Title
Quarterly Update on Utility System - Water System
Recommended Action
No recommendation, for information only.
Staff Recommendation
None
Body
The board has requested a system assessment on a different utility each quarter. This quarter, Jack Richardson, Deputy Utilities Manager for Gas, Water and Sewer, will present an update on the water system. This year’s report is similar in scope and format to last year’s report; except only primary performance measure dashboard data, with trends and comparisons to national standards and DPU goals (Conservation, Strategic Plan & Budget), are included. Discussion including both the physical and financial condition of the water system sub-systems: Water Distribution (DW), Water Production (WP) and Non Potable (NP) System as well as the overall Water Fund itself are reported. Also included new this year are recent AMT (Asset Management Team) achievements and challenges and some significant planned FY21 O&M Goals, Action Items and Major Projects.
This year’s financial forecast model now shows County IDC and DPU A&G expenses (typical overhead type expenses) as separate from O&M expenses for both DW and WP sub-funds.
The physical condition of each sub-system (DW = fair to good, WP = fair to good & NP = good) are all unchanged from last year's report. Improvements are proceeding as planned; however these types of large systems require multiple years of CIP R&R improvements before the entire system's condition can be revised upward.
The overall Water Fund financial condition is rated excellent; revised up from last year's condition of fair. This is due to the clarity of the policy to debt finance all future major WP CIP projects to balance out annual cash flow and eliminate future single year major reductions in the cash balance reserves. The financial condition of each sub-fund is discussed and the relationship, or balance, between the cash balance reserve negative DW sub-fund and the cash balance rese...
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