PUD Cost of Service Presentation - Official site of Thurston … · 2014-07-11 · PUD Cost of...
Transcript of PUD Cost of Service Presentation - Official site of Thurston … · 2014-07-11 · PUD Cost of...
PUD Cost of Service Presentation
June 25, 2014 Lewis County Community Meeting with PUD Commissioners
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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
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Water bill = base rate + consumption 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
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Inside Thurston County
Tanglewilde-Thompson Place $26.20/month
All Other Customers $24.75/month
Outside Thurston County $28.75/month
Consumption 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
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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
Consumption 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
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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 monthly water bill, if you are in Lewis County:
Water Use, ccf/month
Monthly Bill
5 $39.80
7.5 $48.28
10 $56.75
20 $97.10
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• Description of PUD and water systems
• Operating a water system: “What We Do”
• Asset management: reliable service in the future
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• Formed in 1938; Started serving multiple systems in 2005
• Mission: Provide safe, reliable, affordable, and sustainable water services to the customers we serve
• 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
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• 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.
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• 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
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• On-call 24 hours a day, 7 days a Week (24/7), 365 days a year
• 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
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• 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
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• 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
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• Replace 110 well pumps
• Replace 240 pressure tanks
• Replace 43 chemical pumps
• Rebuild 5 pump houses
• Leak detection, leak repairs
• Replace some water meters
• Drill 2 new wells
• Replace 20 booster pumps
• Water line replacements
• ......and more
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• 2014 – PUD hired Leidos as a consultant to conduct a cost of service study (COS) to evaluate how to pay for infrastructure replacement or refurbishment in all water systems
• Spring of 2014 - PUD Commissioners were briefed on recommendations and provided direction
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• Summer 2014 – PUD Commissioners are holding Public Meetings
• Pierce County on June 11th
• Lewis County on June 25th
• Thurston, Mason, and Grays Harbor Counties on July 9th
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• Summer and Fall 2014 – PUD Commissioners
• Review comments from Public Meetings
• Refine replacement/refurbishment plans
• Establish levels of service
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• Summer and Fall 2014 – PUD Commissioners
• Review funding recommendations to implement the asset management plan (AMP)
• Hold a Public Hearing
• Fall 2014 - Approve rates and fees to pay for implementing the AMP
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Upgrades and Repairs slideshow .pptx
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1. Customer Satisfaction: One of our most important measures is overall customer satisfaction.
• Summer of 2014 - A Customer Survey will be Conducted
2. Average Bill Comparisons: The District compares its water rates to other similar local water utilities – see next slide.
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Comparison of 2014 Rates to Other Thurston County Rates
Utility Base Chg
1st Tier 2nd Tier 3rd Tier 4th Tier 5th Tier Tier Break 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
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$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
0 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. Service: • 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
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4. Percentage of customer payments made electronically: Electronic payments offer an efficient and convenient method for customers
• 29.4% of customers use web site to pay
• 9.1% of customers pay using direct debit
• Historically, 300 customers pay over the phone monthly
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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
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• 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
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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
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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 millions of dollars
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4. Collected over $400,000 from developers to invest in PUD infrastructure
5. Excellent Planning • Asset Management Plan
• Cost of Service Study
• Updated multiple plans with State
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6. Refinanced Bonds - saved $158,000 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.
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8. State Audits – No findings in 5 Years
9. Rent – renegotiated rent saving $4,000 annually
10. Contract with County for IT saving
1.0 FTE
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11. Insurance • Changed insurance providers: saved $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
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13. Revenue Generation – PUD operates and manages 14 water systems of other owners
◦ 2014 Budgeted Revenue of $83,000
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.
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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
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• 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
• Discontinue surcharges for Crescent Park, Terry Lane, Pederson Place, and Covington Estates systems
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3/4-inch water meter, $/month
2015 2016 2017 2018 2019 2020
$1.00 $2.90 $4.80 $6.70 $8.60 $10.50
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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
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Lewis County 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
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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
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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
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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
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