PUD Cost of Service Presentation 1 1. Discuss the PUDs current - PowerPoint PPT Presentation

June e 11 11, 20 2014 14 Pier erce ce Co County y Co Commun unity ity Meeting ing with PUD Commissione issioners rs PUD Cost of Service Presentation 1

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 2

Water r bill = b base rate + co consumptio umption n rate Base rate: flat charge per month; depends on meter size, customer type, and location For a ¾-inch residential water meter: Inside Thurston County Tanglewilde-Thompson Place $26.20/month All Other Customers $24.75/month Outside Thurston County $28.75/month 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 3

Consumpti sumption on rate: based on water use; “increasing block” rate structure – the more you use, the higher the charge 0 - 5 ccf per month $2.21/ccf “ccf” = 5 - 15 ccf per month 3.39/ccf hundred 15 - 30 ccf per month 4.68/ccf cubic feet >30 ccf per month 5.32/ccf Q: Why are they different? A: To promote efficient use of a limited resource 4

Consumpti sumption on rate: based on water use; “increasing block” rate structure – the more you use, the higher the charge 0 - 5 ccf per month $2.21/ccf Average use = 5 - 15 ccf per month 3.39/ccf 7.5 ccf/month 15 - 30 ccf per month 4.68/ccf >30 ccf per month 5.32/ccf Q: Why are they different? A: To promote efficient use of a limited resource 5

Your r monthly ly wa water bill, if you are in Pi Pierce e County nty: Wa Water r Use se, , Monthly nthly ccf/ f/month month Bill ll 5 $39.80 7.5 $48.28 10 $56.75 20 $97.10 6

• Description of PUD and water systems • Operating a water system: “What We D o” • Asset management: reliable service in the future 7

• Formed in 1938; Started serving multiple systems in 2005 • Mission sion: : Pr Provid vide e safe, e, reliable, ble, affordabl dable, e, and d sustainabl tainable e wa water servi vices ces to the custo tomers mers we we serve ve • 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 8

• 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. 9

20 customers for each well • 164 wells • 54 miles of mains 90 feet of pipe per customer • 130 pump houses 6 customers for each • 62 booster stations pressure tank • 520 pressure tanks • Plus: service lines – isolation valves – blowoff assemblies – hydrant assemblies – reservoirs – treatment facilities – meters on each well – meters for each customer. 10

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• On On-call call 24 hours rs a d a day ay, , 7 day ays a a We Week (24/7), 4/7), 365 day ays s a ye a year ar • 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 13

• 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 14

• 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 15

• Re Replace ce 11 110 0 well pumps • Re Replace ce 24 240 0 pressure ure tanks • Re Replace ce 43 43 ch chemic ical al pumps ps • Re Rebuild ld 5 p 5 pump houses • Leak k detect ction, on, leak repairs • Re Replace ce some water meters rs • Drill l 2 n 2 new wells • Re Replace ce 20 20 booste ter r pumps • Water r line replacements cements • ......and nd more 16

• 2014 14 – PUD hire red d Le Leidos os as as a a consultant nsultant to conduct nduct a a cost st of f se serv rvic ice e study dy (COS) OS) to eva valuate ate how w to pay ay fo for r infra frastructure structure re replac acement ement or r re refurbishment furbishment in in al all wa l water r sy syst stems ms • Sprin ring g of f 2014 4 - PUD Commissioners mmissioners were re bri riefed fed on re recomm ommend endations ations an and pro rovided vided dire rection ction 17

• Summer mmer 2014 4 – PUD Commissioners mmissioners ar are holding lding Public lic Meetin ings gs • Pierce rce County unty on June e 11 th th • Le Lewis is County unty on June 25 th th • Thurs urston ton County nty on July y 9 th th 18

• Summer mmer an and Fal all 2014 4 – PUD Comm mmissio issioners ners • Revie view comments mments fr from m Public ic Meetings tings • Refine fine re replacement/refu lacement/refurbis rbishment hment plan ans • Est stablish ablish le leve vels ls of f se serv rvic ice 19

• Summer mmer an and Fal all 2014 4 – PUD Comm mmissio issioners ners • Revie view fu fundin ding g re recommen ommendat dation ions to imp mplement lement the as asset ma manag agemen ment t pla lan n (AM AMP) P) • Ho Hold ld a P a Public lic He Hear aring ng • Fa Fall ll 2014 4 to Ear arly ly 2015 5 - Ap Approve rove ra rates s an and fe fees to pay ay fo for r imp mplementing ementing the AM AMP 20

 Upgrades and Repairs slideshow .pptx 21

1. 1. Custom stomer er Sat atis isfa faction ction: : One of our most important measures is overall customer satisfaction. Summer of 2014 - A Customer Survey • will be Conducted 2. 2. Av Avera rage ge Bil ill l Comparisons: mparisons: The District compares its water rates to other similar local water utilities – see next slide. 22

Comparison on of 2 2014 4 Rates to O Other r Thurston ton County y Rates Base Utility 1 st st Tier 2 nd nd Tier 3 rd rd Tier 4th Tier 5 th th Tier Tier Break ak CCF Chg 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 No Tiers Boston Harbor $22.83 $1.71 No Tiers Grand Mound $33.36 $1.90 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 23

$180 Thurston PUD, In-County, Existing Thurston PUD, Outside County, Existing $160 Washington Water Thurston County: Tamoshan $140 Thurston County: Boston Harbor Thurston County: Grand Mound $120 H&R Waterworks Pattison Water Co City of Yelm $100 $80 $60 $40 $20 $0 0 5 10 15 20 Monthly Water Use, hundred cubic feet 24

3. . S Serv rvice: ice: 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 25

4. Percentage of customer payments made electronically: Electronic payments offer an efficient and convenient method for customers 29.4% of custome mers rs use web sit ite to p pay • 9.1% of custome mers rs pay usin ing g dir irect debit it • Hi Histori rica cally, lly, 300 300 cu custome mers rs pay over r the • phone ne monthly ly 26

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 27

• 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 28

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 29

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 mil illi lions s of doll llars rs • 30

4. Collected over $400,00 0,000 0 from developers to invest in PUD infrastructure 5. Excellent Planning Asset Management Plan • Cost of Service Study • Updated multiple plans with State • 31