Water and Wastewater Challenges for San Antonio 2013
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1 Water and Wastewater Challenges for San Antonio 2013 Kelley Neumann, P. E. Senior Vice President / Strategic Resources September 11, 2013 San Antonio Women s Chamber of Commerce
2 Water Operations Growth and Service Requirements Water Customers 460,845 Service Area 927 sq. miles Miles of Main ~6,100 miles Metered Use 71 billion gals. Page 2
3 Wastewater Operations Growth and Service Requirements September 11, 2013 Wastewater Customers 411,184 Service Area 722 sq. miles Miles of Sewer Mains 5,163 miles Manholes 97,000 Lift Stations 158 Major Treatment Plants 3 Annual Treated Flow 49.9 billion gals. Page 3
4 SAWS System Challenges Infrastructure, Performance and Water Supply Procurement of diverse supplies Regulatory Constraints and Higher Costs Reduction of Sanitary Sewer Overflows (SSOs) Compliance with the Law Increasing efficiency Maintenance and replacement of aging infrastructure Integration of new supplies and customers BexarMet Page 4
5 Permitted Supplies and Demand Supply Sources Unrestricted Firm in a Drought of Record* SAWS SAWS DSP Total SAWS DSP Total Edwards Aquifer 208, ,945 35, ,530 99,248 20, ,887 Trinity Aquifer 3,000 3,000 5,800 8, ,000 2,000 Carrizo Aquifer (Local) - 6,400 1,000 7,400 6,400 1,000 7,400 Canyon Lake - 8,500-8,500 8,500-8,500 Carrizo Aquifer (Regional) - 17,200 2,800 20,000 17,200 2,800 20,000 Lake Dunlap - - 3,500 3,500-3,500 3,500 Medina ,000 13, Subtotal 211, ,045 61, , ,348 29, ,287 Aquifer Storage & Recovery 4,916 93,000-93,000 93,000-93,000 Total 216, ,045 61, , ,348 29, , Demand All Sources 217,000 44, , *Includes EARIP commitment Page 5
6 Drought of Record Supply Gaps 600,000 No New Supplies , ,000 acre-feet 300, ,000 62,974 79,666 61, , Current Supplies EARIP Commitment ASR Supply Permitted Supply Gap Dry Demand (143 GPCD) Worst case scenario with no additional supplies Page 6
7 November 20, 2013 J-17 levels (with and with Memorial Day Rains) Feet MSL Stage 1 Stage 2 Stage 3 Memorial Day Rain 12.2 Stage 4 Stage 5 Provisional 10-Day Avg. Page 7
8 Saving for a dry day Aquifer Storage & Recovery (ASR) $250 million Investment Delivered 40 million gallons/ day to help delay stage 3 in 2011 Page 8
9 Aquifer Storage & Recovery Began Storing Again September 18 September 11, , ,000 acre feet 80,000 60,000 40,000 20,000 Volume in storage through Sept 28 = 80,564 af 0 Page 9
10 Filling the Supply Gaps Strategic Elements Additional Edwards Supplies (underway) Brackish Groundwater Desalination (underway) Expanded Local Carrizo Aquifer (new element) Regional Water Supply Project (RFCSP underway) Demand Reductions (national leader) Page 10
11 Planned Supplies Brackish Desalination Program Southern Bexar County on SAWS property Three-Phase Program Phase 1: 12,200 ac-ft/yr (2016) Phase 2: 12,200 ac-ft/yr (2021) Phase 3: 6,105 ac-ft/yr (2026) $229 million estimated total program cost $145 million for Phase 1 Currently under design Construction award in Feb 2014 Page 11
12 Planned Supplies Expanded Carrizo a New Project Concept In conjunction with ASR Local Carrizo wells Geology and preliminary feasibility indicate up to 21,000 acre-feet of production Total capital costs $34,000,000 Page 12
13 Planned Supplies Integration Pipeline 45-mile integration pipeline Phase I complete by 2016 Phase II complete by 2022 Provides transport flexibility Desal supply Local Carrizo Aquifer supply ASR supply Crosses former BexarMet area to far west side $182 million estimated program cost Page 13
14 Page 14
15 Water Management Strategies Filling the Supply Gaps Planned Supply Source Recommended Strategy Additional Edwards Rights 10,900 ac-ft/yr acquired in 2013 Brackish Desal Plant Expanded Local Carrizo 11,200 ac-ft/yr on-line in ,400 ac-ft/yr in ,000 ac-ft/yr in ,000 ac-ft/yr on-line in ,000 ac-ft/yr in ,000 ac-ft/yr in 2026 Regional Water Supply Project (RFCSP) Up to 50,000 ac-ft/yr starting in 2018 Demand Reduction - Water savings from programs to reduce dry year GPCD to 135 1,650 ac-ft/yr - Drought restrictions (Stage 1) Starts at 650 Edwards level - Drought restrictions (Stg. 3 & 4) No worse than 1x per week Page 15
16 Recommended Strategy Drought 600,000of Record , ,000 acre-feet 300, , , Current Supplies EARIP Commitment Planned Supplies ASR Supply Dry Demand (143 GPCD) Page 16
17 Recommended Strategy Drought 600,000of Record , ,000 3,110 acre-feet 300, , , Current Supplies EARIP Commitment Planned Supplies Permitted Supply Gap ASR Supply Dry Demand (143 GPCD) Page 17
18 Successful Water Management Increased supplies by 39% since 2004 Including Aquifer Storage & Recovery (ASR), increased by 79% ASR Storing water even during drought Cornerstone of regional Edwards Aquifer Recovery Implementation Program solution Historic Regional Water Partnership with Schertz-Seguin Local Government Corporation Saving ratepayers over $88 million International Model of Water Conservation Page 18
19 Sanitary Sewer Overflows Compliance with the Clean Water Act In March 2007, SAWS was orally notified by the EPA of alleged failures to comply with the Clean Water Act due to the occurrence of sanitary sewer overflows. Negotiations with the EPA/DOJ are ongoing any settlement, consent decree, or enforcement action will result in the imposition of a civil penalty and in required capital improvements and increased annual maintenance and operating expenses - SAWS Comprehensive Annual Financial Reports (CAFRs) Disclosure ( ) Page 19
20 September 11, 2013 SSOs YTD Page 20
21 Page 5 75 percent of sewer spills in San Antonio are caused by grease and debris. Page 21
22 Page 6 All 5,200 miles of SAWS sewers will be examined over the next 4 to 10 years. Page 22
23 Page 8 Pipes found in poor condition or too small that cause spills may be repaired or replaced. Page 23
24 Page 10 Page 24
25 Sewer Spills Reduced Sewer Investments are Working September 11, of rain of rain Sewer Spills Page 25
26 Successful Innovation September 11, 2013 Award-winning Environmental Trifecta Nation s Largest Direct Recycle System Public/Private Partnership for Gas to Energy Compost diverted from landfills Largest Solar Farm in Texas built next to largest energy meter in San Antonio CPS Energy/Sun Edison/SAWS Partnership Producing more power than the combined use of ASR, Dos Rios and the Desal Plant In-Pipe Hydroelectric Power System Brackish Groundwater Desalination Page 26
27 2014 Rate Request Reduced by 62% Budget Cuts Help Reduce Rate Request September 11, 2013 Previous Rates Forecast 13.5% O&M Budget Cuts - 2.9% Increased Revenue Projections - 2.7% Capital Financing Savings - 1.6% Removal of RFCSP Integration* -0.6% Capital Budget Reallocation -0.6% Current Rate Request 5.1% Excludes COSA Stormwater, assumes no change to pass-through fees *Regional Water Supply Project will be brought separately to the City Council for consideration. Page 27
28 Commitment to Efficiency Reducing Costs for the Ratepayer Over $10 Million in 2014 budget reductions 41 positions eliminated Voluntary Retirement Incentive to reduce more Reductions in fleet size and use Continued cost sharing and benefit adjustments Doing more with less Innovation & Efficiency Department created by redirecting existing positions Page 28
29 Efficiency Gains * Combined SAWS & DSP September 11, % 10% 9.0% More Customers % Change 5% 0% -5% -10% -15% *Projected 13.1% Fewer Employees Page 29
30 Two-Year Rate Request Request approval of a multi-year rate adjustment for 2014 and rate adjustment equal to 5.1% 2015 rate adjustment not to exceed 5.3% Subject to oversight by City of San Antonio Five-Year Water Supply Fee increases granted in 2000 Houston has automatic increases based on Producer Price Index + Customer Growth Page 30
31 Average Monthly Residential Bill Reduced 2014 & 2015 Request September 11, 2013 Proposed Total SAWS $52.91 $55.71 Increase $ $2.58 $2.80 Increase % 5.1% 5.3% Average residential bill before EAA and TCEQ pass-through fees. Assumes water usage = 7,788 gallons & wastewater usage = 6,178 gallons, ICL, Standard rates Page 31
32 2014 Customer Bill Impact 86% of Request Supports Water Supply & Sewer System September 11, 2013 Wastewater 39% $0.99 $0.37 Water Supply 47% $1.22 Water Supply Integration Pipeline Phase 1 - $144M Capital Regional Carrizo Project $7.4M operating increase over 2013 Wastewater (Consent Decree Compliance) Sewer Main & Lift Station Replacement - $89M Capital Clean, Inspect and Repair the Sewer System $7.2M Operating increase over 2013 Water Delivery 14% Based on Average Residential Bill Water Delivery Main replacements and production upgrades - $71M Capital Page 32
33 2015 Customer Bill Impact 85% of Request Supports Water Supply & Sewer System September 11, 2013 Wastewater 62% $1.72 Water Supply 23% $0.65 $0.43 Water Delivery 15% Based on Average Residential Bill Wastewater (Consent Decree Compliance) Sewer Main & Lift Station Replacement - $120M Capital Clean, Inspect and Repair the Sewer System $1.8M operating increase over 2014 Water Supply Edwards Purchases, Recycled Water Improvements, Expanded Carrizo - $30M Capital Regional Carrizo Project $2.5M operating increase over 2014 Water Delivery Main replacements & Production Upgrades $47M Capital Page 33
34 Managing a Historic Drought Challenges Edwards supplies cut by 30% Medina Lake under 5% capacity Trinity Aquifer levels decline Medina Lake 2013 Successful Water Management Averted Stage 3 Restrictions in 2013 Aquifer Storage & Recovery proves its success again International Model of Conservation Local Carrizo Aquifer supply Page 34
35 Average 2013 Residential Bills SAWS Will Remain Among the Lowest in Texas $120 $100 $88.95 September 11, 2013 $91.79 $ $80 $60 $40 $37.38 $53.22 $55.70 $60.15 $60.80 $20 $- El Paso SAWS 2013 SAWS 2014 Ft. Worth * Dallas Houston ** Corpus Christi Austin *** * Fort Worth monthly charges proposed to increase on January 1, 2014 ** Houston wastewater charges based solely on water usage *** Austin monthly charges approved to increase on November 1, 2013 Monthly charges as of October 2013, Based on 7,788 Gal. Water (Standard)/6,178 Gal. Wastewater. Includes EAA and TCEQ Fees. Page 35
36 2013 Commercial Bills 50,000 Gallons Water and Wastewater (2 Meter) September 11, 2013 $900 $800 $700 $600 $500 $400 $300 $200 $100 $- $ $ $ $ El Paso Dallas SAWS 2013 SAWS 2014 $ $ Ft. Worth Houston * * Houston wastewater charges based solely on water usage ** Austin monthly charges will rise on November 1, 2013 Monthly charges as of October 2013, Based on 50,000 gallons consumption. Includes EAA and TCEQ Fees. $ Corpus Christi $ $ Austin ** Page 36
37 2013 Industrial Bills 850,000 Gallons Water and Wastewater (6 Meter) September 11, 2013 $14,000 $12,000 $10,000 $12,661 $12,126 $8,000 $6,000 $4,000 $4,078 $5,703 $6,011 $6,169 $6,731 $8,500 $9,108 $2,000 $- El Paso SAWS 2013 SAWS 2014 Dallas Ft. Worth Houston * Corpus Christi Austin ** * Houston wastewater charges based solely on water usage ** Austin monthly charges will rise on November 1, 2013 Monthly charges as of October 2013, Based on 850,000 gallons consumption. Includes EAA and TCEQ Fees. Page 37
38 Lowest Rate Growth of Major Texas Cities 6,000 Gallon Residential Water & Sewer Bill September 11, 2013 $100 $80 $60 Austin Houston Dallas $40 $20 SAWS $3.95 Below Average SAWS SAWS $20.10 Below Average $ Current Page 38
39 Water and Wastewater Challenges for San Antonio 2013 Kelley Neumann, P. E. Senior Vice President / Strategic Resources September 11, 2013 San Antonio Women s Chamber of Commerce
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