July 9, 2014 Thurston, Grays Harbor and Mason County Community Meeting with PUD Commissioners. PUD Cost of Service Presentation

Transcription

1 July 9, 2014 Thurston, Grays Harbor and Mason County Community Meeting with PUD Commissioners PUD Cost of Service Presentation 1

2 1. Discuss the PUD s current rates and fees 2. PUD services and history Operating the water systems Ensuring future service: capital improvements and asset management 3. Accountability 4. Proposed rates and fees 5. Next steps 2

3 Water bill = base rate + consumption rate Base rate: flat charge per month; depends on meter size, customer type, and location For a ¾-inch residential water meter: Inside Thurston County Tanglewilde-Thompson Place $26.20/month All Other Customers $24.75/month Outside Thurston County $28.75/month Q: Why are they different? A: Thurston County residents also pay a property tax; A: Bonds for Tanglewilde-Thompson Place improvements issued in 2011 A: Extra travel time to operate systems outside Thurston County 3

4 Consumption rate: based on water use; increasing block rate structure the more you use, the higher the charge 0-5 ccf per month $2.21/ccf 5-15 ccf per month 3.39/ccf ccf per month 4.68/ccf >30 ccf per month 5.32/ccf ccf = hundred cubic feet Q: Why are they different? A: To promote efficient use of a limited resource 4

5 Consumption rate: based on water use; increasing block rate structure the more you use, the higher the charge 0-5 ccf per month $2.21/ccf 5-15 ccf per month 3.39/ccf ccf per month 4.68/ccf >30 ccf per month 5.32/ccf Average use = 7.5 ccf/month Q: Why are they different? A: To promote efficient use of a limited resource 5

6 Your monthly water bill, if you are in Thurston County; Grays Harbor and Mason County pay $4 more: Water Use, ccf/month Monthly Bill 5 $ $ $ $

7 Description of PUD and water systems Operating a water system: What We Do Asset management: reliable service in the future 7

8 Formed in 1938; Tanglewilde & Thompson Place in Late 50 s. Started serving multiple systems in 2005 Mission: Provide safe, reliable, affordable, and sustainable water services to the customers we serve Operates 155 water systems centered in Thurston, Lewis and Pierce Counties ~3,200 customers 35% outside Thurston County 42% in Tanglewilde-Thompson Place System 23% in other Thurston County systems Except Tanglewilde-Thompson Place, average system has 12 connections 8

9 164 wells 54 miles of mains 130 pump houses 62 booster stations 520 pressure tanks Plus: service lines isolation valves blowoff assemblies reservoirs treatment facilities meters on each well meters for each customer. 9

10 164 wells 54 miles of mains 130 pump houses 62 booster stations 520 pressure tanks 20 customers for each well 90 feet of pipe per customer 6 customers for each pressure tank Plus: service lines isolation valves blowoff assemblies hydrant assemblies reservoirs treatment facilities meters on each well meters for each customer. 10

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13 On-call 24 hours a day, 7 days a Week (24/7), 365 days a year Daily - monitoring of chlorine residuals Weekly - visits to all treated systems Monthly - visits to all systems Minor repairs and maintenance, as needed Collect monthly and annual coliform samples, plus nitrates and other required sampling per State Department of Health (DOH) requirements Completes annual reports to customers and DOH 13

14 PUD developed an Asset Management Plan Calculated the life cycle of all infrastructure in the PUD s 155 water systems Established a time line when each water systems infrastructure needs to be replaced or refurbished 14

15 Established replacement or refurbishment costs for all infrastructure Wells and pumps and booster stations Reservoirs, storage and treatment systems Water mains, service lines and water meters Pump houses and other infrastructure 15

16 Replace 110 well pumps Replace 240 pressure tanks Replace 43 chemical pumps Rebuild 5 pump houses Leak detection, leak repairs Replace some water meters Drill 2 new wells Replace 20 booster pumps Water line replacements...and more 16

17 2014 PUD hired Leidos as a consultant to conduct a cost of service study (COS) to evaluate how to pay for infrastructure replacement or refurbishment in all water systems Spring of PUD Commissioners were briefed on recommendations and provided direction 17

18 Summer 2014 PUD Commissioners are holding Public Meetings Pierce County on June 11 th Lewis County on June 25 th Thurston, Mason, and Grays Harbor Counties on July 9 th 18

19 Summer and Fall 2014 PUD Commissioners Review comments from Public Meetings Refine replacement/refurbishment plans Establish levels of service 19

20 Summer and Fall 2014 PUD Commissioners Review funding recommendations to implement the asset management plan (AMP) Hold a Public Hearing Fall Approve rates and fees to pay for implementing the AMP 20

21 Upgrades and Repairs slideshow.pptx 21

22 1. Customer Satisfaction: One of our most important measures is overall customer satisfaction. Summer of A Customer Survey will be Conducted 2. Average Bill Comparisons: The District compares its water rates to other similar local water utilities see next slide. 22

23 Comparison of 2014 Rates to Other Thurston County Rates Utility Base Chg 1 st Tier 2 nd Tier 3 rd Tier 4th Tier 5 th Tier Tier Break CCF TPUD $24.75 $2.21 $3.39 $4.68 $5.32 5/15/30 WA Water $19.15 $2.95 $3.60 $4.40 6/16 Thurston County Tamoshan $63.88 $2.12 No Tiers Boston Harbor $22.83 $1.71 Grand Mound $33.36 $1.90 No Tiers No Tiers H&R Waterworks $20.33 $1.36 $2.31 $2.81 7/20 Pattison Water Co. $19.13 $1.68 $1.98 $2.66 9/33.3 City of Yelm $30.04 $2.82 $4.35 $9.83 $10.67 $ /10/20/30 23

24 $180 $160 $140 $120 $100 Thurston PUD, In-County, Existing Thurston PUD, Outside County, Existing Washington Water Thurston County: Tamoshan Thurston County: Boston Harbor Thurston County: Grand Mound H&R Waterworks Pattison Water Co City of Yelm $80 $60 $40 $20 $ Monthly Water Use, hundred cubic feet 24

25 3. Service: Complaints per 1,000 customers is 3.75 PUD Compliance to Dept of Health Standards % Compliant. One total coliform issue at Deschutes Glen; being resolved; engineer is working with PUD to re-engineer water system to eliminate issue 25

26 4. Percentage of customer payments made electronically: Electronic payments offer an efficient and convenient method for customers 29.4% of customers use web site to pay 9.1% of customers pay using direct debit Historically, 300 customers pay over the phone monthly 26

27 5. Provide an annual Consumer Confidence Report to all customers in July 6. Measure and report Leak and Water Use Efficiency Reports annually post on web site Set annual leak reduction goals and water conservation goals 27

28 PUD Meetings Are Open to the Public Testimony can be made personally or in written form PUD Commissioners, the General Manager and Staff care and can be reached by , phone, fax or letter The PUD will listen 28

29 1. The PUD organizational culture is frugal and dedicated to fiscal conservatism and efficient business practices 2. PUD has successfully secured $4,861,185 in low interest loans and $1,361,000 in grants to make infrastructure improvements valued at a total of $6,222,185 29

30 3. Stopped purchasing water from the City of Olympia for the Tanglewilde- Thompson Place water system -- Grateful to the Tanglewilde Park and Recreation Center Board & Community Rehabilitated 1 well and drilled 2 new wells Future savings are in the millions of dollars 30

31 4. Collected over $400,000 from developers to invest in PUD infrastructure 5. Excellent Planning Asset Management Plan Cost of Service Study Updated multiple plans with State 31

32 6. Refinanced Bonds - saved $158,000 in interest 7. Reduced customer liabilities: implemented credit checks, deposit system, property owner responsibility for bills, ready to serve rates for properties PUD is required to serve. 32

33 8. State Audits No findings in 5 Years 9. Rent renegotiated rent saving $4,000 annually 10. Contract with County for IT saving 1.0 FTE 33

34 11. Insurance Changed insurance providers: saved $18,000 a year Reviewed health care costs and employee copays 12. Use State Purchasing extensive savings Vehicle approved vendor purchasing and vehicle maintenance, surplusing, and printing, Long distance service and some supplies 34

35 13. Revenue Generation PUD operates and manages 14 water systems of other owners 2014 Budgeted Revenue of $83, PUD has added customers to benefit from economies of scale New systems must come into at our standards or pay to get there. Systems pay for themselves. 35

36 14. PUD has added customers to benefit from economies of scale (Continued) added three systems 145 new customers 2014 added three systems 290 customers other potential customers 36

37 Rates: pay for O&M and debt service Capital Surcharge: pay for Asset Management Plan Rates Proposed PUD Commission Approves Proposed annual increase not to exceed 4%: will be evaluated annually and adjusted as needed Maintain $4/house monthly rate differential for customers outside Thurston County Discontinue current ~$1.50/month/house rate difference for Tanglewilde -Thompson Place -- One rate for Thurston County Discontinue surcharges for the Pederson Place, Cornerstone Estates, Crescent Park and Terry Lane water systems 37

38 3/4-inch water meter, $/month $1.00 $2.90 $4.80 $6.70 $8.60 $10.50 What this pays for: Capital improvements in all systems that are necessary to keep providing safe and reliable water service Proposed only-pud Commissioner s Must Approve Note: Charges for other meter size increase with increasing meter size; 38

39 The following slides reflect planned replacements The PUD Operations Manager will speak to the projected necessary replacements 39

40 Thurston County Grays Harbor County Mason County Isolation Valve Replacement or Repair $ 58,500 Tanglewilde-Thompson Place $ 40,000 Crescent Park $ 18,500 Leak Detection and Repair $ 120,000 Tanglewilde-Thompson Place $ 80,000 Various $ 40,000 Pumphouse Rebuilding $ 73,000 Brown S. Prairie $ 29,000 Olin $ 22,000 Ivan $ 22,000 Contact Time Installation $ 30,000 Ivan $ 30,000 Treatment System Replacement or Repair $ 97,000 Chemical Pumps (10) $ 70,000 Filters (3) $ 27,000 Pressure Tank Replacement $ 55,000 Pressure Tank Replacement (80) $ 45,000 Replumbing (1) $ 10,000 New Well Drilling $ 50,000 Fir Tree 2 $ 28,000 Loma Vista $ 22,000 40

41 Well Decommissioning $ 37, #1 $ 7,500 Clerget $ 7,500 Evergreen $ 7,500 Lazy Acres $ 7,500 Whitney $ 7,500 Electrical Upgrades/Replacement $ 27,000 Various $ 12,000 Nisqually Highlands $ 7,500 Cornerstone $ 7,500 Mainline Replacement $ 65,000 Crowder $ 65,000 Pump Replacement $ 344,000 Well Pump Replacement (4)(1) $ 244,100 Lew's 81st $ 9,500 Wilderness Glen $ 10,400 Booster Pump Replacement (0) $ 80,000 Meter Replacement $ 33,500 Corrosion Control Protection/Replacement $ 40,000 Nisqually Highlands $ 20,000 Prairie Villa $ 20,000 Miscellaneous $ 337,500 Tanglewilde-Thompson Place Generator $ 152,500 Travis Jack Booster Upgrades $ 125,000 Deschutes Glen Upgrades $ 20,000 Indian Crest 1 & 2 Upgrades $ 25,000 Terry Lane Well Casing Extention $ 15,000 Subtotal $ 1,368,000 Contingency - 15% $ 205,200 TOTAL CAPITAL NEEDS $ 1,573,200 41

42 Thurston County Grays Harbor County Mason County Isolation Valve Replacement or Repair $ 76,000 Tanglewilde-Thompson Place $ 40,000 Terry Lane $ 36,000 Leak Detection and Repair $ 120,000 Tanglewilde-Thompson Place $ 80,000 Various $ 40,000 Pumphouse Rebuilding $ 68,000 Tolmie $ 36,000 Lazy Acres - Foster St. $ 32,000 Contact Time Installation $ 30,000 Tracy 1 $ 30,000 Treatment System Replacement or Repair $ 120,500 Filters (0) $ 76,500 Chemical Pumps (5) $ 44,000 42

43 Pressure Tank Replacement $ 42,000 Pressure Tank Replacement (80) $ 32,000 Replumbing (0) $ 10,000 Electrical Upgrades/Replacement $ 45,500 Tanglewilde-Thompson Place Seahawk $ 20,000 Various $ 18,000 Crowder $ 7,500 Mainline Replacement $ 2,500,000 Tanglewilde-Thompson Place $ 2,500,000 Pump Replacement $ 324,000 Well Pump Replacement (0) $ 264,000 Booster Pump Replacement (0) $ 60,000 Meter Replacement $ 54,500 $ 54,500 Subtotal $ 3,380,500 Contingency - 15% $ 507,075 TOTAL CAPITAL NEEDS $ 3,887,575 43

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