HomeMy WebLinkAbout09.a EDB AWS 2026 Annual Update EXECUTIVE SUMMARY
AGENDA ITEM:
Alternative Water Supply 2026 Annual Update
Date: June 16, 2026
BACKGROUND:
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 1st 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.
2025-2026 PROGRESS:
In the last year staff have started and completed important AWS projects. Chief among those
projects is the potable reuse treatability and demonstration testing project commonly referred to as
Project Quench. With assistance from our consultant, Carollo engineers, and prime contractor,
Wharton Smith, staff were able to successfully construct a potable reuse treatment facility and
demonstrate its efficacy to the Florida Department of Environmental Protection (FDEP). Among
other alternatives, potable reuse has the potential to be an effective tool in CCUA's portfolio of
water supply management options. CCUA staff continue to operate and maintain the facility for
public education, stakeholder outreach, and operator training.
Staff have also started designing reclaimed optimization projects identified in the 2024 Reclaimed
Water Operating Procedures (RWOP) Study completed by Jacobs Engineering. When fully
implemented the projects will allow CCUA to beneficially reuse 100% of its treated wastewater
effluent, further strengthening the alternative water supply portfolio and maximizing the value of
existing treatment infrastructure. One of the projects is the North Clay Reclaimed Transmission
Mains project, which is currently being designed by Tetra Tech, Inc. The project will result in the
construction of three segments totaling more than two miles of 12- and 20-inch reclaimed water
transmission main. The new segments will parallel existing distribution mains and create an
uninterrupted transmission system for moving reclaimed water throughout the northern portion of
Clay County while maintaining operable pressures in the existing distribution system. Another of
the RWOP projects currently under design is for the addition of a 750,000 gallon reclaimed water
ground storage tank at CCUA's Mid-Clay reclaimed distribution facility. Rapid population growth
in the center of the county has stretched the limits of the storage capabilities in the area. Addition
of the new tank will allow CCUA to more fully utilize reclaimed water from Mid-Clay and
Ridaught water reclamation facilities to meet current and future community needs. This project is
being led by CCUA staff with support from consulting engineers. Funding for these initiatives is
being provided through a combination of AWS funds and grants.
The last of the ongoing projects funded by AWS surcharges and charges is the Surface Reservoir
Feasibility Project. In December of 2025, Staff engaged Jones Edmunds Engineers,to evaluate the
feasibility of a multipurpose reservoir. The study is intended to assess opportunities to secure
sustainable water resources, reduce flood risks, and enhance resilience against future impacts. As
part of the effort, an initial screening and ranking of potential reservoir sites has been completed.
A draft of the feasibility study is anticipated to be delivered by the end of June.
Looking ahead, Staff have also engaged in productive discussions with the utility representatives
from the City of Green Cove Springs (GCS) regarding opportunities to interconnect portions of
our systems to beneficially utilize GCS's anticipated excess reclaimed water capacity. GCS has
already undertaken much of the preliminary engineering work to evaluate this concept. Early
indications suggest that such a collaborative approach could provide meaningful operational,
environmental and financial benefits for both utilities and their customers.
ALTERNATIVE WATER SUPPLY EXPENDITURES AND REVENUES:
Expenditures (as of 4/30/2026)
Potable Reuse Treatability(Quench) $85,820.25
North Clay Reclaimed Transmission Mains $227,083.31
Mid-Clay Reclaimed Tank#3 $25,111.34
Surface Reservoir Feasibility Study $18,560.00
TOTAL $356,574.90
2025/2026 Revenue (as of 4/30/2026)
Surcharge Fund(Existing Customers) $488,587.20
Connection Charge Fund(New Customers) $323,754.49
TOTAL $812,341.69
Total Annual Expenditures and Revenues (as of 4/30/2026)
Beginning AWS Cash Balance (10/01/2025) $2,061,800.09
Total Expenditures $356,574.90
Total Revenues $812,341.69
Ending AWS Cash Balance (4/30/2026) $2,517,566.88
Changes in AWS Surcharge and Connection Charge:
In 2018, CCUA identified the need to implement a systematic, long-term approach to increasing
the AWS Surcharge and Connection Charge over 25-year period. The purpose of this phased
funding strategy is to generate sufficient revenue to support the maturation of the AWS Initiative
as the program matures from feasibility evaluations and pilot projects to the planning, design, and
implementation of full-scale capital improvements. At this time, staff is not aware of any new
information or changed circumstances that would fundamentally alter the assumptions or direction
established in the 2018 AWS funding plan. Accordingly, staff recommends continuing to follow
the AWS Initiative funding plan presented in 2018. Consistent with that plan, staff recommend
results in a 3% increase to both the AWS Surcharge and AWS Connection Charge. The proposed
adjustment would increase the AWS Surcharge from $1.26 to $1.30 per equivalent residential
connection(ERC)per month and increase the AWS Connection Charge from $411.64 to $423.99
per ERC.
RECOMMENDATION:
Staff respectfully recommends a 3% increase to the AWS Surcharge and Connection Charge per
the 2018 Analysis