HMC Water Department Report to Membership June 10, 2017

Your Water Committee Members Charles Smith (Chairman) Fred Fath Andy Thompson Janet Podell Kathy Deuster Frank Harrison Judy Greinke

History August 2012 – New water distribution system replaces old system including wells and pumps November 2015 – Members began paying separately from assessment for water usage and water services based on actual water usage. Quarterly Billing reflects a Base Fee of $18/mo. which includes 150 Average Daily Gallons (ADG). Members pay additional fee for water usage exceeding 151 ADG in three increasing tiers. Water Committee recommends Water Department 2017/2018 budget maintains current rate structure. HMC water connections – 401 total (4 HMC – 397 Member)

The Facts HMC is a Washington State Non-Profit Corporation. We cannot make a profit from our water revenues, but income from billings must be sufficient to sustain our water system operating costs and government mandated reserves. Annual Water Budget determines water billing rates. Those rates have remained unchanged since the start of new billing system. Water will continue to be billed on a quarterly basis for your average daily usage. The use of the tiered rate structure is to meet state conservation regulations.

The Numbers Expenses Included In Base Fee: Wages for administration and HMC Water Distribution Manager Repair and maintenance costs (including labor) Contract manager including monthly water testing (NW Water Systems) Billing and mailing costs Electrical costs Excise taxes Insurance State reporting requirements Reserves Reserve Study requirements Legal fees Auditor Costs

(Connections – Delinquents) Base Fee Calculation (Expenses + Reserves) (Connections – Delinquents)

Tiered Water Usage – Average Daily Gallons (ADG) The Numbers Tiered Water Usage – Average Daily Gallons (ADG) Base Fee: 0 to 150 ADG $ 18.00 per month Tier 1: 151 to 400 ADG $ .07 per ADG/month Tier 2 401 to 800 ADG $ .14 per ADG/month Tier 3 Over 801 ADG $ .21 per ADG/month Income from the tiers/additional usage contributes to paying expenses as part of the total revenue. Tiers are government requirements to encourage water conservation. Variation in the Base Fee are coordinated with the changes in tier usage.

An Example Your water usage is 408 Average Daily Gallons (ADG) for the month of June. Base Fee is 150 ADG $18.00 for June Tier 1 151 to 400 ADG (250 ADG * $0.07 per ADG) $17.50 Tier 2 401 to 800 ADG (8 ADG * $0.14 per ADG) $1.12 Tier 3 801 and up ADG $0.00 Total for June $36.62

Water Usage 72,622 61,074 36,102 2014 2015 2016

The Exceptions Report Also known as “The Leak List” Identifies those water meters that have run for 24 hours at a rate of at least 1 gallon per hour since the last meter reading Notice in the form of an email or letter is sent to the property owner showing collected data Helps with water conservation Lowers overall costs

What We Have Learned Follows Membership water usage year round including possible leaks Identifies seasonal variations in water usage Established the use for data collected in determining future billing rates and if there will be changes year to year

Water Projects Built the Water Department Maintenance Trailer, with plans to build a second trailer Provided membership training for use of Water Department Maintenance trailers Repairing and preparing the old water reservoir for Water Department Storage and work space Assist with member water service repairs and replacement of water services – based on the HMC Fee Schedule Replacement of yard hydrant at North Beach Pavillion Continuing maintenance at the Pump Station

Reminder Water bills carry the same obligations as regular or special assessments. Members are subject to late fees if payment is not received by the due date. Water payment delinquencies are handled the same way as other delinquencies and can result in denial of ferry access in accordance with the established delinquency policy as defined in HMC governing documents.

Questions? Want to Volunteer? HMCWater@herronisland.org (206) 707-4645 HMCManager@herronisland.org (253) 884-9350