Water Treatment Plant and Water Distribution Project

West Wise SUD

Agenda Background

• Water Quality

• TCEQ Requirements

• Age of Plant

• Staged Improvements

Alternatives

• Plant Condition

• Geologic Challenges

• Alternatives

• Best Option

• Funding Options

Financing

• Financial Advisor

• Rate Study

• Grants

• Loans

Safe Water for Wise County

Background

Background • Health-Based Water Quality Criteria Changed • Plant Designed to Pre-EPA Standards • Package Plant is 40+ yrs old; 20-30 yr Service Life • New Rules + Drought Recovery = Noncompliant Water • TRWD Lake Aeration Project

Samples from West Wise Water Treatment Plant

Background • Notice of Violation • Public Notices • TCEQ Plant Inspections • Outside Assistance/Plant Audit • Staged Improvement Plan • Agreed Order • Hire Engineer

Engineering: Condition Assessment • TCEQ Plant Inspections

• “Need a new plant.”

• Environmental Engineer’s Evaluation • Inadequate Design to meet current Standards

• Structural Engineer’s Evaluation • Advanced corrosion/deterioration • Foundation , failing hillside issues

• Geotechnical Engineer’s Evaluation • Slope stabilization likely impractical/unaffordable • Major subsurface works too risky

Engineering: Condition Assessment

Engineering: Condition Assessment

sessment ineering: Condition

Eng As

Engineering: Condition Assessment

Engineering: Source Water Assessment

ant SUD

Engineering: Alternatives Assessment 1. Rehabilitate and Convert Existing Pl

• Several plant configurations developed • More expensive than new facilities • Geologic issues could not be overcome

2. Purchase Water from Walnut Creek

• Additional infrastructure costs • High cost of buy-in + water use rates • About 155% net rate impact

“Free” New Plant Site

Engineering: Alternatives Assessment 3. Conventional Water Plant

• Designed to Modern Standards • Reliability / Maintainability • Dam Safety Issues •

Conventional Water Treatment

Conventional Water Treatment Plant

Alternative Selection

1. Rehabilitate and Convert Existing Plant • Most Expensive; Geologically Unsound

2. Purchase Water from Walnut Creek SUD • Second Most Expensive – More than Double Rates

3. New Plant on TRWD Land • Least Expensive • Avoids Geologic Issues • Gets Plant away from the Dam • Long Term Reliability

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$ C o m m u n t P o g r a m E D A P P r o g r a m D e e o p m e n F u n d

$ D r n k i n g W a e S t a t e C D $ E m e g e n c R e v o n g F u n d C o m m u n i t y A s i s t a n c e

$ D a e R e e F u n d D W S R G a n t D R

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$ T e x a s W a e D e v e o p m e n u n d D F u n d

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$ Texas CDBG $ Water & Waste Disposal Land & Grant Program

$ Emergency Community Assistance Grant

Funding Resources

Texas Water Development Board (TWDB)

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$ Drinking Water State Revolving Fund (DWSRF)

Texas Department of

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USDA Rural Development

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Drinking Water State Revolving Fund

Financing – Operating and Debt Expenses

Financing – Other System Revenues

Financing – Required Rate Revenues

Financing – Current Rate Revenues

Proposed Rate Changes

Average Monthly Rate Impact Residential Customers

Financing – Proposed Rate Revenues

Conceptual Arrangement