Item 3.1 PowerPoint presented by staff at meetingWater and Sewer RatesPublic HearingJanuary 10, 2017
Proposition 218 NoticeNovember 23, 2016
Water Consumption by Customer TypeFY 2015‐161 Unit = 748 gallonsResidential 2,249,71163%Irrigation/Landscape Districts 571,47918%Commercial/Industrial 298,3728%Institutional (Hospital, Schools, City) 182,2215%Multi‐family, Other 243,9426%
Water Consumption Trend 6 8 10 12 14 16Thousands of Acre Feet
Water UtilitiesSources $23.96 MillionUses$23.79 Million$0$5$10$15$20$25MillionsDelinquencies/Interest/Other $0.3Fixed Service (Meter) Charges $3.7Commodity Charges $18.383%17%$0$5$10$15$20$25Capital Projects/System Rehab./Other $2.3Admin/Billing/Reading $3.3City Operating Costs $4.6Raw Water/Power (pass‐through costs) $13.7*of Operating, excluding City CIP62%*38%
10%FY 2013‐14Volume (AF)Fixed Costs perAcre Ft.19%FY 2015‐16Volume (Potable Acre Ft.)Fixed Costs per Acre Ft.FY 2013‐14 11,712 $1,244 FY 2015‐16 7,937 $1,835 Fixed Cost Shift
Water Fund Balance$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.0$4.5$5.0FY 12‐13 FY 13‐14 FY 14‐15 FY 15‐16 FY 16‐17MillionsGeneral FundLoanProjected FundBalanceTarget FundBalance
Water Fund Balancewith available Sewer Fund loan$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.0$4.5$5.0FY 12‐13 FY 13‐14 FY 14‐15 FY 15‐16 FY 16‐17MillionsSewer Fund Loan (available)General Fund LoanProjected Fund BalanceTarget Fund Balance
City Water UtilitiesOperating Cost History$0$2$4$6$8$10$12$14$16MillionsCity Operating/ Treatment/ Admin.Base Year Adjusted for CPICIP/System RehabilitationCWA/Pass‐Through Costs
City Water Utilities 5‐Year Capital Projects ProgramFiscal YearProjectEstimated Project CostTotal Annual Appropriation17/18•Boulder Mountain Reservoir 1 Rehabilitation•Boulder Mountain Reservoir 2 Rehabilitation•Chemical Building and Farm Tank Upgrades$275,000$330,000$1,360,000 $1,965,00018/19•Clearwell Upgrades and Floating Cover Replacement $2,500,000 $2,500,00019/20•Boulder Mountain Reservoir 3 Rehabilitation•Gregg Street Reclaimed Reservoir Rehabilitation$530,000$1,000,000 $1,530,00020/21•Welton Pump Station MCC •Community Road Pump Station MCC•Gregg Street Pump Stations MCC •Woodcliff Pump Station MCC•Treatment Plant Filter Gallery Upgrades•Treatment Plant Sedimentation Basin Upgrades$150,000$150,000$210,000$75,000$660,000$260,000 $1,505,00021/22•Treatment Plant Washwater Recovery Basin and Pumping Station Upgrades•Treatment Plant Upgrades Filters 1‐8$600,000$1,300,000 $1,900,000
Sewer UtilitiesSources$8.2 MillionUses$9.7 Million$0$2$4$6$8$10Millions Capital Projects/Annual System Rehab. $1.1 Admin/Billing/Other $2.3 City Operating Costs $1.9 Treatment (Metro)/Other Pass Throughs $4.4$0$2$4$6$8$10Millions Delinquencies/Interest/Other $0.3 Service/Capacity $1.6 Sales/Commodity $6.477%23%51%*49%** % of Operating, excluding City CIP
Current Proposed IncreaseWater Service (Meter)$34.28 $37.28 $3.00Water Commodity$101.20 $109.12 $7.92Temporary Drought Recovery Surcharge$16.50* $16.50 $ 00**Sewer$68.04 $68.04 $ 00 Total Combined Bill$220.02 $230.94Bimonthly $10.92Monthly $5.46Single-Family Residential CustomerCombined Bimonthly Water and Sewer Bill(22 Units, Most Common 3/4-inch Meter, Tier 2)* Suspended on first 22 units; January 2016 – December 2016** Although no increase is proposed to the Temporary Drought Recovery Surcharge, the credit from a general fund loan will expire effective December 31, 2016
2014 Bill2017 Bill (Proposed)31 Units and Sewer Tier 322 Units and Sewer Tier 2Water Service (Meter)$28.98$37.28Water Commodity$122.76$109.12Temporary Drought Recovery Surcharge$0$16.50Sewer$79.60$68.04Total Combined Bill$231.34$230.94Single-Family Residential Customer2014 Water & Sewer Bill and2017 Proposed
Open the public hearing, hear testimony and accept all written protests against water rate increases from affected ratepayers;Close the public hearing; Adopt the Resolution to establish the Schedule of Water Service Rates and Charges effective January 1, 2017(No change to sewer rates)New rates appearing on bills beginning March 2017Recommendation
Rates and bills may be recommended, proposed, or pending adoption, and are subject to changeProjected Single Family Residential Water Bills in 2017Based on 3/4" Meter and 11 units of Consumption Monthly
2007 2008 2009* 2010* 2011 2012 2013 2014 2015** 2016***Water Service Charge (3/4" meter) 18.36 22.38 24.00 26.00 28.00 28.00 28.98 28.98 31.52 34.28 Water Commodity Charge (Uniform Rate) 2.21 2.61 3.30 3.80 3.90 3.90 4.04 4.04 4.35 4.69 Sewer Service Charge (Residential Universal) 13.53 14.67 15.48 16.35 16.35 16.35 16.35 16.68 18.14 19.76 Sewer Commodity Charge (Residential Tier 3) 65.17 68.42 72.23 76.25 66.34 61.69 61.69 62.92 67.64 72.71 Water Service Bill 84.66 100.68 123.00 140.00 145.00 145.00 150.18 150.18 162.02 174.98 Sewer Service Bill 78.70 83.09 87.71 92.60 82.69 78.04 78.04 79.60 85.78 92.47 Bi-Monthly Residential Bill with 30 Units Consumption 163.36 183.77 210.71 232.60 227.69 223.04 228.22 229.78 247.80 267.45 Year-over-year % Change Water Service 18.9% 22.2% 13.8% 3.6% 0.0% 3.6% 0.0% 7.9% 8.0%Year-over-year % Change Sewer Service 5.6% 5.6% 5.6% -10.7% -5.6% 0.0% 2.0% 7.8% 7.8%Total Bill Year-over-year % Change 12.5% 14.7% 10.4% -2.1% -2.0% 2.3% 0.7% 7.8% 7.9%*Mid CY 2009 increase to $3.30; Jan. 2010 set to $3.80** March effective date***Excludes $0.75/unit drought recovery surcharge
Projected Single Family Residential Sewer Bills in 2017Based on 3/4" Meter and 11 units of Consumption MonthlyRates and bills may be recommended, proposed, or pending adoption, and are subject to change*20 of 28 agencies reporting; others unavailable at time of data collection
1.Estimate the revenue requirement needed to recover the projected annual operating and system rehabilitation costsProject water consumption/water supply costsUse updated budget for City water operations (direct costs and allocated)2.Rate studies used to identify costs attributable to consumption/ actual use, and costs attributable to basic service/capacityare adjusted annually based on the City budget and CWA chargesDue to CWA’s partial shift toward revenue from fixed service charges, the City’s fixed revenue base is being shifted from 20% goal to 25%3.Revenue requirement for basic water service divided among customer base using individual meter size2” meter has roughly five times the flow capacity of a standard ¾” meterHow are rates determined?Meter Size Bimonthly Service Charge3/4 inch $37.282 inch $198.78
City Sewer UtilitiesCapital Projects Program5 Year Plan Fiscal Year ProjectEstimated Project CostTotal Annual Appropriation17/18•Annual Manhole Rehabilitation•Butterfield Trail Sewer Upsize$150,000$1,300,000 $1,450,00018/19•Annual Manhole Rehabilitation •Old Coach Lift Station Capacity Upgrade•Sewer Line Repair/Replace Project$150,000$660,000$250,000 $1,060,00019/20•Annual Manhole Rehabilitation •Sagewood Drive Sewer Upsize$150,000$530,000 $680,00020/21•Annual Manhole Rehabilitation •Camino Del Valle Lift Station Upgrades•Sewer Line Repair/Replace Project$150,000$45,000$250,000 $445,00021/22•Annual Manhole Rehabilitation •Camino Del Valle/Old Coach Lift Station Grinder Installation$150,000$280,000 $430,000
$6.0$7.0$8.0$9.0$10.0$11.0$12.0$13.0$14.0$15.0FY 2006‐07 FY 2007‐08 FY 2008‐09 FY 2009‐10 FY 2010‐11 FY 2011‐12 FY 2012‐13 FY 2013‐14 FY 2014‐15MillionsCity Operating/Treatment/CIP/Admin.Base Year Adjusted for CPICWA/Met Cost (10‐yr Rolling Average)City Water UtilitiesOperating Cost History
‐ 5 10 15 20 25 30MillionsGeneral Fund LoanUsesTemporary SurchargeAll Other SourcesWater Fund Balance$4.7$4.4$2.9$0.1$0.3FY 12‐13 FY 13‐14 FY 14‐15 FY 15‐16 FY 16‐17
2010 2011 2012 2013/201420152016Water $102.00 $102.60 $104.60 $108.18 $116.92$141.28 Sewer 67.00 60.42 57.33 58.48 $63.0868.04 Total Bi-Monthly $169.00 $163.02 $161.93 $166.66 $180.00$209.32 MonthlyChange $7.77 $(2.99) $(0.54)$2.36 $6.67$14.66 Single Family Residential CustomerBi-Monthly Bill HistoryMedian Use 20 Units, ¾” Meter and Sewer Tier 2
$0$5$10$15$20$25MillionsCapital Projects/Annual SystemRehab. $1.8Debt Service/Transfers/Other$0.5Admin/Reading/Billing $1.1Overhead (Finance, Insurance,Facilities) $2.1City Operating Costs $4.6CWA Fixed Charges $4.5Additional Pass‐throughs(pumping power, chemicals) $0.7Water Supply ‐ Raw andReclaimed $8.5Fixed Costs 61%Variable Costs 39%Fixed and Variable Costs
- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500R1 R2 R3 R4 R5 R6 R7CY 2012CY 2013CY 2014Single Family Residential Sewer Tier Distribution