The Town of Cape Charles continues to work through scenarios of the potential water and wastewater utility sale to Virginia American Water (VAW). The town has recently worked with VAW to try to achieve a more granular analysis of possible rate scenarios and how they might look if put into practice here in Cape Charles.
The town’s consultant, NewGen Strategies and Solutions updated the proforma that highlights what retaining the utility systems might look like. The report used 2023 Proposed Utility Fund O&M Budget, which is escalated at 6.0% in FY 2024, 5.0% in FY 2025, and 4.0% thereafter, the most recently available Capital Plan, with assumed spending beyond FY 2028 being $250,000 per year ($200,000 debt, $50,000 PAYGO), additional debt of $1,800,000 spread over the ten-year forecast in five separate bond issues ( FY 2023, 2024, 2029, 2030, 2031 at 20-year term, 4.0% interest), customer growth averaging 32 customers per year, maintaining Unrestricted Reserves above 30% of “Core Expenses” (O&M + Debt Service + PAYGO Capital), 50% of Water and Wastewater plan expansions funded by Developer Contribution.
The proforma is published below:
Who actually is the town trying to kid here with this blather about “The town has recently worked with VAW to try to achieve a more granular analysis of possible rate scenarios and how they might look if put into practice here in Cape Charles?”
The town is selling a utility to a for-profit corporation that the town has absolutely no control over, nor does its “consultant,” NewGen Strategies and Solutions https://newgenstrategies.net/
Once that sale is made, that is the end of any control Cape Charles has over the matter.
It’s like selling your car to someone, and then trying to stipulate how they must drive it.
I completely agree with Paul Plante, on this particular matter.
Selling the town’s water system is NOT a wise decision.
Residents should research Virginia American Water and find reviews from other towns. VAW is not well thought of in many communities.
They should also do some serious research on this “consultant” NewGen Strategies and Solutions https://newgenstrategies.net/ and how it was that the town hooked up with them, and exactly why that was.
I found the information about them on their website and where and how they fit into this picture here to be somewhat sparse.
Will the town be able to dictate where new water sewer taps will be allocated in newly zoned areas in town.?
Will the new private owner of the water/sewer be able to withhold services from areas the town wants to develop in the future?
So by giving up ownership of this limited resource the town currently owns, does the town also give up control of future allocations?
Missing in all of this is any discussion of the water quality as delivered to the residence. It may be perfect as treated but once it gets to my house on Madison Avenue it’s anything but, with frequent periods of black water which has ruined more than a few loads of laundry. Where’s the plan for replacing all the aging infrastructure from the tower to the customer? (All of the pipes from the meter into and throughout my house are less than 20 years old.)
Right, so lets not sell and have the town of chuck be responsible for the pipe replacement. Guess that wasn’t figured into the whole calculation.
There is no “town of chuck” that has a separate existence from the tax payers and rate payers who comprise the citizen body that is called “the town of chuck.”
And it is the rate payers who are going to “pay the freight” either way if those pipes need replacing.
The corporate stockholders of the FOR-PROFIT corporation that the “town of chuck” wants to sell the water system to sure as hell aren’t going to foot that bill and have it impact on their ROI – that cost will be borne by the rate payers.
It’s not the pipes that cause black staining.
You need to do analysis of the raw water that feeds the system
What contaminant will cause black staining of laundry and plumbing fixtures?
Manganese may cause brownish-black staining.
Soaps and detergents won’t remove these stains, and chlorine bleach or alkaline builders may make it worse.
Iron and manganese deposits may build up in plumbing lines, pressure tanks, water heaters, water softeners and other water treatment equipment.
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Water Quality Association
What is manganese?
* Manganese is a mineral that is found naturally in the environment and is one of the most abundant metals on the earth’s surface, in air, water, and soil.
* It can be found in both groundwater and surface water from natural sources.
What are the potential health and aesthetic impacts of manganese in drinking water?
* Although manganese is an essential nutrient at low doses, elevated levels are a health concern.
* The likelihood of health impacts from manganese are dependent on factors such as the route of exposure, the chemical form, the age at exposure, and an individual’s nutritional status. Certain groups that are more sensitive to manganese include infants, the elderly, and those with liver disease.
* Studies suggest an association between exposure to manganese in drinking water and neurological issues in infants and children, such as changes in behavior, lower IQ, speech and memory difficulties, and lack of coordination and movement control.
* Manganese in drinking water can also cause aesthetic issues such as metallic-tasting water and black stains on tubs/showers, toilets, plumbing fixtures, and laundry.
Is there manganese in my drinking water?
* If you are experiencing black stains on your shower, toilet, plumbing fixtures, or laundry, it is likely you have manganese in your drinking water and it is recommended you have your water tested.
Is manganese in drinking water regulated?
* Currently, there is no federal enforceable maximum contaminant levels (MCLs) for manganese in drinking water.
* Public water systems are not required to test for manganese under the Safe Drinking Water Act (SDWA).
Administrative Code of Commonwealth of Virginia, Title 12. Health, Chapter 590. Waterworks Regulations, Part I. General Framework for Waterworks Regulations:
12VAC5-590-10. Definitions and units of measurement.
A. Definitions. As used in this chapter, the following words, terms, and abbreviations shall have meanings respectively set forth:
“Pollution” means the presence of any foreign substance (chemical, physical, radiological, or biological) in water that tends to degrade its quality so as to . . . . impair the usefulness of the water.
“Potable water” means the same as “pure water.”
“Pure water” means water fit for human consumption that is (i) sanitary and normally free of minerals, organic substances, and toxic agents in excess of reasonable amounts and (ii) adequate in quantity and quality for the minimum health requirements of the persons served.
“Sanitary survey” means an evaluation conducted by the department of a waterworks’ water supply, facilities, equipment, operation, maintenance, monitoring records, and overall management to ensure the provision of potable water.
Oh, do shed some light on this portion of the article “50% of Water and Wastewater plan expansions funded by Developer Contribution.”
Are there real live assumptions being presented, or is this just another opportunity for Oral Lambert to blow this concept out of the water, AGAIN?