Lower Middlesex Water Source Evaluation Project Update March 29, - PowerPoint PPT Presentation

Lower Middlesex Water Source Evaluation Project Update March 29, 2017

AGENDA 1. Source Evaluation/Selection 2. Distribution System Layout 3. Project Scope/Project Costs/Financing Sources 4. Proposed Rates/Connection 5. Financial Sustainability Curve 6. Next Steps 7. Project Schedule 8. Questions

Source Evaluation/Selection • Objective: To identify high quality sources with high yields to supply lower Middlesex County • Methodology:  77 existing wells identified and incorporated into Decision Matrix  Evaluated well yields, water quality, well construction details  Identified Rosegill Wells as very favorable for use  Conducted Groundwater Modeling of the Rosegill wells – Results favorable. Met with DEQ, response favorable.  Recommended Selection of Rosegill wells as desired source

Distribution System Layout • Begins at Rosegill wells • Extends to Topping • Extends to Stingray Point • 2 Storage/Pumping Facilities • Approximately 120 fire hydrants

Distribution System Layout

Distribution System Layout

Project Scope/Project Costs/Financing Sources • Approximately 40 miles of pipeline – 12” - 2” • 2 Storage/Pumping Facilities • Estimated Project Cost - $17,442,838 • Proposed Financing VDH USDA County County $8,133,122 $7,609,716 $1,000,000 $700,000 2.75% 2.0% 2.5% (TBD) 30 years 40 years 30 years (TBD) Fire Hydrant $401,650 $278,179 $47,778 (TBD) Grant

Proposed Rates/Connection Fees Vacant Lot ¾” 1” RATES: Min. Rate per Month $20.00 $45.00 $45.00 Rate/1,000 gal (Above min. of 3,000 gal) n/a $10.00 $10.00 Rate breakpoint (gal/mo.) n/a 3,000 3,000 CONNECTION FEES: Initial Connection Fee (yr. 0) $5,000 $4,000 $12,500 Secondary Connection Fee (yrs. 1+) n/a $10,000 $25,000

Subscribers Needed Meter Sizes Vacant Subscribers 3/4" 1" 1 1/2" 2" 3" Lot Previous 43 421 9 1 2 0 New 40 70 9 0 2 3 New 83 491 18 1 4 3 Subscriber Base Total Subscribers 600

Financial Sustainability Curve Financial Sustainability Curve (Should never be <$0) $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Project Years

Next Steps • Submit Funding Application to VDH by April 1 • Submit PER to VDH & USDA • Press release(s) • Direct mailing to potential subscribers • Conduct subscriber meetings to recruit subscribers – April-June

Project Schedule