Report on Feasibility Assessment and Proposed Consolidation Agreement Maumelle Water Management September 22, PDF Free Download

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

Monthly Utility Bill in $ 100 Combined Average Utility Bill for 2015-2020 5/8 Meter with 4,400 Gallons 90 80 70 60 50 40 Sep-15 2016 2017 2018 2019 2020 Future Established Rates MWM Option 1 MWM Option 2

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

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

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

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

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

CAW Service Territory

Feasibility Assessment Water PER Projects with CAW Consolidation Project Description Budget Estimate Implementation Manitou Booster Pump Station $500,000 12 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 $8,320,000 24 months New High Service Pump at Jack Wilson $375,000 8 months Meter Replacement $888,000 48 months Permanent Chlorine Dioxide Feed System $25,000 12 months Total Budget $11,529,000 24 Months

Feasibility Assessment Water Consolidation Connection Location

CAW Transmission System

CAW Distribution System

CAW Water Sources

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

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

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

Monthly Surcharge in $ 20 18 16 14 12 10 8 6 4 2 0 Monthly Surcharge Comparison 2014 2047 5/8 Meter Existing MWM Combined Option 1 MWM Combined Option 2

MWM Existing Debt Schedule Debt Issue Total ASWCC #1 $3,331,531.97 ASWCC #2 $1,035,358.57 2002 Lease Purchase $2,047,492.58 Series 2005 $3,017,404.36 Series 2008 $1,859,928.30 Total $11,291,715.78

MWM Existing Debt Schedule Debt Issue Total ASWCC #1 $3,331,531.97 ASWCC #2 $1,035,358.57 2002 Lease Purchase $2,047,492.58 Series 2005 $3,017,404.36 Series 2008 $1,859,928.30 Total $11,291,715.78 2002 Lease Purchase Surge Basin Imp. Surge Basin Lift Station Levee Improvements Well Field Generators Office Building Water Meters

MWM Existing Debt Schedule Debt Issue Total ASWCC #1 $3,331,531.97 ASWCC #2 $1,035,358.57 2002 Lease Purchase $2,047,492.58 Series 2005 $3,017,404.36 Series 2008 $1,859,928.30 Total $11,291,715.78 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

MWM Existing Debt Schedule Debt Issue Total ASWCC #1 $3,331,531.97 ASWCC #2 $1,035,358.57 2002 Lease Purchase $2,047,492.58 Series 2005 $3,017,404.36 Series 2008 $1,859,928.30 Total $11,291,715.78 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

MWM Existing Debt Schedule Debt Issue Total ASWCC #1 $3,331,531.97 ASWCC #2 $1,035,358.57 2002 Lease Purchase $2,047,492.58 Series 2005 $3,017,404.36 Series 2008 $1,859,928.30 Total $11,291,715.78 Series 2008 Bonds Complete 2005 Projects Water Plant Elec. Rehab Wastewater Lift Station Rehab Water Plant Emergency Generator Wastewater Sludge Drying Container

MWM Existing Debt Schedule Debt Issue Total Allocated to Water ASWCC #1 $3,331,531.97 $3,331,531.97 Allocated to Wastewater ASWCC #2 $1,035,358.57 $1,035,358.57 2002 Lease Purchase $2,047,492.58 $1,740,368.69 $307,123.89 Series 2005 $3,017,404.36 $1,418,180.05 $1,599,224.31 Series 2008 $1,859,928.30 $1,320,549.09 $539,379.21 Totals $11,291,715.78 $8,845,988.37 $2,445,727.41

Monthly Surcharge in $ 20 18 16 14 12 10 8 6 4 2 0 Monthly Surcharge Comparison 2014 2047 5/8 Meter Option 1 Debt Existing $11,291,715.78 + Proposed $15,625,000.00 TOTAL $26,916,715.78 Existing MWM Combined Option 1 MWM Combined Option 2

Monthly Surcharge in $ 20 18 16 14 12 10 8 6 4 2 0 Monthly Surcharge Comparison 2014 2047 5/8 Meter Option 2 Debt Existing $11,291,715.78 + Proposed $10,150,000.00 TOTAL $21,441,715.78 Existing MWM Combined Option 1 MWM Combined Option 2

Monthly Surcharge in $ 20 18 16 14 12 10 8 6 4 2 0 Monthly Surcharge Comparison 2014 2047 5/8 Meter CAW Consolidation Debt Existing MWM Water $8,845,988.37 + 2-year Transition $1,637,500.00 + 10-year Intermediate $2,088,000.00 + 30-year Long-Term $9,117,128.40 TOTAL $21,688,616.77 MWM Wastewater Only CAW Water NLR Wastewater

Monthly Surcharge in $ 20 18 16 14 12 10 8 6 4 2 0 Monthly Surcharge Comparison 2014 2047 5/8 Meter MWM Wastewater Only Debt Existing MWM Wastewater $2,445,727.41 + New MWM Wastewater $4,720,000.00 TOTAL $7,165,727.41 MWM Wastewater Only CAW Water NLR Wastewater

Monthly Surcharge in $ 20 18 16 14 12 10 8 6 4 2 0 Monthly Surcharge Comparison 2014 2047 5/8 Meter Existing MWM Combined Option 1 MWM Combined Option 2 MWM Wastewater Only CAW Water NLR Wastewater

Monthly Surcharge in $ 25 Monthly Surcharge Comparison 2016 2047 5/8 Meter Long-Term Water and Wastewater Capacity Debt Estimate $34,833,000.00 20 15 Long-Term Wastewater Capacity Debt Estimate $10,000,000.00 10 5 0 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

Monthly Water Bill in $ 60 Water Average Bill 2016-2020 5/8 Water Meter with 4,400 Gallons 55 50 45 40 35 30 25 20 Sep-15 2016 2017 2018 2019 2020 Future Existing Rates CAW/MWM MWM - Option 1 MWM - Option 2 CAW/NLRWW

Monthly Sprinkler Bill in $ Sprinkler Bill 2016-2020 5/8 Sprinkler Meter with 11,000 Gallons 115 105 95 85 75 65 55 45 Sep-15 2016 2017 2018 2019 2020 Future Existing Rates CAW/MWM MWM - Option 1 MWM - Option 2 CAW/NLRWW

Monthly Wastewater Bill in $ 35 Wastewater Average Bill 2016-2020 5/8 Meter with 4,400 Gallons 30 25 20 15 10 Sep-15 2016 2017 2018 2019 2020 Future MWM - Option 1 MWM - Option 2

Monthly Wastewater Bill in $ 35 Wastewater Average Bill 2016-2020 5/8 Meter with 4,400 Gallons 30 25 20 15 10 Sep-15 2016 2017 2018 2019 2020 Future Existing Rates MWM - Option 1 MWM - Option 2 MWM with CAW

Monthly Wastewater Bill in $ 35 Wastewater Average Bill 2016-2020 5/8 Meter with 4,400 Gallons 30 25 20 15 10 Sep-15 2016 2017 2018 2019 2020 Future Existing Rates MWM - Option 1 NLRWW MWM - Option 2 MWM with CAW

Proposed Consolidation Agreement

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

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

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

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 $17,963,116.77 $9.34

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 $17,963,116.77 $9.34

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

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

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

$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.

$80.42 $80.42

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