Consolidation of the Warm Beach Water System

Transcription

1 Consolidation of the Warm Beach Water System Public Hearing July 24, 2018 Last Discussed: July 10, 2018

2 Warm Beach Water Association (WBWA) - Location and Size WBWA WBWA water system has ~600 water service connections When merged with Kayak system, will be District 2 nd largest water system with ~1,000 connections 2

3 What s Happened to Date Sept WBWA contacted the District Staff reviewed previous 2005 study & WBWA s 2015 Water System Plan Determined new study needed Sept New study completed, partially funded by grant (Resolution 5768) Sept Presented study at WBWA annual meeting Sept WBWA members passed motions to authorize negotiation for ownership transfer Sept Applied to Drinking Water State Revolving Fund (DWSRF) Jan Received DWSRF offer of $3.5M grant/loan (out of $5.7M requested) Mar Discussed proposal at special WBWA membership meeting Apr WBWA advisory vote by mail (46% of ballots returned, 99% yes votes) Jul 11, Commission authorized negotiation for ownership transfer (Reso. 5816) 3

4 What s Happened to Date (cont.) July State failed to pass Capital Budget (DWSRF funding put on hold) Nov Updated cost estimates from 2016 study for 2-years inflation Nov Submitted 2 nd DWSRF application for $2.7M Jan State passed Capital Budget Mar nd DWSRF application selected for funding June/July 2018 DWSRF contracts received Other work over last 12 months Negotiated for ownership transfer and drafted agreements SAP programming (monthly rate surcharge & convert gallon meter reads to cubic feet) Gathered more information on water system Work with other District departments (Customer Service, Real Estate, Legal, Facilities, Finance, Contracts) Kept community informed (WBWA newsletters) July 10, 2018 Presented at Commission Study Session 4

5 Notice of Public Hearing Postcard was mailed on July 12, 2018

6 Proposed Improvements Source Replace Well 4 Pump Improve Treatment Storage 200,000 gallon tank sufficient for current customers Abandon other un-used tanks Distribution Replace ~12,050 feet asbestos cement pipe Install ~2,450 feet new pipe Intertie with Kayak Improve transmission Replace ~600 old water meters Replace ~10 hydrants Abandon un-used booster pump station Controls Integrate with District s control system 6

7 Upcoming Package for Commission Approval 1. Resolution: Adopt Feasibility Study into Water System Plan and Authorize CEO/GM to Execute Agreement for Ownership Transfer Feasibility Study identifies improvements needed for the Warm Beach water system consolidation Resolution describes all steps leading up to the decision to consolidate Transfer Agreement is the result of negotiations for the ownership transfer 2. Resolution: Authorize CEO/GM to Execute the Two DWSRF Contracts Up to $6.2M ($3.5M + $2.7M) Federal and State funding (drawn as expenses are incurred) 50% principal forgiveness (grant) 1% interest rate on balance (repay over 24 years) First DWSRF Contract received June 27, 2018 Second DWSRF Contract received July 16, 2018 Contracts reviewed by Legal 7

8 Upcoming Package for Commission Approval (cont.) 3. Resolution: Establish Rates & Charges for Warm Beach Water System April 2017 vote confirmed WBWA customers support proposed improvements at estimated cost Establishes $35 per month rate surcharge for 20 years Applies to customers connected to the Warm Beach system at time of ownership transfer Repays costs to bring the system up to par with District s other systems Still sufficient to repay loans with updated cost estimate Includes some buffer if costs exceed estimate New customers connecting to system after ownership transfer will pay District s standard connection charges (but not the monthly surcharge) Public hearing required for rate resolutions 8

9 Upcoming Package for Commission Approval (cont.) 4. Resolution: Authorize Public Access to One of the Well Sites Warm Beach Community Association (WBCA) has written agreement with WBWA to use open space on one of the well sites Resolution will allow public access to that area as long as District does not need the property for other purposes Very similar situation in District s Skylite water system (reference Resolution 5675) 5. Resolution: Option Agreement with Water Beach Community Association Existing WBCA/WBWA agreement includes purchase rights if WBWA sells the well site WBWA will terminate agreement with WBCA prior to the water system ownership transfer Option Agreement will give WBCA first right of refusal if District decides to surplus this property 9

10 Open Area Subject of Public Access and Option Agreement Warm Beach Community Association (WBCA) uses land as extension of community park Wells not in use, but might be needed in the future 10

11 Next Steps Aug 7, 2018 Resolutions Presented for Commission Consideration Sep 12, 2018 Target Closing Date for Ownership Transfer 2019 Design Improvements Construct Improvements 11

12 Timeframe 12