Replacing the Reservoir: Single Tank Saves You Bank

You may have read about the Frankfort Plant Board’s plans to replace the city’s existing reservoir tanks and resulting litigation involving FPB and the Frankfort City Commission. The disagreement hinges on FPB’s proposal to replace two 135-year old 4.6 million gallon tanks with one 7 million gallon tank. The City Commission prefers the more costly two 4.6 MG tank replacement option.

The City Commission and the FPB Board of Directors have met to explore solutions that would be agreeable to all and would address the aesthetic concerns of the Tanglewood Neighborhood Association (TNAi) while maintaining the Board’s fiduciary responsibility to ratepayers and meeting health and public safety obligations to all citizens.

The current reservoir tanks are significantly beyond their service life and at increasing risk of failure. The frequency of repairs has increased significantly over the last five years and is costly. The time to replace the reservoir is now.

The single tank at Tanglewood proposed by FPB is the most responsible option to all ratepayers, provides sufficient water capacity to meet the community’s needs for the next 40 years, and sets the foundation for the provision of water for generations to come.

Building two tanks now at the capacities that currently exist, as proposed by the City Commission, would require additional future storage elsewhere – not only costing more now but also costing significantly more later when needed. Suitable locations are limited. Options considered included Juniper Hills, behind Franklin Square and off Sower Blvd. All would cost significantly more (as much as $10 million at one of them) than building at the current reservoir site.

Water rates are determined by Water Department expenses. Funds for a new tank will come from rates paid by water customers, not subsidized by other FPB departments. One 7 MG tank costs $3 million less than two 4.6 MG tanks. Three million dollars could be better spent in the long run on much needed infrastructure for one of the oldest water distribution systems in the country.

Also, FPB’s proposed plan will not only improve the aesthetic view of the reservoir but will also restore a vital amenity and family venue to the community. Since the single tank proposal will only require a fraction of the footprint currently occupied, FPB envisions additional greenspace and landscaping which will enhance the welcoming sight to visitors entering Frankfort on Louisville Road, and improved amenities for the public to enjoy. This includes re-opening the clubhouse for community events.

At the request of the Tanglewood Neighborhood Association and the City Commission, improvements are already underway. FPB replaced the chain link fence with iron and brick decorative fencing and planted some new landscaping.

The Frankfort Plant Board is committed to bringing the Frankfort community the lowest utility rates possible while also ensuring that no extraordinary financial burden is placed on current and future citizens for unnecessary infrastructure.

FPB’s single tank plan considers costs and provides space for future capacity when the community needs it. It is the more responsible and strategic option to keep water rates at a minimum for customers both now and in the future.

We encourage all water customers who are concerned about how this project will affect their rates to visit the FPB website at https://fpb.cc/replacing-the-reservoir.

FPB committed to lowest cost option

The Frankfort Plant Board (FPB) recognizes and appreciates the commitment of Roger Crittenden and the Tanglewood Neighborhood Association (TNAi) to the community in regards to the replacement of Frankfort’s 135-year old reservoir. While FPB respects the input and the concerns raised by TNAi, Crittenden’s letter to the editor (“Time for FPB to accept decisions on Tanglewood reservoir,” March 28) contains inaccuracies that are important to address.

Crittenden references the April 16, 2018 presentation to the former City Commission and states, “...the cost for one 7 million-gallon tank (FPB’s proposal) versus two 4.6 million-gallon tanks was the same.” The presentation given to the City Commission and TNAi in that meeting (https://bit.ly/2CMI3PB) notes the cost of TNAi’s preferred solution of two 4.6 MG tanks with a 1/16 dome roof as $6.8 million and the cost of the single 7 MG tank as $3.8 million. The TNAi solution was $3 million more expensive a year ago, and remains $3 million more expensive today.

The letter further states, “What the Plant Board needs is one 4.6 million-gallon tank to supply the needs of its customers now and in the future.” However, in their March 14, 2017 “Site Alternatives Evaluation” (https://bit.ly/2uA77VF), the engineers of Strand Associates recommended the construction of a single 7 MG tank to meet current needs. In that report they note, “...we concur with the FPB water staff recommendation to replace the existing reservoir with a single 7 MG tank to meet current daily and peak demands.”

The current reservoir is in dire need of replacement. The best solution economically, environmentally and aesthetically, which meets our community’s water needs, is the single 7 MG tank.

 This solution will not only meet our needs today, but will allow for economically accommodating any future needs for decades to come.

The FPB plan is $3 million less expensive, is 24 percent less volume, its footprint is significantly smaller (at least 22 percent) and is only nine feet taller at the apex of the dome than what TNAi is proposing.

A single 7 MG tank will return the majority of the site to green space, which will allow for the planting of additional trees and landscaping to obscure the view of the dome and improve the overall appearance of the site.

It is the statutory responsibility of the FPB to “make all determinations as to the operation, maintenance, improvement and extension of the electric and water plant.” (KRS 96.176(2)). FPB takes its duty to provide its customers safe, reliable, and economic services very seriously, which is why replacing the reservoir is of the utmost importance.

When making decisions, FPB must continue to think about what is best for all of its ratepayers. The FPB-approved replacement plan is the least-cost option and incorporates the concerns of the TNAi. It is time to take action to resolve any remaining issues and move forward with what is best for the entire community.

-The Board and Staff of Frankfort Plant Board

 

Future decisions are important to water rates

We’d like to thank Nate Van Sickel, president of the Tanglewood Neighborhood Association, for his comments in a column he submitted about FPB water rates. His input helps explain to our customers how important it is for FPB to make smart decisions to control rate increases.

Mr. Van Sickel points out that FPB water rates are higher than comparable neighboring cities. This is true. While our rates are cheaper than Kentucky American Water, they are higher than Bluegrass Area Development District average rates. This is primarily due to reinvestments to improve our water system. And this is why we need to be very careful with projects and costs moving forward.

This is especially true for the decision on replacing the 135-year-old reservoir. This structure has long been the key to our community’s water distribution system. It has lasted far beyond its service life and is in dire need of replacement. To fulfill this need, the board has chosen the least cost design – a solution that not only significantly increases green space, but also would have the least impact on rates.

The Tanglewood Neighborhood Association prefers a plan that would cost ratepayers an additional $3 million for aesthetics and additional infrastructure we may not need for 40 or 50 years. That is not good use of ratepayer money. And for someone who is concerned about high water rates, it just doesn’t make sense.

FPB does strive to keep rates as low as possible. That’s why we are working so hard to move forward with the plan approved by the Board more than a year ago.

Mr. Van Sickel’s argument in the article leads you to believe that our residential customers are paying a higher rate because of the costs to sell water to wholesale customers – but, in reality, the opposite is true.

Infrastructure added to service wholesale customers has been paid for by the wholesale customer – not by FPB retail customers.

Last year, our wholesale customers provided 19 percent of our necessary revenue. If we discontinued sales to our wholesale customers, FPB’s revenue requirements for those fixed costs would not change. Our retail customers would have to absorb those costs and their rates would have to increase by approximately 21 percent.

As you can see, it is a benefit to our retail customers that we have our wholesale customers to help pay our bills.

Again, we appreciate Mr. Van Sickel’s input. We share his concern over higher rates. That is why we value our wholesale customers. And it is precisely why we continue to advocate for the reservoir replacement plan that would keep our customers from paying an additional $3 million for unnecessary infrastructure.

Feedback to the FPB Board of Directors can be submitted to contact@fewpb.com.

FPB approves organizational changes

New structure to streamline coordination between lines of business, improve services for customers.

The FPB Board of Directors approved organizational changes including two new management positions. The new structure will improve coordination and communication across all departments and better leverage all resources of the company to achieve strategic planning goals.

“The board and staff are excited to see how these changes will help improve services for customers,” said Cathy Lindsey, FPB Public Information Coordinator. “Working in a more streamlined structure will increase efficiency and better position our crews to implement new projects in the future.”

The board approved creating the positions of Chief Financial Officer (CFO) and Cable/Telecommunications Superintendent. The board also eliminated the position of Assistant General Manager for Cable Telecommunications.

In addition, the board changed the title of the Assistant General Manager of Operations to Chief Operating Officer (COO). The Cable/Telecommunications Department will now report directly to the COO.

The CFO and COO positions will report directly to the General Manager and support his efforts to provide excellent service to FPB customers and strengthen and improve operations. 

Based on the reorganization, the departments reporting directly to the COO are Electric, Water Distribution, Water Treatment, Electric and Water Engineering, Support Services, Network Operations Center, and Cable Telecommunications. 

The departments reporting directly to the CFO are Customer Service, Information Technology, and Finance.

The Safety and Human Resources departments will report to both the Assistant General Manager of Administration/Staff Attorney and the General Manager.

Due to current vacancies, there are funds available in the current budget to cover any promotional increases that may occur.

 

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For news and updates, please go to http://fpb.cc or follow @fewpb and @fpbalerts on Twitter and like us on Facebook.

Outage Wrap-Up

Scattered outages yesterday due to high winds came in waves starting around 3 p.m. There were 14 outages affecting 423 customers. The largest outage, affecting 300 customers, was in the Meadows and lasted from around 8:30 p.m. until 9:30 p.m. Electric crews finished up at 12:30 this morning and are currently working on a few calls of tree limbs on lines. 

We appreciate everyone’s patience as the repairs were made.