ - postponed
       Far East Interceptor Gaston Road Extension – completed
       Northeast Interceptor - PS10 to Lien Road Relief/Replacement – in progress
       South Interceptor Baird Street Extension Liner – completed
       Far East Interceptor Cottage Grove Extension Liner – completed
       West Interceptor – MH05-011 to MH05-021 Liner – in progress

The original 5-year planning period detailed in the 2002 Collection System Facilities Plan was
reached in 2007 and an effort to update the Plan was started in 2008. The Capital Area Regional
Planning Commission (CARPC) was retained to complete population and flow projections in
2030 and 2060. This work was completed in early 2009. Throughout 2009 and 2010, MMSD
staff incorporated the CARPC capacity evaluation with collection system risk and condition
assessments, with a goal to update the Collection System Facilities Plan. This is anticipated to be
complete in 2011 and will be used to guide the District’s collection system capital improvement
program in future years.

Pumping Stations 6 & 8 Rehabilitation

The 2002 Collection Systems Facilities Plan identified Pumping Stations 6 & 8 as needing
improvements to upgrade the overall reliability of the stations and to increase pumping capacity.

The rehabilitation of Pumping Stations 6 and 8 includes improvements to pumping equipment,
electrical systems and structural components. The project also includes additions to both
buildings, new HVAC equipment, and improvements to the exterior of the stations.

Design work was completed in 2008 and bids for construction were opened on June 27, 2008.
Contracts were awarded on June 30, 2008, to the respective low bidders for the three prime
contracts as follows:

        General Construction
        Joe Daniels Construction Co., Inc.       $1,058,602.00

        Mechanical Construction
        J.F. Ahern Company, Inc.                 $2,661,000.00

        Electrical Construction
        Forward Electric, Inc.                   $1,956,241.00

Construction of the project started in the fall of 2008. As of December 31, 2010, construction
was essentially complete, with only minor punchlist items remaining. The General Construction
contract with Joe Daniels Construction was 99.8% complete, the Mechanical Construction
contract with J.F. Ahern was 99.9% complete, and the Electrical Construction contract with
Forward Electric was 99.9% complete. Work is expected to be finished in early 2011 and all
projects are expected to be closed-out by the middle of 2011.




                                                43
Northeast Interceptor-PS10 to Lien Road Relief/Replacement

The 2002 Collection System Facilities Plan identified the existing 48-inch Northeast Interceptor
from Pumping Station No. 10 to Lien Road as lacking adequate capacity for peak flows. The
interceptor also had significant infiltration in several locations and had suffered concrete
deterioration above the normal waterline.

To address these issues, the District began preparations to relieve or replace the interceptor.
Planning for this work began in 2008 and continued into 2009. Detailed design was completed in
June of 2009, and included approximately 9,200 lineal feet of new interceptor pipe. Of this,
approximately 5,200 feet (from Nakoosa Trail to PS10) was a relief sewer and 4,000 feet (from
Lien Road to Nakoosa Trail) was a replacement sewer. Where replaced, the existing reinforced
concrete interceptor was abandoned and a new 63-inch corrosion resistant fiberglass pipe was
installed. Where relieved, the existing reinforced concrete interceptor remains in service and a
parallel 54-inch pipe was installed.

Bids for construction were opened on August 27, 2009. The Commissioners awarded the contract
to Morgan Contracting, Inc., on August 31, 2009, at their respective low bid price of
$7,493,000.00. Construction began in October of 2009, and as of the end of 2010 the project was
essentially complete. Remaining punchlist items and final restoration work will be completed in
the spring of 2011.

Far East Interceptor-Cottage Grove Extension Liner

Routine televising of the Far East Interceptor-Cottage Grove Extension revealed deterioration in
the top half of the pipe. This interceptor, which was originally installed in 1982, includes
approximately 5,500 feet of 18-inch pipe, with portions installed on pilings. Since this sewer is
located in a very low/wet area and on pilings, replacement would be difficult and expensive.
Because of this, it was decided to line the sewer, which would eliminate the need for excavation
and prevent any further deterioration of the pipeline.

Planning and design were completed by MMSD staff in 2009 and the project was bid on August
26, 2009. The Commissioners awarded the contract to Insituform Technologies USA, Inc., on
August 31, 2009, at their low bid price of $304,703.00. Construction was completed in early 2010
and the contract with Insituform Technologies USA was accepted by the Commissioners on July
12, 2010. The final contract amount, including all change orders, was $303,984.10.

Badfish Creek Farm Bridge Replacements

During 2009, inspection of four farm bridges that cross the Badfish Creek revealed significant
deterioration of the structures that support the bridges. Per the original easements for the Badfish
Creek Effluent Diversion, MMSD is responsible for maintenance of the bridges in perpetuity.

Many of the wooden piers that support the bridges were found to be rotted and erosion around the
abutments was observed. Also, current farming practices are much different than when the
bridges were constructed in 1958, and the bridges could be overloaded with larger modern
agricultural equipment. The center bridge piers also tend to catch floating debris in the creek,
which obstructs flow and contributes to bank erosion.




                                                44
Planning and design for replacement of the bridges were completed in early 2010 and the project
was bid on May 6, 2010. The Commissioners awarded the contract to Ruzic Construction Co. on
May 10, 2010, at their low bid price of $540,406.06. Construction was completed in the summer
of 2010 and the contract with Ruzic Construction Co. was accepted by the Commissioners on
November 15, 2010. The final contract amount, including all change orders, was $526,922.75.

West Interceptor – MH05 to MH05-021 Liner

This segment of the West Interceptor is located along the west shore of Lake Mendota, in the
Marshall Park area. Routine televising of the cast iron interceptor, which was originally
constructed in 1931, revealed corrosion and tuberculation above the normal water surface. Due to
its close proximity to the shoreline and the potential of significant inflow of lake water if the
interceptor failed, it was decided to line the interceptor.

Planning and design were completed by MMSD staff in 2010 and the project was bid on October
19, 2010. The Commissioners awarded the contract to Terra Engineering & Construction Corp.
on October 27, 2010, at their low bid price of $182,888.00. As of the end of 2010, construction
had not started. This was due to the desire to complete the project during cold weather months,
which limits disruption to resident’s landscaping and allows the work to be completed during the
non-recreational season. Construction is expected to begin in January of 2011 and be completed
by April.

Process Control System Upgrade

The process control system, which is the computer network that controls plant operations, was
originally installed as part of the 9th Addition in 1996. Although still fully functional, much of
the system is obsolete and requires upgrades to both software and hardware (computers, etc.)

In 2009, the District embarked on a long-range plan to evaluate the process control system and
replace components as required. This included a facility planning phase, where overall needs
were to be evaluated along with potential system vendors. Following completion of the facility
plan, detailed design would be completed, followed by construction/implementation of the new
control system.

CDM was retained to perform the facility planning for replacement of the process control system.
This work will be completed in early 2011 and design will follow during the majority of 2011.
Construction is anticipated in 2012 and beyond.

Crosstown Forcemain Relocation-High Speed Rail Station

During 2010, the Wisconsin Department of Transportation notified the District that the area north
of the Monona Terrace Convention Center had been chosen as the preferred location for a high-
speed rail station. Numerous utilities were located in this proposed footprint of the rail station,
including the District’s Crosstown Forcemain.

Initial planning to relocate approximately 1,500 lineal of the Crosstown Forcemain outside of the
rail station was started in 2010. A contingency of $500,000 had been budgeted for the work. In
November of 2010, planning for the relocation was discontinued when Governor Walker was
elected and the high-speed rail project was formally ended.




                                                45
                               CLEAN WATER FUND LOANS

In 1989 the State of Wisconsin replaced the Wisconsin Fund Grant Program with the Clean Water
Fund Loan Program. The Clean Water Fund is a state revolving loan fund that was capitalized
initially with grants from the U.S. Environmental Protection Agency and by bonds issued by the
State of Wisconsin. The District has issued general obligation bonds and notes to the State of
Wisconsin for 15 loans under this program. The total amount financed through these Clean
Water Fund loans is $113.0 million.

The District had three Clean Water Funds loans in 2010 for which the final disbursement had not
been received by the end of 2009. The status of those loans is as follows:

West Interceptor Extension Replacement

The District issued General Obligation Sewerage System Promissory Notes, Series 2007A, on
December 12, 2007, to the State of Wisconsin Clean Water Fund (CWF Project 4010-23). These
bonds are for an aggregate amount not to exceed $2,826,309 and are to be repaid at an annualized
interest rate of 2.555%. The first interest payment on the loan was made on May 1, 2008. The
first principal payment was made on May 1, 2009. The final bond payment will be made on May
1, 2027.

The final disbursement for this loan was made on September 22, 2010 bringing the total for this
loan to $2,622,947.63.

Pumping W Stations No. 6 and 8 Rehabilitation

The District issued General Obligation Sewerage System Promissory Notes, Series 2008A, on
November 12, 2008, to the State of Wisconsin Clean Water Fund (CWF Project 4010-26). These
bonds are for an aggregate amount not to exceed $9,143,490 and are to be repaid at an annualized
interest rate of 2.368%. The first interest payment on the loan was made on May 1, 2009. The
first principal payment will be made on May 1, 2011. The final bond payment will be made on
May 1, 2028.

As of December 31, 2010 the District had received $8,086,185.63 from the Clean Water Fund for
this project.

Northeast Interceptor – PS 10 to Lien Road Relief/Replacement

The District issued General Obligation Sewerage System Promissory Notes, Series 2010A, on
May 26, 2010 to the State of Wisconsin Clean Water Fund (CWF Project 4010-27). These bonds
are for an aggregate amount not to exceed $8,964,767 and are to be repaid at an annualized
interest rate of 2.369%. The first interest payment on the loan was made on November 1, 2010.
The first principal payment will be made on May 1, 2011. The final bond payment will be made
on May 1, 2030.

As of December 31, 2010 the District had received $8,070,109.42 from the Clean Water Fund for
this project.




                                               46
                          NINE SPRINGS ENERGY USE PROFILE

This table shows an estimate of the total amount of electric and thermal energy used at the Nine
Springs Wastewater Treatment Plant and the division between purchased and renewable
(primarily self-produced) power. The significant decrease in generated electrical power from
2006 to 2007 was due to problems caused by additional moisture and siloxanes in the digester gas
and a related problem with one of the two generator engines. Operations staff removed the
second generator from service as a precaution. To correct the problem, the District installed a gas
drying system that additionally removes hydrogen sulfide and siloxanes. The District also made
subsequent repairs and rebuilds to its gas engines during 2008 to 2010. In 2008, power use was
greater due to the higher flows that followed the June rainstorm events. Near the end of 2010, the
District removed its three gas engines from service pending resolution of the District’s air quality
permits with the Wisconsin Department of Natural Resources. All of these factors have
contributed to the lower percentages of self-produced power that have occurred since 2006.




                                                47
                                Annual Energy Use Summary

                      2006                  2008
                                         2007            2009                                         2010
                                     %
                  kWhrs/ % of kWhrs/     kWhrs/ % of kWhrs/ % of                               kWhrs/ % of
Electric Energy                       of
                                     Tot
                   day Total day          day Total day     Total                               day       Total
                                      al
   Commercial
      Service
                    60,266   69.6%    77,083    85.9%     78,032    83.1%    70,804    77.6%    70,232    78.3%
 Purchased from
      MG&E
   Wind Power
 Purchased from        15    0.0%      15       0.0%       37       0.0%      39       0.0%      39          0.0%
      MG&E
 Generated from
                    17,121   19.8%    3,260     3.6%      6,509     6.9%     10,468    11.5%    14,278    15.9%
   Digester Gas
Avoided Purchase
  Due to Blower      9,147   10.6%    9,378     10.5%     9,350     10.0%    9,892     10.8%    5,098        5.7%
   Gas Engine
  Total Used &
                    86,548            89,736              93,929             91,202             89,648
     Avoided
 Average cost of
purchased power $ 0.0674             $ 0.0674            $ 0.0735           $ 0.0739           $ 0.0779
  (dollars/kWhr)
  Estimated total
 monthly value of $177,559           $183,879            $210,452           $205,123           $212,330
   energy used
Estimated monthly
     value of      $53,921   30.4%   $25,927    14.1%    $35,617    16.9%   $45,879    22.4%   $45,986    21.7%
renewable energy
                       2006        2007        2008          2009        2010
                  therms       therms %
                          % of             therms/ % of therms/ % of therms/ % of
Thermal Energy       /            /     of
                                       Tot
                    day Total day            day Total day      Total  day Total
                                        al
 Generated from
                     277     13.4%     389      17.6%      637      28.8%     283      15.0%     273      14.2%
    Natural Gas
 Generated from
                     409     19.8%    1,280     58.1%      813      36.8%     552      29.2%     544      28.2%
   Digester Gas
 Recovered from
                   1,384     66.8%     534      24.2%      760      34.4%    1,055     55.8%    1,110     57.6%
   Gas Engines
 Total hot water
                   2,071              2,203               2,209              1,890              1,928
   energy used
 Average cost of
  purchased gas   $ 0.9427           $ 0.9344            $ 0.9432           $ 0.8273           $ 0.7258
  (dollars/therm)
  Estimated total
 monthly value of $79,161            $83,484             $84,505            $63,409            $56,746
     gas used*
Estimated monthly
      value of    $68,553    86.6%   $68,750    82.4%    $60,151    71.2%   $53,918    85.0%   $48,701    85.8%
renewable energy




                                                    48
                       2006                 2008
                                          2007           2009                                        2010
                                     %
                   $ per % of $ per      $ per % of $ per    % of                               $ per      % of
Total Energy Use                     of
                                     Tot
                   month Total month     month Total month Total                                month Total
                                      al
 Total Estimated
 Value of Energy   $256,720           $267,363            $294,957           $268,533           $269,076
      Used
 Estimated Value
  of Renewable     $122,474   47.7%   $94,677    35.4%    $95,768    32.5%   $99,797    37.2%   $94,687    35.2%
  Energy Used

* Conversion of natural gas to heat is assumed to be 75% efficient
Note – due to rounding, numbers may not add exactly.

                              ANNEXATIONS TO THE DISTRICT

Annexations to the District added 66.86 acres, increasing the area of the District to 179.51 square
miles. The annexations occurred in the Town of Verona and the City of Madison. Descriptions
of the areas annexed are as follows:

CITY OF MADISON
FISHER LANDS - ORDINANCE NO. 13597
(MMSD ANNEXATION 10-01)

The following described lands were automatically added to MMSD by the City of Madison under
Wisconsin Statutes, Section 66.26(1) on May 21, 2004 by City of Madison Ordinance No. 13597
for a 58.76 acre parcel. The District was informed of the addition of these lands on January 14,
2010. The District has updated its records accordingly to show that the following described lands
are in the District.

A parcel of land located in the South 1/2 of the SW 1/4 of Section 12 and the Northwest Quarter
of Section 13, all in .T7N, R10E, Town of Blooming Grove, Dane County, Wisconsin:

Commencing at the Southwest Corner of said Section 12; thence S00°49'24"E, 1037.27 feet to the
point of beginning; thence N00°49'24"W, 565.46 feet; thence N32°07’26"E, 1041.86 feet; thence
N31°13'42"E, 149.68 feet; thence N27°46'29"E, 155.88 feet; thence N20°11'11''E, 706.83 feet;
thence N88°33'52"E, 357.44 feet; thence S00°35'07"E, 1302.60 feet; thence S88°25'28"E, 330.04
feet; thence S88°42'38"W, 84.25 feet; thence S07°37’02"W, 1650.55 feet; thence N43°07'15"W,
95.88 feet; thence N46°52'45"E, 33.00 feet; thence Northwesterly along the arc of a curve to the
left, having a radius of 1465.70 feet, an arc length of 1157.34 feet, the long chord bears
N65°44'30"W, 1127.51 feet; thence N88°21'45"W, 268.27 feet to the point of beginning, Said
parcel contains 0.09181 square miles, 58.76 acres or 2,559,568 square feet"

Said annexation added 58.76 acres to MMSD.




                                                     49
TOWN OF VERONA
BADGER PRAIRIE HEALTH CARE EXPANSION LANDS
(MMSD ANNEXATION 10-02)

The following described lands were petitioned for annexation by the Town of Verona, and
approved by the MMSD Commissioners on October 11, 2010.

A parcel located in the Southeast Quarter of the Northwest Quarter of Section 14, Town 6 North,
Range 8 East, Town of Verona, Dane County, Wisconsin bound by the following described line:

Commencing at the northwest corner of Section 14, Town 6 North, Range 8 East;
Thence S89°43’42”E, 1370.44 feet along the north line of Northwest Quarter of Section 14;
Thence S00°29’43”W, 1773.55 feet to the northwest corner of Lot 1, Dane County Certified
Survey Map Number 12482; Thence S88°44’34”E, 355.71 feet along the north line of Lot 1,
Dane County Certified Survey Map Number 12482 to the northeast corner of Lot 1, Dane County
Certified Survey Map Number 12482; Thence S88°44’34”E, 89.23 feet to the Point of Beginning;
Thence N35°10’41”E, 357.43 feet; Thence S89°46’36”E, 523.24 feet; Thence S58°34’59”E,
162.57 feet to the east line of the Southeast Quarter of the Northwest Quarter of Section 14;
Thence S00°08’27”E, 224.42 feet along the east line of the Southeast Quarter of the Northwest
Quarter of Section 14; Thence N88°44’34”W, 868.65 feet to the Point of Beginning. Parcel
contains 225,106 square feet more or less.

Said annexation added 5.17 acres to MMSD.

CITY OF MADISON
BURKE – CHEROKEE PARK LANDS - ORDINANCE NO. 19132
(MMSD ANNEXATION 10-03)

The following described lands were automatically added to MMSD by the City of Madison under
Wisconsin Statutes, Section 66.26(1) on September 7, 2010 by City of Madison Ordinance No.
19132 for a 47.293 acre parcel. The District was informed of the addition of these lands on
September 9, 2010. The District has updated its records accordingly to show that the following
described lands are in the District.

Part of the Southeast 1/4 of the Southwest 1/4, part of the Southwest 1/4 of the Southwest 1/4 of
Section 18, part of the Northeast 1/4 of the Northwest 1/4, part of the Northwest 1/4 of the
Northwest 1/4, part of the Southwest 1/4 of the Northwest 1/4 and part of the Southeast 1/4 of the
Northwest 1/4 of Section 19 all in T8N, R10E, Town of Burke, Dane County, Wisconsin more
particularly described as follows:

Beginning at the North 1/4 corner of said Section 19; thence along the East line of the said
Southwest 1/4 of Section 18 N00°55'38"E, 355.26 feet to the Southerly line of lands by the City
of Madison in Document No. 4449205; thence along said Southerly line S57°51'14"W, 431.95
feet; thence continuing along said Southerly line S61°26'36"W, 682.66 feet; thence continuing
along said Southerly line S89°35'44"W, 459.24 feet; thence continuing along said Southerly line
N00°24'16"W, 33.00 feet; thence continuing along said Southerly line N88°59'56"W, 209.33 feet;
thence continuing along said Southerly line N78°11'48"W, 236.52 feet; thence continuing along
said Southerly line N04°09'41 "E, 343.33 feet; thence continuing along said Southerly line
N85°42'49"W, 301.88 feet to the West line of the said Southwest 1/4 of Section 18; thence along
said West line S02°04'41 "W, 151.42 feet to the Northwest Corner of said Section 19; thence


                                               50
along the West line of the said Northwest 1/4 of Section 19 S02°02'33"W (recorded as
S02°02'25"W), 286.89 feet to the Corporate Boundary of the City of Madison; Thence along said
Corporate Boundary S88°59'52"E, 699.99 feet (recorded as S89°23'08"E, 700.00 feet); thence
continuing along said Corporate Boundary S02°02'33"W (recorded as S01°40'49"W), 740.43
feet; thence continuing along said Corporate Boundary S01°30'32"W (recorded as S01°07'06"W),
392.71 feet to the Southerly right of way line of Wheeler Road; thence along said Southerly right
of way line S88°48'14"E, 1434.38 feet to the East line of the said Northwest 114 of Section 19;
thence along said East line N02°16'57"E, 1368.00 feet to the said North 1/4 corner of Section 19
and the point of beginning. The above described parcel contains 2,060,091 square feet or 47.293
acres; except lands in Section 19 which were previously annexed to MMSD.

Said annexation added 2.93 acres to MMSD.

                                           FINANCES

A general District property tax was not placed on the tax rolls in 2010.

All financial transactions of the District were audited by Clifton Gunderson, LLP. The audit
report for the year ended December 31, 2010 is appended as part of this report.

                                   SALARIES AND WAGES

On January 20, 2009, a three-year contract was executed between Madison Employees Local 60,
American Federation of State, County and Municipal Employees, American Federation of Labor-
Congress of Industrial Organizations (AFL-CIO) and the District. The contract expires on
December 31, 2011. The District management staff and represented employees have continued to
use a consensus-based bargaining process. The Commission established the 2010 wages for non-
represented employees on December 14, 2009.

                        RETIREMENT OF DISTRICT EMPLOYEES

Delbert Warner

Del retired from MMSD’s mechanical maintenance staff on January 12, 2010. Del began his
employment with the District in September 1995. Initially, he worked as a custodian. After nine
months in that position, Del began his work with the Mechanical Maintenance workgroup. Del
plans to spend at least the first year of his retirement doing remodeling projects, helping his
family and others, and spending time with his family, children and grandchildren. MMSD would
like to thank you for 15 years of service.

Gerry Sachs

Gerry retired from MMSD’s engineering staff in July 2010. Gerry began his employment with
the District in June 1970. Gerry was first hired to work for the MMSD as part of the field survey
crew for the Northeast Interceptor. Following this work, Gerry moved to the District’s former
First Street office to assist Wayne Johnson with engineering work. Gerry spent the later part of
his 40 years with MMSD reviewing and detailing sewer plans and extensions. During the time he
was involved with this work the environment changed from strictly paperwork to all digital work.
During the past two years, his work relied heavily on databases, computer-aided design work, and




                                                51
geographic information systems. In between snacks, Gerry was always working to improve the
processes he used to perform his work. MMSD would like to thank you for 40 years of service.

Lynn Szudy

Lynn retired from MMSD’s Information Services group in July 2010. Lynn began his
employment with the District in April 1995. Lynn’s network and database skills were a welcome
addition to our experience. In 1995, a new Novell network had been established. MMSD did not
have any internet access, and many of the old database structures were well aged and needed
replacement. These upgrades occurred over the years Lynn worked here. MMSD would like to
thank you for 15 years of service.

Carl Wright

Carl retired with disability pension from MMSD’s electrical maintenance staff in November
2010. Carl began his employment with the District in March 1981, as a part time worker. He
became full time in September 1981 as an Operator Helper. In 1985, Carl advanced to a Field
Operator position. Carl filled many positions during his career from Labor Crew, to Field
Operator to Apprentice Electrician. At the time of his retirement, Carl was an Apprentice
Electrician II. MMSD would like to thank you for 29 years of service.

Dick Klaas

Dick retired from MMSD’s engineering staff in December 2010. Dick began his employment
with the District in June 1977. Dick worked as a Project Engineer on the 6th and 7th Addition to
the treatment plant. Following this, all of Dick’s future projects involved collection system
construction. We will miss his generous humor and flexible schedule. MMSD would like to
thank you for 33 years of service.




                                              52
MADISON METROPOLITAN
 SEWERAGE DISTRICT
   Madison, Wisconsin

FINANCIAL STATEMENTS
December 31, 2010 and 2009
                                              TABLE OF CONTENTS




                                                                                                                    PAGE

INDEPENDENT AUDITOR’S REPORT................................................................................... 1

MANAGEMENT’S DISCUSSION AND ANALYSIS................................................................. 2

BASIC FINANCIAL STATEMENTS

        Statements of Net Assets........................................................................................... 11
        Statements of Revenues, Expenses, and Changes in Net Assets.............................. 13
        Statements of Cash Flows ......................................................................................... 14

        Notes to Financial Statements ................................................................................... 16

REQUIRED SUPPLEMENTARY INFORMATION................................................................. 39

        Schedule of Funding Progress................................................................................... 40
A1

                                 Independent Auditor’s Report

Board of Commissioners
Madison Metropolitan Sewerage District
Madison, Wisconsin

We have audited the accompanying statements of net assets of the Madison Metropolitan
Sewerage District as of December 31, 2010 and 2009, and the related statements of revenues,
expenses, and changes in net assets, and cash flows for the years then ended. These financial
statements are the responsibility of the District’s management. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the
United States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects
the respective financial position of the Madison Metropolitan Sewerage District as of
December 31, 2010 and 2009, and the results of its operations and cash flows for the years
then ended in conformity with accounting principles generally accepted in the United States of
America.

The management’s discussion and analysis on pages 2 through 10, is not a required part of the
basic financial statements but is supplementary information required by accounting principles
generally accepted in the United States of America. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement
and presentation of the required supplementary information. However, we did not audit the
information and express no opinion on it.

A1
Middleton, Wisconsin
March 9, 2011




                                                1
                                                                                      h
                     MADISON METROPOLITAN SEWERAGE DISTRICT
                       MANAGEMENT’S DISCUSSION AND ANALYSIS
                   FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009



The management of the Madison Metropolitan Sewerage District (the District) offers this narrative
overview and analysis of the District’s financial performance for calendar years 2010 and 2009. It
should be read in conjunction with the District’s financial statements which follow this section.
The 2010 and 2009 financial statements have been prepared in accordance with generally
accepted accounting principles.


Financial Highlights

       Net assets increased by $0.8 million (0.8 percent) from $104.1 million to $104.9 million in
        2010. This compares to a $1.6 million (1.6 percent) increase in 2009.
       Operating revenues increased by $0.3 million (1.6 percent) from $22.2 million to $22.5
        million in 2010. This compares to a $0.7 million (3.3 percent) increase in 2009.
       Operating expenses, excluding depreciation, increased by $0.5 million (3.3 percent) from
        $15.2 million to $15.7million in 2010. This compares to an increase of $0.5 million (3.7
        percent) in 2009.


Overview of Basic Financial Statements

The financial statements of the District report information of the District using accounting methods
similar to those used by private sector companies. These statements offer short-term and long-
term financial information about its activities.

The Statement of Net Assets includes all of the District’s assets and liabilities and provides
information about the nature and amounts of investments in resources (assets) and the
obligations to District creditors (liabilities). It also provides the basis for evaluating the capital
structure of the District and assessing the liquidity and financial flexibility of the District.

All of the District’s revenues and expenses are accounted for in the Statement of Revenues,
Expenses, and Changes in Net Assets. This statement measures the success of the District’s
operations over the past year and can be used to determine whether the District has successfully
recovered all its costs through its user fees and other charges, profitability, and credit worthiness.

The Statement of Cash Flows reports cash receipts, cash payments, and net changes in cash
resulting from operations, investing and financing activities and provides answers to such
questions as where did cash come from, what was cash used for, and what was the change in
the cash balance during the reporting period.




                                                      2
Net Assets

A summary of the District’s Statement of Net Assets is presented in Table A-1.

                                           Table A-1
                                Condensed Statement of Net Assets
                                             (000's)



                                                              2010           2009        2008

Current Assets                                            $    25,387    $    24,997   $ 22,847
Noncurrent Assets
 Capital assets, net of accumulated depreciation              145,798        141,679    138,549
 Other assets                                                   7,396         7,368       10,164
      Total assets                                            178,581        174,044    171,560

Current Liabilities                                             9,262          8,634      7,792
Noncurrent Liabilities                                         64,409         61,285     61,242
      Total liabilities                                        73,671         69,919     69,034

Net Assets
 Invested in capital assets, net of related debt                78,660        78,657     75,440
    Restricted                                                  15,545        14,987     14,384
    Unrestricted                                                10,705        10,480     12,703

      Total net assets                                    $ 104,910      $ 104,124     $ 102,527


As of December 31, 2010 the District had total assets, less accumulated depreciation, of $178.6
million and total liabilities of $73.7 million, resulting in $104.9 million of net assets. Net assets
increased by $0.8 million (0.8 percent) in 2010. This compares to a net asset increase of $1.6
million (1.6 percent) in 2009. The 2010 increase was due to connection charge revenues of $0.5
million and operating income of $0.3 million. Funds represented by the 2010 increase will be
used to finance future interceptor construction and to offset a portion of future operating costs.
Capital assets (land, structures, equipment, vehicles, etc.) comprise $145.8 million, or 81.6
percent of total assets at the end of 2010. At the end of 2009, capital assets had a value of
$141.7 million and represented 81.4 percent of total assets. Capital assets increased $4.1 million
in 2010 compared to a $3.1 million increase in 2009.

Future principal payments on bonds total $67.1 million at the end of 2010 and represent 91
percent of the District’s liabilities. At the end of 2009, future principal payments on bonds totaled
$62.9 million and represented 90 percent of the District’s liabilities. Future principal payments
were $4.3 million more than at the end of 2009 due to increased borrowing for capital projects in
2010. Future principal payments at the end of 2009 were $0.2 million less than at the end of
2008. There was an increase in construction activity funded with bond funds in 2010 compared
to 2009. The District received a Clean Water Fund loan for construction of the Northeast
Interceptor – Pump Station 10 to Lien Road Relief/Replacement project in 2010. The portion of
this project constructed in 2009 was initially funded from reserves since the State of Wisconsin
was delayed in processing a Clean Water Fund loan for this project in 2009.

                                                      3
The District’s restricted assets consist of reserves for the payment of debt service and for
unexpected expenses for the repair and replacement of equipment. Restricted assets increased
by $0.6 million in 2010 to satisfy bond ordinance requirements related to the use of service
charge revenues for payment of debt service expenses. This compares to an identical $0.6
million increase in 2009. Unrestricted assets at the end of 2010 were $0.2 million more than at
the end of 2009. Unrestricted assets had decreased by $2.2 million in 2009. The 2009 reduction
was due primarily to the use of reserve funds to finance the Northeast Interceptor – Pump Station
10 to Lien Road Relief/Replacement project.

Revenues, Expenses, and Changes in Net Assets

The District’s revenues, expenses, and changes in net assets are summarized in Table A-2.

                                          Table A-2
                              Condensed Statement of Revenues,
                             Expenses, and Changes in Net Assets
                                            (000's)

                                                            2010          2009        2008

Operating Revenues                                      $    22,535   $    22,170   $ 21,453
Nonoperating Revenues                                           444           656        782
 Total revenues                                              22,979        22,826     22,235

Depreciation Expense                                          5,150         5,142      5,174
Other Operating Expense                                      15,743        15,235     14,692
Nonoperating Expense                                          1,797         1,754      1,813
  Total expense                                              22,690        22,131     21,679

Income Before Capital Contributions                            289           695         556

Capital Contributions                                          496           904         497

  Increase in net assets                                       785          1,599      1,053

Beginning Net Assets                                        104,125       102,526    101,473

Ending Net Assets                                       $ 104,910     $ 104,125     $ 102,526


Operating revenue for 2010 increased by $0.37 million, or 1.6 percent, from $22.2 million to $22.5
million. This compares to the 2009 operating revenue increase of $0.7 million, or 3.3 percent.
The 2010 increase was due primarily to higher service charge rates.

Non-operating revenues for 2010 were $0.21 million (32 percent) lower than in 2009, reflecting
decreases in interest earned on investments. Non-operating revenues for 2009 were 16 percent
lower than in 2008, which was also the result of lower interest earnings.

Depreciation expense in 2010 of $5.1 million was 0.16 percent more than the 2009 depreciation

                                                    4
expenses. The 2009 depreciation expense of $5.1 million was 0.6 percent less than the 2008
depreciation expenses.

Other operating expenses for 2010 of $15.7 million were $0.5 million (3.3 percent) higher than
2009 expenses of $15.2 million. Other operating expenses for 2009 were 3.7 percent higher than
2008 expenses of $14.7 million. The higher level of other operating expenses in 2010 was due to
increased expenses for miscellaneous (higher construction demolition expenses) electric power,
replacement parts and services, and contracted services costs. Higher costs in these areas were
offset by lower costs for salaries and benefits, natural gas, and chemicals.

Non-operating expenses for 2010 of $1.8 million, which are comprised of interest on the District’s
outstanding debt and disposal of equipment, were essentially the same as the 2009 non-
operating expenses. Non-operating expenses in 2009 were $0.06 million less than in 2008.

Capital contributions include contributed capital assets and interceptor and treatment plant
connection charge revenues. The one-time connection charges are assessed against each
property in the District at the time sewerage service is made available. The charges are made on
an area basis.

An interceptor connection charge rate has been established for each major District interceptor
sewer. The interceptor connection charge rates are adjusted annually to account for changes in
construction costs. The Engineering News Record’s Construction Cost Index is used for this
purpose. Interceptor connection charge rates for 2010 were increased by 3.3 percent. This
compares to the 2009 increase of 4.2 percent.

The treatment plant connection charge rate is adjusted annually to account for the change in
“excess capacity” debt service paid by current users for facilities at the treatment plant that will be
utilized by new users. The treatment plant connection charge rate is further adjusted by the
typical bank passbook savings rate, or 4 percent, whichever is higher. The treatment plant
connection charge rate for 2010 increased by 5.9 percent. The 2009 increase was 6.1 percent.
Increases in 2010 reflect the additions to accumulated excess capacity debt service costs
associated with the Ninth Addition, Tenth Addition, and Badger Mill Creek Effluent Return
projects.

Capital contributions in 2010 of $0.5 million were $0.4 million less than 2009 capital contributions
of $0.9 million. This was a decrease of 45 percent compared to 2009. Interceptor connection
charge revenue was the same for both 2010 and 2009 at $0.5 million, reflecting the continued
downturn in the housing market. There were no contributions in aid of construction in 2010.
Capital contributions in 2009 included $0.4 million of contributions in aid of construction
associated with the West Interceptor Relief on the UW Campus. Capital contributions in 2009
had increased 82 percent from the 2008 amount, from $0.5 million to $0.9 million.




                                                       5
Comparison of Actual Financial Results to Budget

Each year the District adopts an annual operating budget and a 10-year capital improvement
budget following a public hearing. A comparison of the 2010 budgeted and actual amounts of
operating revenues and expenses is shown in Table A-3.

                                            Table A-3
                     Comparison of Operating Budget to Actual Results for 2010
                                              (000's)

                                                                Budget        Actual     Variance
Revenues
 From operations                                            $    22,820   $    22,535    $   (285)
 Nonoperating                                                       467           444         (23)
     Total revenues                                              23,287        22,979        (308)

Operating Expenses
 Depreciation expense                                                            5,150       5,150
 Other operating expenses:
   Salaries with benefits                                         7,677         7,360        (317)
   Administrative                                                   371           357         (14)
   Legal and accounting                                              85           112          27
   Insurance                                                        107            91         (16)
   Power                                                          3,009         2,979         (30)
   Natural gas                                                      170           111         (59)
   Chemicals                                                        607           566         (41)
   Motor and LP fuel                                                106           122          16
   Water and sewer services                                          73            96          23
   Contracted services                                            1,736         1,690         (46)
   Engineering Consulting                                            -             -           -
   Communication services                                            28            26           (2)
   Replacement parts and services                                 1,014         1,383         369
   Supplies                                                         231           256          25
   Miscellaneous                                                    187           594         407
      Total other operating expenses                             15,401        15,743         342

      Total operating expenses                                   15,401        20,893        5,492

Nonoperating Expenses
 Disposal of Equipment                                                             117        117
 Interest expense                                                 1,777          1,680        (97)

      Total expenses                                             17,178        22,690        5,512

Income before capital contributions                         $     6,109   $       289    $ (5,820)

                                                        6
The District does not include depreciation as an operating expense in its annual budget, rather, it
budgets sufficient income to cover the subsequent year’s debt principal payments.

For calendar year 2010, operating revenues of $22.5 million were $0.3 million less than budgeted
due to slightly lower than anticipated wastewater loadings. Non-operating revenues of $0.44
million for interest income, rent, and other miscellaneous items were $0.02 million (4.9 percent)
less than budgeted due to lower than budgeted interest earned on investments.

Operating expenses for 2010, excluding depreciation, were $0.3 million more than budgeted.
The most significant under budget item was salaries and benefits costs that were $0.3 million less
than budgeted. The most significant over-budget items were equipment repair and replacement
and miscellaneous costs which were a combined $0.8 million more than budgeted.                The
miscellaneous costs were $0.4 million more than budgeted because of unbudgeted demolition
expenses.

Non-operating expenses, which include the net value of retired equipment and the interest costs
on the District’s outstanding debt, were on budget. Interest costs were $0.1 million less than
budgeted. No expenses were budgeted for retiring equipment, and $0.1 million expenses were
incurred for retiring equipment in 2010.

Budgeted income for 2010 of $6.1 million includes $5.9 million for future principal payments on
the District’s outstanding debt and $0.04 million to fund a portion of the current year’s capital
improvements. It is the District’s policy to finance capital improvements for new users through
borrowing. Sewerage system improvements typically have useful lives of more than twenty
years, and the District typically issues twenty-year bonds and notes. The system’s users pay for
the costs of the facilities they require for the conveyance and treatment of their wastewater over
the life of the bonds and notes. For this reason, the District does not budget to recover
depreciation costs in addition to the debt service expenses, since this would in effect result in
double-billing current users for these facilities. Charges to recover debt service expenses reflect
the cost of the facilities currently in use. Charges to recover depreciation expenses would reflect
the cost of replacing these same facilities at the end of their useful lives.




                                                     7
Capital Assets

At the end of 2010, the District had $146 million invested in capital assets comprised of the Nine
Springs Wastewater Treatment Plant, seventeen major pumping stations, over one hundred miles
of interceptor sewers and force mains, and associated facilities. Table A-4 summarizes these
assets.

                                           Table A-4
                                         Capital Assets
                                            (000's)



                                                              2010         2009         2008

Assets

Land                                                      $      7,401 $     7,401 $ 7,401
Structures and improvements                                    143,895     133,774  132,995
Mechanical equipment                                            86,022      80,810   77,723
Office furniture and equipment                                   4,094       3,998    4,085
Vehicles                                                         2,269       2,204    2,249
Construction In progress                                         2,752       9,571    5,430

  Total                                                        246,433     237,758      229,883

Less accumulated depreciation                                  100,635      96,078       91,335

  Net property and equipment                              $   145,798 $    141,680 $ 138,548


The District’s 10-year capital improvement plan includes $100 million of treatment plant upgrades
and expansions and $105 million of collection system improvements. Treatment plant projects
and larger collection system projects are expected to be financed with Clean Water Fund loans
administered by the State of Wisconsin. Smaller collection system projects will be financed with
reserve funds. Reserve fund balances vary depending on construction scheduling, collection of
connection charges, and interest earned on investments. A minimum reserve balance of $3
million is maintained to finance any unplanned capital improvement that might be necessary on
an emergency basis.

One treatment plant project and three conveyance system projects were completed in 2010. The
total cost of these projects increased the value of the District’s assets by $15.9 million. The
projects were the Far East Interceptor – Cottage Grove Extension Liner ($0.3 million), Northeast
Interceptor- Pumping Station 10 to Lien Road Relief/Replacement ($8.4 million), Pump Stations 6
and 8 ($6.6 million), and the Badfish Creek Farm Bridges ($0.6 million).

The $8.7 million increase in total assets to $246 million reflects the cost of equipment additions at
the Nine Springs Wastewater Treatment Plant ($0.3 million) and improvements in the conveyance
system ($8.4 million).




                                                      8
Debt Administration

The District maintains cash and investments in a sinking fund in an amount no less than what is
required to meet the balance of the current year’s debt service requirements plus the subsequent
year’s first principal and interest payments in order to abate levying an ad valorem tax for the
general obligation debt service. Since the services of the District are not directly related to the
value of property, and since a substantial amount of property within the District is exempt from
paying property taxes, a tax levy would result in an inequitable cost recovery system.

District debt service costs are allocated to used capacity and excess capacity in the facilities
constructed with proceeds from the debt being retired. Excess capacity is defined as the
difference between the design capacity and the used capacity of each project and is determined
annually. Used capacity debt service is recovered based on the volume and pollutant loadings of
the users. Excess capacity debt service is allocated in equal amounts to all users through an
“actual customer” rate. This rate in turn is used as one component of the connection charge rate
that is applied to newly served areas at the time they are served by extensions to the sewer
system.

General obligation debt outstanding as of the end of 2010 was $67.1 million which represents the
remaining balance on the Clean Water Fund loans from the State of Wisconsin. This compares
to a 2009 year-end balance of $62.9 million and a 2008 year-end balance of $63.1 million.
Interest on these loans is payable semi-annually at rates of 2.4 to 3.9 percent. Detailed
information on the District’s Clean Water Fund loans is included in the notes to the financial
statements.

The District’s outstanding debt is expected to increase by $120 million over the ten year period
from 2011 to 2020 due to projects in the conveyance system and at the treatment plant. Included
in the $120 million is $55 million of debt due to borrowing for the next major treatment plant
addition that would address advanced treatment for additional phosphorus removal. A total of
$100 million in borrowing is anticipated in 2020 and 2021 due to the treatment plant addition to
address additional phosphorous removal. The District’s long-range financial plan has taken this
future borrowing into consideration. The annual amount of revenue collected to pay future debt
service obligations will increase 4.8 percent per year over the next seven years. This will produce
adequate revenue while maintaining stable annual service charges through 2018. The future
$100 million treatment plant expansion would then require a 25 percent rate increase. Once the
requirements for such an expansion are better defined, the District’s financial plan will be
modified to spread this increase over a number of years to lessen the impact on the ratepayers.

By statute, the District can borrow up to 5 percent of the equalized value of the taxable property
within the District. At the end of 2010 the borrowing limit was $1.78 billion. At the end of 2009
and 2008 that borrowing limit was $1.83 billion. The total amount of debt is expected to be no
more than 7 percent of this limit over the next ten years. At the end of 2010 the District’s debt of
$67.1 million was at 3.8 percent of this limit. At the end of 2009 the District’s debt of $62.9 million
was at 3.4 percent of this limit. During the last two years the District did not experience any
negative changes in debt credit rating or debt limitation.

Economic Factors

Growth in the District’s service area had been relatively constant at a rate of 1.5 to 2 percent per
year until the current economic slowdown. In the last five years, growth has slowed. The future
growth trend is projected to return to the 1 to 2 percent level during the next decade. Due to
increasing costs for meeting infrastructure replacement and capacity needs, the District’s charges
to a typical residential user are expected to increase at a rate about 1 to 2 percent greater than
the rate of inflation over the next decade. This annual increase is somewhat higher than the trend
of the past thirty years, which matched the rate of inflation.

The District’s customer base consists of residential users and similar types of commercial and

                                                       9
industrial users that, for the most part, do not utilize large quantities of water. This customer base
characteristic results in a very stable revenue base since the loss of any one user will not
significantly impact the District’s service charge revenues. The University of Wisconsin is the
largest user of District services and provided 6.0 percent of service charge revenues in 2010 and
6.1 percent in 2009. Oscar Mayer Foods Corporation is the largest industrial user and provided
2.7 percent of service charge revenues in 2010 and 2.8 percent in 2009.


Contacting the District

This discussion and analysis is intended to provide information for our customers and creditors
concerning the District’s financial performance and to demonstrate the District’s accountability for
the money it receives. If you have questions about this information, or need additional
information, contact the Madison Metropolitan Sewerage District, 1610 Moorland Road, Madison,
Wisconsin 53713-3398.




                                                     10
                     MADISON METROPOLITAN SEWERAGE DISTRICT
                            STATEMENTS OF NET ASSETS
                             December 31, 2010 and 2009

                                          ASSETS
                                                                  2010              2009
Current assets:
   Cash and cash equivalents                                $     8,615,931   $     8,607,283
   Receivables, net of allowance for uncollectible amounts:
       Transmission and treatment of sewage and septage
           disposal                                               5,362,656         5,198,533
       Servicing pumping stations                                    76,687           112,813
       Interceptor connection charges, current portion              293,585           512,276
       Other                                                         19,290           106,605
   Prepaid insurance                                                    333               333
   Inventories                                                    1,158,330         1,098,552
   Restricted assets - cash and cash equivalents                  9,860,382         9,360,294

               Total current assets                              25,387,194        24,996,689

Noncurrent assets:
   Investments                                                     841,095           633,738

   Interceptor connection charges, less current portion            558,767           806,098

   Restricted assets - investments                                5,996,259         5,928,371
   Capital assets:
      Capital assets not being depreciated                       10,153,223        16,972,155
      Capital assets being depreciated                          236,278,982       220,785,458
                                                                246,432,205       237,757,613
       Less: accumulated depreciation                           100,634,628        96,078,177
                                                                145,797,577       141,679,436

            Total noncurrent assets                             153,193,698       149,047,643

Total assets                                                $ 178,580,892     $ 174,044,332




          The accompanying notes are an integral part of the financial statements.

                                             11
                     MADISON METROPOLITAN SEWERAGE DISTRICT
                            STATEMENTS OF NET ASSETS
                             December 31, 2010 and 2009

                                           LIABILITIES
                                                                        2010              2009
Current liabilities:
   Vouchers payable                                         $          1,586,524    $     1,704,009
   Accrued salaries                                                      125,454            120,988
   Payroll withholdings payable                                           76,403             73,643
   Deferred interceptor connection charges, current portion              293,585            512,276
   Deferred rent                                                           1,700              1,622
   Compensated absences, current portion                                 645,501            558,508
       Total current liabilities                                       2,729,167          2,971,046

Liabilities payable from restricted assets:
    Bonds payable, current portion                                     6,221,602          5,361,544
    Accrued interest payable                                             311,280            301,614
         Total current liabilities payable from restricted assets      6,532,882          5,663,158

Noncurrent liabilities, less current portion:
   Deferred interceptor connection charges                               558,767            806,098
   Compensated absences                                                2,253,724          2,478,485
   Accrued actuarial liability                                           680,274            340,137
   Capital lease                                                             -              168,250
   Bonds payable                                                      60,915,994         57,492,434
      Total noncurrent liabilities                                    64,408,759         61,285,404

               Total liabilities                                      73,670,808         69,919,608

                                          NET ASSETS

Invested in capital assets, net of related debt                       78,659,981         78,657,208
Restricted for:
    Debt service                                                      12,545,361         11,987,051
    Equipment replacement                                              3,000,000          3,000,000
Unrestricted                                                          10,704,742         10,480,465
                Total net assets                                     104,910,084        104,124,724

Total liabilities and net assets                                    $ 178,580,892   $ 174,044,332




            The accompanying notes are an integral part of the financial statements.

                                                  12
               MADISON METROPOLITAN SEWERAGE DISTRICT
      STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
                  Years Ended December 31, 2010 and 2009


                                                                2010             2009
OPERATING REVENUES
  Charges for services:
     Transmission and treatment of sewage                   $ 21,732,061     $ 21,375,342
     Servicing pumping stations                                  356,378          389,879
     Septage disposal                                            429,035          382,526
     Pretreatment monitoring                                      17,618           22,435
        Total operating revenues                              22,535,092       22,170,182

OPERATING EXPENSES
  Administration                                                2,924,286       2,815,474
  Treatment                                                    10,061,511       9,575,109
  Collection                                                    2,267,998       2,433,409
  Depreciation                                                  5,149,866       5,141,969
  Construction expenses                                           489,802         410,895
          Total operating expenses                             20,893,463      20,376,856

          Operating income                                      1,641,629        1,793,326

NONOPERATING REVENUES (EXPENSES)
  Investment income                                               201,763          540,282
  Rent                                                             63,016           60,761
  Other                                                           179,475           54,972
  Disposal of property and equipment                             (116,875)            (736)
  Interest expense                                             (1,679,972)      (1,754,141)
          Total nonoperating revenues (expenses)               (1,352,593)      (1,098,862)

          Income before capital contributions                     289,036            694,464

CAPITAL CONTRIBUTIONS                                             496,324            903,750

CHANGE IN NET ASSETS                                              785,360        1,598,214

NET ASSETS
  BEGINNING OF YEAR                                           104,124,724     102,526,510

   END OF YEAR                                              $ 104,910,084    $ 104,124,724




          The accompanying notes are an integral part of the financial statements.

                                                13
                  MADISON METROPOLITAN SEWERAGE DISTRICT
                         STATEMENTS OF CASH FLOWS
                     Years Ended December 31, 2010 and 2009


                                                                2010             2009
CASH FLOWS FROM OPERATING ACTIVITIES
  Receipts from customers and users                         $ 22,494,410 $ 21,877,227
  Payments to suppliers                                       (8,219,021)  (7,460,728)
  Payments to employees                                       (7,490,156)  (7,246,998)
     Net cash provided by operating activities                 6,785,233    7,169,501

CASH FLOWS FROM NONCAPITAL
  FINANCING ACTIVITIES
     Rent receipts                                                 63,016             60,761
     Other receipts                                               179,475             54,972
       Net cash provided by noncapital
        financing activities                                      242,491            115,733

CASH FLOWS FROM CAPITAL AND RELATED
  FINANCING ACTIVITIES
     Interest paid on long-term debt                           (1,670,306)      (1,761,729)
     Principal paid on long-term debt                          (5,361,547)      (5,153,659)
     Proceeds from issuance of long-term debt                   9,645,165        4,898,426
     Principal paid on capital lease                             (168,250)             -
     Acquisition of capital assets                             (9,390,272)      (7,328,765)
     Sale of capital assets                                         3,380              -
     Capital contributions received                               496,324          496,974
         Net cash used in capital and related
           financing activities                                (6,445,506)      (8,848,753)

CASH FLOWS FROM INVESTING ACTIVITIES
  Investment income                                                11,405          122,146
  Investments purchased                                           (84,887)             -
  Proceeds from sales and maturities of investments                   -          3,254,289
         Net cash provided by (used in)
          investing activities                                    (73,482)       3,376,435

NET INCREASE IN CASH AND
  CASH EQUIVALENTS                                                508,736        1,812,916

CASH AND CASH EQUIVALENTS
  BEGINNING OF YEAR                                            17,967,577      16,154,661

   END OF YEAR                                              $ 18,476,313     $ 17,967,577


          The accompanying notes are an integral part of the financial statements.

                                            14
                   MADISON METROPOLITAN SEWERAGE DISTRICT
                          STATEMENTS OF CASH FLOWS
                      Years Ended December 31, 2010 and 2009


                                                                2010             2009

RECONCILIATION OF OPERATING INCOME TO NET
  CASH PROVIDED BY OPERATING ACTIVITIES
  Operating income                                          $   1,641,629    $   1,793,326
  Adjustments to reconcile operating income to net cash
     provided by operating activities:
     Depreciation                                               5,149,866        5,141,969
     Increase (decrease) from changes in:
       Receivables:
         Transmission and treatment of sewage and
             septage disposal                                    (164,123)           (231,163)
         Servicing pumping stations                                36,126              24,852
         Other                                                     87,315             (86,643)
     Inventories                                                  (59,778)              7,730
     Vouchers payable                                            (115,397)            157,841
     Other liabilities                                            209,595             361,589

NET CASH PROVIDED BY OPERATING ACTIVITIES                   $   6,785,233    $   7,169,501


RECONCILIATION OF CASH AND CASH
  EQUIVALENTS TO THE STATEMENTS OF
  NET ASSETS
     Unrestricted                                           $  8,615,931     $  8,607,283
     Restricted                                                9,860,382        9,360,294
TOTAL CASH AND CASH EQUIVALENTS                             $ 18,476,313     $ 17,967,577


NONCASH CAPITAL AND RELATED
  FINANCING ACTIVITIES
     Interceptor connection charges billed                  $      30,302    $       588,431

      Capital contributions                                 $          -     $       406,776




          The accompanying notes are an integral part of the financial statements.

                                             15
                     MADISON METROPOLITAN SEWERAGE DISTRICT
                          NOTES TO FINANCIAL STATEMENTS
                             December 31, 2010 and 2009


NOTE 1 - NATURE OF ACTIVITIES, REPORTING ENTITY, AND SIGNIFICANT
         ACCOUNTING POLICIES

Nature of Activities and Reporting Entity: The District is a corporate body with the powers of a
municipal corporation for the purpose of carrying out the collection, transmission and treatment
of wastewater. It was created by judgment of the County Court for Dane County entered on
February 8, 1930. The District, which serves the City of Madison and surrounding cities, villages
and towns in the Greater Madison Metropolitan Area, covering approximately 170 square miles,
is a special-purpose government that is governed by a five-member Board of Commissioners.
The District is accountable to the County of Dane, Wisconsin. However, accountability extends
only to the appointment of the District's Commissioners, who are appointed by the County
Executive of the County of Dane, Wisconsin. Because the County Executive appoints the
commissioners, the District and the County of Dane are considered related organizations. The
District is legally separate and fiscally independent of the County of Dane as well as any other
state or local governments. It has unlimited taxing powers and has the right to set rates or
charges for services provided without the approval of another government. Also, there are no
other agencies or entities which are financially accountable to the Commissioners of the District,
or whose relationship with the District would require their financial statements to be included
within the financial statements of the District.

A summary of significant accounting policies follows:

Basis of Accounting: The accounting policies of the District conform to generally accepted
accounting principles as applicable to local government enterprise funds. The accounts of the
District are maintained, and the accompanying financial statements have been prepared, on the
accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized
when earned, expenses are recognized when incurred, depreciation of assets is recognized,
and all assets and liabilities associated with the operation of the District are included in the
Statements of Net Assets.

The principal operating revenues of the District are charges for service. Operating expenses for
the District include costs directly related to administration, collection and treatment of
wastewater, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.

The District's policy is to follow all pronouncements issued by the Governmental Accounting
Standards Board (GASB). Prior to November 30, 1989, the District applied all pronouncements
of the GASB and all business type accounting and financial reporting for state and local
governmental entities defined by pronouncements of the Financial Accounting Standards Board,
Accounting Principles Board Opinions, and Accounting Research Bulletins of the Committee on
Accounting Procedures. Subsequent to November 30, 1989, as provided in GASB Statement
No. 20, the District has elected to follow only the GASB pronouncements.




                                               16
                     MADISON METROPOLITAN SEWERAGE DISTRICT
                          NOTES TO FINANCIAL STATEMENTS
                             December 31, 2010 and 2009


NOTE 1 - NATURE OF ACTIVITIES, REPORTING ENTITY, AND SIGNIFICANT
         ACCOUNTING POLICIES (Continued)

Cash Equivalents: For purposes of the statement of cash flows, highly liquid investments with a
maturity of three months or less when acquired are considered to be cash equivalents.

Deposits and Investments: Investments are reported at fair value based on quoted market
prices. No amounts are reported at amortized cost. Adjustments necessary to record
investments at fair value are recorded in the statements of revenues, expenses and changes in
net assets as increases or decreases in investment income. Investments in the Local
Government lnvestment Pool and the Wisconsin lnvestment Services Cooperative are reported
at fair value based on the unit prices quoted by the funds, representing the fair value of the
underlying investments.

The District has adopted a formal investment policy and invests in accordance with Wisconsin
State Statutes. Under state statute, investments are limited to:

      Time deposits in any credit union, bank, savings bank, trust company, or savings and
       loan association which is authorized to transact business in the state if the time deposits
       mature in not more than 3 years;
      Bonds or securities of any county, city, drainage district, vocational education district,
       village, town or school district of the state;
      Bonds or securities issued or guaranteed by the Federal government;
      Any security which matures within not more than 7 years, if that security has a rating
       which is the highest or 2nd highest rating category assigned by Standard & Poor’s
       corporation, Moody’s investors service, or similar rating agency;
      Securities of an open-end management investment company or investment trust, if the
       company or trust does not charge a sales load, is registered under the investment
       company act of 1940, and if the portfolio is limited to bonds and securities issued by the
       federal government, bonds that are guaranteed as to principal and interest by the federal
       government;
      Repurchase agreements that are fully collateralized by bonds or securities of the federal
       government;
      The state local government investment pool.

Inventories: Inventories of supplies are valued at cost under the specific identification method.
The consumption method is used to account for inventories. Under the consumption method,
inventories are recorded as expenses at the time they are consumed.




                                               17
                     MADISON METROPOLITAN SEWERAGE DISTRICT
                          NOTES TO FINANCIAL STATEMENTS
                             December 31, 2010 and 2009


NOTE 1 - NATURE OF ACTIVITIES, REPORTING ENTITY, AND SIGNIFICANT
         ACCOUNTING POLICIES (Continued)

Receivables: Receivables are reported at their gross values and are considered to be fully
collectible as they are primarily due from other municipalities, except for pretreatment.
Receivables related to pretreatment have been reduced by an allowance for the estimated
uncollectible amounts of $5,000 and $9,619 as of December 31, 2010 and 2009, respectively,
and is included in other receivables.

Interceptor Connection Charges: Receivables from interceptor connection charges are
recognized when assessed and the revenue is deferred until the property owner connects with
the intercepting sewer. No value has been placed on the future assessments against lands
which are not currently served by intercepting sewers that were built with capacity to serve
those lands.

Restricted Cash and Investments: Cash and investments are restricted for the purpose of
unexpected repair and replacement and repayment of debt obligations.

Capital Assets: Capital assets are defined as assets with an initial cost of $5,000 or greater with
an estimated useful life greater than one year. Capital assets are stated at cost. The costs of
normal maintenance and repairs that do not add to the value of the asset or materially extend
the life of the asset are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets is included as part of the
capitalized value of the assets constructed.

Depreciation of structures, improvements, mechanical equipment, office furniture and
equipment, and vehicles is computed using the straight-line method over the following estimated
useful lives of the assets:

                    Structures and improvements                50-75 years
                    Heavy mechanical equipment                 21-30 years
                    Light mechanical equipment                 10-20 years
                    Office furniture and equipment              5-20 years
                    Vehicles                                       7 years

When capital assets are disposed, depreciation is removed from the respective accounts and
the resulting gain or loss, if any, is recorded in nonoperating activities.




                                                18
                     MADISON METROPOLITAN SEWERAGE DISTRICT
                          NOTES TO FINANCIAL STATEMENTS
                             December 31, 2010 and 2009


NOTE 1 - NATURE OF ACTIVITIES, REPORTING ENTITY, AND SIGNIFICANT
         ACCOUNTING POLICIES (Continued)

Compensated Absences: District employees earn sick leave of fourteen days per year which
may be accumulated up to a maximum of 200 days. Each December employees may elect to
receive cash payments for 60 percent of their sick leave accumulated in excess of 100 days and
80 percent for sick leave accumulated in excess of 150 days, paid at their current rate of pay.
Each December, employees are paid for all sick leave accumulated in excess of 200 days at
their current rate of pay. Upon an employee's retirement or disability, 90 percent (100 percent
for employees who have accrued at least 150 days of sick leave at any time during their
employment) of previously earned but unpaid sick leave is converted to a cash value based on
their current rate of pay, and this amount is contributed to the District’s Retirement Health
Savings Plan (RHSA) in the employee’s name. Monies in this account can be used by the
employee on a tax-free basis to pay for qualified medical expenses of the employee, their
spouse and dependents. Any amounts remaining in the employee’s RHSA account at the time
of death of the retired or disabled employee may be used by the surviving spouse or eligible
dependents on a tax-free basis to pay for qualified medical expenses. If there is no surviving
spouse or dependents at the time of the employee’s death, the remaining money in the account
reverts to the District. No sick leave conversion amounts are paid to employees that terminate
employment for reasons other than retirement or disability. The liability associated with
accumulated sick pay for current and retired employees is reported as compensated absences
liabilities in the statements of net assets.

Employees earn vacation in varying amounts based on length of service. Vacation earned is
available for use in the following year. Employees may purchase up to five days of additional
vacation each year. Vacation, including purchased vacation, may be accumulated to a
maximum of 27 days. Upon an employee’s retirement or disability, 100 percent of previously
earned but unpaid vacation is converted to a cash value based on their current rate of pay, and
this amount is contributed to the District’s Retirement Health Savings Plan (RHSA) in the
employee’s name. Employees that terminate their employment for reasons other than retirement
or disability are paid for earned vacation resulting from a carry over at their current rate of pay.
Vacation earned in the year of termination is paid at varying percentages, depending upon the
time of the year termination is effective. The liability associated with accumulated vacation is
reported as compensated absences liabilities in the statement of net assets.

Employees may also accumulate compensatory time for overtime work. Compensatory time
may be carried over at year end, but must be used by March 31. After March 31, represented
employees are paid for any unused compensatory time accumulated in the prior year at their
current rate of pay. After March 31, non-represented employees unused compensatory time is
credited to the employee’s base expense account using the employee’s current rate of pay, and
the accrued salaries liability is reduced accordingly. The liability associated with accumulated
compensatory time is reported as accrued salaries liability in the statement of net assets.

Long-Term Debt: The District reports long-term debt at face value in the basic financial
statements. Any bond premiums or discounts, as well as issuance costs, are capitalized and
amortized over the term of the bond using the straight-line method.


                                                19
                     MADISON METROPOLITAN SEWERAGE DISTRICT
                          NOTES TO FINANCIAL STATEMENTS
                             December 31, 2010 and 2009


NOTE 1 - NATURE OF ACTIVITIES, REPORTING ENTITY, AND SIGNIFICANT
         ACCOUNTING POLICIES (Continued)

Net Assets: Net assets are classified in three separate categories. The categories, and their
general descriptions, are as follows:

       Invested in capital assets, net of related debt - indicates the District's total investment in
       capital assets, net of accumulated depreciation and the outstanding debt used to
       purchase capital assets.

       Restricted net assets - indicates the portion of the net assets which have been placed
       under external constraints imposed by creditors (such as through debt covenants) or
       laws or regulations of other governments or constraints imposed by law through
       constitutional provisions or enabling legislation.

       Unrestricted net assets - indicates the portion of the net assets which is available for
       appropriation and expenditure in future periods.

When both restricted and unrestricted resources are available for debt service, it is the District’s
policy to use restricted resources first, then unrestricted resources. For unexpected repairs, it is
the District’s policy to use unrestricted resources first and restricted resources only when
needed.

Capital Contributions: Capital contributions consist of interceptor connection charges and
contributed capital assets.

Risk Management: The District is exposed to various risks of loss related to torts, theft of,
damage to and destruction of assets, errors and omissions, natural disasters, and employee
injury. The District retains the risk of loss for damage or destruction of its buildings (except for
rental units), sewerage system and other infrastructure. For all other risks, the District carries
commercial insurance. Claims have not exceeded coverage in any of the prior three fiscal
years.

Pollution Remediation Obligations: The District owns land that has been remediated under a
Super Fund clean-up project. On-going monitoring and maintenance of the lands is reported as
an operating expense. These expenses totaled $31,271 and $9,987 in 2010 and 2009,
respectively. Future expenses are expected to range from $20,000 to $60,000 annually.




                                                20
                    MADISON METROPOLITAN SEWERAGE DISTRICT
                         NOTES TO FINANCIAL STATEMENTS
                            December 31, 2010 and 2009


NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS

As of December 31, 2010 and 2009, cash, cash equivalents, and investments included the
following:

                                                                         2010               2009

 Petty cash                                                        $            250   $            250
 Deposits
     Demand deposits                                                     150,325             49,817
 Investments
     Institutional investment account
         U.S. Government obligations                                    1,720,265            334,947
         U.S. Agency obligations                                        5,161,119          6,273,496
         Insured deposit account                                           92,602            207,530
     Local Government Investment Pool                                  13,475,425         16,661,882
     WISC - cash management                                             4,713,681          1,001,764

                                                                   $ 25,313,667       $ 24,529,686

The cash and investments are reported in the statements of net assets as follows:

                                                                         2010               2009
 Cash and cash equivalents
     Unrestricted                                                  $ 8,615,931        $ 8,607,283
     Restricted                                                      9,860,382          9,360,294
 Investments
     Unrestricted                                                         841,095            633,738
     Restricted                                                         5,996,259          5,928,371

                                                                   $ 25,313,667       $ 24,529,686

Deposits in banks are insured by the Federal Deposit Insurance Corporation (FDIC) in the
amount of $250,000 for interest bearing deposits and unlimited for non-interest bearing deposits
per financial institution. In addition, the State of Wisconsin has a State Guarantee Fund, which
provides a maximum of $400,000 per financial institution above the amount provided by the
FDIC. However, due to the relatively small size of the State Guarantee Fund in relation to the
total coverage, total recovery of losses may not be available.




                                              21
                      MADISON METROPOLITAN SEWERAGE DISTRICT
                           NOTES TO FINANCIAL STATEMENTS
                              December 31, 2010 and 2009


NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)

The carrying amount of the District's deposits totaled $242,927 and $257,347, with bank
balances of $371,538 and $314,120 for the years ended December 31, 2010 and 2009,
respectively. Of the bank balances, $371,538 and $314,120 was covered by FDIC insurance
and collateralized, leaving no amount as uninsured and uncollateralized for the years ended
December 31, 2010 and 2009, respectively.

The Wisconsin Local Government Investment Pool (LGIP) is part of the State Investment Fund
(SIF), and is managed by the State of Wisconsin Investment Board. The SIF is not registered
with the Securities and Exchange Commission, but operates under the statutory authority of
Wisconsin Statutes Chapter 25. The SIF reports the fair value of its underlying assets annually.
Participants in the LGIP have the right to withdraw their funds in total on one day’s notice. At
December 31, 2010 and 2009, the fair value of the District’s share of the LGIP’s assets was
substantially equal to the amount as reported in these statements.

The investments in the Local Government Investment Pool are covered up to $400,000 by the
State Guarantee Fund. Certificates of deposit held in the LGIP are covered by FDIC insurance,
which applies to the proportionate public unit share of accounts.

The investments in the Wisconsin Investment Series Cooperative (WISC) are not insured or
collateralized. WISC is managed by RBC Global Asset Management (U.S.) Inc. Investments are
restricted to investments permitted under Wisconsin Statutes 66.0603. Fair value is determined
daily and is equal to the value of the trust shares. Funds may be withdrawn in whole or in part
from Cash Management any time, funds in the Investment Series may be withdrawn after the
minimum of fourteen (14) calendar days. At December 31, 2010 and 2009, the District’s share
of WISC assets was substantially equal to the amounts reported in these financial statements.

The District also has investments in U.S. Government and U.S. Government Agency obligations
purchased through a private sector securities dealer and held by a third-party custodian. These
investments are readily marketable, specifically identifiable and include discount notes and
adjustable and fixed rate mortgage backed securities.

Investment securities, in general, are exposed to various risks, such as interest rate, credit, and
overall market volatility. Due to the level of risk associated with certain investment securities, it
is reasonably possible that changes in the value of investment securities will occur in the near
term and that such changes could materially affect the amounts reported in the statements of
net assets.




                                                 22
                      MADISON METROPOLITAN SEWERAGE DISTRICT
                           NOTES TO FINANCIAL STATEMENTS
                              December 31, 2010 and 2009


NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)

Interest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect
the fair value of an investment. As of December 31, 2010, the District had the following
investments and maturities:

                                                                        Maturity in Years
         Investment Type             Fair Value         <1              1-5           6-10            >10

 Local Government Investment
    Pool **                         $13,475,425    $ 13,475,425   $           -   $          -   $        -
 WISC                                 4,713,681       4,713,681               -              -            -
 Money market                           136,631         136,631               -              -            -
 SBA pools                               93,952             -                 -              -         93,952
 Government National Mortgage
    Association                         118,311              -                -        14,635         103,676
 Federal National Mortgage
    Association                        2,790,757             -         275,009         40,378        2,475,370
 Federal Home Loan Mortgage
    Corporation                        2,114,070            -               -          48,911        2,065,159
 Treasury Bonds                        1,720,265        496,428       1,223,837           -                -

                                    $25,163,092    $ 18,822,165   $ 1,498,846     $   103,924    $ 4,738,157


As of December 31, 2009, the District had the following investments and maturities:

                                                                        Maturity in Years
         Investment Type             Fair Value         <1              1-5           6-10            >10

 Local Government Investment
    Pool **                         $16,661,882    $ 16,661,882   $           -   $          -   $        -
 WISC                                 1,001,764       1,001,764               -              -            -
 Money market                           253,863         253,863               -              -            -
 SBA pools                               96,987             -                 -              -         96,987
 Government National Mortgage
    Association                         135,873              -                -        18,348         117,525
 Federal National Mortgage
    Association                        3,458,628             -                -        58,569        3,400,059
 Federal Home Loan Mortgage
    Corporation                        2,535,675            -              -           61,196        2,474,479
 Treasury Bonds                          334,947        167,297        167,650            -                -

                                    $24,479,619    $ 18,084,806   $ 167,650       $   138,113    $ 6,089,050


** Because the LGIP had a weighted average maturity of less than one year as of December
   31, it has been presented as an investment with a maturity of less than one year.

The District has not developed policies governing the exposure of its investments to interest rate
risk.
                                                   23
                       MADISON METROPOLITAN SEWERAGE DISTRICT
                            NOTES TO FINANCIAL STATEMENTS
                               December 31, 2010 and 2009


NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)

Credit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not
fulfill its obligation. The LGIP and the Trust are unrated with regard to the credit quality rating.
WISC is rated AAAm by Standard and Poor's. The remaining investments of the District are
U.S. Governmental or Agency securities that are explicitly guaranteed, and therefore credit
rating is not applicable. The District has not developed policies governing the exposure of its
cash deposits and investments to credit risk.

Concentration of Credit Risk: Concentration of credit risk is the risk of loss attributable to the
magnitude of a government's investment in a single issuer. It is the policy of the District that
funds deposited in any one bank or savings and loan association shall not exceed $1,500,000 at
any given time. Investments in the LGIP, WISC and U.S. Government or Agency obligations are
not limited as to amount.

Custodial Credit Risk: For an investment, custodial credit risk is the risk that in the event of the
failure of the counterparty, the District will not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. For deposits, custodial credit
risk is the risk that in the event of the failure of a depository financial institution, the District will
not be able to recover deposits or will not be able to recover collateral securities that are in the
possession of an outside party.

All of the District's U.S. Government and Agency obligations are uninsured and unregistered
investments for which the investments are held by the counterparty's trust department or agent
in the District's name. The LGIP and WISC are not subject to the custodial credit risk. The
District has not developed policies governing the exposure of its cash deposits and investments
to custodial credit risk.




                                                   24
                     MADISON METROPOLITAN SEWERAGE DISTRICT
                          NOTES TO FINANCIAL STATEMENTS
                             December 31, 2010 and 2009


NOTE 3 - RESTRICTED NET ASSETS

Restricted net assets of the District consisted of the following at December 31, 2010 and 2009:

                                                                      2010           2009
 Restricted assets
    Cash and cash equivalents
         Debt service                                             $ 9,860,382     $ 9,360,294
    Investments
         Debt service                                               2,996,259       2,928,371
         Equipment replacement                                      3,000,000       3,000,000
             Total restricted assets                               15,856,641      15,288,665

 Current liabilities payable from restricted assets                   (311,280)      (301,614)

                                                                  $ 15,545,361    $ 14,987,051

Debt Service: In accordance with state statutes and provisions of applicable loan covenants, the
District maintains cash and investments in sinking funds in amounts no less than what is
required to meet the balance of the current year debt service requirements.

Amounts available in the sinking funds on October 1, 2010 and 2009 were sufficient to finance
the subsequent year's debt service requirements, and accordingly, the District was not required
to place an amount on the tax roll for debt service.

Equipment Replacement: As a condition of receiving State of Wisconsin Clean Water Fund
(CWF) loans, the District is required to establish an equipment replacement fund for mechanical
equipment. To satisfy this requirement, the District has restricted $3 million of its investments
and net assets for unexpected equipment replacement. In addition, the District annually budgets
for replacement of equipment.

According to the CWF equipment replacement percentage schedule option the District must
maintain a minimum replacement fund balance of five percent of the original cost of “mechanical
equipment”. For this purpose the District uses the sum of its light mechanical equipment, office
furniture and equipment, and vehicles capital assets. The sum of these capital assets for the
year ending December 31, 2010 is $39,469,857. The required five percent of this value is
$1,973,493. The $3 million of restricted assets exceed the minimum equipment replacement
fund value. For the year ending December 31, 2009, the corresponding “mechanical equipment”
total was $36,991,800 and 5% of this amount was $1,849,590.




                                                25
                             MADISON METROPOLITAN SEWERAGE DISTRICT
                                  NOTES TO FINANCIAL STATEMENTS
                                     December 31, 2010 and 2009


NOTE 4 - CAPITAL ASSETS

During the year ended December 31, 2010, the changes in capital assets were as follows:

                                              Balance                                                    Balance
                                             January 1,        Additions /        Retirements /      December 31,
                                               2010          Reclassifications   Reclassifications       2010


 Capital assets not being depreciated
     Construction in progress            $      9,571,245    $      9,079,227    $     15,898,159    $     2,752,313
     Land and easements                         7,400,910                 -                   -            7,400,910
                                              16,972,155            9,079,227          15,898,159         10,153,223


 Capital assets being depreciated
     Structures and improvements             133,773,627           10,418,662             297,775        143,894,514
     Heavy mechanical equipment               50,020,031            3,049,799             155,219         52,914,611
     Light mechanical equipment               30,790,015            2,577,619             260,677         33,106,957
     Office furniture and equipment             3,997,754              96,589                  -           4,094,343
     Vehicles                                   2,204,031              64,526                  -           2,268,557
                                             220,785,458           16,207,195             713,671        236,278,982


 Accumulated depreciation
     Structures and improvements              46,441,692            2,330,199             190,638         48,581,253
     Heavy mechanical equipment               23,805,358            1,540,687             150,384         25,195,661
     Light mechanical equipment               20,700,443            1,004,851             252,393         21,452,901
     Office furniture and equipment             3,660,983              72,838                  -           3,733,821
     Vehicles                                   1,469,701             201,291                  -           1,670,992
                                              96,078,177            5,149,866             593,415        100,634,628


 Capital assets being depreciated, net       124,707,281           11,057,329             120,256        135,644,354


 Total capital assets, net               $ 141,679,436       $     20,136,556    $     16,018,415    $   145,797,577




                                                            26
                             MADISON METROPOLITAN SEWERAGE DISTRICT
                                  NOTES TO FINANCIAL STATEMENTS
                                     December 31, 2010 and 2009


NOTE 4 - CAPITAL ASSETS (Continued)

During the year ended December 31, 2009, the changes in capital assets were as follows:

                                              Balance                                                     Balance
                                             January 1,        Additions /         Retirements /      December 31,
                                               2009          Reclassifications    Reclassifications       2009


 Capital assets not being depreciated
     Construction in progress            $      5,429,881    $      7,516,417     $      3,375,053    $     9,571,245
     Land and easements                         7,400,910                 -                    -            7,400,910
                                              12,830,791            7,516,417            3,375,053         16,972,155


 Capital assets being depreciated
     Structures and improvements             132,995,271              778,356                   -         133,773,627
     Heavy mechanical equipment               47,630,632            2,425,032               35,633         50,020,031
     Light mechanical equipment               30,092,774              697,632                  391         30,790,015
     Office furniture and equipment             4,085,480              18,967              106,693          3,997,754
     Vehicles                                   2,249,439             213,727              259,135          2,204,031
                                             217,053,596            4,133,714              401,852        220,785,458


 Accumulated depreciation
     Structures and improvements              44,086,529            2,355,163                   -          46,441,692
     Heavy mechanical equipment               22,329,493            1,508,974               33,109         23,805,358
     Light mechanical equipment               19,697,197            1,003,637                  391         20,700,443
     Office furniture and equipment             3,688,294              79,380              106,691          3,660,983
     Vehicles                                   1,534,022             194,814              259,135          1,469,701
                                              91,335,535            5,141,968              399,326         96,078,177


 Capital assets being depreciated, net       125,718,061            (1,008,254)              2,526        124,707,281


 Total capital assets, net               $ 138,548,852       $      6,508,163     $      3,377,579    $   141,679,436




                                                            27
                      MADISON METROPOLITAN SEWERAGE DISTRICT
                           NOTES TO FINANCIAL STATEMENTS
                              December 31, 2010 and 2009


NOTE 5 - PENSION PLAN

Plan Description: The District contributes to the Wisconsin Retirement System (the Plan), a cost
sharing, multiple employer defined benefit pension plan administered by the Wisconsin
Department of Employee Trust Funds. The Plan provides retirement and disability benefits,
annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. State
statutes assign authority to establish and amend benefit provisions to the Employee Trust Fund
Board. The Plan issues a publicly available report that includes financial statements and
required supplementary information for the Plan. That report may be obtained by writing to
Wisconsin Retirement System, Department of Employee Trust Funds, P.O. Box 7931, Madison,
WI, 53707-7931, or by calling 1-608-267-9034.

Funding Policy: Employees are required to contribute 6.2 percent and 5.9 percent of their
annual covered salary for 2010 and 2009, respectively, and the District is required to contribute
at an actuarially determined employer rate, which was 4.8 percent and 4.5 percent of annual
covered payroll at December 31, 2010 and 2009, respectively. The contribution requirements of
employees and the District are established and may be amended by the Employee Trust Fund
Board.

The payroll for the District employees covered by the System for the year ended December 31,
2010 was $5,981,724; the District’s total payroll was $6,118,567. The total required contribution
for the year ended December 31, 2010 was $657,990. The District makes the employees'
contributions on their behalf. The District's contributions to the Plan for both the employee and
employer portions for the years ended December 31, 2009 and 2008, was $585,368 and
$572,642, respectively, equal to the required contributions for each year.

Employees who retire at or after age 65 are entitled to receive a retirement benefit. Employees
may retire at age 55 and receive actuarially reduced benefits. The factors influencing the benefit
are: 1) final average earnings, 2) years of creditable service, and 3) a formula factor. Final
average earnings are the average of the employee’s three highest years earnings. Employees
terminating covered employment before becoming eligible for a retirement benefit may withdraw
their contributions and, by doing so, forfeit all rights to any subsequent benefit. For employees
beginning participation on or after January 1, 1990 and no longer actively employed on or after
April 24, 1998, creditable service in each of five years is required for eligibility for a retirement
annuity. Participants employed prior to 1990 and on or after April 24, 1998 are immediately
vested.




                                                 28
                     MADISON METROPOLITAN SEWERAGE DISTRICT
                          NOTES TO FINANCIAL STATEMENTS
                             December 31, 2010 and 2009


NOTE 6 - LONG-TERM DEBT

As of December 31, 2010 and 2009, the long-term debt of the District consisted of the following:

                                                                    2010             2009
General Obligation Sewerage System Bonds

Clean Water Fund Program Project Number 4010-02
$1,891,611 Series 1992A, issued May 1, 1993 for the
Pumping Station No. 7 Rehabilitation Project, interest at
3.897%, interest payments on May 1 and November 1 of
each year and principal payments on May 1 of each year,
due May 1, 2011.                                               $    137,542     $    269,925

Clean Water Fund Program Project Number 4010-03
$18,460,200 Series 1992B, issued April 12, 1995 for the
Eighth Addition to the Nine Springs Wastewater Treatment
Plant, interest at 3.862%, interest payments on May 1 and
November 1 of each year and principal payments on May 1
of each year, due May 1, 2012.                                     2,837,026        4,176,919

Clean Water Fund Program Project Number 4010-10
$1,200,000 Series 1994, issued November 22, 1994 for
the replacement of Pumping Station No. 5, interest at
3.25%, interest payments on May 1 and November 1 of
each year and principal payments on May 1 of each year,
due May 1, 2014.                                                    316,702          389,747

Clean Water Fund Program Project Number 4010-11
$2,668,755 Series 1995, issued June 26, 1998, for the
Verona Force Main and Pumping Station, interest at
3.335%, interest payments on May 1 and November 1 of
each year and principal payments on May 1 of each year,
due May 1, 2015.                                                    874,306         1,032,608

Clean Water Fund Program Project Number 4010-12
$13,740,467 Series 1996A, issued February 9, 2000 for
the Ninth Addition to the Nine Springs Wastewater
Treatment Plant, interest at 3.284%, interest payments on
May 1 and November 1 of each year and principal
payments on May 1 of each year, due May 1, 2015.                   5,077,846        5,998,629




                                               29
                   MADISON METROPOLITAN SEWERAGE DISTRICT
                        NOTES TO FINANCIAL STATEMENTS
                           December 31, 2010 and 2009


NOTE 6 - LONG-TERM DEBT (Continued)
                                                               2010          2009
General Obligation Sewerage System Bonds (Continued)

Clean Water Fund Program Project Number 4010-13
$4,490,327 Series 1997A, issued September 7, 1999 for
the construction of a force main to Badger Mill Creek,
interest at 3.145%, interest payments on May 1 and
November 1 of each year and principal payments on May 1
of each year, due May 1, 2017.                             $ 2,047,911   $ 2,305,892

Clean Water Fund Program Project Number 4010-14
$1,788,729 Series 2000, issued April 11, 2002 for the
Pump Station No. 2 Force Main Replacement Project,
interest at 3.202%, interest payments on May 1 and
November I of each year and principal payments on May 1
of each year, due May 1, 2020.                               1,073,281     1,163,159

Clean Water Fund Program Project Number 4010-15
$2,057,994 Series 2001, issued April 11, 2002 for the
Pump Station No. 2 Force Main Replacement Project,
interest at 3.202%, interest payments on May 1 and
November 1 of each year and principal payments on May 1
of each year, due May 1, 2021.                               1,289,465     1,386,011

General Obligation Sewerage System Promissory
  Notes

Clean Water Fund Program Project Number 4010-17
$7,674,449 Series 2003A, issued July 23, 2003, for the
Rehabilitation of Pumping Stations No. 1, 2, and 10,
interest at 2.824%. interest payments on May 1 and
November 1 of each year and principal payments on May 1
of each year, due May 1, 2023.                               5,688,189     6,046,297

Clean Water Fund Program Project Number 4010-16
$35,427,273 Series 2003B, issued August 27, 2003, for
the Tenth Addition to Nine Springs, interest at 2.796%
interest payments on May 1 and November 1 of each year
and principal payments on May 1 of each year, due May 1,
2023.                                                       27,559,736    29,298,292

Clean Water Fund Program Project Number 4010-99
$279,437 Series 2005A, issued October 12, 2005, for the
Rehabilitation of Pumping Stations No. 1, 2, and 10,
amendment, interest at 2.428%, interest payments on May
1 and November 1 of each year and principal payments on
May 1 of each year, due May 1, 2025.                           225,445       237,784

                                            30
                     MADISON METROPOLITAN SEWERAGE DISTRICT
                          NOTES TO FINANCIAL STATEMENTS
                             December 31, 2010 and 2009


NOTE 6 - LONG-TERM DEBT (Continued)

                                                                  2010            2009
General Obligation Sewerage System Promissory
  Notes (Continued)

Clean Water Fund Program Project Number 4010-20
$1,730,252 Series 2006A, issued September 13, 2006, for
the Effluent Equalization Project, interest at 2.365%,
interest payments on May 1 and November 1 of each year
and principal payments on May 1 of each year, due May 1,
2026.                                                         $ 1,448,093     $ 1,521,862

Clean Water Fund Program Project Number 4010-23
$2,622,948 Series 2007A, issued December 12, 2007, for
the West Interceptor Extension Replacement Project,
interest at 2.555%, interest payments on May 1 and
November 1 of each year and principal payments on May 1
of each year, due May 1, 2027*.                                 2,405,759        2,473,828

Clean Water Fund Program Project Number 4010-26
$9,143,490 Series 2008A, issued November 12, 2008, for
the Pumping Stations 6 and 8 Rehabilitation, interest at
2.368%, interest payments on May 1 and November 1 of
each year and principal payments on May 1 of each year,
due May 1, 2028*.                                               8,086,186        6,553,025

Clean Water Fund Program Project Number 4010-27
$8,964,767 Series 2010A, issued May 26, 2010, for the
Pumping Stations 10 to Lien Road Relief, interest at
2.369%, interest payments on May 1 and November 1 of
each year and principal payments on May 1 of each year,
due May 1, 2030*.                                               8,070,109              -
                                                               67,137,596       62,853,978
Less current maturities                                         6,221,602        5,361,544

                                                             $ 60,915,994     $ 57,492,434

* As of December 31, 2010, the District has drawn $2,622,948 of the total note issue of
$2,826,309 of the Series 2007A general obligation sewerage system promissory note,
$8,086,186 of the total note issue of $9,143,490 of the Series 2008A general obligation
sewerage system promissory note and $8,070,109 of the total note issue of $8,964,767 of the
Series 2010A general obligation sewerage system promissory note.

The District incurred $1,820,187 and $1,800,669 of total interest costs for December 31, 2010
and 2009, respectively. The District capitalized interest of $140,215 and $46,528 for the years
ended December 31, 2010 and 2009, respectively.

                                              31
                       MADISON METROPOLITAN SEWERAGE DISTRICT
                            NOTES TO FINANCIAL STATEMENTS
                               December 31, 2010 and 2009


NOTE 6 - LONG-TERM DEBT (Continued)

A summary of the changes in long-term obligations of the District for the year ended
December 31, 2010 was as follows:

                                    Balance                                       Balance       Amounts
                                   January 1,                                   December 31,     Due in
                                     2010            Additions    Reductions        2010        One Year

 General obligation
    sewerage system bonds         $ 16,722,890   $          -     $ 3,068,810   $ 13,654,080   $ 3,177,689

 General obligation
    sewerage system notes           46,131,088        9,645,165     2,292,737     53,483,516    3,043,913
         Subtotal                   62,853,978        9,645,165     5,361,547     67,137,596    6,221,602

 Capital lease                         168,250              -         168,250            -            -
 Compensated absences                3,036,993          952,070     1,089,838      2,899,225      645,501
 Other post employment benefits        340,137          340,137           -          680,274          -

                                  $ 66,399,358   $ 10,937,372     $ 6,619,635   $ 70,717,095   $ 6,867,103


A summary of the changes in long-term obligations of the District for the year ended
December 31, 2009 was as follows:

                                    Balance                                       Balance       Amounts
                                   January 1,                                   December 31,     Due in
                                     2009            Additions    Reductions        2009        One Year

 General obligation
    sewerage system bonds         $ 19,686,574   $          -     $ 2,963,684   $ 16,722,890   $ 3,068,808

 General obligation
    sewerage system notes           43,422,636        4,898,427     2,189,975     46,131,088    2,292,736
         Subtotal                   63,109,210        4,898,427     5,153,659     62,853,978    5,361,544

 Capital lease                             -            168,250           -          168,250          -
 Compensated absences                3,027,939          804,533       795,479      3,036,993      558,508
 Other post employment benefits            -            340,137           -          340,137          -

                                  $ 66,137,149   $ 6,211,347      $ 5,949,138   $ 66,399,358   $ 5,920,052


General Obligation Debt: All general obligation debt has been issued under the full faith and
credit and unlimited taxing powers of the District. The District has complied with the restrictive
covenants of each of the debt issues.



                                                      32
                    MADISON METROPOLITAN SEWERAGE DISTRICT
                         NOTES TO FINANCIAL STATEMENTS
                            December 31, 2010 and 2009


NOTE 6 - LONG-TERM DEBT (Continued)

Future principal and interest payments due on long-term debt of the District are approximately
as follows:

  Year Ending
  December 31                                       Principal       Interest         Total
      2011                                         $ 6,221,602    $ 1,777,614     $ 7,999,216
      2012                                            6,273,108      1,584,311       7,857,419
      2013                                            4,966,964      1,415,125       6,382,089
      2014                                            5,110,274      1,269,722       6,379,996
      2015                                            5,172,056      1,121,465       6,293,521
     2016-20                                         20,162,982      3,857,932      24,020,914
     2021-25                                         14,804,819      1,262,179      16,066,998
     2026-30                                          4,425,791        211,089       4,636,880
      Total                                        $ 67,137,596   $ 12,499,437    $ 79,637,033


The equalized valuation of the District, as certified by the Wisconsin Department of Revenue,
was $35,557,504,188 for 2010 and $36,693,746,080 for 2009. The legal debt limit and margin of
indebtedness as of December 31, 2010 and 2009, in accordance with Section 67.03(1)(b) of the
Wisconsin Statutes, follows:

                                                                  2010               2009

Debt limit (5 percent of the equalization value)           $ 1,777,875,209       $1,834,687,304
Deduct long-term debt applicable to debt margin                 67,137,596           62,853,978

   Margin of indebtedness                                  $ 1,710,737,613     $ 1,771,833,326

Capital Lease

The District had a capital lease for a Terre-Gator. The original indebtedness was $168,250 at
an interest rate of 5.25%. The final maturity was January 8, 2012; the District paid the total
principal early for the capital lease on June 30, 2010.




                                              33
                     MADISON METROPOLITAN SEWERAGE DISTRICT
                          NOTES TO FINANCIAL STATEMENTS
                             December 31, 2010 and 2009


NOTE 7 - COMMITMENTS

As of December 31, 2010, the District had the following commitments with respect to unfinished
capital projects:

                                                                                    Remaining
                   Project                                                         Commitment

 West Interceptor                                                                  $     182,888
 Pumping Station Nos. 6 and 8 Rehabilitation                                              24,464
 Lower Badger Mill Creek Interceptor                                                      36,554
 NEI - PS10 to Lien Road Relief/Replacement                                                8,634
 NS 11/Solids Handling Facility Plan                                                   1,600,963
 Process Control System Upgrade                                                           57,469
 Operations Building HVAC Rehabilitation                                                 139,270

                                                                                   $   2,050,242

NOTE 8 - MAJOR MUNICIPAL CUSTOMERS

During the years ended December 31, 2010 and 2009, the District had charges for transmission
and treatment of sewage and interceptor connection charges to one major municipal customer,
the City of Madison, (defined as being greater than 10 percent of charges) of approximately
$14,887,000 and $14,778,000, respectively. Accounts receivable as of December 31 from the
City of Madison were as follows:

                                                                    2010               2009

 Pumping stations                                              $      56,298   $      71,665
 Sewer service                                                     3,574,180       3,512,837
 Interceptor connection charges                                      464,451         497,874

                                                               $ 4,094,929     $ 4,082,376




                                               34
                    MADISON METROPOLITAN SEWERAGE DISTRICT
                         NOTES TO FINANCIAL STATEMENTS
                            December 31, 2010 and 2009


NOTE 9 - POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS

The Madison Metropolitan Sewerage District participates in a single-employer defined benefit
health care plan administered by the District. The plan provides health insurance benefits for
eligible retirees and their spouses through the District’s group health insurance plan, which
covers both active and retired members. Benefit provisions are established through collective
bargaining agreements, personnel policy guidelines, or past practice and state that eligible
retirees and their spouses receive lifetime healthcare insurance at established contribution
rates.

The District pays 100% of the premiums of the lowest health insurance carrier for active
employees. If an employee has health insurance through a carrier that is not the lowest, he or
she is responsible for the difference. Retirees are responsible for 100% of the premiums
applicable for their health insurance group.

No contribution requirements are established. As of December 31, 2010 and 2009, the District
made no contributions to the plan. The District currently funds these costs on a pay-as-you-go
basis.

In preparing the estimates for 2008, the District used assumptions that resulted in a
determination that the annual required contribution of the employer (ARC), net OPEB obligation
and actuarial accrued liability were not material, and accordingly no amounts were reported for
2008. During 2009, the District reviewed the plan description and related assumptions. An
actuarial valuation was obtained in September 2009 using the alternative method as allowed in
GASB 45. The valuation was prepared for 2009. This valuation established an actuarial accrued
liability of $2.9 million.

The District’s annual other postemployment benefit (OPEB) cost (expense) is calculated based
on the ARC, an amount actuarially determined in accordance with parameters of GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed thirty years. The remaining amortization period at
December 31, 2010 was 28 years.




                                              35
                    MADISON METROPOLITAN SEWERAGE DISTRICT
                         NOTES TO FINANCIAL STATEMENTS
                            December 31, 2010 and 2009


NOTE 9 - POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued)

The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,
and the net OPEB obligation for 2010 and 2009 were as follows:

                                                                 2010            2009

 Annual required contribution                                $    340,137    $   340,137
 Interest on net OPEB obligation                                      -              -
 Adjustment to annual required contribution                           -              -

 Annual OPEB cost                                                 340,137        340,137
 Contributions made                                                   -              -
 Increase in net OPEB obligation                                  340,137        340,137

 Net OPEB obligation, beginning of year                           340,137               -

 Net OPEB obligation, end of year                            $    680,274    $   340,137

The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan
and the net OPEB obligation for the year ended December 31, 2010, and the preceding two
years were as follows:

                                                             Percentage of
                                                                Annual
                                                Annual        OPEB Cost      Net OPEB
         Year Ended December 31                OPEB Cost      Contributed    Obligation

                    2008                      $        -         0.00%       $       -
                    2009                           340,147       0.00%           340,147
                    2010                           340,147       0.00%           680,274




                                              36
                      MADISON METROPOLITAN SEWERAGE DISTRICT
                           NOTES TO FINANCIAL STATEMENTS
                              December 31, 2010 and 2009


NOTE 9 - POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued)

The funded status of the plan as of December 31, 2010 and 2009, valuation date, is as follows:

                                                                       2010             2009

Actuarial accrued liability (AAL)                                 $ 2,986,245      $ 2,986,245
Actuarial value of plan assets                                            -                -

Unfunded actuarial accrued liability (UAAL)                       $ 2,986,245      $ 2,986,245


Funded ratio                                                               0.00%           0.00%

Covered payroll (active plan members)                             $ 6,074,502      $ 5,687,924

UAAL as a percentage of covered payroll                                  49.16%           52.50%


The schedule of funding progress presented as Required Supplementary Information (RSI)
following the notes to the financial statements presents multiyear trend information about
whether the actuarial value of plan assets are increasing or decreasing due to relative to the
actuarial accrued liability for benefits.

Actuarial valuations of an ongoing plan involve estimates for the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts
determined regarding the funded status of the plan and annual required contributions of the
employer are subject to continual revision as actual results are compared with past expectations
and new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information following the notes of the financial statements, presents
multiyear trend information that shows whether the actuarial value of plan assets is increasing
or decreasing over time relative to the actuarial accrued liabilities for benefits.

Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing benefit costs between
the employer and plan members to that point. The actuarial methods and assumptions used
include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities
and the actuarial value of assets, consistent with the long-term perspective of the calculations.

In the January 2009 actuarial valuation, the projected unit credit actuarial cost method was
used. The actuarial assumptions include a 3.5% investment rate of return and an annual
healthcare cost trend rate of 10.4% initially, reduced by decrements to an ultimate rate of 5%
after 2018. The unfunded actuarial accrued liability is being amortized over 30 years.


                                                 37
                    MADISON METROPOLITAN SEWERAGE DISTRICT
                         NOTES TO FINANCIAL STATEMENTS
                            December 31, 2010 and 2009


NOTE 10 - SUBSEQUENT EVENTS

Management evaluated subsequent events through March 9, 2011, the date the financial
statements were available to be issued. Events or transactions occurring after December 31,
2010, but prior to March 9, 2011 that provided additional evidence about condition that existed
at December 31, 2010, have been recognized in the financial statements for the year ended
December 31, 2010. Events or transactions that provided evidence about conditions that did not
exist at December 31, 2010 but arose before the financial statements were available to be
issued have not been recognized in the financial statements for the year ended December 31,
2010.




         This information is an integral part of the accompanying financial statements.

                                              38
REQUIRED SUPPLEMENTARY INFORMATION




                39
                         MADISON METROPOLITAN SEWERAGE DISTRICT
                          REQUIRED SUPPLEMENTARY INFORMATION
                              SCHEDULE OF FUNDING PROGRESS
                                Year Ended December 31, 2010


                                                (AAL)                                               UAAL as a
                               Actuarial       Accrued           (UAAL)                             Percentage
             Actuarial         Value of        Actuarial        Unfunded   Funded       Covered     of Covered
             Valuation          Assets         Liability           AAL      Ratio       Payroll       Payroll
               Date               (a)             (b)             (b-a)     (a/b)         (c)        ((b-a)/c)

12/31/2008    1/1/2008     $          -    $          -   $       -        0.00%    $         -      0.00%
12/31/2009    1/1/2009                -         2,986,245   2,986,245      0.00%        5,687,924    52.50%
12/31/2010    1/1/2009                -         2,986,245   2,986,245      0.00%        6,074,502    49.16%




                                                           40
MADISON METROPOLITAN SEWRAGE DISTRICT

Supplemental Detailed Information

_________________________________________________________________

The following information was prepared by the staff of Madison Metropolitan Sewe-
rage District and is not a part of the Independent Auditor’s Financial Report.




                                   1
                       MADISON METROPOLITAN SEWERAGE DISTRICT
                                           Madison, Wisconsin 
                                                                                           
                            DETAIL OF EXPENDITURES - GENERAL FUND
                                      Year Ended December 31, 2010 
                                   (with comparative amounts for 2009) 
                                                                                     
ENGINEERING, COMMISSION AND ADMINISTRATION                       2010                   2009


Base Expenses                                                                        
Salaries                                                         1,042,523              1,031,507
Employee Benefits                                                  673,723               632,663
Other Post Employment Benefits (OPEB)                              340,137               340,137
Travel & Mileage                                                      4,299                    1,871
Supplies & Other Equipment                                          33,454                    28,263
Misc                                                                  4,356                    7,904
Contracted Services                                                112,368               101,555
Annual Report                                                             572                   765
Accounting                                                          32,866                    31,421
Legal                                                               79,457                    56,972
General Insurance                                                   90,962                    66,431
Minutes Publishing                                                  16,890                     8,416
Registration Fees & Dues                                            18,284                    16,431
Reference Materials                                                   3,014                    1,299
Postage & Delivery Services                                           9,084                    9,192
Internet Service Provider                                             8,354                    7,529
Total                                                            2,470,343              2,342,356
                                                                                     
Training                                                                             
Salaries                                                            55,163                    77,356
Employee Benefits                                                   35,504                    47,645
Travel & Mileage                                                    18,754                    18,923
Registration Fees & Dues                                            39,434                    35,179
Contracted Services                                                   9,817                       0
Supplies & Other Equipment                                            1,840                    1,162
Misc                                                                       10                    37
Total                                                              160,522               180,302
                                                                                     
Sewer Extension Plans Review                                                         
Salaries                                                            25,097                    21,745
Employee Benefits                                                   16,153                    13,392
Contracted Services                                                   3,481                    1,838
Total                                                               44,731                    36,975
                                    2010                 2009 
Collection System Maps                                
Salaries                               62,979               67,991
Employee Benefits                      40,535               41,877
Contracted Services                     6,000                7,850
Total                                 109,514              117,718
                                                      
Professional & Public Service                         
Salaries                                9,630                9,581
Employee Benefits                       6,198                5,901
Total                                  15,828               15,482
                                                      
Public Education & Tours                              
Salaries                               12,148               13,757
Employee Benefits                       7,819                8,473
Advertising                             9,840               13,087
Misc                                       175                    0
Total                                  29,982               35,317
                                                      
Vehicles                                              
Salaries                                4,023                4,199
Employee Benefits                       2,590                2,586
Supplies                                    73                    8
Total                                   6,686                6,793
                                                      
Dynamic Model                                         
Salaries                                    0                    170
Employee Benefits                           0                    105
Contracted Services                     3,296                3,296
Total                                   3,296                3,571
                                                      
Total Administration Expenses:    $ 2,840,902          $ 2,738,514
                                 2010                 2009 
Treatment & Disposal                               
Base Expenses                                      
Salaries                          2,457,712            2,332,003
Employee Benefits                 1,581,845            1,436,295
Travel & Mileage                     1,404                1,656
Natural Gas                        103,268              151,342
Motor Fuel                         121,810               96,502
Power                             1,999,528            1,850,250
Communications                      13,525               13,172
Water & Sewer                       85,197               64,555
Engineering Consulting                   0                8,065
Contracted Services               1,092,413            1,148,582
Printing & Photo Processing             476                   870
Registration Fees & Dues           203,597              220,433
Supplies                           216,758              220,641
Chemicals                          563,740              593,154
Misc                                35,140               99,877
Farmer Yield Guarantees             85,256              101,578
Total                             8,561,669            8,338,975
                                                   
Treatment & Disposal Training                      
Salaries                           155,546              157,035
Employee Benefits                  100,113               96,745
Supplies                                463                   901
Travel & Mileage                    10,430                9,202
Registration Fees & Dues            18,381               21,678
Contracted Services                  3,613                9,540
Misc                                     26                    0
Total                              288,572              295,101
                                                   
Treatment & Disposal Vehicles                      
Vehicles Salaries                  100,682               94,993
Employee Benefits                   64,802               58,506
Contracted Services                      0                1,850
Communications                       4,345                4,310
Supplies                            11,540                7,813
Total                              181,369               167,472
Total Treatment & Disposal       $9,031,610           $8,801,548
                                           2010             2009
Collection & Transmission                                
Base Expenses
Salaries                                    141,355          108,605
Employee Benefits                            90,980           66,009
Contracted Services                          44,562           40,578
Supplies                                        589            1,661
Collection & Transmission Base:             277,486          216,853

Pumping Station #1 ‐ North First Street                  
Salaries                                     13,138           14,901
Employee Benefits                             8,456            9,178
Power                                        72,102           72,944
Water                                         1,138            1,051
Natural Gas                                   1,156            1,929
Contracted Services                               464          1,025
Supplies                                          141               0
Total PS# 1                                  96,595          101,028
                                                         
Pumping Station #2 ‐ Brittingham Park                    
Salaries                                     21,026           17,563
Employee Benefits                            13,533           10,817
Power                                       139,610          130,577
Water                                             359              321
Natural Gas                                       223              391
Contracted Services                           2,272            2,535
Supplies                                          121              247
Total PS# 2                                 177,144          162,451
                                                         
Pumping Station #3 ‐ Nine Springs                        
Salaries                                      3,785            2,519
Employee Benefits                             2,436            1,551
Power                                         5,982            6,010
Contracted Services                               688               58
Supplies                                           56               0
Total PS# 3                                  12,947           10,138
                                                         
Pumping Station #4 ‐ Olin Avenue                         
Salaries                                      4,847            5,244
Employee Benefits                             3,120            3,230
Power                                        14,552           14,149
Water                                             419              288
Supplies                                           0                94
Total PS# 4                                  22,938           23,005
                                          2010                 2009 
Pumping Station #5 ‐ Spring Harbor                          
Salaries                                     7,840                 8,680
Employee Benefits                            5,046                 5,346
Power                                       12,795               12,656
Water                                            385                   536
Natural Gas                                  1,381                 1,617
Contracted Services                          1,107                 1,621
Supplies                                          0                     16
Total PS# 5                                 28,554               30,472
                                                            
Pumping Station #6 ‐ Walter Street                          
Salaries                                     8,902               32,053
Employee Benefits                            5,730               19,742
Power                                       35,505               30,769
Water                                            709                   457
Natural Gas                                      309                    0
Contracted Services                          3,847                      0
Supplies                                          0                    409
Total PS# 6                                 55,002               83,430
                                                            
Pumping Station #7 ‐ Bridge Road                            
Salaries                                    32,525               34,091
Employee Benefits                           20,934               20,997
Power                                      145,377              142,735
Chemicals                                        945               1,200
Water                                        3,196                 1,617
Natural Gas                                  1,281                 1,695
Contracted Services                          2,388               24,479
Supplies                                         291                   328
Total PS# 7                                206,937              227,142
                                                            
Pumping Station #8 ‐ West Wingra Drive                      
Salaries                                     5,174                 3,862
Employee Benefits                            3,330                 2,379
Power                                      101,150               73,489
Water                                        2,029                     385
Natural Gas                                      310                    0
Total PS# 8                                111,993               80,115
                                           2010                 2009 
Pumping Station #9 ‐ McFarland                               
Salaries                                      3,233                 9,262
Employee Benefits                             2,081                 5,705
Power                                         9,090                 8,190
Water                                             276                   272
Supplies                                           0                    213
Total PS# 9                                  14,680               23,642
                                                             
Pumping Station #10 ‐ Regas Road                             
Salaries                                     13,462               17,080
Employee Benefits                             8,664               10,520
Power                                       127,525              127,612
Water                                             524                   461
Natural Gas                                       237                   229
Contracted Services                               464               1,025
Total PS# 10                                150,876              156,927
                                                             
Pumping Station #11 ‐ East Clayton Road                      
Salaries                                     13,959               17,703
Employee Benefits                             8,984               10,903
Power                                        89,040               85,380
Contracted Services                               232                   512
Supplies                                          122                   114
Total PS# 11                                112,337              114,612
                                                             
Pumping Station #12 ‐ Fitchrona Road                         
Salaries                                     14,169                 9,306
Employee Benefits                             9,120                 5,732
Power                                        52,206               50,463
Contracted Services                               232                   512
Supplies                                           34                    0
Total PS# 12                                 75,761               66,013
                                                             
Pumping Station #13 ‐ Stoughton Road                         
Salaries                                     11,358               26,085
Employee Benefits                             7,310               16,066
Power                                        23,671               24,266
Water                                             665                   719
Contracted Services                               232                   512
Supplies                                      1,051                     470
Total PS# 13                                 44,287               68,118
                                         2010                 2009 
Pumping Station #14 ‐ School Road                          
Salaries                                   14,263               14,816
Employee Benefits                           9,180                 9,125
Power                                      21,534               20,777
Water                                           415                   446
Contracted Services                             232                   512
Supplies                                        478                    25
Total PS# 14                               46,102               45,701
                                                           
Pumping Station #15 ‐ Allen Boulevard                      
Salaries                                    8,475               12,194
Employee Benefits                           5,455                 7,510
Power                                      19,602               18,945
Water                                            61                   134
Supplies                                         0                    149
Total PS# 15                               33,593               38,932
                                                           
Pumping Station #16 ‐ Gammon Road                          
Salaries                                    7,785               50,665
Employee Benefits                           5,011               31,205
Power                                      85,499               80,543
Water                                            54                   125
Contracted Services                             882                    0
Supplies                                        102                   196
Odor Control Chemicals                      1,709                 2,000
Total PS# 16                              101,042              164,734
                                                           
Pumping Station #17 ‐ Verona                               
Salaries                                   19,460               17,099
Employee Benefits                          12,525               10,531
Power                                      24,485               22,738
Water                                            91                    70
Natural Gas                                 2,910                 3,159
Contracted Services                         2,554                     512
Supplies                                        124                    17
Total PS# 17                               62,149               54,126
                                                           
East Interceptor                                           
Salaries                                    3,839                 7,739
Employee Benefits                           2,471                 4,766
Contracted Services                         3,156                     106
Total East Interceptor                      9,466               12,611
                                            2010                 2009 
Far East Interceptor                                          
Salaries                                       1,269                 2,956
Employee Benefits                                  817               1,821
Total Far East Interceptor                     2,086                 4,777
                                                              
Lower Badger Mill Creek                                       
Salaries                                           203               1,601
Employee Benefits                                  131                   986
Total Lower Badger Mill Creek Interceptor          334               2,587
                                                              
Nine Springs Valley Interceptor                               
Salaries                                       6,865                 5,319
Employee Benefits                              4,418                 3,276
Gravity Sewer                                  9,064                      0
Total Nine Springs Valley Interceptor         20,347                 8,595
                                                              
Northeast Interceptor                                         
Salaries                                      12,636                 9,515
Employee Benefits                              8,133                 5,860
Contracted Services                            3,396                 8,302
Supplies                                           73                     0
Gravity Sewer                                      370                    0
Total Northeast Interceptor                   24,608               23,677
                                                              
South Interceptor                                             
Salaries                                            86                   904
Employee Benefits                                   55                   557
Total South Interceptor                            141               1,461
                                                              
Southeast Interceptor                                         
Salaries                                       4,687                 1,361
Employee Benefits                              3,017                     838
Contracted Services                            9,205                      0
Total Southeast Interceptor                   16,909                 2,199
                                                              
Southwest Interceptor                                         
Salaries                                       5,805                 2,857
Employee Benefits                              3,736                 1,760
Supplies                                            0                     8
Total Southwest Interceptor                    9,541                 4,625
                                      2010                 2009 
Rimrock Interceptor                                     
Salaries                                      0                1,878
Employee Benefits                             0                1,157
Contracted Services                           0                4,659
Total Rimrock Interceptor                     0                7,694
                                                        
West Interceptor                                        
Salaries                                12,003               25,887
Employee Benefits                        7,725               15,944
Contracted Services                     23,217               14,877
Misc.                                         0                     50
Total West Interceptor                  42,945               56,758
                                                        
City of Madison Pumping Stations                        
Salaries                                99,507              103,466
Employee Benefits                       64,045               63,725
Contracted Services                          340             17,797
Supplies                                 1,245                     708
Misc.                                         20                    0
Total City of Madison                  165,157              185,696
                                                        
Maple Bluff Pumping Stations                            
Salaries                                 7,408                 8,844
Employee Benefits                        4,768                 5,447
Contracted Services                      1,063                     320
Supplies                                      0                    208
Total Maple Bluff                       13,239               14,819
                                                        
Town of Dunn SD#1 Pumping Stations                      
Salaries                                 5,175               15,775
Employee Benefits                        3,331                 9,716
Contracted Services                          750                   604
Supplies                                      0                     94
Total Town of Dunn SD#1                  9,256               26,189
                                                        
Town of Madison Pumping Stations                        
Salaries                                17,945               11,965
Employee Benefits                       11,550                 7,369
Contracted Services                          619                   408
Supplies                                      0                    240
Total Town of Madison                   30,114               19,982
                                       2010                 2009 
City of Verona Pumping Station                           
Salaries                                   5,092                7,348
Employee Benefits                          3,277                4,526
Contracted Services                        1,625                    233
Total City of Verona                       9,994               12,107
                                                         
Dane County Parks                                        
Salaries                                      554                   478
Employee Benefits                             357                   294
Total for Dane County Parks                   911                   772
                                                         
Town of Dunn SD#3 Pumping Stations                       
Salaries                                   4,995                8,799
Employee Benefits                          3,215                5,419
Contracted Services                            0                    444
Total Town of Dunn SD#3                    8,210               14,662
                                                         
Collection & Transmission Vehicles                       
Salaries                                   2,021                2,896
Employee Benefit                           1,300                1,784
Supplies                                      261                   578
Collection & Transmission Vehicles         3,582                5,258
                                                         
Collection System Safety                                 
Salaries                                      424                     0
Employee Benefit                              273                     0
Collection System Safety                      697                     0
                                                         
Total Collection & Transmission        $1,997,958           $2,071,908
Repair and Replacement                     2010             2009
                                                         
Engineering & Administration                  83,385           76,960
Nine Springs Treatment Plant                 908,931          656,081
Nine Springs Treatment Plant Vehicles        120,975          117,482
Collection System                              5,488            6,624
Collection System Vehicles                     4,019            8,749
Interceptors                                             
Pumping Station #1                             3,876           16,452
Pumping Station #2                            14,438            8,031
Pumping Station #3                                422           1,485
Pumping Station #4                             6,540            2,488
Pumping Station #5                                541           1,335
Pumping Station #6                             3,897           83,554
Pumping Station #7                            16,624           41,207
Pumping Station #8                             5,751                78
Pumping Station #9                                950              716
Pumping Station #10                            9,711           14,380
Pumping Station #11                            9,552           28,754
Pumping Station #12                           28,533            2,369
Pumping Station #13                           12,308            4,143
Pumping Station #14                            8,606            1,427
Pumping Station #15                            3,345            9,504
Pumping Station #16                               504          10,347
Pumping Station #17                           21,075           14,270
East Interceptor                               6,368                57
West Interceptor                              14,581           16,407
Nine Springs Valley Interceptor               12,257            3,072
Northeast Interceptor                          3,823               212
Southeast Interceptor                             306               0
Southwest Interceptor                              0            8,322
City of Madison Pumping Stations              53,132           51,782
City of Verona Pumping Stations                2,190            7,354
Village of Maple Bluff Pumping Stations        2,658               934
Town of Dunn SD#1 Pumping Stations                658           9,610
Town of Dunn SD#3 Pumping Stations             1,776            1,396
Town of Madison Pumping Stations              16,034            6,442
Dane County Parks                                  72               0
                                                         
Total Repair & Replacement                 $1,383,326       $1,212,024
CAPITAL OUTLAY                2010           2009


Construction In Progress
Electrical Equipment                           23,174
Heavy Mechanical Equipment      28,375              683
Light Mechanical Equipment      37,997    
Instrumentation Equipment                 
General Equipment               81,547         74,577
Engineering Equipment                     
Office Equipment                96,589         18,968
Lab Equipment                             
Fixed Improvements                             20,756
Force Main                                
Vehicles                        64,526        213,727
                                          
                                          
Total Capital Outlay          $309,034       $351,885
 
                               Madison Metropolitan
                                 Sewerage District
                               1610 Moorland Road
                                Madison, WI 53713
                                  608-222-1201
Protecting public health and
      the environment
                                www.madsewer.org




                 Service through stewardship,
                   integrity, and innovation.

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:31
posted:5/18/2011
language:English
pages:109