HomeMy WebLinkAbout8 Life Cycle Replacement Plan Agenda Item # 8
4 4' . iE r r,
, Public Utility District
Memorandum
To: Board of Directors
From: Neil Kaufman
Date: February 13, 2004
Subject: Life Cycle Replacement Plan
1. Why this matter is before the board:
This is a workshop item that will discuss the overall age of the District's existing water systems
facilities and the need to develop a comprehensive long-term plan to fund replacement of
facilities as they reach the end of their useful life.
2. History:
The Water Department's does not currently have a comprehensive Life-Cycle Replacement Plan.
This issue is not addressed in either the current 2001 Water Master Plan Update or the new 2004
Water Master Plan Update.
3. New information:
The presentation will discuss the attached report and any other questions that arise.
4. Recommendation:
No action is required at this time.
WATER SYSTEM MASTER PLAN
UPDATE
WHY DO WE NEED A MASTER PLAN ?
• Ensure Adequate Facilities are In Place to
Accommodate New Construction
• Ensure that New Construction pays for the
Facilities Needed
WHY UPDATE ?
• Existing Master Plan is Three Years Old
• Acquisition and consolidation with Donner Lake
and Glenshire water systems.
• Master Plan Serves as Basis for Revision to
Connection Fee and Facility Fee Schedules
BASIS FOR THE STUDY
• Land Use as Defined in Town of Truckee
General Plan
• For Developed Parcels, Actual Development is
Used
• For Undeveloped Parcels, Assumes Highest
Allowable Density Per General Plan
• Existing Conditions as of January 1 , 2002
FUTURE IMPROVEMENTS
SECTION 7
• Need 6 new wells, assuming 1 ,500 gpm each.
• Potential Well Sites are Identified
• Proposed Future Improvements Based on the
Potential Well Sites
• Major Improvements:
1 ) Consolidation of pressure zones to 6170
zone
2) Transmission Pipelines to accommodate
6 new wells
3) Second Feed to TD along New Access
Road
FACILITY FEE
• Section 9 Evaluates the Financial Cost of the
Improvements.
• The Calculation for the Facility Fees Shows a
5. 1 % Increase.
• This Increases the Current Facility Fee from
$ 1 .56 to $ 1 .64.
FACILITY REPLACEMENT PLAN
DIFFERENCE BETWEEN MASTER PLAN
AND FACILITY REPLACEMENT PLAN
METHODOLOGY
• EVALUATE EXISTING SYSTEM
• IDENTIFY PROBLEMS WITH EXISTING SYSTEM
NOT MEETING EXPECTED USEFUL LIFE
• REMAINING LIFE WEIGHTED AND IDENTIFIED FOR
AN EXPECTED YEAR OF REPLACEMENT
• PLAN COMPLETE SYSTEM REPLACEMENT OVER
THE EXPECTED LIFE OF FACILITIES
Facilities Replacement Plan
Overall Funding Needs
• A funding level of $1 ,740,000 is needed for a fully
funded Facilities Replacement Program as
shown in figure 5-1 .
• The District with the 1996 COP and Prop 55
Bonds are currently funding just over $1 , 100,000
of Facility Replacement.
• The 2004 Water Department budget includes
$400,000 for pipeline replacement.
• The District's current total planned expenditure
for facilities replacement is $1 ,500,000.
• The current planned expenditure for facilities
replacement is 86% of the amount projected in
this report.
• Options to fully fund the facilities replacement
plan will be evaluated utilizing the financial
master plan. Any recommendations will be
brought forth in conjunction with the financial
master plan.
Cost Summary Chart 2
Figure 5-1
Summary of Life Cycle Replacement Program Costs
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
o $10,000,000 I-
0
$8,000,000 -
$130.6 million spread over
$6,000,000 75 year period = $1.74 million annually
$4,000,000
$2,000,000 ®® fill
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Year
Page 1
Facilities Replacement Plan
Future Impacts on Facilities Replacement Plan
• New facilities constructed to accommodate
growth. These facilities will increase the
replacement cost, but the impact will be 75 years
out.
• The replacement costs are in 2004 dollars. The
increase in construction cost will increase the
cost of the replacement plan.
• An increase in customers will provide an increase
in funding for the replacement plan.
• The Water System Master Plan calls for some of
the current facilities to be replaced with larger
facilities due to an increase in demand generated
by growth. The District plans to fund these facility
replacements with a combination of rates and
facility fees.
1,
A
HOW TO INITIATE WATER BILLING
TO NEW HOMES
or
We are having a problem
What is the current practice?
When an occupancy permit is issued the by Town of
Truckee or Placer County notifies us and we begin monthly
water billings.
What is the problem?
1 . In some cases each year the Town does not notify us
2. A new family moves into the house
3. We do not know to begin water billings
4. Many months later we discover what happened
5. We tell the occupant what happened and issue a back bill
6. Unhappy customer
7. Extra work for billing department and meter readers
Y
i
What have we tried before?
1 . Begin billing when the water service is connected
2. Begin billing when permanent electric power bill is begun
3. Begin billing at issuance of occupancy permit
4. Begin billing at time connection is made and bill one-half
the normal amount
Are there other options?
1 . Once water service is connected begin billing after 12
months
2. Install a meter and charge a commercial construction rate
We need to be in control of the process
We need to have an automatic point to begin billing