Country Estates District 2012 Capital Improvement Project Presentation Informal Meeting of January 25, 2012 In accordance with the Standard Practice U-36-W of the CA Public Utilities Commission Agenda 6:30 – 6:35 PM Introductions 6:35 – 6:45 PM Del Oro Water Company Presentation • Explain the 2012 Capital Improvement Project • Provide information regarding the eventual cost to customers 6:45 – 7:30 PM Question & Answer Period Meeting Guidelines To ensure an orderly meeting, we ask for your cooperation with the following: 1. Please add your name and contact information to the customer sign-in sheet before taking a seat. 2. Please hold your questions until after the presentation. 3. Please state your name at the podium as you are called upon to speak. 4. Please direct your question to Del Oro or Commission representatives. 5. Please limit comments to no more than approximately three (3) minutes each. Thank you
and and for attending the January 25, 20 12
Purpose of the Meeting Discuss the 2012 Capital Improvement Plan Present an opportunity to ask questions
Y Your Del Oro Field Technicians D l O Fi ld T h i i and Call Center Employees and Call Center Employees Customer Service Representatives System Operator and Stand ‐ by Personnel System Operator and Stand by Personnel
Project Details Project Details Critical Health and Safety Issue � Background � Production at the main pumping plant, Cindy Well, has declined by 50% � From normal production of 600 gpm to 300 gpm currently F l d ti f 6 t tl � South Valley Pump Company has advised that the pump needs to be pulled for major repairs. � Pump company anticipates that all new pumping parts will be needed P i i h ll i ill b d d � The pump was last pulled over 25 years ago � Components p � Major repairs of Cindy Well � Temporary activation of Weedpatch Well � Total Estimate Cost of $45,000
Temporary Activation of Weedpatch Well T A ti ti f W d t h W ll � Weedpatch is the stand ‐ by well � Will need to be activated to provide water while Cindy Well is offline � Project includes: � Project includes: � Recently completed: � Replaced an inoperable gate valve and leaking distribution pipe � Repaired part of the electrical panel and pressure tank d f h l l l d k � To be completed: � Sampling and analyzing the well as required by CA Dept of Public Health � Disinfecting well in accordance with AWWA standards � Flushing system and collecting bacteriological samples � Providing notice to consumers that well is online g � $5,000 estimate total cost
Cindy Well Major Pump Repair Project � Anticipate replacement of all major pump components � Removing and installing: � New pump bowels � Approximately 300 feet of new pipe column and shaft � New air line N i li � Lowering a camera to video condition of well casings � Taking water samples as required by CA Dept of Public Health Taking water samples, as required by CA Dept of Public Health � Notifying consumers when primary system is back online � $40,000 estimated total cost $40,000 estimated total cost
Bill C Bill Comparison i Present Rates $124.88 $115.13 Proposed Rates $95.63 $117.00 $107.86 $76.13 $89.59 $56.63 $56.63 $71 32 $71.32 $37.13 $53.05 $34.78 11 (12%) 21 (22%) Up to 1000 cubic 27 (28%) Up to 2000 cubic p 24 (25%) 4 ( 5 ) feet feet Up to 3000 cubic Up to 3000 cubic 6 (6%) 6 (6%) feet Up to 4000 cubic 6 (6 %) feet Up to 5000 cubic feet Over 5000 cubic feet feet (5,500 shown) 75% ‐ 72 customers Total number of customers in this category (percentage of total) Based on 5/8” Meters Readiness to Serve + Quantity Total Current Number of Customers in the District is 95
It’s easy to navigate navigate our Website Website Just log on to: Just log on to: www.delorowater.com and select Water Districts then Country Estates
Country Estates District FAQs Rates & Tariffs: Common Terms 1. What is the “Readiness to Serve Charge”? CDPH – California Dept. of The “Readiness to Serve Charge” (RTS) is a percentage of the total Public Health cost to run the water system, and is your basic fixed monthly service fee, which is determined by the size of the water meter CPUC – California Public serving your property. This charge applies even if you used no Utilities Commission water during the billing period. It is called RTS because your property is connected to the water system and DOWC is ready to DOWC – Del Oro Water Co. serve water to your property at any time. All metered rates in California, for CPUC regulated companies, ROR – Rate of Return include RTS. Together with Water Quantity, these form your basic water rates. RTS is specifically allocated to cover the costs of RTS – Readiness to Serve maintaining and operating your water system even when no water is being used and pays for facilities, vehicles, water testing, etc. WQ – Water Quantity 2. Who determines what percentage of the rates is RTS? The CPUC reviews all of DOWC’s operational costs and determines the RTS percentage. Currently, RTS is 50% of the basic rate. 3. What is the “Water Quantity Charge”? The “Water Quantity Charge” (WQ) is determined by how much water you use during the billing period. It is calculated by deducting the previous period’s meter reading from the most current meter reading to get current water use, then multiplying the water use by the current WQ rate. The water is measured in units of 100 cubic feet (ccf). Currently, WQ is approximately 50% of the total basic rate and covers the remaining costs not paid for by RTS. 4. What is the “CPUC Fee”? A 1.5% surcharge is fee that the CPUC requires be added to all customers’ bills. It is calculated on all amounts due and is forwarded to the Commission throughout the year. Last updated 01/24/12 DRAWER 5172 CHICO, CALIFORNIA 95927 – WWW.DELOROWATER.COM PARADISE PINES – LIME SADDLE – MAGALIA – FERNDALE – JOHNSON PARK – COUNTRY ESTATES – PINE MOUNTAIN – PINE FLAT WALNUT RANCH – ARBUCKLE – STRAWBERRY – MT. LASSEN – RIVER ISLAND – EAST PLANO – GRANDVIEW – METROPOLITAN
5. What are my current rates? Your current rates are always listed on DOWC’s website at www.DelOroWater.com, on your district’s page. In addition, all requested future rates are also available: simply click on any “pending” Advice Letter to see the proposed rates. 6. Why are there additional charges on my bill? What are they? Additional charges, such as “PG&E Offset”, “Interim Rate Surcharge”, and others may appear on your bill from time to time. These are temporary charges intended to cover operating costs in excess of the CPUC approved budgeted amounts. For example, if the cost of gasoline increases beyond expectations, this may result in a “Transportation Surcharge” to cover the increased cost of operating DOWC vehicles. The Advice Letter pertaining to each specific additional charge is posted online at www.DelOroWater.com. The advice letter contains an explanation of the charge and why it is necessary. 7. Is there a low-income rate available? There is not currently a low-income rate established for your district. However, if there is a significant desire for this, or if the CPUC requests it, DOWC will do a customer income survey to determine if the area qualifies for a low-income rate. It should be noted, however, that when a low-income rate is in place, it is the other customers within the district who must pay the difference . Operating Income & Expenses: 8. Some of the Advice Letters refer to “Rate Base”. What is that? Rate Base approximates the value of the existing water system and is used in the computation of rates. The basic formula, as defined by the CPUC, is “Assets less depreciation” of the water system. 9. What is the “Rate of Return” (ROR) and how is it determined? The ROR is the return that DOWC is allowed on our investment in the district (the Rate Base). ROR is determined by the solely CPUC and is currently 10.8% of Rate Base. 10. Is the ROR percentage guaranteed to Del Oro? No! If actual expenses exceed what was estimated and approved by the CPUC, then DOWC’s actual ROR declines or disappears, as it has in recent years. The CPUC defines the maximum ROR that DOWC may make. While it is true that some excess expenses may be recovered with a surcharge, this is not true for ALL excess expenses. Basically, only those excess expenses over which DOWC has no control (like the price of fuel) can be reimbursed. Everything else reduces DOWC’s rate of return. 11. What is the ROR used for? The net income of the districts has been reinvested in the districts in the form of capital (infrastructure) improvements. It is also used to cover budget shortfalls, as described above. Last updated 01/24/12 DRAWER 5172 CHICO, CALIFORNIA 95927 – WWW.DELOROWATER.COM PARADISE PINES – LIME SADDLE – MAGALIA – FERNDALE – JOHNSON PARK – COUNTRY ESTATES – PINE MOUNTAIN – PINE FLAT WALNUT RANCH – ARBUCKLE – STRAWBERRY – MT. LASSEN – RIVER ISLAND – EAST PLANO – GRANDVIEW – METROPOLITAN
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