1 Water and Wastewater User Rate Budget Barrie’s Finance Committee – 12-10-24
Water System Assets 1 – Surface Water Treatment Plant 12 - Production Wells 620 kms – Water main 3,600 Hydrants 24,000 Valves 5 - Water Storage Facilities 6 6 – Booster Pumping Facilities B t P i F iliti 2
Water System – Asset Value & Condition y Overall Water System Value: $ 488M y $ Water Treatment Component:- $133M (replacement p $ ( p cost of plant and wells and pumping stations) Water Distribution component:- $355M (replacement cost mains hydrants valves storage towers and cost mains, hydrants, valves, storage towers and reservoirs, meters and booster stations) ½ of the linear Assets over 32 years old – many city core pipes beyond 75 years (in some phase of core pipes beyond 75 years (in some phase of corrosion) 3
Water System – Asset Replacement Needs y Water Asset Replacement Costs by Remaining Useful Life $140 $140 Cost (in Millions) $120 $100 nt Replacement C $80 $60 $40 $40 Curren $20 $0 0 Years 1 - 10 11 - 20 21 - 30 31 - 40 41 - 50 51 - 60 61 - 70 71 - 80 81 - 90 Years Years Years Years Years Years Years Years Years Remaining Useful Life 4
Water System – Customer Information Water System Customer Information • 42,500 water customers (40,000 Residential, 2,500 ICI) (140 000 persons) (140,000 persons) – 100% metered 100% metered • 172 lpcd - Average Residential Consumption: (National average: 229 lpcd – Barrie is at 75% of National Average – due to City’s Water Conservation efforts/promotion ongoing y p g g over many years) • $ 212 /year – Average Residential cost of water (NWWBI – national average: $325/year (Barrie @ 65%)) • Individual Customer access to water usage, via the internet – since October, 2011 • 60 – number of Licensed/Certified Operational Staff serving Barrie Water Customers (some 20% less than National Barrie Water Customers (some 20% less than National average) 5
Water System – Operational Drivers Water System Operational Drivers • Water Demand – countered by Conservational Promotion y – impacts all other drivers and capital expenditures • Energy Costs – impacted by demand and operational optimization optimization • Chemical Costs – impacted by demand and raw water quality • Staffing Requirements (largely governed by Legislative/regulatory requirements) • Fleet Costs – impacted by demand and state of the p y infrastructure as well as operational efficiencies 6
W t Water System- Future Legislation/Regulations S t F t L i l ti /R l ti • Source Protection Planning (Clean Water Act Source Protection Planning (Clean Water Act – CWA) – cost CWA) cost implications • Tightened Regulatory Limits (SDWA) – THM’s, HAA’s, etc. • • Ongoing Operator Certification restrictions (OWRA O Reg Ongoing Operator Certification restrictions (OWRA, O.Reg 128/04) – Succession Planning resource implications. • Enforced “Best Practices” adherence through Regulatory Compliance Inspections (MOE) – cost/resource implications Compliance Inspections (MOE) – cost/resource implications. • Bill 8 – Infrastructure Locating requirements – mandatory Ontario One Call integration - tightened requirements, timelines guarantee periods etc guarantee periods, etc. Annual Re-Accreditations increasingly stringent requirement • 7
Water System – Operational Improvements, a e Sys e Ope a o a p o e e s, Managing Costs •Underwent Service Area Review in 2011 –Implementing recommendations of service review - ongoing •Converted to “ AMI ” – “go-live” October, 2011 –Assumed Water Meter Reading and Billing from formerly contracted A d W t M t R di d Billi f f l t t d (PowerStream) service – cost saving. –Water Meter reading interval now received every six (6) hours versus previous 60 day interval – automated via radio transmission versus walking route walking route. –Opportunity for Barrie Customers to monitor Water Use via the Web on an ongoing basis and apply real time knowledge to Water Conservation (Bill Management ) practices. –Improved Customer Service - high water use –Improved Customer Service - high water use –Reduced potential for uncontrolled non-revenue water production. 8
Water System – Operational Improvements, M Managing Costs i C t • Converted to CMMS (Computerized Maintenance Management System – “Cityworks”) from former paper based program – “Go-Live” February 2012. – Better management & Traceability of all maintenance activities. – Compliant reporting to MOE (Ministry of the Environment). – Extended infrastructure life (over the long term). – Potential reduction in “unplanned” reactive maintenance efforts versus “preventative” maintenance activities. – More “strategic” deployment of resources over time – Potential reduction in system down time. P t ti l d ti i t d ti – Future Activity Based Costing. 9
Water System - Operational Quality, Managing the S System t • Operated to meet all requirements of the Safe Drinking Water Act ( SDWA) • System Fully Licensed and Operating Authority Fully Accredited – both annually reconfirmed. fi d • Fully compliant with Drinking Water Quality Management System (DWQMS) – ongoing updates and auditing. • 12 Adverse Water Quality Incidents (AWQI’s) in 2011 – all responded to in accordance with y ( ) p MOE/SMDHU protocols – none resulted in unsafe drinking water. • ~ 2800 microbiological samples tested per year (2011). • Continuous monitoring (every 2 seconds) for Chlorine Residual, pH, Turbidity, Temperature – in several city wide locations several city wide locations • Several thousand chemical samples / tests undertaken quarterly and annually in full accordance with Regulatory requirements – public record. • 96.55 % - 2010-2011 MOE Compliance Inspection Rating. • 99.92 % - 2010-2011 Drinking Water Quality (% tests meeting Standards). • Water Operations participates in “MPMP”, “OMBI” and “NWWBI” – in an effort to improve efficiency and service levels – Service Review noted Barrie’s positive position 10
Water System Water System Operational Costs - Operational Costs 2013 Budget - 2012 Budget 2012 Budget 2012 Forecast 2013 Budget Employee Costs $ $ % General Operations General Operations Minor Capital Water Operating Expenditures $13,808,817 $11,644,313 $12,991,612 -$817,205 -5.92% Energy Fleet & Equipment Corporate Support $3,354,270 $3,348,652 $3,459,723 $105,453 3.14% Property Rent Debenture $6,743,791 $6,897,316 $7,904,093 $1,160,301 17.21% Total Gross Expenditures G $ $23,906,879 $ $21,890,281 $24,355,428 $ $448,550 $ 1.88% % Water User Rate Revenues -$21,956,910 -$21,350,000 -$23,054,755 -$1,097,845 5.00% Other Operational Revenues -$324,500 -$338,814 -$335,000 -$10,500 3.24% Billing Interest Penalties Billing Interest Penalties -$11 820 $11,820 -$25 707 $25,707 -$30 000 $30,000 -$18 180 $18,180 153 81% 153.81% Contributions from DC Reserves -$1,930,440 -$1,959,129 -$3,477,800 -$1,547,361 80.16% Total Revenues -$24,223,670 -$23,673,649 -$26,897,555 -$2,673,886 11.04% Transfer to Water Reserve $316,791 $1,783,369 $2,542,127 $2,225,336 702.46% 11
Water System - Proposed Program Change Forms y p g g 2013 Budget - 2012 Budget 2012 Budget 2013 Budget $ % Water Operating Expenditures $13,808,817.01 $12,991,612.36 -$817,204.65 -5.92% 2013 Water Program Change Forms: Legislated Legislative Requirement To Locate Corporate Infrastructure $85,854.14 Water Infrastructure and System Renewal/Expansion and Asset Mgmt $288,586.72 Commissioning; and Preventative Maintenance Program g g Asset Mgmt Water Operations Project/Program Management $62,849.76 Technical Administrative Support for Water Operations Asset Mgmt $144,051.68 CMMS Efficiency Water Treatment System Electrical Maintenance -$43,409.13 Revised Total Operating Expenditures Revised Total Operating Expenditures $13,808,817.01 $13,808,817.01 $13,529,545.53 $13,529,545.53 -$279,271.48 $279,271.48 -2.02% 2.02% Total Gross Expenditures $23,906,878.53 $24,893,361.41 $169,278.23 4.13% Total Revenues -$24,223,669.93 -$26,897,555.48 -$2,673,885.55 11.04% Transfer to Water Reserve -$316,791.40 -$2,004,194.07 -$2,504,607.32 532.65% 12
Water System – What needs to be done? y • Additional investment required now to achieve Best Practice and to avoid future increases in O&M costs and premature capital needs. avoid future increases in O&M costs and premature capital needs. Among these are: 1. System wide cathodic protection (DI & CI pipe) - $1,195,000 - Current Barrie practice is to add anodes with every necessary excavation – practice should continue. Overall policy should be e ca ation practice sho ld contin e O erall polic sho ld be developed to assess cathodic protection versus metallic pipe replacement prioritization over a period of years (Engineering and CAM Departments). Without this more emergency expenditures. 2. Valve cycling improvement - (annual expenditure) $580,000/year - Barrie cycles approximately 5%/yr (1,200 of 24,000 valves/yr total) – recommended 30%/yr (7,200 valves/yr). Barrie will need more staff resources to ultimately meet Best Practice Target. more staff resources to ultimately meet Best Practice Target. Failure to do so leads to real risk of costly operational impacts and premature replacements at high cost. 13
Recommend
More recommend
