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Home My WebLink AboutEDB 2. CCUA AWS 2023 Update Final EXECUTIVE SUMMARY AGENDA ITEM: Alternative Water Supply 2023 Annual Update Date: June 16, 2023 BACKGROUND: Clay County Utility Authority(CCUA) Rate Resolution No. 2015-2016-01, Section 4. (7) authorized and implemented an Alternative Water Supply (AWS) Surcharge and Connection Charge. The resolution requires staff to report on the adequacy of the AWS Surcharge and Connection Charge to the Board of Supervisors by July Pt each year. Any recommended changes to the AWS Surcharge or Connection Charge are placed in CCUA's annual budget and presented at the annual public rate hearing. 2022-2023 Progress: Staff, along with the engaged consulting teams, continue to make significant progress with CCUA's AWS initiative. Our efforts this fiscal year centered on the completion of testing the Stormwater Harvesting Pilot Project and beginning construction of the Potable Reclaimed Water Pilot Project. Both efforts support CCUA's focus on long-term water supply sustainability. While we work on the construction and testing of these two (2)pilots projects, our team continues to advance the planning ° effort needed for production scale operations of the technology and systems we are testing. Our staff along with the CDM Smith team, completed the Integrated Water Resource Plan (IWRP). ce The IWRP provides a long-range view of water demands related to population growth with water supply options including AWS. The IWRP staff presented to the Board of Supervisors included an adaptive strategy with a variety of options with associated triggers to support decision making for implementation. As part of the IWRP effort, staff worked with the CDM Smith team to complete an alternative analysis to move completely to AWS. Staff received approval from the Board of Supervisors in June of 2021 as part of the IWRP effort to evaluate potential scenarios involving moving CCUA entirely to AWS. Staff stated the intended goal of this exercise was to evaluate other options that may be fully capable of mitigating regulatory impacts and potential lengthier permitting requirements. We provide a summary of this alternative IWRP analysis later in this report. Stormwater Harvesting Pilot Project: CCUA staff along with a supporting consultant, Jacobs Engineering, Inc. (Jacobs), completed the operating and testing phase of the stormwater harvesting system located along State Road (SR) 23 north of Oakleaf Plantation Parkway. CCUA and the Jacobs team presented the results and conclusions of the Stormwater Harvesting Pilot Project to the Board of Supervisors in April 2023. Page 1I4 As designed, the Stormwater Harvesting Pilot Project used a horizontal well system located adjacent to two (2) Florida Department of Transportation (FDOT) stormwater management facilities (ponds) associated with State Road (SR) 23. The pilot project evaluated whether the horizontal well system would yield water of sufficient water quality and quantity moving through the soil profile from the FDOT ponds. Both the water quality and quantity generated from the pilot project were of interest due to the intended use in augmenting CCUA's reclaimed water system. The technical experts concluded from the yearlong testing the Stormwater Harvesting Pilot Project yielded water of adequate water quality, but insufficient water quantity as designed. The test results show positive results with good water quality, but negative results with the water quantity yielded. Based upon the test results, CCUA will need to look at much larger stormwater management systems that are essentially large reservoirs to achieve sufficient water quantities. Large surface water reservoirs present challenges in the land area as well as the level of treatment necessary to use the water. Future planning efforts include locating a Water Reclamation Facility(WRF) associated with a large surface water reservoir to beneficially manage the water resource. The costs of both land and treatment needed for a large surface water reservoir will need to be evaluated to determine the best value and cost-effective approach. Potable Reclaimed Water Pilot Project: CCUA staff along with our consulting experts with Carollo Engineers, Inc. (Carollo), completed the design of the Potable Reclaimed Water Pilot Project. The Board of Supervisors awarded the construction contract to Wharton-Smith, Inc., in August 2022. CCUA issued the Notice to Proceed (NTP) on November 3,2022. We anticipate completion, subject to supply chain issues with electrical equipment, in late 2023. Upon completion of the pilot plant construction, staff will begin training on the operation and maintenance of the pilot equipment as well as performance testing of the system. CCUA will need to operate and test the pilot system to demonstrate compliance with current potable water standards. We will also test water samples for many different Contaminates of Emerging Concern(CECs) to further demonstrate the system will address potential regulated water quality standards. Integrated Water Resource Planning (IWRP): As mentioned above, CCUA and the CDM Smith team presented the IWRP to the Board of Supervisors in August 2022. CCUA staff accepted the final report from the CDM Smith team in November 2022. The final report includes different water supply portfolios aimed to address water supply challenges for both potable and reclaimed water. The report presents a hybrid portfolio that optimizes the quantity of water supply developed considering costs and benefits. The hybrid portfolio includes options such as Demand Side Management(DSM)programs, Advance Metering Infrastructure (AMI), and turf reduction requirements for new developments as early low- cost efforts. As time advances and the population served by CCUA grows, the hybrid portfolio includes options such as Indirect Potable Reuse (IPR), surface water treatment, and regional water JDJ AB /JP JDJ Page 214 resource development projects. The CDM Smith team developed the hybrid portfolio to be adaptable given uncertainties with long range population growth forecasts. CCUA staff reported to the Board of Supervisors the benefits of transitioning to modern Enterprise Resource Platforms that includes the SpryPoint platform. Utilizing this platform will empower customers to monitor and manage their own water use. This effort continues to progress. Our implementation of the SpryPoint system aligns with DSM and AMI recommendations in the IWRP. CCUA staff along with colleagues from the St. Johns River Management District (SJRWMD) met with staff from the Clay County Planning Depai tiuent to discuss potential landscape ordinance changes. The potential landscape ordinance changes align with turf reduction recommendations in the IWRP. This DSM effort remains in progress. The pilot project efforts, along with their related results, described at the beginning of this annual update lay the groundwork for large production scale infrastructure for development as the population grows in Clay County. The Stormwater Harvesting Pilot Project clearly point to the need to large scale surface water reservoir systems. The Potable Reclaimed Water Pilot Project will lay the groundwork for either indirect or direct potable reclaimed systems supporting CCUA's existing structure. The IWRP provides a clear and flexible path to sustaining CCUA's water supplies through the planning horizon. Alternative Water Supply Expenditures and Revenues: 2022/2023 Expenditures (as of 4/30/2023) Stormwater Harvesting Pilot Project(Testing) $57,575.91 Potable Reclaimed Water Pilot Project $1,466,738.60 Total $1,524,314.51 2022/2023 Revenue (as of 4/30/2023) Surcharge Fund(Existing Customers) $410,626.13 Connection Charge Fund(New Customers) $407,531.27 Total $818,157.40 Total Expenditures and Revenues (as of 4/30/2023) Beginning AWS Cash Balance 10/01/2022 $3,508,951.59 Total Expenditures $1,524,314.51 Total Revenues $818,157.40 Ending AWS Cash Balance 4/30/2023 $2,802,754.48 JDJ AB /JP JDJ Page 314 Changes in AWS Surcharge and Connection Charges: In 2018, CCUA identified the need to systematically increase the AWS Surcharge and Connection Charge over a 25-year period to generate sufficient revenue to fund the AWS Initiative as the program matures from feasibility evaluations and pilot projects to full scale capital project implementations in years to come. CCUA does not have any new information available that would fundamentally or materially change the path set into motion. Staff recommends following the AWS Initiative funding plan presented in 2018. The recommendation results in a 3% increase in both, the AWS Surcharge increasing from$1.15 to$1.18 and the AWS Connection Charge increasing from$376.71 to $388.01. Our strategic planning efforts remain ongoing. The formal rate study will evaluate CCUA's existing rate structure, planned operating and capital expenditures, financing plans, etc. The study will also provide a basis for any future changes to the AWS Surcharge and Connection Charge. RECOMMENDATION: Staff respectfully recommends continuing with a 3% increase in both the AWS Surcharge and Connection Charge. JDJ AB /JP JDJ 44