Fort Wayne Efforts Regarding Aqua Indiana Better Water, Lower Cost. November 13, 2007
Aqua Indiana Utility Operations - 2007 <ul><li>Aqua Indiana Southwest </li></ul><ul><li>12,000 Water Customers </li></ul><...
 
 
 
 
Aqua Indiana North System Performance <ul><li>AI 90-day combined limit for these three areas is 610,000 gallons per day. <...
AI Awareness of a Sewer Problem – North System.  <ul><li>“ What we’ve determined is that the age of the infrastructure in ...
AI Sanitary Sewer Investment – North System. <ul><li>Budget for I/I Capital Projects </li></ul><ul><ul><li>2004 - $200,000...
Aqua Indiana Past Due Balance <ul><li>Since contract expiration in 2003, AI has not paid City invoices in full.  </li></ul...
Summary of AI North Sewer System <ul><li>Aqua Indiana is the worst performing of all bulk customers.  </li></ul><ul><li>Ch...
 
AI Drinking Water Investment – North System.  <ul><li>State Road 3 (Lima) Feeder Main. </li></ul><ul><ul><li>“… its to pro...
AI Drinking Water Complaints – North System. <ul><li>North System has far more complaints than the AI Southwestern areas. ...
Summary of AI North Drinking Water System <ul><li>Tremendous opportunities for efficiencies through a combined system.  </...
AI North System Purchase Process. <ul><li>Process begun in 2003. </li></ul><ul><li>Supreme Court finds Aqua Indiana has a ...
Impact to Existing City Utilities Customers <ul><li>No rate increase to existing City customers </li></ul><ul><li>Signific...
Impact to Existing Aqua North Customers <ul><li>Better water, lower cost. </li></ul><ul><li>Immediately go down to City Ut...
How? <ul><li>Avoid dual capital projects & better economies of scale. </li></ul><ul><li>No dividends to shareholders. </li...
Other Benefits….. <ul><li>Long term, locally accountable, rate control. </li></ul><ul><li>Customer Service call center:  <...
Neighborhoods Speak Out!!! <ul><li>Many calls received from Pine Valley. </li></ul><ul><li>Petitions from Lima Valley (75%...
Summary: <ul><li>The Aqua Indiana Northern Sewer System is failing. </li></ul><ul><li>The Aqua Indiana Drinking Water Syst...
Fort Wayne City Water: Better Water, Lower Cost. November 13, 2007
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Fort Wayne Presentation on Aqua Indiana

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A presentation given by Ted Nitza on behalf of the city of Fort Wayne describing why they should take over Aqua Indiana's services

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  • Introduce yourself and thank the Council for the opportunity to update them
  • Fort Wayne Presentation on Aqua Indiana

    1. 1. Fort Wayne Efforts Regarding Aqua Indiana Better Water, Lower Cost. November 13, 2007
    2. 2. Aqua Indiana Utility Operations - 2007 <ul><li>Aqua Indiana Southwest </li></ul><ul><li>12,000 Water Customers </li></ul><ul><li>17,900 Sewer Customers </li></ul><ul><li>Aqua Indiana North </li></ul><ul><li>9,000 Water Customers </li></ul><ul><li>1,600 Sewer Customers </li></ul>
    3. 7. Aqua Indiana North System Performance <ul><li>AI 90-day combined limit for these three areas is 610,000 gallons per day. </li></ul><ul><li>AI exceeded this level 63 out of 82 months from 2000 - 2006 (77% of the time). </li></ul><ul><li>Flow received from these exceedances is almost 350 million gallons. </li></ul><ul><li>Flow received from the exceedances in the Pine Valley area is more than combined sewer overflows (CSO) per household. </li></ul>
    4. 8. AI Awareness of a Sewer Problem – North System. <ul><li>“ What we’ve determined is that the age of the infrastructure in the north system is going to require a more extensive effort on the part of the (AI) utility to do I&I removal. ...we need to do more work related to the collection system than we had originally contemplated.” – Bill Etzler, March 2005. </li></ul>
    5. 9. AI Sanitary Sewer Investment – North System. <ul><li>Budget for I/I Capital Projects </li></ul><ul><ul><li>2004 - $200,000 </li></ul></ul><ul><ul><li>2005 - $400,000 </li></ul></ul><ul><ul><li>2006 - $400,000 </li></ul></ul><ul><ul><li>2007 - $400,000. </li></ul></ul><ul><ul><li>Source: AI Capital Budget 04-09. </li></ul></ul><ul><li>Actual for I/I Capital Projects </li></ul><ul><ul><li>2004 - $34,000 </li></ul></ul><ul><ul><li>2005 - $38,000 </li></ul></ul><ul><ul><li>2006 - $150,000 </li></ul></ul><ul><ul><li>2007 - not available. </li></ul></ul><ul><ul><li>Source: AI Rate Incr. Filing ’07. </li></ul></ul>
    6. 10. Aqua Indiana Past Due Balance <ul><li>Since contract expiration in 2003, AI has not paid City invoices in full. </li></ul><ul><li>Current past due amount exceeds $2.1M. </li></ul><ul><li>Even using old wholesale rate, AI owed $278K in unpaid balance at the end of 2006. </li></ul><ul><li>Payments received late 38 of 51 billings (75%). Last twelve months – 8 of 12 late. </li></ul><ul><li>Late fees have not been paid. </li></ul>
    7. 11. Summary of AI North Sewer System <ul><li>Aqua Indiana is the worst performing of all bulk customers. </li></ul><ul><li>Chronic performance problems are intensifying and impact the economy. </li></ul><ul><li>Tremendous lack of capital reinvestment. </li></ul><ul><li>Significant unpaid balance to City. </li></ul><ul><li>Chronic late payments. </li></ul><ul><li>Meanwhile, Aqua Indiana customers are still billed a full rate. </li></ul>
    8. 13. AI Drinking Water Investment – North System. <ul><li>State Road 3 (Lima) Feeder Main. </li></ul><ul><ul><li>“… its to provide the redundancy that’s needed to provide good service” Bill E. 3/2005. </li></ul></ul><ul><ul><li>Delayed in 2004, Delayed in 2005. </li></ul></ul><ul><ul><li>Still not completed. </li></ul></ul><ul><li>Washington Treatment Plant Replacement. </li></ul><ul><ul><li>“ it has seen its useful life. …it just needs to be upgraded to meet modern day technology” Bill E. 3/2005. </li></ul></ul><ul><ul><li>Still not completed. </li></ul></ul>
    9. 14. AI Drinking Water Complaints – North System. <ul><li>North System has far more complaints than the AI Southwestern areas. </li></ul><ul><ul><li>2003 – 190% more complaints in North. </li></ul></ul><ul><ul><li>2004 – 200% more complaints in North. </li></ul></ul><ul><ul><li>2005 – 150% more complaints in North. </li></ul></ul><ul><ul><li>2006 – 260% more complaints in North. </li></ul></ul><ul><ul><ul><li>Source: AI Rate Increase Filing, 2007. </li></ul></ul></ul><ul><li>There are approximately 3,000 more customers in the AI Southwest. </li></ul>
    10. 15. Summary of AI North Drinking Water System <ul><li>Tremendous opportunities for efficiencies through a combined system. </li></ul><ul><ul><li>City water pumped through existing Aqua pipes. </li></ul></ul><ul><ul><li>City utilization of elevated tank facilities. </li></ul></ul><ul><li>Lack of follow-through of capital project commitments resulting in continued vulnerability to service outages and long overdue upgrades. </li></ul><ul><li>Chronic and glaring disproportion of water quality complaints. </li></ul>
    11. 16. AI North System Purchase Process. <ul><li>Process begun in 2003. </li></ul><ul><li>Supreme Court finds Aqua Indiana has a ‘conditional franchise’ in June of 2007. </li></ul><ul><li>Appraisals of the North System were updated. </li></ul><ul><ul><li>Crowe Chizek and Malcolm Pirnie. </li></ul></ul><ul><ul><li>Average of two: $16,910,500. </li></ul></ul><ul><li>City now seeking approvals and to begin revenue bonding process. </li></ul>
    12. 17. Impact to Existing City Utilities Customers <ul><li>No rate increase to existing City customers </li></ul><ul><li>Significant capital improvement savings from integrated systems. </li></ul><ul><li>Improvements to the economies of scale for operating and maintenance costs. </li></ul>
    13. 18. Impact to Existing Aqua North Customers <ul><li>Better water, lower cost. </li></ul><ul><li>Immediately go down to City Utility rates with no surcharge. </li></ul><ul><ul><li>Average family of four - $90 per year savings. </li></ul></ul><ul><ul><li>Small business – 40% savings. </li></ul></ul><ul><li>Similar capital improvement savings and economies. </li></ul><ul><li>Long overdue projects are abated. </li></ul>
    14. 19. How? <ul><li>Avoid dual capital projects & better economies of scale. </li></ul><ul><li>No dividends to shareholders. </li></ul><ul><ul><li>In 2006, Utility Center Inc. (Allen County Area of Aqua Indiana) paid dividends to its shareholders of $3,600,000. Source: 2006 AI Annual Report. </li></ul></ul><ul><li>No ‘Corporate Services’ to Philadelphia & Ill. </li></ul><ul><ul><li>2006 - $975,000 Source: 2006 AI Annual Report. </li></ul></ul><ul><ul><li>2005 - $1,034,000 Source: 2005 AI Annual Report. </li></ul></ul><ul><ul><li>2003 - $1,687,000 Source: 2003 AI Annual Report </li></ul></ul><ul><ul><li>2002 - $1,644,000 Source: 2002 AI Annual Report. </li></ul></ul>
    15. 20. Other Benefits….. <ul><li>Long term, locally accountable, rate control. </li></ul><ul><li>Customer Service call center: </li></ul><ul><ul><li>local people, local answers. </li></ul></ul><ul><li>Enhanced septic system relief efforts. </li></ul><ul><li>Enhanced private well relief efforts. </li></ul><ul><li>Property Tax Savings. </li></ul><ul><li>Small business, nonprofits, and service organization savings. </li></ul>
    16. 21. Neighborhoods Speak Out!!! <ul><li>Many calls received from Pine Valley. </li></ul><ul><li>Petitions from Lima Valley (75%), Northwest Lima Woods (70%), Wallen/Village (70%). </li></ul><ul><li>Petition from Northwest Passage (+90%). </li></ul><ul><li>Petition from Windsor Road (100%). </li></ul>
    17. 22. Summary: <ul><li>The Aqua Indiana Northern Sewer System is failing. </li></ul><ul><li>The Aqua Indiana Drinking Water System is failing. </li></ul><ul><li>No rate increase to existing City customers. </li></ul><ul><li>Cost savings, other benefits across the board </li></ul><ul><li>Tremendous support for this City Utility effort. </li></ul>
    18. 23. Fort Wayne City Water: Better Water, Lower Cost. November 13, 2007

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