Purpose of the Meeting District overview & improvements to date - - PDF document

1 and for attending the August 29, 20 13

Purpose of the Meeting

District overview & improvements to date How rates are determined

Water use trends in Ferndale

Information regarding the rate adjustment An opportunity to ask questions

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August 2013

Ferndale District

Ferndale has:

T h h d F d l f bi d

Two operators who have served Ferndale for a combined

total of 34 years

Two operators provide:

All maintenance of springs, tunnels, water lines, and other facilities Availability to meet with customers to address their concerns Quick service for emergency situations Meter reading, which alternates between operators for maximum

accuracy Back‐ups available 24/7

Five full‐time operators maintain DOWC districts in Butte and

Shasta Counties

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Meet Your Field Staff Customer Care Center

24 hour customer support:

Full time Customer Care Center & dedicated emergency

phone line

Work Orders are

electronically transmitted to and from field staff and from field staff and are reviewed for quick and accurate problem resolution

Bilingual (Spanish)

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Capital Improvements

Little Sandstone Spring Little Sandstone Spring

New 2” mainline installed Provides dedicated line for

water to flow to Dual Compartment Tank

Increased maximum water Increased maximum water

• utput from Sandstone

Springs by more than 175,000 gallons per year

Replaced old, leaky, and undersized mainlines:

Capital Improvements

320 feet replaced Old 2‐inch galvanized steel replaced with 8‐inch C900 PVC A Street, between 4th and 5th streets Provides sufficient supply and pressure for supply and pressure for this portion of the system New 3‐way isolation valve isolates leaks with less customers affected by outages

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Capital Improvements

New 8” Mainline The old, leaky, undersized 2” mainline

Original, unused 1” mainline shown underneath

2” 1”

Rebuilt 4 chemical vacuum regulators

Capital Improvements

ebu t 4 c e ca acuu egu ato s

Installed 2 new chemical pumps

Treatment plant High Springs

Replaced three filter valve actuators & electrical

conduit conduit

Acquired portable generator

Keeps system operating during power outages

Over 70 of the oldest meters replaced

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Maples Springs

Capital Improvements

ap es Sp gs Mainline Project Overview

Project spanned 3 years

(2011‐2013)

Included underground

d d d l and suspended mainlines

Resulted in increased

water production by over 3,300,000 gallons per year

Maples Springs Mainline

Capital Improvements

Project (continued)

2011 – 50 feet of old, leaky

mainline replaced with new 4‐inch Schedule 40 PVC

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Maples Springs Mainline Project (continued)

Capital Improvements

2012 – Suspended crossing replaced with new 4‐inch C900

PVC

Maples Springs

Capital Improvements

p p g Mainline Project

(continued)

2013 –

Restricting Y removed & i t ti intersection replaced with new 4‐inch Schedule 40 PVC

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H d i d?

Today’s Presentation

How are rate structures designed? Why is a rate adjustment necessary? What are the estimated operating f F d l Di t i t? expenses for Ferndale District? How will the proposed rate adjustment affect you?

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Readiness to Serve Charge + Quantity Charge (per 100 cubic feet) Q y g

Readiness to Serve Charge=

50% of various operating expenses Covers a portion of the costs to operate and maintain the

water system, even when no water is being used

Quantity Charge =

Monthly charge per 100 cubic feet (748 gallons) of water

used

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Resolution W‐4821 modified the 2008 rates on

Rates Established

January 29, 2010

Called a “Mini‐GRC”, this modified the rates from the full

GRC approved June 26,2008

The Mini‐GRC was based on:

2007 Expenses (approved in 2008 GRC) 2007 Expenses (approved in 2008 GRC)

Some expense categories reduced

2008 Actual Water Consumption

Reduced from 2007 levels due to loss of Navy housing area

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E h i d i h l GRC

What has changed?

Expenses have increased since the last GRC Revenue has decreased due to significantly less

water consumption throughout the district

In spite of the former Navy complex usage returning to

i l l previous levels

Projected net revenue to decrease by $16,904

( )

Actual Customer Water Use 2008-2012

37 500 45,000 52,500 60,000 67,500 75,000

Actual Water Use (Ccf)

53,402,712 gallons 49,096,000 gallons 42,712,296 gallons

7,500 15,000 22,500 30,000 37,500 2006 2007 2008 2009 2010 2011 2012

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18 California Communities

Total Service Connections

Paradise Pines, 4,695 Lime Saddle, 387 Magalia, 275 Stirling Bluffs 157 Grandview Metropolitan, 28 Stirling Bluffs, 157 Johnson Park, 299 Country Estates,89 River Island, 423 Ferndale, 762 ‐ 9.33% Arbuckle, 53 Walnut Ranch, 76 Strawberry, 386 Pine Mountain, 96 Pine Flat, 193

• Mt. Lassen, 132

East Plano, 14 Grandview Gardens, 98

As of December 2012

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2013 Proposed Expenses

9.33% of Shared Costs for 18 Districts $144,978 100% of Local Costs $305,307

2013 Proposed Expenses

Management, $11,946 Superintendent, $10,114 Office Personnel, $48,069 Customer Care Center Personnel, $6 Field Personnel, $134,815 $48,069 $6,345 Shared Employee Benefits, $18,750 Insurance, $17,297 Office Supplies, $31,711 Office Depreciation, $45,993 Property & Other Taxes, $35,533 Local E l Office Services, $11,613 General Expenses, $3,251 Other, $1,164 Other Volume Related, $4,002 Purchased Power, $10,424 Professional Services, $1,518 Contracted Services, $765 Materials, $4,738 Income Taxes, $10,169 Transportation, $19,573 Employee Benefits, $22,495

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If approved,

h d dj the proposed rate adjustment is projected to produce sufficient additional revenue to adequately cover

• perating expenses
• perating expenses

and decreased income

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Bill Comparison

Present Rates $40.93 $61.93 $82.93 $103.93 $46.80 $71.30 $95.80 $120.30 Proposed Rates

383 (50.25%) 500 cubic feet 3,740 gallons 275 (36.04%) 1,000 cubic feet 7,480 gallons 79 (10.41%) 1,500 cubic feet 11,200 gallons 25 (3.30 %) Over 1,500 cubic feet (Shown: 2000 cf / 14960 gallons)

Total number of customers in this category (percentage of total) Based on 5/8” Meters Readiness to Serve + Quantity (annual average monthly use)

86% ‐ 655 customers

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