HomeMy WebLinkAbout08.d EDB CCUA AWS 2024 Update_ FINAL EXECUTIVE SUMMARY
AGENDA ITEM:
Alternative Water Supply 2024 Annual Update
Date: June 14, 2024
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 the adequacy of the AWS Surcharge and Connection Charge to the
Board of Supervisors by July Pt each year.Any recommended AWS Surcharge or Connection Charge
changes are placed in CCUA's annual budget and presented at the yearly public rate hearing.
2023-2024 Progress:
Staff, consultants, and our contractor (Wharton-Smith Inc.) have significantly progressed with
CCUA's AWS initiative. Our efforts this year centered on the Potable Reclaimed Water Pilot Project.
Potable Reclaimed Water Pilot Project:
The Board of Supervisors awarded the construction contract of the pilot plant project to Wharton-
Smith, Inc., in August 2022. CCUA issued the Notice to Proceed (NTP) on November 3, 2022. The
construction of the facility was completed the week of June 10, 2024, with the installation of the
motor control center. The facility will be used for demonstration testing, operator training, and public
engagement.
CCUA operations staff is currently training on the operation and maintenance of the pilot equipment
and preparing for performance testing of the system. The pilot facility has water purification process
equipment that staff has not previously used. CCUA and its consultant Carollo will operate and test
the pilot system for 12 months to demonstrate to the regulatory agency that the facility complies with
current potable water standards. We will also test water samples for many different Contaminants of
Emerging Concern(CECs)to further demonstrate the system will address potentially regulated water
quality standards.
The pilot project, and the completed Integrated Water Supply Planning evaluation, laid the
groundwork for large production-scale infrastructure programs to meet the demands of a growing
Clay County population. The Potable Reclaimed Water Pilot Project will provide indirect or direct
potable reclaimed systems supporting CCUA's existing structure.
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Alternative Water Supply Expenditures and Revenues:
2023/2024 Expenditures (as of 4/30/2024)
Potable Reclaimed Water Pilot Project $2,033,223.56
Total $2,023,223.56
2023/2024 Revenue (as of 4/30/2024)
Surcharge Fund(Existing Customers) $430,968.82
Connection Charge Fund (New Customers) $393,579.02
Total $824,547.84
Total Annual Expenditures and Revenues (as of 4/30/2024)
Beginning AWS Cash Balance 10/01/2023 $2,160,871.76
Total Expenditures $2,066,221.52
Total Revenues $824,547.84
Ending AWS Cash Balance 4/30/2024 $919,198.08
Changes in AWS Surcharge and Connection Charges:
In 2018, CCUA identified the need to systematically increase the AWS Surcharge and Connection
Charge over 25 years 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 has no 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, the AWS Surcharge increase from $1.18 to $1.22
and the AWS Connection Charge increase from$388.01 to $399.65.
RECOMMENDATION:
Staff respectfully recommends a 3% increase to the AWS Surcharge and Connection Charge per the
2018 Analysis.
JP
PS / JDJ
JP