![Page 1: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/1.jpg)
![Page 2: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/2.jpg)
![Page 3: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/3.jpg)
![Page 4: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/4.jpg)
![Page 5: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/5.jpg)
1
![Page 6: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/6.jpg)
AGENDA ITEM NO. 2Acquisition of Neighborhoods
Provided Water Service by Cave CreekFebruary 9, 2021
2
![Page 7: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/7.jpg)
3
Introductions
Carefree Water CompanyAcquisition Professional TeamEngineering LegalFinance and Rates
![Page 8: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/8.jpg)
Greg CrossmanCWC GM, Town Engr.40 yrs. experiencePE (Civil) – 35 yearsAZ Cert. Water Oper.Grade 4/Grade 2
ASCE, AWWA, AZ Water, RWAA
4
![Page 9: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/9.jpg)
Acquisition Team – EngineeringCoe & Van Loo (CVL) Consultants
5
Project EngineerCassandra Alejandro, P.E.
Project ManagerTracy Grunden, P.E.
Landscape Arch.Tim Starkey, RLA
![Page 10: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/10.jpg)
Acquisition Team ‐ Legal
6
Water LawMichael Pearce
Gammage & Burnham
Condemnation LawChris Kramer
Jennings Strouss
Water Co. AttorneyMichael Wright
Sherman & Howard
![Page 11: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/11.jpg)
Acquisition Team – Finance & Rates
7
ValuationRick Giardina
Raftelis
Municipal BondingMark Reader
Stifel
Rate AnalysisDan Jackson
Willdan Fin. Ser.
Bond AttorneyMichael Cafiso
Greenberg Traurig
![Page 12: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/12.jpg)
Carefree’s Organizational Structure
8
Town of Carefree Town of Carefree, Arizona Utilities Community Facilities District
(UCFD)100% Stockholder in CWC
Carefree Water Comp.AZ Corporation
Town Council Board of Directors
![Page 13: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/13.jpg)
9
Cave Creek Carefree
Condemnation2007
Acquisition 1998
![Page 14: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/14.jpg)
2005 Intergovernmental Agreem. (IGA)
PartiesCave CreekCarefree, CWC, UCFD
ProvisionsCarefree supported condemnationOption for CF to acquire customers (CSA)Negotiate cost to acquireFallback - arbitration
10
![Page 15: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/15.jpg)
Carefree Invokes IGA–January 2019
Formal steps
Filed condemnation action
120 Day negotiation period
Arbitration
11
![Page 16: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/16.jpg)
Reasons for Carefree AcquisitionNot one single event Lack of representation Level of serviceReliability/system redundancyWater qualitySystem maintenanceFire protection
Water supply into futureControlling development & economic destiny
12
![Page 17: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/17.jpg)
Reasons for Carefree Acquisition
Unify Carefree - one water providerStronger Carefree & Carefree Water
system
13
![Page 18: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/18.jpg)
Arbitration ProcessStarted in late 2019Concluded in January 20213 member independent panelArguments presented to panelExpert reports and rebuttalsTestimony with “cross examination”
14
![Page 19: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/19.jpg)
Arbitration TopicValue ($) of the water system in CSAParties very far apartCarefree at $1.47MCave Creek $17.4M
Arbitrators heard detailed/complex arguments
Arbitrators established value: $1.47M
15
![Page 20: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/20.jpg)
Settlement Agreement Negotiations
Value established at $1.47MNegotiation pointsLegal and expert witness feesFuture cooperation
16
![Page 21: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/21.jpg)
Where Does This Put Us?
Arbitration answers big unknownCave Creek payment - $1.5M
Important piece of puzzleNo magic switch
17
Cave Creek Water
Carefree Water
![Page 22: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/22.jpg)
18
Understanding the Big PictureBack-up to 2017 & 2018Consultant assistance2018 hired Coe & Van Loo (CVL)Condition/value of infrastructureCost to disconnect from Cave CreekCost to reconnect to Carefree Investigate financing and rates
![Page 23: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/23.jpg)
19
Neighborhood A –Southwest Carefree
Neighborhood B –West Carefree
Neighborhood C –Northwest Carefree
Acquisition Areas
![Page 24: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/24.jpg)
20
Acquisition Areas
Neighborhood A
Neighborhood B
Neighborhood C
Lowe’sFF – 3000 gpm
NEC
![Page 25: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/25.jpg)
21
Carefree Water Consolidation Project
![Page 26: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/26.jpg)
22
Carefree Water Consolidation Project
![Page 27: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/27.jpg)
23
Carefree Water Consolidation Project
![Page 28: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/28.jpg)
Construction Opportunities Large complex project Trad. D/B/B – not good fitToo many unknownsToo much coordin./sequencing
Relatively new “delivery method”CMAR – Constr. Manager at RiskBring on early Become part of design team Recommended for this project
24
![Page 29: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/29.jpg)
Financing structureMultiple funding sourcesTown upfront moneyDeveloper contributions & offsetsWater revenue bonds Generating upfront capital Repay over time based on water revenues Spreads costs to future rate payers
Rate structure flexibility Weighted burden – Neighborhoods A, B, C
25
![Page 30: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/30.jpg)
Financing Details
Town upfront (legal, experts) $ 2.3 MPayment to Cave Creek $ 1.5 M*Scottsdale Interconnect $ 1.5 M**Disconnection/reconnection $11.5 MConstruction “soft costs” $ 1.4 MImprovements to existing CWC $ 3.5 M
Total $19.4 M*(Settlement Agreement Reduct.) <$ -----M>**(Developer Contribution) <$ 0.75M>
26
![Page 31: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/31.jpg)
Water Revenue BondsRepay over time from water revenues Current bond market–very favorableHistoric lows, but volatile marketAntic. bond rating – A minus or better30-year termAntic. interest rate – low 3%sOverall scoped costs $19.4M
27
![Page 32: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/32.jpg)
Water Rates
Bottom line questionHow will this impact my water bill?
Rate consultant Dan Jackson Willdan Fin. Services 36 years exp. Performed over 400 rate studies
28
![Page 33: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/33.jpg)
Rate Analysis SummaryCWC Rate increase historyLast 2 FY’s – 4.4%Ave. Last 4 FY’s – 3.5%
Proposed rate increases in-line4.4% for next 5 FY’s2% thereafter
All lower than Nat. average. of 5-6% Includes +$20/month burden on CSA
29
![Page 34: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/34.jpg)
Acquisition Summary & BenefitsUnifies CF under one water providerProvides certainty in acquisition areaEquivalent level of service Maintenance Fire protection Water quality Representation
One-time opportunityEnd product: stronger Carefree
30
![Page 35: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/35.jpg)
31
![Page 36: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/36.jpg)
AGENDA ITEM NO. 3 Boulders Underground Water Storage Reservoir
February 9, 2021 1
![Page 37: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/37.jpg)
2
Carefree Water Consolidation Project
1500 gpm
1500 gpm
![Page 38: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/38.jpg)
3
Overview of TopicsGeneral water storage discussionAcquisition studies – CVL analysesSite selection criteriaWater storage concept/design changes
since November 2019 Other reservoir detailsAuthorizations to be considered tonight
![Page 39: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/39.jpg)
4
Water Storage DiscussionWhy is water storage needed?Meet peak demandFire protectionReasonably sized water production
facilitiesWhere is Carefree’s current storage?
![Page 40: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/40.jpg)
5
Wells
Wells
Scottsdale
![Page 41: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/41.jpg)
6
Highlands Zone
![Page 42: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/42.jpg)
7
Town Center Zone
![Page 43: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/43.jpg)
8
1 MG of Water Storage
![Page 44: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/44.jpg)
9
1 MG of Water Storage
![Page 45: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/45.jpg)
10
150 Kgal (2) of Water Storage
![Page 46: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/46.jpg)
11
150 Kgal (2) of Water Storage
![Page 47: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/47.jpg)
12
500 Kgal of Water Storage
![Page 48: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/48.jpg)
13
![Page 49: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/49.jpg)
14
Carefree Water Storage Schematic
Elev. 2770
1 MG Elev. 2554
500 KgalElev. 2524
Scottsdale and Wells
Town Center Zone
Highlands Zone
150 Kgal (2)
![Page 50: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/50.jpg)
15
Acquisition Studies(The Acquisition of those areas of Carefree served potable water by the Town of Cave Creek.)
![Page 51: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/51.jpg)
16
Neighborhood A –Southwest Carefree
Neighborhood B –West Carefree
Neighborhood C –Northwest Carefree
Acquisition Areas
![Page 52: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/52.jpg)
17
Acquisition Areas
Neighborhood A
Neighborhood B
Neighborhood C
Lowe’sFF – 3000 gpm
NEC
![Page 53: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/53.jpg)
18
Acquisition StudyCoe & Van Loo (CVL) hired mid-2018Address potential acquisitionOne question posed:
Need additional water storage?Computer modeling to answer
Every pipe, well, pump, water res. etc.Addresses: peak demands, fire
protection, acquisition areas, growth
![Page 54: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/54.jpg)
19
Storage Analysis ResultsMore storage needed – “rebalancing”How much – 300 Kgal.Where – supplement 500 kgal Site
Includes Town Center & Boulders SW Carefree (Neighborhood A)
![Page 55: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/55.jpg)
20
![Page 56: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/56.jpg)
Town Center Zone
21
150 Kgal (2)Elev. 2770
1 MG Elev. 2554
500 Kgal
New 300 Kgal
Elev. 2524
Elev. 2325
Scottsdale and Wells
Neighborhood A
Carefree Water Storage Schematic
(Proposed)
Elev. 2070 thru 2320
![Page 57: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/57.jpg)
22
Why Elev. 2325?Below Elev. 2325Requires pumpingUnnecessary energy costs-capital-noiseCreates unnec. weak pt. in system
Pump failures, power outage Increased life cycle costs
Above Elev. 2325Over-pressurizes system (More PRV’s)Generally more distance, longer pipes
![Page 58: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/58.jpg)
23
Site Selection CriteriaProper elev. to support gravity feedVacant/undeveloped parcelProximity to large transmission mainNon-residential access pointNon-residential construction of feed line
and discharge lineTopographic and geologic challenges
![Page 59: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/59.jpg)
24
Elev. 2325
![Page 60: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/60.jpg)
25
32 Parcels
26 Parcels
![Page 61: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/61.jpg)
26
Carefree 3B
Carefree 3B
Carefree 3B
Boulders Internal
Boulders Internal
Boulders Border
![Page 62: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/62.jpg)
Topography/Geology NotesNote PA (216-33-451B) – Border HOA lot that is part of Boulders gated community. Moderately undulating topography with some small washes. Sizeable gently sloping area just east of Tom Darlington. General fall about 3.8% to the south/southeast. Access off Tom Darlington. Distance from Black Mtn. encouraging. Rock outcropping to the north. Recommended for further geology/geotechnical work.
27
![Page 63: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/63.jpg)
28
![Page 64: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/64.jpg)
29
Min. Depth to Refusal – 13.5 ft
![Page 65: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/65.jpg)
30
Site Selection CriteriaProper Elev. to support gravity feedVacant/undeveloped parcelProximity to large transmission mainNon-residential access pointNon-residential construction of feed line
and discharge lineTopographic and geologic challenges
![Page 66: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/66.jpg)
31
Neighborhood InvolvementApproached BHOA Board March 2019Access to perform geotech invest.
BHOA gen. memb. meeting - Nov. 8, 2019Follow-up meeting w/nearby residents –
January 2020Notice of Claim Filed in Feb. 2020,
Litigation filed in July 2020
![Page 67: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/67.jpg)
32
Comparison
Meeting on Nov. 8, 2019 (BHOA)
Today
Message: We listened
![Page 68: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/68.jpg)
33
Water Storage Concept
300 Kgal of additional storage½ Below Ground - ½ Above Ground16 ft of water depth60 ft Diameter = 2800 SFPartially buried concrete walls - 8” to
12” thicknessUtility area (equipment/electrical) =
3000 SF
12 ft.65 ft. 3300 SF
Underground
1300 SF
![Page 69: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/69.jpg)
34
![Page 70: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/70.jpg)
35
![Page 71: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/71.jpg)
36
160’+65’
8.5’
![Page 72: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/72.jpg)
37
![Page 73: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/73.jpg)
38
![Page 74: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/74.jpg)
39
Utility AreaSignificantly downsized to 1300 SFMove to west side of reservoir Located behind wall and earthen bermHides visually and provides sound buffering
for residences to eastBuffer from Tom D. by landscaping
Minor, low impact equipment
![Page 75: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/75.jpg)
40
Utility Area EquipmentElectrical cabinetsChlorination equipment “Boost” chlorine if necessaryUse tablet (Solid) chlorine
Blower - water quality (THM Control)Comparable to “refrigerator”
Emergency back-up generatorPower outagesExercise once per week – 20 min.
![Page 76: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/76.jpg)
41
Utility Area EquipmentMinimal Issues in Open Air Environ.Placing Equipment “Underground”Unnecessary Based on BufferingSignificant Worker Safety Issues OSHA Confined Space Requirements Inundation/Drowning Electrocution Combustion Exhaust/Chlorine/Lack of
Oxygen
![Page 77: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/77.jpg)
42
Recommendation/ActionConcludes presentationExcellent site for water storage res.Listening to and protecting neighbors
Next – reading of public commentsClaims about validity of site selectionOpposition to use of site
After public comments – consider authorization to acquire Boulders site
![Page 78: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/78.jpg)
43
Recommendation/ActionRecommendation from eng’r. teamDon’t take lightlyReviewed and vetted by GMFull support
Best site balances multiple objectivesMeets water system’s O&M objectivesCost effectiveMinimizes impact on communityMinimizes impact on neighborhood
![Page 79: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/79.jpg)
44
Recommendation/ActionUtilized following knowledge bases Independent consultant - months8yrs. knowledge GM of system & acq.20+yrs. operator knowledge
Site provides greatest public good and least private injury
![Page 80: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/80.jpg)
45
![Page 81: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/81.jpg)
Water Acquisition
Financial Impact Analysis
UCFD Presentation
Carefree Water Company
February 2021
![Page 82: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/82.jpg)
Average Monthly Usageper Account
Page: 2
![Page 83: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/83.jpg)
Forecast Water Accounts
Page: 3
Neighborhood A,B,C ParcelsAcquired
![Page 84: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/84.jpg)
Forecast Water Cost of Service2021 – 2030
Page: 4
![Page 85: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/85.jpg)
Forecast Water Revenues2021 - 2030
Page: 5
![Page 86: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/86.jpg)
What if No Acquisition Were to Take Place?
Rate adjustments would still be necessary to fund:
Increasing operating costs
capital improvement needs
2019 study established that in the no acquisition scenario, annual rate adjustments of 3-5% will be required
Page: 6
![Page 87: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/87.jpg)
Notes on Rate Proposal
To complete acquisition and improve system, the following annual rate adjustments will be needed:
2022 – 2026: 4.4%
2027 – 2030 : 2.0%
Need for additional rate increases limited due to:
Structure of debt issued
Current debt obligations that will be retired by 2027
Additional revenue from acquired accounts
Average utility in USA forecast to implement 5-6% annual adjustments
Page: 7
![Page 88: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/88.jpg)
Proposed Rate Plan
Page: 8
Water Rates -- Residential Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25
Monthly Minimum Charge -- up to 1" Meter 48.31$ 50.44$ 52.65$ 54.97$ 57.39$ 59.92$
Volume Rate Per 1,000 Gal- 8,000 3.90 4.07 4.25 4.44 4.63 4.84
8,001 20,000 5.25 5.48 5.72 5.97 6.24 6.51
20,001 30,000 6.90 7.20 7.52 7.85 8.20 8.56
30,001 50,000 8.92 9.31 9.72 10.15 10.60 11.06
50,001 Above 11.59 12.10 12.63 13.19 13.77 14.37
Effective
![Page 89: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/89.jpg)
Proposed Rate PlanImpact on Monthly Charges
Page: 9
Residential Standard Monthly Bill -- 1" Meter Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25
5,000 Gal W Total 67.81$ 70.79$ 73.91$ 77.16$ 80.56$ 84.10$ Increase -- $ 2.86 2.98 3.11 3.25 3.40 3.54 Increase -- % 4.4% 4.4% 4.4% 4.4% 4.4% 4.4%
12,000 Gal W Total 100.51 104.93 109.55 114.37 119.40 124.66 Increase -- $ 4.24 4.42 4.62 4.82 5.03 5.25 Increase -- % 4.4% 4.4% 4.4% 4.4% 4.4% 4.4%
20,000 Gal W Total 142.51 148.78 155.33 162.16 169.30 176.75 Increase -- $ 6.01 6.27 6.55 6.83 7.14 7.45 Increase -- % 4.4% 4.4% 4.4% 4.4% 4.4% 4.4%
Effective
![Page 90: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/90.jpg)
Acquired AreaRate Proposal
For neighborhoods A, B, C, set minimum charge to be the Carefree minimum charge plus $20.00
Volumetric rates differ between Carefree and Cave Creek
Impact on each monthly bill will differ based on:
Whether customer was in Cave Creek Boosted or Non-Boosted service area
Each customer’s total monthly usage
Page: 10
![Page 91: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/91.jpg)
Acquired AreaRate Proposal
Page: 11
NOTE: assumes Cave Creek does not increase its rates before 2023
Cave Creek CarefreeCurrent FY 2023
Monthly Charge
Non-Boosted 56.85$ 72.65$ 15.80$
Boosted 67.02 72.65 5.63
Volume Charge per 1,000 Gal
- 8,000 3.09 4.25 8,001 10,000 3.09 5.72
10,001 20,000 4.64 5.72
20,001 30,000 6.96 7.52 30,001 50,000 10.44 9.72 50,001 Above 15.66 12.63
![Page 92: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/92.jpg)
Acquired AreaImpact on Monthly Charges
Page: 12
Monthly CarefreeGallons Non-Boosted Boosted FY 2023
5,000 72.30$ 82.47$ 93.90$
10,000 87.75 97.92 118.10
17,000 120.23 130.40 158.16
30,000 203.75 213.92 250.53
40,000 308.15 318.32 347.75
50,000 412.55 422.72 444.97
60,000 569.15 579.32 571.30
70,000 725.75 735.92 697.62
80,000 882.35 892.52 823.94
90,000 1,038.95 1,049.12 950.27
100,000 1,195.55 1,205.72 1,076.59
Cave Creek
![Page 93: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/93.jpg)
Questions?
Page: 13
![Page 94: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/94.jpg)
![Page 95: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/95.jpg)
![Page 96: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/96.jpg)
![Page 97: Portal - 2021 | Carefree, AZ - Official Website](https://reader030.vdocument.in/reader030/viewer/2022012512/618a75f21ea7c570f054e24c/html5/thumbnails/97.jpg)