Report on Feasibility Assessment and Proposed Consolidation Agreement Maumelle Water Management September 22, 2015

Transcription

1 Report on Feasibility Assessment and Proposed Consolidation Agreement Maumelle Water Management September 22, 2015

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3 Monthly Utility Bill in $ 100 Combined Average Utility Bill for /8 Meter with 4,400 Gallons Sep Future Established Rates MWM Option 1 MWM Option 2

4 MWM s Water System approximately 10,500 metered service connections 613,507 linear feet of water mains 2 water storage tanks 675 fire hydrants 13 supply wells, 2 pump stations 1 water treatment plant 2.78 MGD average 6.68 MGD peak 2.4 peaking factor 7.8 MGD Well Capacity 6.84 MGD Treatment Capacity

5 MWM s Wastewater System approximately 7,500 service connections 621,000 linear feet of collection mains 3,100 manholes 25 pump stations 1 wastewater treatment plant 2.08 MGD average 2.80 MGD max 3.50 MGD Permitted Treatment Capacity

6 Feasibility Assessment Water PER Projects without Consolidation Project Description Estimated Cost Manitou Booster Pump Station $500,000 Ground Storage Tank #1 & #2 Maintenance $1,200,000 New 2.5 MG Storage Tank $3,000,000 Flushing System $150,000 Water Transmission Improvements $5,500,000 WTP Residual Handling $1,000,000 New Wells (4) $800,000 Emergency Generators & Platforms for 5 Wells $425,000 Expansion of WTP to 12 MGD $22,250,000 Meter Replacement $888,000 Permanent Chlorine Dioxide Feed System $25,000 Entergy Power Distribution in Well Field TBD Future Improvements Required for Water Quality TBD Total Estimated Cost $35,738,000

7 Feasibility Assessment Wastewater PER Projects without Consolidation Project Description Estimated Cost Sewer Rehabilitation $2,370,000 WWTP Expansion $10,000,000 Mechanical Bar Screen $750,000 Aeration Improvements $600,000 WWTP Blower $100,000 Rehabilitate Secondary Clarifier $50,000 Sludge Dewatering Container $150,000 Disinfection System $200,000 Effluent Pump Station $500,000 WTP Residuals Disposal $2,000,000 Total Estimated Cost $16,720,000

8 System Comparisons CAW s Water System Over 125,000 metered service connections 12,144,000 linear feet of water mains 27 water storage tanks 14,870 fire hydrants 2 water supply lakes 26 pump stations 2 water treatment plants 62 MGD average 126 MGD peak 2.06 peaking factor 121 MGD Lake Capacity 153 MGD Treatment Capacity MWM s Water System Approximately 10,500 metered service connections 613,507 linear feet of water mains 2 water storage tanks 675 fire hydrants 13 supply wells, 2 pump stations 1 water treatment plant 2.78 MGD average 6.68 MGD peak 2.4 peaking factor 7.8 MGD Well Capacity 6.84 MGD Treatment Capacity

9 CAW Service Territory

10 Feasibility Assessment Water PER Projects with CAW Consolidation Project Description Budget Estimate Implementation Manitou Booster Pump Station $500, months Ground Storage Tank #1 & #2 Maintenance $1,200,000 8 months Flushing System $150,000 6 months Distribution System Improvements $71,000 6 months 30 CAW Transmission Main $8,320, months New High Service Pump at Jack Wilson $375,000 8 months Meter Replacement $888, months Permanent Chlorine Dioxide Feed System $25, months Total Budget $11,529, Months

11 Feasibility Assessment Water Consolidation Connection Location

12 CAW Transmission System

13 CAW Distribution System

14 CAW Water Sources

15 Feasibility Assessment Water PER Projects with CAW Consolidation Description Budget Estimate Transition Costs Source of Funds Intermediate Debt Long Term Debt Manitou Booster Pump Station $500,000 X Ground Storage Tank #1 & #2 $1,200,000 X Maintenance Flushing System $150,000 X Distribution System Improvements $71,000 X 30 CAW Transmission Main $8,320,000 X New High Service Pump at Jack Wilson $375,000 X Meter Replacement $888,000 X Chlorine Dioxide Feed System $25,000 X

16 Feasibility Assessment CAW Consolidation - Other Transition Costs Cost Description Estimated Costs Decommissioning of Existing Water Plant & Wells $300,000 Information Services Transition $50,000 GIS Mapping $360,000 Property Transfers $2,500 Increased Payroll/Benefits during first 2 years $400,000 Billing Modifications to enquesta $135,000 Immediate Transition Costs (rolling stock, computers, telephone system, rebranding, outfitting employees) $150,000 Connect to CAW SCADA $50,000 Banking Transition $15,000 Health Insurance Transition Costs TBD

17 Feasibility Assessment Wastewater PER Projects with NLRWW Consolidation Project Description Estimated Cost Sewer Rehabilitation $2,370,000 Mechanical Bar Screen $750,000 Aeration Improvements $600,000 WWTP Blower $100,000 Rehabilitate Secondary Clarifier $50,000 Sludge Dewatering Container $150,000 Disinfection System $200,000 Effluent Pump Station $500,000 WTP Residuals Disposal $2,000,000 Total Estimated Cost $6,720,000

18 Monthly Surcharge in $ Monthly Surcharge Comparison /8 Meter Existing MWM Combined Option 1 MWM Combined Option 2

19 MWM Existing Debt Schedule Debt Issue Total ASWCC #1 $3,331, ASWCC #2 $1,035, Lease Purchase $2,047, Series 2005 $3,017, Series 2008 $1,859, Total $11,291,715.78

20 MWM Existing Debt Schedule Debt Issue Total ASWCC #1 $3,331, ASWCC #2 $1,035, Lease Purchase $2,047, Series 2005 $3,017, Series 2008 $1,859, Total $11,291, ASWCC #1 Clarifier Aerator Water Filters (4) 2.4 MG Storage Tank 3 Wells (6, 7, & 8) SCADA

21 MWM Existing Debt Schedule Debt Issue Total ASWCC #1 $3,331, ASWCC #2 $1,035, Lease Purchase $2,047, Series 2005 $3,017, Series 2008 $1,859, Total $11,291, ASWCC #2 Water Plant Imp. 2 Wells (9 & 10) Waste lime pond Lift Station 4 Imp. Raw Water Booster Pump

22 MWM Existing Debt Schedule Debt Issue Total ASWCC #1 $3,331, ASWCC #2 $1,035, Lease Purchase $2,047, Series 2005 $3,017, Series 2008 $1,859, Total $11,291, Lease Purchase Surge Basin Imp. Surge Basin Lift Station Levee Improvements Well Field Generators Office Building Water Meters

23 MWM Existing Debt Schedule Debt Issue Total ASWCC #1 $3,331, ASWCC #2 $1,035, Lease Purchase $2,047, Series 2005 $3,017, Series 2008 $1,859, Total $11,291, Series 2005 Bonds - Wastewater Improvements: Clarifier Yard piping & pumping improvements Lift Station #2 rehab Chlorination facility Dechlorination facility SCADA/Telemetry Equipment storage building Outfall line (discharge to river) Lift Station #4 rehab Engineering costs

24 MWM Existing Debt Schedule Debt Issue Total ASWCC #1 $3,331, ASWCC #2 $1,035, Lease Purchase $2,047, Series 2005 $3,017, Series 2008 $1,859, Total $11,291, Series 2005 Bonds - Water Improvements Well field fencing Aerator SCADA/Telemetry rehab Filter 1 through 4 backwash valve Lime Silo Well #11 Filter 1 through 4 rehab Existing clarifier demolition New clarifier Yard Piping Equipment building Chemical Feeders

25 MWM Existing Debt Schedule Debt Issue Total ASWCC #1 $3,331, ASWCC #2 $1,035, Lease Purchase $2,047, Series 2005 $3,017, Series 2008 $1,859, Total $11,291, Series 2008 Bonds Complete 2005 Projects Water Plant Elec. Rehab Wastewater Lift Station Rehab Water Plant Emergency Generator Wastewater Sludge Drying Container

26 MWM Existing Debt Schedule Debt Issue Total Allocated to Water ASWCC #1 $3,331, $3,331, Allocated to Wastewater ASWCC #2 $1,035, $1,035, Lease Purchase $2,047, $1,740, $307, Series 2005 $3,017, $1,418, $1,599, Series 2008 $1,859, $1,320, $539, Totals $11,291, $8,845, $2,445,727.41

27 Monthly Surcharge in $ Monthly Surcharge Comparison /8 Meter Option 1 Debt Existing $11,291, Proposed $15,625, TOTAL $26,916, Existing MWM Combined Option 1 MWM Combined Option 2

28 Monthly Surcharge in $ Monthly Surcharge Comparison /8 Meter Option 2 Debt Existing $11,291, Proposed $10,150, TOTAL $21,441, Existing MWM Combined Option 1 MWM Combined Option 2

29 Monthly Surcharge in $ Monthly Surcharge Comparison /8 Meter CAW Consolidation Debt Existing MWM Water $8,845, year Transition $1,637, year Intermediate $2,088, year Long-Term $9,117, TOTAL $21,688, MWM Wastewater Only CAW Water NLR Wastewater

30 Monthly Surcharge in $ Monthly Surcharge Comparison /8 Meter MWM Wastewater Only Debt Existing MWM Wastewater $2,445, New MWM Wastewater $4,720, TOTAL $7,165, MWM Wastewater Only CAW Water NLR Wastewater

31 Monthly Surcharge in $ Monthly Surcharge Comparison /8 Meter Existing MWM Combined Option 1 MWM Combined Option 2 MWM Wastewater Only CAW Water NLR Wastewater

32 Monthly Surcharge in $ 25 Monthly Surcharge Comparison /8 Meter Long-Term Water and Wastewater Capacity Debt Estimate $34,833, Long-Term Wastewater Capacity Debt Estimate $10,000, Existing Rates MWM Combined Option 1 MWM Combined Option 2 MWM Wastewater Only CAW Water NLR Wastewater MWM Water & Wastewater Capacity Expansions MWM Wastewater Only Capacity Expansions

33 Monthly Utility Bill in $ 100 Combined Average Utility Bill for /8 Meter with 4,400 Gallons Sep Future Established Rates MWM Option 1 MWM Option 2

34 Monthly Utility Bill in $ 100 Combined Average Utility Bill for /8 Meter with 4,400 Gallons Sep Future Established Rates MWM Option 1 MWM Option 2 CAW/MWM

35 Monthly Utility Bill in $ 100 Combined Average Utility Bill for /8 Meter with 4,400 Gallons Sep Future Established Rates MWM Option 1 MWM Option 2 CAW/MWM CAW/NLRWW

36 Monthly Water Bill in $ 60 Water Average Bill /8 Water Meter with 4,400 Gallons Sep Future Existing Rates CAW/MWM MWM - Option 1 MWM - Option 2 CAW/NLRWW

37 Monthly Sprinkler Bill in $ Sprinkler Bill /8 Sprinkler Meter with 11,000 Gallons Sep Future Existing Rates CAW/MWM MWM - Option 1 MWM - Option 2 CAW/NLRWW

38 Monthly Wastewater Bill in $ 35 Wastewater Average Bill /8 Meter with 4,400 Gallons Sep Future MWM - Option 1 MWM - Option 2

39 Monthly Wastewater Bill in $ 35 Wastewater Average Bill /8 Meter with 4,400 Gallons Sep Future Existing Rates MWM - Option 1 MWM - Option 2 MWM with CAW

40 Monthly Wastewater Bill in $ 35 Wastewater Average Bill /8 Meter with 4,400 Gallons Sep Future Existing Rates MWM - Option 1 NLRWW MWM - Option 2 MWM with CAW

41 Monthly Utility Bill in $ 100 Combined Average Utility Bill for /8 Meter with 4,400 Gallons Sep Future Established Rates MWM Option 1 MWM Option 2 CAW/MWM CAW/NLRWW

42 Proposed Consolidation Agreement

43 Proposed Consolidation Agreement Overall Water Intent CAW to provide retail water service to MWM Customers Definitions (Section 1) Wastewater (Section 2) If desired, CAW will negotiate and bring MWM an offer December 31, 2015

44 Proposed Consolidation Agreement Purchase of Water System (Section 3) Closing no later than March 1, 2016 Purchase price is the existing debt to be pay off with new bonds Offer to hire employees Employees (Sections 3.D and 5.A) Unless otherwise directed by MWM, CAW shall offer employment to all MWM employees Employees will receive compensation and benefits that CAW provides Lease employees to wastewater provider if needed Pre-employment testing

45 Proposed Consolidation Agreement Covenants (Section 4) Parties will work together to complete consolidation MWM will not issue debt, sell property, etc. Division of Assets (Section 6) Parties will identify water and wastewater assets to attach to Schedules in next couple of weeks, pending decision from MWM Cash will include Water Account Deposits Water Accounts Payable Employee Obligations Post Closing Clean-Up

46 Proposed Consolidation Agreement Rates (Section 5.D) Transition Period (24-30 months) MWM Existing Rates Ends when begin supplying CAW lake water in place of Maumelle well water Debt Amount Surcharge Transition Period $1,637,500 $7.69 Intermediate Period $2,088,000 $2.18 Long-Term Period $17,963, $9.34

47 Proposed Consolidation Agreement Rates (Section 5.D) After Transition Date CAW Outside City Rates Transition Surcharge is eliminated Intermediate Surcharge for about 8 additional years Long-Term Surcharge for about 22 additional years Surcharges represent high-end estimates; Actual surcharges will reflect actual costs incurred Debt Amount Surcharge Intermediate Period $2,088,000 $2.18 Long-Term Period $17,963, $9.34

48 Monthly Surcharge in $ Monthly Surcharge Comparison /8 Meter CAW Consolidation Debt Existing MWM Water $8,845, year Transition $1,637, year Intermediate $2,088, year Long-Term $9,117, TOTAL $21,688,616.77

49 Proposed Consolidation Agreement Post Consolidation Operations (Sections 5.E-G) Completion of Transition Improvements Use of Surcharge Proceeds Quality of Operations Billing Partners

50 Benefits to CAW of Consolidation Addition of approximately 10,500 customer accounts Additional year-round revenue will help offset declining CAW water demands Skilled and knowledgeable employee pool Relatively new system Additional return on capital investments throughout CAW system Large customer base will help mitigate future rate increases across entire system through additional economies of scale

51 Benefits to MWM of Consolidation Economies of scale from being part of a system with 125,000 other customer accounts Relatively stable rates over time Lower operating costs, resulting in lower rates Award winning utility operations Multiple water sources and supply lines

52 $40.00 $35.00 $30.00 Benefits to MWM of Consolidation Example Water Bill Using 2015 Water Rates 5/8 Meter with 4,400 Gallons $28.54 $35.90 $29.54 $25.00 $22.83 $20.00 $15.00 $10.00 $5.00 $- CAW Existing Outside-City MWM Existing MWM Option 1 MWM Option 2 Does not include taxes and fees; MWM Bills include the water portion of the Debt Surcharge fee based on water s proportionate share of the proposed debt.

53 $80.42 $80.42

54 Action Requested Next steps or additional requests?

55 Questions?