Town Hall Meeting Community Utilities of Indiana, Inc. Wednesday, Wednesday 29, 2018 7:00PM - 8:00PM at Seasons Lakehouse 1048 N. Lakeshore Drive, Crown Point, Indiana
Community Utilities of Indiana, Inc. Steve Lubertozzi, President Justin Kersey, VP of Operations Rob Guttormsen, Finance Manager Mike Miller, Regional Manager Loren Grosvenor, Area Manager Scott Smith, Lead Operator John Norton, PhD, PE., Engineer Lynette Weeks, Op. Admin. 2
Please call CUII NOT LOFS If you have any questions or complaints please contact customer service at 877-294-8890. Please call customer service if you have any issues! Calls are tracked and recorded. 3
History of Rate Increase Interim rate increase effective January 8, 2018 at 50% Final rate increase effective April 23, 2018 For costs and investment through September 30, 2017 Approval by the IURC Changes to billing structure Consolidation of rates based on consolidated rate base, opex, etc. Zero out SIIC Creating of volumetric sewer charges Moves cost to cost causer Working on filing a tariff change to allow for deduction meters 4
Interim Rate Implementation Interim rate increase effective January 8, 2018 at 50% Missteps in Interim Rate Implementation: Twin Lakes not charged a volumetric WW interim rate of $7.02/1000 Company did not zero out the SIIC Reconciliation of errors and refund/surcharge amounts calculated approved by Commission Customers refunded net credit amounts (with interest) over 6 months Customers billed net surcharge amounts (without interest) over 6 months 5
6 Bill Example
Rate Reduction and Bill Credit Tax Cut and Jos Act One-time Bill Credit Water: $0.49 Wastewater: $0.49 Combined: $0.98 Monthly Rate Reduction* Water: $0.68 Wastewater: $0.88 Combined: $1.56 7 * Pending agreement with the OUCC and approval from the IURC
Water Rate Comparison CUII - 5/8" Aqua - Lake County 5/8" American - Northwest 5/8" Gallons Used Flat Usage Total Flat Usage Total Flat Usage Total 1,000 $ 11.38 $ 6.40 $ 17.78 $ 7.80 $ 7.06 $ 14.86 $ 18.25 $ 4.18 $ 22.43 2,000 $ 11.38 $ 12.80 $ 24.18 $ 7.80 $ 14.12 $ 21.92 $ 18.25 $ 8.36 $ 26.61 3,000 $ 11.38 $ 19.20 $ 30.58 $ 7.80 $ 21.18 $ 28.98 $ 18.25 $ 12.54 $ 30.79 4,000 $ 11.38 $ 25.60 $ 36.98 $ 7.80 $ 28.24 $ 36.04 $ 18.25 $ 16.72 $ 34.97 5,000 $ 11.38 $ 32.00 $ 43.38 $ 7.80 $ 35.30 $ 43.10 $ 18.25 $ 20.90 $ 39.15 6,000 $ 11.38 $ 32.00 $ 49.78 $ 7.80 $ 35.30 $ 50.16 $ 18.25 $ 20.90 $ 43.33 CUII - 3/4" Aqua - Lake County 3/4" American - Northwest 3/4" Gallons Used Flat Usage Total Flat Usage Total Flat Usage Total 1,000 $ 11.38 $ 6.40 $ 17.78 $ 17.04 $ 7.06 $ 24.10 $ 23.84 $ 4.18 $ 28.02 2,000 $ 11.38 $ 12.80 $ 24.18 $ 17.04 $ 14.12 $ 31.16 $ 23.84 $ 8.36 $ 32.20 3,000 $ 11.38 $ 19.20 $ 30.58 $ 17.04 $ 21.18 $ 38.22 $ 23.84 $ 12.54 $ 36.38 4,000 $ 11.38 $ 25.60 $ 36.98 $ 17.04 $ 28.24 $ 45.28 $ 23.84 $ 16.72 $ 40.56 5,000 $ 11.38 $ 32.00 $ 43.38 $ 17.04 $ 35.30 $ 52.34 $ 23.84 $ 20.90 $ 44.74 6,000 $ 11.38 $ 32.00 $ 49.78 $ 17.04 $ 35.30 $ 59.40 $ 23.84 $ 20.90 $ 48.92 Note: Not reflective of bill credit or rate reduction Average monthly usage ~4,800 gallons 8
Monthly Water Rate Comparison 5/8 Meter 9
Monthly Water Rate Comparison 3/4 Meter 10
Wastewater Rate Comparison CUII - 5/8" and 3/4" Aqua - Lake County 5/8" and 3/4" Gallons Used Flat Usage Total Flat Usage Total 1,000 $ 23.84 $ 7.68 $ 31.52 $ 59.38 $ - $ 59.38 2,000 $ 23.84 $ 15.36 $ 39.20 $ 59.38 $ - $ 59.38 3,000 $ 23.84 $ 23.04 $ 46.88 $ 59.38 $ - $ 59.38 4,000 $ 23.84 $ 30.72 $ 54.56 $ 59.38 $ - $ 59.38 5,000 $ 23.84 $ 38.40 $ 62.24 $ 59.38 $ - $ 59.38 6,000 $ 23.84 $ 46.08 $ 69.92 $ 59.38 $ - $ 59.38 11 Note: Not reflective of bill credit or rate reduction Average monthly usage ~4,800 gallons
12 Monthly Wastewater Rate Comparison
Water Usage Lake of the Four Seasons Approx. 90% of the customers used less than 10,000 gallons A leak of 1 cup of water per minute is equal to 43,200 cups per month! This equals 2,700 gallons per month! Cost of $17.28 per month! *13 times customers used more than 50,000 gallons in one month, these data are excluded from this graph. 13
Sources of Increased Water Usage 1. Leaking/running toilets 2. Leaking showerheads and faucets 3. Leaking water heater 4. Leaking water softener 5. Frequent recharging water softener 6. Leaking outdoor irrigation systems 7. Watering the lawn 8. Filling a swimming pool 9. Inefficient washing machine or dishwasher 14
Commission s Order Implement a System Improvement Plan Three Key Aspects Decrease number of wastewater backup in homes Decrease number of manhole overflows Decrease complaints of discoloration of drinking water Metrics to Track Performance Quarterly Technical Conferences Quarterly Meetings with LOFS POA Board 15
WWTP Flows Average dry weather flow below 1 MGD Wet weather flow can exceed 15 times dry weather flow 16
Wastewater System Surcharges Feb-2018 17
System Improvement Plan Wastewater Focus on reducing Inflow and Infiltration Smoke Testing Dye Flooding Home Inspections LOFS Restrictive Covenants Prohibit These Connections Tariff Prohibits These Illegal Connections Capital Improvements 18
19 Smoke Testing
Home Inspection Program Customer responsible to schedule inspection within 30 days Inspection can take place outside of 30 day window Inspecting for illegal storm water connections: Sump pump Roof drains Downspouts Cleanouts 20
Home Inspection Process Rules tariff approved by the IURC July 31, 2018 1. Provide POA and homeowners notice of target area for home inspection 2. Allow customer s 30 days to schedule home inspection for future date 2a. Failure to schedule an inspection will result in final warning and could result in service disconnection 3. Passing home inspection will receive a Certificate Of Compliance. Failed home inspection will result in Non-Compliance notice. 21 4. Customer will be required to remove prohibited connection and schedule follow-up home inspection within 60 days to receive a Certificate of Compliance 4a. Failure to schedule an inspection or remove prohibited connection could result in service disconnection
22 Removing Roof Drains
23 Remove Basement & Foundation Drains
Rain Barrel Giveaway Redirect flow Save and use water Capture peak flows Show and tell on how to connect 24
Wastewater system Improvements 25 Inflow and Infiltration (I/I) reduction Infiltration Reduction Program Sewer cleaning and televising Sewer Capital Improvement Plan (SCIP) Manhole Improvement Program Inflow Reduction Program Residential Inspection Program Smoke and dye testing program Sewer Capacity Expansion Lift station and force main upgrades, gravity sewer upgrades Phased approach with additional flow monitoring to reduce capital costs Central Plant Expansion Headworks Biological treatment Phosphorus Treatment Solids Separation Residuals Handling Disinfection
Evaluation Process We assessed and evaluated solutions to these issues by a process of: evaluation of the scope and magnitude of the problem, performing comprehensive evaluation and condition assessment of the underlying assets, generation, evaluation, and selection of alternatives, refinement and initial engineering design of the proposed solution. 26
Infiltration Reduction Program SCIP Level 5 Defects 27
28 Sewer Capacity Expansion
Central Plant Summary of Issues Inadequate headworks capacity: leads to bottlenecks at the WWTP Inadequate headworks capacity: cannot properly direct flows within the treatment plant Inadequate headworks capability: Grit, solids removal System redundancy: cannot perform required operational rehabilitation. High energy costs: antiquated blowers and monitoring and control system High chemical costs due to chlorine disinfection No SCADA: cannot benefit from DO control, WAS/RAS control 29
Central Plant Expansion Headworks Detention basin Biological treatment Phosphorus removal Solids separation UV Disinfection Sludge digestion Residuals handling Laboratory building 30
Water System Planned Improvements Source of supply New well(s) near treatment plant #2 (Details in Quarterly Report, Q2 2018) Distribution System Water Main Replacement Program Service Connection Replacement Program Storage Rehabilitation of water tower Treatment Iron filter replacement 31
Water System Service disruptions Service line replacement program: We are prioritizing future replacement to focus on areas that have the greatest number of existing breaks We are bidding out the replacement of our portion of the service lines with copper piping Replace 2% (approximately 60 homes) per year until all polyethylene service lines have been replaced Water main replacement program Track main breaks via GIS Track the condition of exposed pipe via Lucity (our asset management software) Replace the main whenever multiple breaks occur between valves Coordinating main replacements in conjunction with LOFS paving projects 32
Water System Continuation of phosphate chemical treatment (Jul-2017) Condition evaluation and assessment WTP #1 South iron filter Replacement likely to occur fairly soon, either 2019 or 2020 Project also includes realignment of plant water mains Treated water to go to GST, then the distribution system Goal is to reduce water surge (leads to discoloration), operator overtime Condition evaluation and assessment WTP #2 both iron filters Currently in fair condition, condition assessment Fall 2018 Rehabilitation w/in next 5-7 years, depending on assessment Water Tower Planned for Spring of 2020 33
Master Schedule Community Utilities of Indiana, Inc. - Twin Lakes - Project schedule 2018 2019 2020 2021 2022 Service Project Cost Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Wastewater Sewer Repairs (SCIP) Varies C C C C C C C C C Water Manhole seal and line Varies C C C C C Sewer inspection (CCTV) TBD C C C C C C C C C C Inflow Reduction - Phase 1 $213,000 C C Inflow Reduction - Phase 2 $400,000 C C Household Inspections Internal X X X X X X X X X X X X X X X X X X Collection system - Phase 1 $5,030,000 E E E A A C C C C Collection system - Phase 2* $6,060,000 E E E A A C C C C Collection system - Phase 3* $5,610,000 E E E A A C C C C Central WWTP $13,720,000 E E E A A C C C C C C Water main program $200,000/year C C C C Service line replacement $180,000/year C C C C C C C C WTP #1 Iron filter $2,007,400 E E A A C *Project timing and scope subject to change based on additional flow monitoring X Internal E engineering A IURC Approval - Code 8-1-2-23 C construction 34 *These costs may not be required as a result of planned flow monitoring and evaluation
Questions/Comments If you have any other questions please contact customer service at 877-294-8890 Please call customer service if you have *any* issues! Please pickup a copy of our brochures on your way out https://www.facebook.com/cuiitwinlakes/ Many thanks for coming out tonight 35