Lookout Mountain Water District: Genesis and Evolution

Transcription

1 Lookout Mountain Water District: Presented by: Genesis and Evolution John Roscoe, President of the Board and Panel: Board of Directors and Contractors September 30,

2 Introduction Purpose: Update and describe the LMWD as it exists today to the community Understand conditions (capacity and constraints) within LMWD Understand future concerns facing LMWD Community/audience: Customers, tap owners, property owners (taxpayers) and lateral organizations 2

3 Agenda/Outline of Topics Introduction and Overview (J. Roscoe 6:00-6:10) Geographic Features and Maps (J. Roscoe 6:10-6:20) Infrastructure/Distribution System (B. Smith 6:20-6:40) Historical perspective/chronology (J. Roscoe 6:40-6:55) Break Operations/Policies/Admin. (C. Young 7:10-7:20) Financial/Tax Revenue (R. Nemer 7:20-7:30) Laterals/Lateral Organizations (M. Mancini 7:30 7:45) Future Concerns (D. Ranta 7:45 7:55) Questions/Closing (D. Ranta 7:55-8:00) 3

4 Introduction and Overview Special District Powers and duties are established by Colorado revised statutes Oversight is a shared function of Counties and Division of Local Affairs (DOLA) Governed by 5 Member elected Board of Directors Introduction of Directors and contractors present Board of Directors Speci al Distri ct Statut Regulation s Administration Customers es Infrastructur e Finan ce Operation s Water Rights 4

5 Introduction and Overview continued Water Rights The District s primary source water is surface water captured from the Beaver Brook Watershed which must be returned into the Clear Creek drainage basin Contractors Operations Administration Legal Counsel Engineering Customers Tap owners Property owners Water users Board of Directors Administration Customers Speci al Distri ct Statut es Infrastructur e Finan ce Regulation s Operation s Water Rights 5

6 Introduction and Overview continued Finance/Revenue Enterprise Fund Property Taxes Capital Projects Infrastructure and Distribution Water and Dam Regulations Board of Directors Administration Speci al Distri ct Statut es Infrastructur e Regulation s Operation s Customers Finan ce Water Rights 6

7 Geographic Features and Maps Description of features from West to East Beaver Brook Watershed Upper Beaver Brook Reservoir Lower Beaver Brook Reservoir Treatment Facility Transmission main and vaults Pump Station 1 Million gallon storage tank Laterals Lookout Mountain Reservoir 7

8 Geographic Features and Maps continued West sector in Clear Creek County (Upper and Lower Beaver Brook) 8

9 Geographic Features and Maps continued West sector in Jefferson County (County Rd 65 to Ruby Ranch) 9

10 Geographic Features and Maps continued Mid sector in Jefferson County (El Rancho to Mt Vernon Country Club Rd) 10

11 Geographic Features and Maps continued East sector (Mt Vernon Country Club Rd to Lookout Mountain Reservoir) 11

12 Infrastructure and Distribution System John P. Downs Treatment Facility Membrane Filtration (3 units, 2 can produce max output) Emergency Generator Three water reservoirs Upper Beaver Brook raw water (1924, normal storage capacity 257 AF) Lower Beaver Brook (1903, normal storage capacity 30 AF) Lookout Mountain Reservoir (1903, normal storage capacity 101 AF, water is used for exchange only) 1 Million Gallon treated storage tank Main distribution pipeline (12 miles) Lateral distribution lines (9 miles) Pump station, air relief stations, valves, etc. Meters and Hydrants 500+ meters 100+ hydrants, only 27 are owned by LMWD Private Service Lines 12

13 Infrastructure and Distribution System continued Water Service and Annual Minimum Charge 565 Taps 500 Active ~ $162 per year including 32,000 gallons 35 Inactive Assigned ~ $150 per year 30 Inactive Unassigned ~ $300 per year 1,300 estimate residential persons served Government facilities served: Clear Creek High School Foothills Fire Stations (2) Highland Rescue Ambulance Station City of Denver Mountain Parks (5) Jefferson County (3) 13

14 Thousand gallons Infrastructure and Distribution System continued Average annual water breakdown (5 year ): Treated (inflow): 65,000,000 gallons (199 AF) Released and backwash: 16,000,000 gallons Billed: annual average 32,000,000 gallons LMWD Water Breakdown 2005 to ,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 TF Inflow Backwash / Releases Unmetered consumption Billed

15 Infrastructure and Distribution System continued What is water loss? Combination of real and paper losses resulting in a calculated water loss rate Real water loss Leaks and Line Breaks (unmetered) Discovered and repaired Undiscovered Leaks/waste (metered) Operational use (flushing, maintenance and repairs) Fire Department (training and emergency use, can be billed) Paper loss Broken or malfunctioning meters Billing allowances, estimates and adjustments Timing and use of estimates 15

16 Infrastructure and Distribution System continued Calculated Water Loss Calculated losses over past 8 years indicates a 29% average Not unusual for an aging system Mitigation factors: Main repairs for a discovered leak ($5,000 to $10,000 per location) Main replacements or rehab ($100 - $125 per foot) Master metering (main and laterals) Repair customer meters for accurate billing The District is actively working on reducing the water loss rate 16

17 Historical Perspective/Chronology 1903 City of Golden began reservoir construction 1972 Election to create first District (Fails) BBWCA works to create District (Service Plan) 1988 Bond Election (Successful) and LMWD is created Treatment Facility built, portions of main are repaired 1990 Acquisition of 5 Farmers Highline Co. Shares present Portions of the main line are improved or repaired, treatment facility is improved, inactive taps activated 1992 Modification of Upper Beaver Brook dam and spillway to enlarge capacity 1995 Lookout Mountain Reservoir improved 2004 Subdistrict A created to replace and upgrade LMCrest HOA Lateral by TABOR election 2004 Electors approve a mil levy increase to fund operations, capital projects and reserves 2005 Emergency generator installed at Treatment Facility Treatment Facility upgraded 2009 Preservation of Beaver Brook Watershed milestone 2010 Capital improvement projects including main replacement 17

18 Historical Perspective continued The $2,500,00 bond issue allowed the District to develop the treatment and distribution system. Portions were used to build the John P. Downs Treatment Facility and a 1 million gallon treated storage tank, and acquire additional water rights. The bonds were paid solely by property taxes and were refinanced twice (1993 and 2003) resulting in direct savings to taxpayers; they were paid off in 2007 allowing the District to work on other capital needs. 18

19 Operations, Policies and Administration Board of Directors Elected to 4-year terms by LMWD property owners and bonded Set Policy Policies, Rules and Regulations Set water rates and fees Bylaws Oversee Contractors for Operations, Administration, Engineering and Legal Fiduciary Responsibilities Annual budget appropriations and mill levy Insurance and fiduciary bonds Oversee regulatory compliance 19

20 Operations, Policies and Administration Continued Treatment Technology, Certified Operator Responsible for day to day work on reservoirs and dams, treatment facility, storage tank, distribution system and hydrants, meter maintenance/meter reading Blacklock Integrated Services Responsible for administration, customer service, billing, accounting, and Secretary to the Board Engineers and Legal Counsel Utilized as needed for general counsel, water rights, projects 20

21 Operations, Policies and Administration Continued Regulatory Compliance Environmental Protection Agency Colorado Department of Health, Division of Water Quality Colorado Department of Natural Resources, Division of Water Resources Dam Safety Branch (Engineering) Water Administration (Water Rights) 21

22 Financial Data and Tax Revenue Enterprise: when the user fees and charges fund at least 90% of the cost of providing the water and related services This rate is now down to a range of % Enterprise Fund Revenue 2009 (39% $271K) Operating revenue Fees and other General Fund Revenue 2009 (61% $432K) Real Property Taxes (58% of total revenue) Specific Ownership Taxes 22

23 Financial Data and Tax Revenue Continued Water Rates In 1988, the base rate was $4.00/Kgal, today it is only $5.06/Kgal. The rates have increased by less 1 ½% each year on average. Property Taxes Assessed valuation from 2002 to now averaged $22 million, generating an average of $354,200 in revenue. 23

24 Financial Data and Tax Revenue continued Expenses (2009) Operations & Maintenance (49% $355K) Including water lease-purchase $32K Administration (17% $123K) Debt Service (30% $213K) Capital projects (4% $28K) Capital expenses varies greatly by year, depending on the needs identified and funding available Revenue and expenses can be variable from year to year because they are impacted by weather patterns (hydrology/drought cycles/climate) 24

25 Financial Data and Tax Revenue continued Capital projects can or have been funded by a variety of mechanisms: Cash - Operating and Reserves Bond Issue Revenue Bonds (Enterprise fund) Lease Purchase Loans such as DWRF, DOLA, other municipal programs 25

26 Financial Data and Tax Revenue continued Existing Debt Service Water Revenue Bonds (CWCB) Upper Beaver Brook enlargement 1992 $346K outstanding / 5% / 2027 Wells Fargo Lease Purchase Treatment Facility Upgrade 2008 $967K outstanding / 4.45% / 2019 MSG Lease Purchase Main Replacement/Capital Projects 2010 $390K outstanding / 5.7% / 2015 DOLA Loan Subdistrict A Lateral replacement 2005 Funded by tap owners $314K outstanding / 5% /

27 Laterals and Lateral Organizations (See the following Maps) 21 Private Laterals What is a Lateral? A distribution pipe connected to the Main to which two or more service lines are connected. Unless formally conveyed to and accepted by the District from its owners, laterals are jointly owned private property governed by but not the financial responsibility of the District. Over 80% of taps (over 450) are served via a Lateral Laterals are not owned or managed by LMWD Structure of ownership varies HOA Tenants in common Water Company or Partnership Single owner 3 are single tap but not otherwise classified as private service line. 27

28 Main pipeline with laterals shown in red West sector in Clear Creek County 28

29 Main pipeline with laterals shown in red West sector in Jefferson County (County Rd 65 to Ruby Ranch) 29

30 Main pipeline with laterals shown in red Mid sector in Jefferson County (El Rancho to Mt Vernon Country Club Rd) 30

31 Main pipeline with laterals shown in red East sector (Mt Vernon Country Club Rd to Lookout Mountain Reservoir, including Subdistrict A) 31

32 Laterals and Lateral Organizations continued Lateral management Lateral organizations tend not to maintain or manage their system, including hydrants, putting everyone at risk. The District has had trouble with enforcement of regulations and policies Condition of Lateral pipelines Age, size and number of taps served varies greatly Many are over 50 years old Some have reduced pressure due to sub-optimal line size for customers served. Some have frequent breaks Fire Hydrant Concerns Lack of maintenance Inadequate lateral pipe capacity to serve hydrants Insufficient location and number of hydrants 32

33 Laterals and Lateral Organizations continued Responsibilities of Lateral Organizations: Protect the integrity of the public water system by maintaining the lines and their connection to the Main in good repair at all times, including ensuring that hydrants are in good operating condition. Submit an annual registration report to LMWD Before going out for bid, obtain District approval of plans to replace or refurbish lateral lines Comply with procedures for reporting to District and repair of leaks and hydrant maintenance 33

34 Significant Concerns Planning for Drought Water Rights or Long-term agreements Infrastructure Improvement 3 Dams: Dam capacity enlargements and dam safety Main pipe replacement Lateral maintenance Lateral improvements and/or acquisition (priority and potential) Main meters and customer meters Reducing Water Loss Funding Raising rates to satisfy Enterprise requirement Impact of November Ballot Issues (Amendments 60 & 61 and Proposition 101) Restrictions and cost of debt issuance 34

35 Questions and Closing For news, customer service, policies, financial reports and more: Thank You 35