Mutual Water Company Proposed System Upgrades & Financing - PowerPoint PPT Presentation

Mutual Water Company Proposed System Upgrades & Financing

Original System Configuration 300,000 gal 160,000 gal tank tank Booster Pump Station ~ 5.3 Miles of Pipeline Well 1 Well 2

History • Approx 28,000 ft of asbestos fiber cement (AC) pipe – Most installed in 1950’s & 60s – Expected lifetime is (opt) 42 years to (pess) 21 years * • About 75% replaced already with PVC – 54% via replacement projects in 2005,12-13 (USDA),17 – 8% for Squaw Summit development (1986) – 12% during repair projects (1980s & 90s) • Old pipes exposed in 2012-13 showed severe signs of deterioration – replacement saved 12 M gals/yr --------------------------------------------------------------- * “Prediction of Asbestos Cement Water Pipe Aging and Pipe Prioritization using Monte Carlo Simulation” (2016)

System Configuration Today

Recent Capital Infrastructure Projects About 4 years ago we established a Capital Infrastructure Fund ($75K per year) • Completed back lot abandonment project • Replaced East Christy piping & connected to Lanny piping to create loop • Inspected and repaired horizontal well • Purchase (and soon installation) of Backup generator for power shut-offs

Proposed Capital Improvement • Our application to USSA for $$ to renovate most of remaining system has been accepted • What this would cover – – Replace most all the remaining AC pipe & laterals – Rehab (and possibly replace) pumps in Wells 1 & 2 – Upgrade monitoring electronics – Rehab well house #1 – Completely renovate booster pump station (hard winter access, undersized pumps, manual controls) – Replace feeder line to upper tank & create all-weather access road – Add drainage line to well house #1

Proposed Line Replacements 1. Sandy/Lanny interconnect 2. Christy Lane 3. Washoe/Paiute 4. Navajo Ct 5. West Sandy Main 6. Feeder Line

This does not fix everything • Due to USDA requirements for environmental impact reports, we withdrew from application – Replacing pipes from wells that run under Squaw creek – SVMWC  SVPSD Intertie (MWC portion of $$) • This intertie would be vital if either company has catastrophic failure – Replace interconnect between Well 1 and Well 2

Terms of USDA Loan #2 • $3.5 Million loan over 40 years • All projects to be completed in 5 years. • Pay principal and interest only on what is borrowed, as it is borrowed • Interest of ~ 3.5% (TBD when loan granted) – Annual payment ~ $165,340 (at full amount) => ~ $650 per membership per year

Why Do This? FACT: for most all of SVMWC lifetime, no $$ was set aside for capital improvements/replacements • Pipes and connectors have exceeded lifetime; failures are inevitable and expensive to fix (just fixed two on Sandy – see pictures next slide) • Add more fire hydrants as was done in ‘12 - ’13 • We need reliability in our system to fight fires – provide min 1000 GPM fire flow • We are losing > 6.7 Million gallons per year due to unfound leakages in joints and pipes

Both leaks were in connector from main pipe to meters

Options ? 1. Do “all at once” – Less overall construction costs – Lower permitting & bidding; low interest rates 2. Push some projects to a later time; focus on – Replace most of the remaining AC pipe – Rehab (and possibly replace) pumps in Wells 1 & 2 – Upgrade monitoring electronics 3. Pay for projects using annual capital infrastructure fee assessments

Option #2 • Loan amount needed ~$2.5 Million – Annual payment ~ $104,000 – $10,400 for 10 years (returns to SVMWC at end) => ~ $407 per membership per year • Issues – USDA may not be providing such loans in the future – Construction and Engineering costs are guaranteed to increase – Interest rates are a crap-shoot, but could very well be higher.

Option #3 • At $75K (plus 3% COLA) it would take many decades before projects could be completed • To complete projects within 20 years would require a 10-15% increase in capital infrastructure assessment each year for ~ 10 years or more (depends on timing and costs)

Bill Paying Assistance There is a program called LIHEAP (info from USDA) Aim is to assist low Income individuals by helping to pay or to subsidize their Utility Bills First link is the main page, second link is the actual info for Water Bills https://www.needhelppayingbills.com/html/placer_county_assistance_progr.html https://www.needhelppayingbills.com/html/get_help_paying_water_bills.html We will post these links on our Mutual Water Company Website.