City of Toledo Department of Public Utilities Water Rate Presentation to the Toledo Regional Chamber of Commerce

Department of Public Utilities

Water Rate PresentationWater and Sewer Committee

Toledo Regional Chamber of CommerceApril 19, 2013

Presentation OverviewDeputy Mayor Steve Herwat

Collins Park Water Treatment PlantCommissioner of Water Treatment

David Leffler

Treatment Plant Additions(Total $96,600,000)Basin 7 – includes a 20 MGD Treatment Train including, Flocculation, Sedimentation and Filtration Facilities - $53,400,000Basin 8 – includes a 20 MGD Treatment Train including, Flocculation, Sedimentation and Filtration Facilities - $43,200,000

Raw Water Intake Impr.$1,775,000Structural, Interiorand Exterior Improvements

Low Service PS Improvements$20,633,000Electrical Upgrades, Pump Rehab, Piping Gallery ImprovementsEquipment Replacements, Security

Chemical Feed System Impr.$10,384,000Carbon, Alum, Lime and Soda Ash

Flocculation/Sedimentation Basin Impr.$14,321,000Equipment Replacements and StructuralImprovements

Filter System Improvements$37,695,000Piping and Valve Replacements and Rehabilitation, Pumping System Impr.,Filter Wash Water Facility Impr., etc.

High Service PS Improvements$12,172,000Electrical Upgrades, Pump Rehab, Piping GalleryImprovements, Equipment Replacements

Heatherdowns PS Impr.$5,530,000Electrical Upgrades, Pump And Equipment Rehab, Structural Improvements

Residuals Handling$20,542,000Press and Thickener Rehabilitation, Additional Thickener Tank, Additional Press and Bldg Expansion

Additional Facility Improvements1. SCADA System Replacement $5,000,0002. Power Supply Improvements $ 7,000,0003. HVAC Improvements $1,869,0004. Filter Plant Roof Replacements $15,000,0005. Structural Repairs to Plant $2,638, 0006. Administration Bldg Offices and Property Acquisition $4,804,000

Toledo Division of Water Treatment - Improvement CostsTotal Cost - $263,963,000

Expenditures from 2013 through 2018 total $235,072,958

New Disinfection Facilities$8,000,000Chlorine and Chlorine Dioxide Generation and Feed Equip., Masonry Building

Water Distribution SystemCommissioner of Engineering Services

Robin Whitney

•Introductions

•Overview

Toledo Water Distribution Study

Toledo Water Service Area

2012 Water Distribution Study

• Completed by Outside Engineering Firm

• Computer Model of All Pipes

• Serves Demands Through 2035

• Provides Redundancy

City of Toledo Water Distribution System

1,190 miles of pipe• 4” to 96” Pipes• Dating to 1870

• 58% of System is 6” Cast Iron

---Small diameter pipe is Ductile Iron since 1960s

---Large diameter pipe is Steel and Concrete Cylinder

Water Distribution System ChallengesAging – over 50% pre-1930

Water Distribution System ChallengesMain Breaks - More than 300 on average per year

Water Distribution System Challenges4” Mains, 6 miles, 1874-1954

Water Distribution System ChallengesDead End Mains – water quality, pressure, redundancy issues

Water Distribution System ChallengesSteel Mains – corrosion, lower useful life

:1

869

1870

:187

9

1880

:188

9

1890

:189

9

1900

:190

9

1910

:191

9

1920

:192

9

1930

:193

9

1940

:194

9

1950

:195

9

1960

:196

9

1970

:197

9

1980

:198

9

1990

:199

9

2000

:200

9

2010

:201

3

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Age and Break Distribution

Main Breaks % of System

Decade

Perc

ent

Main Replacement Criteria

• Break History• Flow/Pressure Problems• 4” Serving Hydrant• Scheduled Road Construction • Cost of Replacement/Cost of Repair• Year of Construction – Baby Boomer Era• Criticality• Other (diameter, corrosion, material,

geographic zone, age)

Current Main Replacement Program

• $2.5 million per year • Prioritized replacement criteria• Approx. 3.1 miles per year (1100 total miles)• 0.27% of the system• 366 year average replacement cycle• Also replacing large steel mains - $1.5 million

every other year

Current Loop Closure Program

• Separate program to loop dead end mains• $200,000 per year • Improves

– Water quality– Fire flow capacity– Redundancy

Goals of Proposed Program

• Replace at least 1% of system per year. (Based on 100 years expected life)

• Replace all 4” mains serving hydrants within 10 years.

• Close all significant dead end mains within 10 years.

Current

Main Replacement Program• $2.5 million per year• 0.27% of system per year• 366 year average cycle• Approx. 3.1 miles per year

Proposed

Main Replacement Program• $10 million per year• 1.1% of system per year• 91 year average cycle • Approx. 12.4 miles per year

Current

Loop Closure Program$200,000 per year

Steel Main Replacement$1.5 million every other year

Proposed

Loop Closure Program$500,000 per year

Steel Main Replacement$1.5 million every other year

Current

Dead End MainsMinimal Program

4” MainsMinimal Program

Proposed

Dead End Mains Close all significant dead end mains within 10 years

4” MainsReplace all 4” mains serving hydrants within 10 years

Review of Water Rate Ordinance

Department of Public Utilities Director David Welch

Five-Year Water Rate Program2014-2018

In 2018…

34.2 cents more daily for typical customers

8.6 cents more daily for Homestead customers

2012 Water Rate Comparison

2012 Rates

City 1,000 cu. ft.

per month

Akron, OH $25.15

Ann Arbor, MI $20.56

Canton, OH $17.94

Cincinnati, OH $25.63

Cleveland, OH $32.60

Columbus, OH $33.35

Detroit, MI $25.12

Fort Wayne, IN $22.20

Average of Above Cities $25.32

TOLEDO, OH $13.33

TOLEDO, OH (2018 rate as proposed) $24.93

US Median $29.85

Midwest Median $25.68

Water Rate Increase Supports

Comprehensive plan to address needed improvements in water treatment plant and distribution system

$314 million total cost of all projects

Rate increase leverages bond funding

Impact of ProgramDeputy Mayor Steve Herwat

Price ComparisonDeputy Mayor Steve Herwat

Five-Year Water Rate Program2014-2018

In 2018…

34.2 cents more daily for typical customers

8.6 cents more daily for Homestead customers