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Administrative Brief COMMISSION INFORMATION MEMORANDUM VOL. 31 NO. 16 May 28, 2009 ADMINISTRATIVE BRIEF FROM MARTHA TASKER Kansas Municipal Water Use - 2007 Water use in Kansas is regulated by the Kansas Department of Agriculture, Division of Water Resources (DWR). The DWR requires annual Water Use Reports from all public water suppliers with active water rights. Each public water supplier provides information on quantity of water diverted, water purchased from and sold to other suppliers, sales to industrial customers, metered free and unaccounted for water, population served and current water rates. The DWR, Kansas Water Office (KWO) and U.S. Geological Survey – Water Resources Division (USGS) review the water use data to ensure that the information is as accurate and complete as possible, and to derive the statistics on per capita usage, percent metered free, percent unaccounted for water and rates that are published in the report. These state agencies have recently released the Kansas Municipal Water Use - 2007 Report. This report is issued as an aid to public water suppliers and to state agencies in evaluating water use and water conservation efforts by Kansas water systems during 2007. The information in the annual report is useful in evaluating individual systems’ needs for metering improvements, water loss reduction, water rate adjustments and implementation of cost- effective, long-term water conservation measures. Regional average gallons per capita per day (gpcd) use and other related data was complied for each of eight (8) regions in Kansas, the regions being narrow north-south bands. Salina is included in Region 7, which is comprised of thirty-three (33) counties, with Salina on the western boundary and Topeka on the eastern boundary. Water usage in the eight (8) regions ranged from 272 gpcd in extreme western region of Kansas to 82 gpcd in extreme eastern region of Kansas in 2007. A major reason for this variance is that the amount of summer rainfall increases from west to east across our state. This variance in the gpcd usage between regions is, therefore, due primarily to the amount of greater outdoor water use (lawn watering) in the drier, more arid parts of the state and to the fact that the water rates are lower in western Kansas. Well water supplies in the western regions are less expensive to treat than surface water supplies predominately used in eastern Kansas. Average state per capita use in 2007 was 119 gpcd, the lowest in the past five years. In our region, Region 7, there are fifteen (15) large public water suppliers who provide water to 10,000 customers or more. The average usage among these large suppliers was 135 gpcd. The following table summarizes the 2007 report data for Region 7: CIM Page 2 WATER USE STATISTICS FOR LARGE PUBLIC WATER SUPPLIERS (1) REGION 7, 2007 Percent DifferenceCost per Percent From10,000Unaccounted Averagegal/monthFor Water Public Water SupplierGPCD Coffeyville 232+72$44.8823 Emporia 176+31$27.7318 Junction City150+11$25.1821 McPherson 146+8$24.007 El Dorado 145+7$25.48Na Wichita 141+5$19.494 Independence141+4$27.8722 Manhattan 141+4$26.349 Topeka 138+2$35.8516 Winfield 129-5$32.5514 Arkansas City125-8$59.1223 Salina 116-14$35.9311 Newton 103-24$31.108 Haysville 94-30$19.3811 Derby (El Paso Water Co.)93-31$39.60Na Average 135--$32.0114 (1) Data from Kansas Municipal Water Use 2007 Publication. In 2007, Salina used 116 gpcd, which is 14% less than the average of 135 gpcd for cities in our region. Salina also ranks favorably among cities with a low percentage of unaccounted for water. Salina’s unaccounted for water was 11%, and the average was 14% for cities in our region. The average unaccounted for water among all systems in Kansas was 15%. The American Water Works Association (AWWA) recommends leak detection if unaccounted for water exceeds 15%. Water loss (unaccounted for water) in the distribution system is usually attributed to major system leaks, old inaccurate water meters or the presence of unmetered service connections. Unaccounted for water also includes “free” water for public service, water treatment process, main breaks, hydrant flushing and etc. Conservation, through a reduction of unaccounted for water, may delay a utility’s need to secure additional and future water supplies and will also result in additional revenues. Our current program of water system enhancement, consists of a systematic replacement of aging water meters and the replacement of defective sections of the water distribution system, is intended to minimize water losses. There are four basic types of rate structures in Kansas; flat rate, decreasing block rate, uniform block rate and increasing block rate. Utilities with a flat rate, charge each customer a fixed amount per month regardless of the amount of water used. With a decreasing block rate, the unit cost of water decreases as usage increases. The unit cost of water is the same CIM Page 3 for all levels of usage with a uniform block rate. With an increasing block rate, the unit cost of water rises as usage increases. Some utilities attach a surcharge to their regular water rates for excessive summer usage (excess use rate), usually defined as a certain percentage above winter use. Salina utilized a decreasing block water rate structure for many years and in July of 2008 changed to an excess use rate structure. The type of rate structure can affect gpcd usage. Systems with flat rates tend to use considerably more water per capita than systems that meter customer use. The other three types of rate structures, in which cost depends on the amount of water used, have a less dramatic effect on gpcd. Decreasing block rates are assumed to discourage conservation, because customers are charged lowers rates for high volume usage. Increasing block rates are considered to promote conservation among high-volume users while keeping the cost of moderate use affordable. The report indicates that the use of these types of rate structures does not appear to influence usage by individual customers as much as does the total monthly water cost and the geographic area in which they live. Region 1 is located along the western border, and Region 8 is located along the eastern border. The following table summarizes the 2007 regional average cost for residential customers water use across Kansas. AVERAGE MONTHLY CHARGE FOR CUSTOMER WATER USE BY REGION (1) KANSAS, 2007 Number of Gallons of Water used Per Month Public Water Region Suppliers5,000 10,000 25,000 50,000100,000 1 16$16.37$23.60$46.22$83.92$159.33 2 22$15.92$21.91$41.17$75.42$145.69 3 20$14.54$21.22$41.66$76.73$152.86 4 27$21.25$28.73$52.40$93.49$178.01 5 45$22.59$32.53$64.13$118.27$226.30 6 110$24.19$36.65$76.14$141.17$272.06 7 337$30.41$48.97$103.35$194.40$377.69 8 192$32.89$55.58$122.62$234.13$454.82 Kansas 769$28.23$45.14$95.57$179.86$348.76 (1) Data from Kansas Municipal Water Use 2007 Publication. Water rates are lower in the western regions of the state where groundwater is the predominated source of supply. Water rates were lowest in Region 3 and highest in Region 8. In general, water rates increase from west to east across the state. Average water rates tend to be higher in eastern Kansas due to the costs associated with operating, building, or rehabilitating surface water treatment facilities, and costs associated with wholesale water distribution. Salina utilizes both groundwater and surface water and provides softened water to our customers. CIM Page 4 In summary, Salina’s record of responsible use of water resources in 2005 ranks very favorably among cities of comparable size and geographical location. Salina has proven to consistently utilize water resources responsibly over the previous five years as indicated in the chart below. 2003 2004 2005 2006 2007 Unacc.Unacc.Unacc.Unacc.Unacc. For For For For For gpcdWatergpcdWatergpcdWatergpcdWatergpcdWater Salina 130 12%123 13%126 11%126 14%116 11% Region 7 150 12%139 9%137 10%148 14%135 14% Avg. Due to the increasing demand for more water, our region is facing the hard reality of groundwater depletion, drought, dried-up rivers, poor water quality, mounting infrastructure cost and diminishing alternatives for additional water supplies. These constraints are placing limits on how much water will be available and affordable in the future. A strong water conservation plan will be an integral part of meeting the future water demands of the City of Salina. Water Conservation is the utilization of cost-effective water use efficiency practices to curtail the waste of water and to ensure that water use does not exceed reasonable needs. MONDAY'S MEETING Enclosed are other items on the agenda. If any Commissioner has questions or cannot attend the meeting, please contact me. Jason A. Gage City Manager