Mountain Water & Sanitation District

1. Mountain Water & Sanitation District March 2012 Community Meeting

2. Agenda • Introductions • Water Treatment Plant Report • Water Distribution System Report • Water System Financing Report • Wastewater Treatment Plant Report • Wastewater System Financing Options • Summary • Questions & Answers

3. Board, Staff, Consultants Ken Pfohl Terry Miers Greg Carman Don Staal Lynn Kleinvehn Launa Rae Warinner Marilyn Saltzman Bill Mueller Mary Chan Dave Lindholm Adam Sommers

4. Water Treatment Plant Report

5. Water Treatment Plant Report

6. Water Treatment Plant Report 2003 – New EPA Radionuclide Regulations. 2004 – Contracted RTW for Engineering. 2005 – Received CDPHE Enforcement Order. 2006 – Received Voter Approval for Tax Revenue. 2007 – Joined CORADS Program. 2009 – Contracted AquaWorks for Engineering. 2010 – Construction Plans Submitted to CDPHE. 2011 – Treatment Plant Construction. 2012 – Treatment Plant In-Service.

7. Water Distribution Report 2009 – Production 40% Higher than Sales. 2010 – Replaced ¼ Mile of Water Main. 2011 – Replaced PRV & Repair Main Leaks. 2012 – Production 10% Higher than Sales. $240,000 Planned Repairs.

8. Water System Financing • Voters Approved $1,000,000 at 6% for 30 Yrs. • Repayment Cost per Home = $192 per year • Repayment Cost per Home = $5,760 Total • District Received $75,000 Grants. • CWPDA Loan $1,000,000 at 0% for 20 Years. • Repayment Cost per Home = $133 per year • Repayment Cost per Home = $2,666 Total • Total Grant & Loan Savings per Home = $3,294

9. Wastewater Plant Report

10. Wastewater Plant Report

11. Wastewater Plant Report 2005 – New Permit with Ammonia & Chlorine Limits. 2006 – Contract with GEI for Site Specific Limits. 2007 – Installed Chlorine Removal Process. 2009 – New Stream Segments Established. 2010 – Ended GEI Site Specific Limits Contract. 2011 – Contracted with AquaWorks for New Plant Preliminary Engineering. Funded by $54,000 Grants.

12. Wastewater Plant Report

13. Wastewater Plant Report Why a New Wastewater Treatment Plant? • Plant Can’t Meet Ammonia Regulations. • Plant is Over 30 Years Old – High Operating and Repair Costs. • Favorable Financing Available in 2012.

14. Wastewater Financing Options • Projected Cost = $2,000,000. • Normal Financing = 3% for 30 Years. • Repayment Cost per Home = $8,080 Total • Potential 2012 Financing • $2,000,000 Loan at 0% for 20 Years. • Repayment Cost per Home = $5,333 • Potential Saving per Home = $2,747

15. Wastewater Financing Options • Increase Usage Fees • $34 per Month per Home for 3% Loan. • $19 per Month per Home for 0% Loan. • Voter Approval Not Required • Increase Property Tax Revenue. • Same Monthly Amounts. • Voter Approval Required. • Potential Income Tax Deduction.

16. Summary • New Water Treatment Plant In-Service. • Water Loss Reduced from 40% to 10%. • More Water Distribution Work in 2012. • Water System Cost $3,294 per Home Less than 2006 Estimate. • Wastewater Plant Can’t Meet Ammonia Limit. • Plant is 30 Years Old with High Costs. • Potential Favorable Financing in 2012. Save $2,747 per Home. • Raise Rates or Voter Approved Tax Revenue.

17. May Election • Two Directors Positions. • Tax Increase Ballot Question. • Revenue Limit Ballot Question.

18. Q & A • Water Treatment Plant? • Water Distribution System? • Waster System Financing? • Wastewater Treatment Plant? • Wastewater Plant Financing? • Usage Fees vs. Property Taxes? • May Election?