Purpose of the Meeting District overview & improvements to date - PDF document

and for attending the August 29, 20 13 Purpose of the Meeting � District overview & improvements to date � How rates are determined � Water use trends in Ferndale � Information regarding the rate adjustment � An opportunity to ask questions 1

August 2013 Ferndale District � Ferndale has: � Two operators who have served Ferndale for a combined T h h d F d l f bi d total of 34 years � Two operators provide: � All maintenance of springs, tunnels, water lines, and other facilities � Availability to meet with customers to address their concerns � Quick service for emergency situations � Meter reading, which alternates between operators for maximum accuracy � Back ‐ ups available 24/7 � Five full ‐ time operators maintain DOWC districts in Butte and Shasta Counties 2

Meet Your Field Staff Customer Care Center � 24 hour customer support: � Full time Customer Care Center & dedicated emergency phone line � Work Orders are electronically transmitted to and from field staff and from field staff and are reviewed for quick and accurate problem resolution � Bilingual (Spanish) 3

Capital Improvements � Little Sandstone Spring � Little Sandstone Spring � New 2” mainline installed � Provides dedicated line for water to flow to Dual Compartment Tank � Increased maximum water � Increased maximum water output from Sandstone Springs by more than 175,000 gallons per year Capital Improvements � Replaced old, leaky, and undersized mainlines: � 320 feet replaced � Old 2 ‐ inch galvanized steel replaced with 8 ‐ inch C900 PVC � A Street, between 4 th and 5 th streets � Provides sufficient supply and pressure for supply and pressure for this portion of the system � New 3 ‐ way isolation valve isolates leaks with less customers affected by outages 4

Capital Improvements New 8” Mainline 2” The old, leaky, undersized 2” mainline 1” Original, unused 1” mainline shown underneath Capital Improvements � Rebuilt 4 chemical vacuum regulators ebu t 4 c e ca acuu egu ato s � Installed 2 new chemical pumps � Treatment plant � High Springs � Replaced three filter valve actuators & electrical conduit conduit � Acquired portable generator � Keeps system operating during power outages � Over 70 of the oldest meters replaced 5

Capital Improvements � Maples Springs ap es Sp gs Mainline Project Overview � Project spanned 3 years (2011 ‐ 2013) � Included underground and suspended mainlines d d d l � Resulted in increased water production by over 3,300,000 gallons per year Capital Improvements � Maples Springs Mainline Project (continued) � 2011 – 50 feet of old, leaky mainline replaced with new 4 ‐ inch Schedule 40 PVC 6

Capital Improvements � Maples Springs Mainline Project (continued) � 2012 – Suspended crossing replaced with new 4 ‐ inch C900 PVC Capital Improvements � Maples Springs p p g Mainline Project (continued) � 2013 – Restricting Y removed & i t intersection ti replaced with new 4 ‐ inch Schedule 40 PVC 7

Today’s Presentation How are rate structures designed? H d i d? Why is a rate adjustment necessary? What are the estimated operating expenses for Ferndale District? f F d l Di t i t? How will the proposed rate adjustment affect you? 8

Readiness to Serve Charge + Quantity Charge (per 100 cubic feet) Q y g � Readiness to Serve Charge= � 50% of various operating expenses � Covers a portion of the costs to operate and maintain the water system, even when no water is being used � Quantity Charge = � Monthly charge per 100 cubic feet (748 gallons) of water used 9

Rates Established � Resolution W ‐ 4821 modified the 2008 rates on January 29, 2010 � Called a “Mini ‐ GRC”, this modified the rates from the full GRC approved June 26,2008 � The Mini ‐ GRC was based on: � 2007 Expenses (approved in 2008 GRC) � 2007 Expenses (approved in 2008 GRC) � Some expense categories reduced � 2008 Actual Water Consumption � Reduced from 2007 levels due to loss of Navy housing area 10

What has changed? � Expenses have increased since the last GRC E h i d i h l GRC � Revenue has decreased due to significantly less water consumption throughout the district � In spite of the former Navy complex usage returning to previous levels i l l � Projected net revenue to decrease by $16,904 Actual Customer Water Use 2008-2012 Actual Water Use (Ccf) ( ) 53,402,712 gallons 75,000 49,096,000 gallons 67,500 42,712,296 gallons 60,000 52,500 45,000 37,500 37 500 30,000 22,500 15,000 7,500 0 2006 2007 2008 2009 2010 2011 2012 11

18 California Communities Total Service Connections Paradise Pines, 4,695 Lime Saddle, 387 Magalia, Metropolitan, 275 28 Grandview Grandview Stirling Bluffs 157 Stirling Bluffs, 157 Gardens, 98 River Island, Strawberry, East Plano, 14 Johnson Park, 299 Ferndale, 423 386 Mt. Lassen, 132 762 ‐ 9.33% Arbuckle, 53 Country Estates,89 Pine Flat, 193 Walnut Ranch, 76 Pine Mountain, 96 As of December 2012 12

2013 Proposed Expenses 9.33% of Shared Costs for 18 Districts $144,978 100% of Local Costs $305,307 2013 Proposed Expenses Management, Office Superintendent, Customer Care $11,946 Personnel, $10,114 Center Personnel, $48,069 $48,069 $6 $6,345 Shared Employee Benefits, $18,750 Field Personnel, $134,815 Insurance, $17,297 Office Depreciation, Supplies, Property & $45,993 Other Taxes, $31,711 Local $35,533 Office Office Employee E l Services, Benefits, $11,613 $22,495 Transportation, Professional $19,573 Other, Services, $1,518 Materials, $1,164 General Income Taxes, $4,738 Purchased Expenses, $10,169 Contracted Other Volume Power, $10,424 $3,251 Services, $765 Related, $4,002 13

If approved, the proposed rate adjustment h d dj is projected to produce sufficient additional revenue to adequately cover operating expenses operating expenses and decreased income 14

Bill Comparison Present Rates Proposed Rates $120.30 $95.80 $103.93 $71.30 $82.93 $46.80 $61.93 $40.93 383 (50.25%) 275 (36.04%) 500 cubic feet 79 (10.41%) 1,000 cubic feet 3,740 gallons 25 (3.30 %) 1,500 cubic feet 7,480 gallons 11,200 gallons Over 1,500 cubic feet (Shown: 2000 cf / 86% ‐ 655 customers 14960 gallons) Total number of customers in this category (percentage of total) Based on 5/8” Meters Readiness to Serve + Quantity (annual average monthly use) It’s easy to navigate our NEWLY REDESIGNED NEWLY REDESIGNED Website Just visit: www.delorowater.com and select and select Ferndale Access your account & make online payments 24/7/365 15