Public Hearings

Mason County PUD No.1 Canal Mutual Public Hearing Minutes
October 2, 2007

The Canal Mutual Public Hearing was called to order at 6:00 p.m. on October 2, 2007 at the Hoodsport Fire Hall in Hoodsport, WA.

Present
Karl Denison – President
Jack Janda – Vice-President
Ron Gold – Secretary
Steve Taylor – General Manager
Debbie Knipschield – Director of Administrative Services
Greg Kester - Auditor/Director of Finance
Tracy Colard – Director of Operations

Visitors
Canal Mutual Water System Customers
 

INTRODUCTIONS:

Chair Karl Denison welcomed all the attendees.  Staff and Commissioners introduced themselves

PRESENTATION OVERVIEW

Review Of The Operational Project Scope

Ø      Tracy Colard reviewed the Project Scope

Ø      Drilling and testing 2 new wells was budget at $75,000.  The cost incurred to date for one well is $31, 530 which is $16,000 under the contracted amount.  A letter was sent notifying customers that the well drilling was completed and that the well produces more water than expected

Ø      A second well may not be necessary depending on the Department of Health requirements for a second source

Ø      Construction on the 650 ft Intertie has begun.  The Bid was over $87,000 which was $33,000 over budget

Ø      The next step is to complete a pump test which will dictate the size of the new reservoir

Ø      New mains will need to be upgraded which will be part of the major improvements as well as the addition of service meters

Ø      Pressure reducing valves will be installed to reduce the pressure from the reservoir to the mains

Ø      Three existing wells and reservoir will be abandoned at a budgeted amount of $10,700

Ø      The Intertie is scheduled for completion at the end of October, and a hydro geologist will perform a twenty four hour test to help expedite the transfer of water rights

Ø      The engineer will start the design phase of the total project following the completion of the intertie

Ø      The anticipated date for beginning construction on the full project is April of 2008 and be completed by the rainy season of 2008

Ø      The new well will come on line following the transfer of water rights which could take approximately five months

Ø      The main lines will be done at the same time as the reservoir with different contractors working simultaneously

Ø      Pressures will not exceed the state requirements which is a maximum 60psi and minimum 30psi

Ø      Issues may arise due to older water lines that are accustomed to lower pressures

Ø      Staff will assist customers with there leaks but the District can not fund the repairs

Ø      It is recommended that customers monitor their service lines for leaks and shut there water off at the shut off valve if they detect any leaks, notify the PUD, and make repairs immediately

Grant and Loan Funds

Ø      The District has been awarded a Rural Utilities Services (RUS) Grant in the amount of $388,000 representing 55% of the project, approved for a Public Works Trust Fund emergency loan of $260,000 at 3% interest rate for 20 years, and a RUS loan of $67,000 at 4.25% for 35 years to back up the RUS Grant

Ø      Loan funds need to be used prior to grant funds

Ø      The District has $40,000 in reserves to use toward the improvements to the Canal Mutual Water System that will not affect the rate structure

Ø      The District is pursuing additional grant funds to pay down the loans

Capital Surcharge and Monthly Rate

Ø      The capital surcharge will pay for the loans of $260,000 and $67,000

Ø      The capital surcharge for each Equivalent Residential Unit (ERU) will be $32.00 per month

Ø      A consolidated rate is anticipated for all systems following growth on the water side of the utility that’s been estimated at 7% growth in revenues around the year 2013, however it is not guaranteed that this type of growth will occur

Metered Rate

Ø      The metered rate will be:

1 cubic foot = 7.50 gallons

0-400                                            cubic feet at $24.82 per month (3,000 gal.)

401–1000                                    cubic feet at $1.17 per 100 cubic feet

1001 and above                          cubic feet at $1.47 per 100 cubic feet

• Ø      If the customer uses less than 400 cubic feet the base rate of $24.82 is less than the current flat rate charged at $29.00 monthly

   

  Ø      The monthly metered rate for 400 cubic feet: (Example)

  Monthly base service charge     $24.82

  Capital Surcharge                       $32.00

  Total Monthly Charge                  $56.82

   

  Ø      The Monthly rate is a customer uses 800 cubic feet: (Example)

  Monthly base service charge        $24.82

  400 additional cubic feet @ 1.17 $  4.68

  Capital surcharge                           $32.00

  Total monthly charge                       $61.50

   

• Questions and Answers

  Ø      The unimproved lots can not be charged a capital surcharge or a base fee

  Ø      The system development fee was waived for the four unimproved lots at the time of acquisition

  Ø      The metered rate is the same for all the District owned systems

  Ø      Flows would need to be determined to ascertain the amount of ERUs to be charged

  Ø      The capital surcharge will escalate to $32.00 as construction is completed and funds are borrowed

  Ø      The line across the creek will be checked tomorrow for pressure issues

  Ø      Sulfur levels will be checked on Thursday

  Ø      The geo tech and engineers have approved the route for mains regarding slide areas

  Ø      Traffic should not be disturbed by construction on the road up the hill

  Ø      Two wells may not be abandoned for one year to determine if saltwater intrusion continues.  A final decision regarding abandonment will be made at that time

  Ø      Disturbances will be restored and the PUD will make every effort to maintain the integrity of the roadways

  Ø      It’s 90 % sure that the easements behind the Motel will be abandoned

Meeting adjourned at 7:00 pm

Karl Denison - President

Jack Janda - Vice President

Ron Gold –Secretary

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