PUD Cost of Service Presentation 1 1. Discuss the PUDs current - - PowerPoint PPT Presentation

PUD Cost of Service Presentation

June e 11 11, 20 2014 14 Pier erce ce Co County y Co Commun unity ity Meeting ing with PUD Commissione issioners rs

1

• 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

Water r bill = b base rate + co consumptio umption n rate Base rate: flat charge per month; depends on meter size, customer type, and location For a ¾-inch residential water meter: 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

Inside Thurston County Tanglewilde-Thompson Place $26.20/month All Other Customers $24.75/month Outside Thurston County $28.75/month

Consumpti sumption

• n rate: based on water use; “increasing

block” rate structure – the more you use, the higher the charge Q: Why are they different? A: To promote efficient use of a limited resource

“ccf” = hundred cubic feet

4

0 - 5 ccf per month $2.21/ccf 5 - 15 ccf per month 3.39/ccf 15 - 30 ccf per month 4.68/ccf >30 ccf per month 5.32/ccf

Consumpti sumption

• n rate: based on water use; “increasing

block” rate structure – the more you use, the higher the charge Q: Why are they different? A: To promote efficient use of a limited resource

Average use = 7.5 ccf/month

5

0 - 5 ccf per month $2.21/ccf 5 - 15 ccf per month 3.39/ccf 15 - 30 ccf per month 4.68/ccf >30 ccf per month 5.32/ccf

Your r monthly ly wa water bill, if you are in Pi Pierce e County nty:

Wa Water r Use se, , ccf/ f/month month Monthly nthly Bill ll 5 $39.80 7.5 $48.28 10 $56.75 20 $97.10

6

• Description of PUD and water systems
• Operating a water system: “What We

Do”

• Asset management: reliable service

in the future

7

• Formed in 1938; Started serving multiple

systems in 2005

• Mission

sion: : Pr Provid vide e safe, e, reliable, ble, affordabl dable, e, and d sustainabl tainable e wa water servi vices ces to the custo tomers mers we we serve ve

• 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

• 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

• 164 wells
• 54 miles of mains
• 130 pump houses
• 62 booster stations
• 520 pressure tanks
• Plus: service lines – isolation valves – blowoff

assemblies – hydrant assemblies – reservoirs – treatment facilities – meters on each well – meters for each customer.

20 customers for each well 90 feet of pipe per customer 6 customers for each pressure tank

10

11

12

• On

On-call call 24 hours rs a d a day ay, , 7 day ays a a We Week (24/7), 4/7), 365 day ays s a ye a year ar

• 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 DOH requirements

• Completes annual reports to customers and

DOH

13

• 2012-2013 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

• 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

• Re

Replace ce 11 110 0 well pumps

• Re

Replace ce 24 240 0 pressure ure tanks

• Re

Replace ce 43 43 ch chemic ical al pumps ps

• Re

Rebuild ld 5 p 5 pump houses

• Leak

k detect ction,

• n, leak repairs
• Re

Replace ce some water meters rs

• Drill

l 2 n 2 new wells

• Re

Replace ce 20 20 booste ter r pumps

• Water

r line replacements cements

• ......and

nd more

16

• 2014

14 – PUD hire red d Le Leidos

• s as

as a a consultant nsultant to conduct nduct a a cost st of f se serv rvic ice e study dy (COS) OS) to eva valuate ate how w to pay ay fo for r infra frastructure structure re replac acement ement or r re refurbishment furbishment in in al all wa l water r sy syst stems ms

• Sprin

ring g of f 2014 4 - PUD Commissioners mmissioners were re bri riefed fed on re recomm

• mmend

endations ations an and pro rovided vided dire rection ction

17

• Summer

mmer 2014 4 – PUD Commissioners mmissioners ar are holding lding Public lic Meetin ings gs

• Pierce

rce County unty on June e 11th

th

• Le

Lewis is County unty on June 25th

th

• Thurs

urston ton County nty on July y 9th

th

18

• Summer

mmer an and Fal all 2014 4 – PUD Comm mmissio issioners ners

• Revie

view comments mments fr from m Public ic Meetings tings

• Refine

fine re replacement/refu lacement/refurbis rbishment hment plan ans

• Est

stablish ablish le leve vels ls of f se serv rvic ice

19

• Summer

mmer an and Fal all 2014 4 – PUD Comm mmissio issioners ners

• Revie

view fu fundin ding g re recommen

• mmendat

dation ions to imp mplement lement the as asset ma manag agemen ment t pla lan n (AM AMP) P)

• Ho

Hold ld a P a Public lic He Hear aring ng

• Fa

Fall ll 2014 4 to Ear arly ly 2015 5 - Ap Approve rove ra rates s an and fe fees to pay ay fo for r imp mplementing ementing the AM AMP

20

 Upgrades and Repairs slideshow .pptx

21

1.

• 1. Custom

stomer er Sat atis isfa faction ction: : One of our most important measures is overall customer satisfaction.

• Summer of 2014 - A Customer Survey

will be Conducted 2.

• 2. Av

Avera rage ge Bil ill l Comparisons: mparisons: The District compares its water rates to other similar local water utilities – see next slide.

22

Comparison

• n of 2

2014 4 Rates to O Other r Thurston ton County y Rates

Utility Base Chg 1st

st Tier

2nd

nd Tier

3rd

rd Tier

4th Tier 5th

th Tier

Tier Break ak 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 No Tiers Grand Mound $33.36 $1.90 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 $12.22 4/10/20/30

23

24

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180

5 10 15 20

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

Monthly Water Use, hundred cubic feet

3. . S Serv rvice: ice:

• Complaints per 1,000 customers is 3.75
• PUD Compliance to Dept of Health Standards

99.354% Compliant.  One total coliform issue at Deschutes Glen; being resolved; engineer is working with PUD to re-engineer water system to eliminate issue

25

• 4. Percentage of customer payments made

electronically: Electronic payments offer an efficient and convenient method for customers

• 29.4% of custome

mers rs use web sit ite to p pay

• 9.1% of custome

mers rs pay usin ing g dir irect debit it

• Hi

Histori rica cally, lly, 300 300 cu custome mers rs pay over r the phone ne monthly ly

26

• 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

• 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 email, phone, fax or letter

• The PUD will listen

28

• 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

• 3. Stopped purchasing water from the

City of Olympia for the Tanglewilde- Thompson Place water system

• Rehabilitated 1 well and drilled 2 new wells
• Future savings are in the mil

illi lions s of doll llars rs

30

• 4. Collected over $400,00

0,000 0 from developers to invest in PUD infrastructure

• 5. Excellent Planning
• Asset Management Plan
• Cost of Service Study
• Updated multiple plans with State

31

• 6. Refinanced Bonds - sa

save ved $158,00 8,000 0 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

• 8. State Audits – No findings in 5 Years
• 9. Rent – renegotiated rent saving

$4,0 ,000 00 an annually ally

• 10. Contract with County for IT saving

1.0 FTE

33

• 11. Insurance
• Changed insurance providers: save

ved d $18,000 a year

• Reviewed health care costs and employee co-

pays

• 12. Use State Purchasing – extensive savings
• Vehicle approved vendor purchasing and

vehicle maintenance, surplusing, and printing,

• Long distance service and some supplies

34

• 13. Revenue Generation – PUD operates

and manages 14 water systems of

• ther owners
• 2014 Budgeted Revenue of $8

$83, 3,00 000

• 14. 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

• 14. PUD has added customers to benefit

from economies of scale (Continued)

• 2010-2013 - added three systems 145

new customers

• 2014 – projected to add 290 customers by

July

• 2014 – 200 other potential customers

36

• Rates: pay for O&M and debt service
• Capital Surcharge: pay for Asset Management

Plan

• Rates
• 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

differential for Tanglewilde-Thompson Place

• Discont

continu inue surchar charges ges for Crescent ent Park, , Terry Lane, Pederson Place, and Covington Estates systems

37

3/4-in inch h water meter, $/month

2015 15 2016 16 2017 17 2018 18 2019 19 2020 20

$1.00

$2.90 $4.80 $6.70 $8.60 $10.50

38

Note: Charges for other meter size increase with increasing meter size;

• The following slides reflect planned

replacements

• The PUD Operations Manager will speak to

the projected necessary replacements

39

40

2014 - 2017 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 (43) $ 70,000 Filters (13) $ 27,000 Pressure Tank Replacement $ 55,000 Pressure Tank Replacement (240) $ 45,000 Replumbing Pumps (6) $ 10,000 New Well Drilling $ 50,000 Fir Tree 2 $ 28,000 Loma Vista $ 22,000

41

2014 - 2017 Well Decommissioning $ 37,500 304 #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 (110) $ 244,100 Lew's 81st $ 9,500 Wilderness Glen $ 10,400 Booster Pump Replacement (20) $ 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

42

2018 - 2021

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 (13) $ 76,500 Chemical Pumps (43) $ 44,000

43

2018 - 2021 Pressure Tank Replacement $ 42,000 Pressure Tank Replacement (240) $ 32,000 Replumbing Pumps (6) $ 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 (110) $ 264,000 Booster Pump Replacement (20) $ 60,000 Meter Replacement $ 54,500 $ 54,500 Subtotal $ 3,380,500 Contingency - 15% $ 507,075 TOTAL CAPITAL NEEDS $ 3,887,575

44