1 / 11

Metropolitan Council

Metropolitan Council. Environmental Services. Reserve Capacity/SAC Task Force Update. Presented to the Environment Committee February 9, 2010. Jason Willett, MCES Finance Director Bryce Pickart, Assistant General Manager. A Clean Water Agency. Task Force Progression.

auryon
Télécharger la présentation

Metropolitan Council

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Metropolitan Council Environmental Services Reserve Capacity/SAC Task Force Update Presented to the Environment Committee February 9, 2010 Jason Willett, MCES Finance DirectorBryce Pickart, Assistant General Manager A Clean Water Agency

  2. Task Force Progression (12/1) (2/2) (4/6) (6/1) (8/3) (10/5) (12/7) Meeting #: 1 2 3 4 5 6 7  Background   Reserve Capacity Technical Methods   Reserve Capacity Method Financial Impacts   Other Financial Issues   SAC System & Alternatives   Recommendations  Contingency

  3. Reserve Capacity Technical Methods • Flow (used through 2009) • Committed capacity (used for 2010 with planned 3-year phase-in) • Adjusted Flow (option) • Combination of #2 and #3 (option) • Growth Cost • Recommended by prior task force • Not considered a reserve capacity method and would require statutory change

  4. Flow Method • Definition: Average flow for preceding 5 years • Pros • Historical method • Simple to understand • Cons • Declining flow during dry period increases apparent Reserve Capacity • Weak nexus to SAC charge concept (based on max. day capacity demand, not used for non-residential users)

  5. Committed Capacity Method • Definition: Committed Capacity based on SAC units paid • Pros • Independent of precipitation’s and groundwater level’s effect on flow • Direct nexus to SAC units paid (Committed Capacity regardless of use) • Cons • Fails to recognize effects of water conservation (e.g., low flow plumbing fixtures) and community I/I reduction • Difficult to explain treatment plant Reserve Capacity determination

  6. Adjusted Flow Method • Definition: Used capacity determined using 10-year flow average and an adjustment for SAC paid in the last 10 years • Pros • Adjusts flow over longer period, reducing effect of precipitation cycles and accounts for effects of water conservation and I/I reduction • Relatively simple • Cons • Weak nexus to SAC committed capacity concept

  7. Combination Method • Definition: Adjusted flow plus committed capacity for interceptors • Pros • Adjusts flow over longer period, reducing effect of precipitation cycles and accounts for effects of water conservation and I/I reduction • Maintains committed capacity concept for non-residential uses of interceptor system • Cons • More complex to explain than Adjusted Flow Method

  8. Financial Questions • What impact does Reserve Capacity methodology have on SAC rate and Municipal Wastewater Charges (MWC)? • What is impact on reserve fund and plan for continuing or future recession? • Implementation of changes (phase-in)?

  9. SAC Rate by Reserve Capacity Method—Slow Recovery SAC units- 6,300/yr 2010-12, increasing 1,000/yr thereafter * Not a reserve capacity method and so would require legislative change.

  10. Wastewater Charge per HH by Reserve Capacity Method—Slow Recovery * Not a reserve capacity method and so would require legislative change.

  11. Action Plan • Defer growth projects and prioritize other projects to reduce capital expenses and debt service • Reduce operating expenses • Raise rates (moderately) • SAC • Municipal Wastewater Charge (MWC) • Ask for legislation • Allow temporary shift of some debt service cost from SAC to Wastewater Service Charges • If legislation is not enacted, fully implement Committed Capacity method for Reserve Capacity determination

More Related