1. ACEC Presentation September 22, 2016
Chris Hassert, PE
Planning & Engineering Director

2. Discussion Items Staff Overview Group Focus Areas
Capital Improvement Program
Water/Sewer Rates
Campus Solar/Battery Project

3. ASSIGNED FACILITIES, SYSTEMS OR PROGRAMS Water Resources Engineer
Planning and Engineering Team
TITLE
ASSIGNED FACILITIES, SYSTEMS OR PROGRAMS
Water Resources EIT
Process Control Assistance
Water Resources Engineer
Water Distribution System & Hydraulic Modeling
Sewer Collection System, RWDS, IWDS
Senior WR Engineer
Asset Mgmnt, CGTF & Site 80, CAP WTP
SROG Support, CWTP, Water Campus Reclamation Plant
Principal WR Engineer
Water/Sewer Planning & Development Interface
Process Control Lead for CAP WTP, Chaparral WTP, Campus/AWT
All Potable and Recharge wells, Westworld, Desert Mtn

4. Planning and Engineering Functions
Master Planning
Infrastructure Improvement Plans (IIPs)
CIP Development
Asset Management
IGAs and Other Agreements
Studies and Evaluations
Other Challenges – Salinity, Invasive Species, etc.

5. Planning and Engineering Functions
Troubleshoot system issues
Develop project scopes and budgets
Engaged in design and construction
Guide developers
Manage groundwater wells
Treatment plant process control
Hydraulic model management
Monitor sewer flows
Pilot test new technologies

6. Scottsdale Water Capital Improvement Program (CIP)

7. How do we pay for system capital needs?
Water and Sewer Rates – Monthly billing of customers pays for operating costs and asset rehab and replacement
Development Fees – Pays for growth
Water Development Fee
Sewer Development Fee
Water Resources Development Fee
Agreement Revenue - Cost recovery
Golf courses, adjoining systems

8. Scottsdale Water CIP FY16/17 to FY20/21 Took effect on July 1, 2016
CURRENT 5-YR CIP
$176.7 M
AVERAGE YEARLY CIP
$35.3 M
HIGHEST YEAR (FY 16/17)
$70.3 M
LOWEST YEAR (FY 19/20)
$21.2 M
NOTE: Approximately $131M of available funds going into this FY

9. CIP FUNDING BREAKDOWN FY17-FY21

10. Water Infrastructure Projects
Waterline replacements
BPS upgrades
Large meter replacement
Reservoir rehab
Well rehab and replace
Membrane replacement
Telemetry upgrades
Security enhancements
Treatment plant mods
Other asset mgmnt. driven items

11. Highlighted Water Projects
Reservoir Rehab
Gaseous Cl2 Conversions
Electrical Upgrades
BPS Upgrades
FLW Transmission Main
East Shea Improvements
TGTF Design & Construction

12. Reclamation Infrastructure Projects
Sewer replacements
Sewer lining and manhole rehab
Odor control
Lift station upgrades
Membrane replacement
Telemetry upgrades
Security enhancements
Treatment plant mods
Advanced treatment mods
Other asset mgmnt. Driven items

13. Reclamation Projects Sewer Assessment Program Lift Station Upgrades
Pumpback Rehab
Telemetry Upgrades
Campus Treatment Facility Mods
Gainey Structural Repair

14. Asset Management Data base

16. Water and Sewer Rate Adjustment History
Fiscal Year
Water
Sewer
Combined
2010/11
- 0 -
2011/12
2012/13
2013/14
(1.8%)
4.0%
(0.2%)
2014/15
(1.2%)
(0.3%)
2015/16
1.3%
2.6%
1.6%
2016/17
Cumulative
(0.5%)
5.4%
1.1%
Rate reductions resulted from rate structure changes driven by cost of service study results and revenue stability.

18. Water Campus Solar Project
Solar Services Agreement (SSA) with SolarCity for 2.3MW of solar infrastructure
2000 kWh Tesla lithium-ion battery storage
20-year agreement
No capital required by Scottsdale Water
SolarCity finances, designs, builds, operates and maintains system
SSA approved by Council on July 5, 2016

19. Project Location – Scottsdale Water Campus

20. Project Benefits Estimated $1.4M energy savings over 20-year agreement
Solar/Battery combination reduces demand charges on electric bill
Project will offset 10% of electric grid supplied power to Campus with clean renewable energy
Battery storage will serve as an additional power back-up in the event of a regional power outage

21. Battery Storage Benefits Illustrated
Trim Peak Demand
Reduce Demand Charges
Lower Bills
Demand Spike
Batteries Trim Demand Spikes