Every Drop Counts: Conserve WATER

Townes at Old Stone Crossing 2013-2014 Water Leak

DID WE Find Source?

YES

HOW MUCH WATER WAS WASTED?HOW MUCH DID IT COST THE HOA?

From January 2013 – July 2014

• 1.3 Million Gallons

• 1700 CCF’s per month

• $180,000.00• $453.00 per household• $25 PER MONTH

LOOKING For LEAK

18 months of searching included:• Hundreds of hours of Inspecting 6.3 miles of

main water line• Finding, Identifying & Inspecting every

turn-off valve and junction box.• Inspecting every fire hydrant.• Inspecting every main line to every building

several times.

WE did not find any evidence of Leak!

What we did find• After many more hours of research and

consultations with City of Charlotte, Plumbers, and water leak detection experts. It was determined that the Townes individual units as a whole were wasting or overusing over $12,000 worth of water per month.

• It was determined our search needed to include the interior of each unit. Particularly checking for running and leaking toilets.

Toilet Repair $$ Found

• Prior to our inspections our water waste per month was $12,104.

• Today’s current reading is $6,050 per month, a saving of $6,054.

• This is an annual savings of $72,648$72,648..

Biggest Water Wasters

• Running - Leaking Toilets• Running Water Longer Than Necessary• Excessive watering Lawn /Trees• Washing Cars and Trucks• THIS IS A BIG ONE!!!! From May 2014 –

October 2014. We have documented 39 hose bibs running when Landscapers come to service property.

INSPECTIONSStarted July 2, 2014 Finished October 15, 2014

We Accessed• 325 units were inspected• 181 were found to have no leaks• 250 toilets were found to be leaking in 144 units• Of the 144 units leaking 51% (owner occupied)

and 49% were (non-owner occupied)• 72 units weren’t made available for Inspections

56% (owner occupied) and 44% (non-owner )

LEAK INSPECTION OUTCOME

• Was modestly successful. We reduced waste water by 50 %. If we were able to access 100% of units on the property, it is estimated that waste would have been reduced by an additional 10%.

What if we would have accessed 100% units but only cut waste by 60% Why?

• Answer

• The Townes has an estimated 1200 toilets on property. Only 250 were found to be leaking at the time of inspection.

• The remaining 950 toilets if not maintained by the homeowner will eventually leak if not already leaking since inspection.

How much is a CCF of water ?

•One hundred cubic feet is equal to one unit or 748 gallons.

• Current cost of 1 CCF of water and sewer combined is $7.12.

Estimated daily water use• According to research and information from the city we

should be averaging 4 - 5 CCF of water per home per month

• 3,000 – 3750 gallons per month

• Considering our demographics 50% of our property should be using between 2 – 3 CCF’s per month

• Our current average is 7 – 8 CCF per month per unit.

How Much Water should Your Unit Use & What Would Cost be with Sub –Meters?

Usage and Cost Per month Per Household

# of People

CCF’s/per month

Cost of water and

sewer

HOA Admin billing cost and City availability

Fees

1 1 - 2 $7.12 – $14.24

Estimated $7.00 per

month

2 – 3 3 – 4.5 $21.36– $32.04

Same as above

4 – 6 4 – 6.5 $28.48-$46.28

Same as above

# of People Gallons used per Month CCF's per Month OO/ NOO

2 A 0 C 3454 3—4 OO

2 A 0 C 3767 3—4 OO

2 A 3 C 8320 12--13 OO

2 A 4 C 2907 4--5 OO

3 A 0 C 2880 4--5 OO

2 A 4 C 5067 6—7 NOO

4 A 3 C 6800 9—10 NOO

2 A 0 C 1506 2—3 OO

2 A 2 C 7107 9—10 NOO

4A 1C 2950  3---4 OO

1 A 0 C 453 0—1 OO

Vacant used as HOA 330 0----1 office

What is the financial impact on our community if we continue on this path?• 2014 $47 per unit per month has been

budgeted.• From January 2014 – July 2014, actual cost

was $71.25 per month per unit.• Estimated cost thru 12/31/14 considering

impact of toilet repairs and additional homeowner awareness. $60 per unit per month.

Where does the difference from budgeted amount and actual come from?

• The Reserve Account, using over $90,000 that was designated to be used for meeting and maintaining our adequate reserve account funding. • Where will increase come from for

2015? Increase in monthly assessments

• If Each Unit Pays for its Own Water Usage What will be the Impact on Budget.

• The Line item for water and sewer would be reduced from $47 per unit per month to an estimated $12.

IMPACT on Monthly Assessments

What IS The Solution?

• Each Homeowner pays for the amount of water they use or waste.

• Install Sub meter on each unit.

• Each homeowner would receive monthly water bill (from HOA).

SUB-METERS• The Board of Directors has received 3

proposals for Sub-Metering Installing.• BOD has narrowed down to two of the three

companies.• Cost of equipment, plumbing and installation

of Sub-Meters is Estimated at $115,000 - $125,000.

• By the end of 2014 HOA will have spent over $200,000 between 2013 & 2014 budget years on wasted water. The ROI would be 15 months.

What Needs to Happen to Allow HOA to Bill Separately For Each Units Usage of Water And Sewer?

• In order to be able to have homeowners billed separately for water and sewer, we must change governing documents.

• 2/3 of Homeowners must approve in writing.

Suggestions on Getting HOA Approval• Form a task force of committees (35+)

homeowners to work with board, Hawthorne, to secure votes.

• Enlist consultants , Private companies or Individuals to build campaign and make this happen.

• This is achievable and can be done in 90 -120 days with a organized and professional approach.

LET’s TALK MONEY

• If we don’t go to Separate billing for water & sewer what will Dues be for 2015 ?

• If we were able to have sub-metering in place January 1, 2015 What would dues be for 2015?

• Other Scenario's ?

If homeowners pay separately for water why would it still be a line item on our budget?

• ANSWER• Homeowners would only be paying for their

personal unit’s water and sewer, along with the city’s billing and administrative fees.

• The current budget line item includes:• Storm Drain runoff = $3, 900 per month• Pool, Irrigation, and booster station testing.

Reserve Account FundingWater waste Impact

• 2014 $17.00 increase to Reserve account to increase reserve account per reserve study 5-year plan. Was spent on water plus estimated additional $5.75 per home per month.

• Continuing on this same path HOA Dues will continue to rise $25- $30 per year just to adequately fund reserve and pay for water & Sewer.

Reserve Account Fundingwith Sub Meters

• 2014- Dues at $182.00 Reserve Account Funded 39.8%

• 2015- Budget $17 To Reserves dues $164.00 Brings Reserve Account 55% funded. Estimated $326,000 year end.

• 2016 - Budget $17 To Reserves dues $182.00 Brings Reserve Account 71.3% funded. Estimated $610.000 year end

Reserve Account Fundingwith Sub Meters

• 2017 - Budget $8 To Reserves dues $190.00 Brings Reserve Account 87% funded. Estimated Reserves $1,014,000 year end.

• At 87% funding of Reserve Account. This would be considered adequate. No additional increase would be needed for reserve account.