Item 3.1 - PowerPoint presented by staff at meetingWater and Sewer Rates
Public Hearing
March 5, 2019
Proposition 218 Notice
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07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18MillionsWater Consumption Trend
Residential
Irrigation/Landscape/Agri/Other
Commercial/Non-Residential
FY 2017-18
4.5 million units/
10,381 AF
1 unit = 748 gallons 1 acre foot = 325,851 gallons
SDCWA Rates & Charges
2018 SDCWA
Final
2019 SDCWA
Final
Change over
Current
Readiness-to-Serve Charge 37,202 32,668 -12.19%
Capacity Charge Allocation (5 YRA)19,276 15,577 -19.19%
Supply Reliability Charge (5 YRA)61,584 62,290 1.15%
Customer Service Charge (3 YRA)50,290 44,464 -11.58%
Storage Charge Allocation (3 YRA)134,932 122,345 -9.33%
Infrastructure Access Charge ( per meter)50,056 50,150 0.19%
Total Monthly 353,340 327,494 -7.31%
Total Annual 4,240,081 3,929,932
Final
Commodity/AF (including trans. charge)$1,009 $1,029 1.98%
San Diego County Water Authority
Rates and Charges
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Water Utility Operating Costs $25,223,880
City Costs
Water Treatment
Water Transmission and Distribution
Reclaimed Water Distribution
General Administration
Met/SDCWA/SDG&E Costs
Water Supply/Pumping Energy
Supply Reliability Charge (50%)
Storage Allocation
Readiness-to-serve
Capacity Charge Allocation (50%)
Poway Water Utilities
City
Costs
32%
Water
Supply/Energy
68%
Water Utility System Rehabilitation/Loan Repayment/Other $1,529,170
Grand Total Water Utilities Revenue Requirement $26,753,050
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Poway Water Utilities
Base Costs Recovered by Fixed Service/Meter Charges -$5,455,350
City Costs
Meter Reading
Billing
Water Department Administration
Accounting, Payroll, Insurance
General Administration
Met/SDCWA Costs
Readiness-to-serve
Capacity Charge Allocation (50%)
Supply Reliability Charge (50%)
Infrastructure Access (Meter) Charge
Customer Service Charge
System Rehabilitation (50% allocated to Base/Capacity)
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City
Costs
54%Met/SDCWA
Costs
28%
System
Rehab.
18%
Consumption Costs Recovered by Commodity (volumetric) Charges -$21,297,700
City Costs
Water Treatment
Water Transmission and Distribution
Reclaimed Water Distribution
Met/SDCWA/SDG&E Costs
Water Supply/Pumping Energy
Supply Reliability Charge (50%)
Storage Allocation
Readiness-to-serve
Capacity Charge Allocation (50%)
System Rehabilitation (50% allocated to Supply)
Poway Water Utilities
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City Costs
22%
System
Rehab.
4%
Water
Supply/Energy
61%
Met/SDCWA
Costs
13%
Poway Water Utilities
Revenues
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Meter/Fixed Charges
16%
Commodity
79%
Drought Recovery
Surcharge
5%
Poway Water Utilities
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Proposed
Increase
Water Service
(Fixed Meter Charge)7.5%
Water Commodity 4.5%
Drought Surcharge
(Discontinued
December 2018)
$.00
Water Fund Balance (Reserve)
FY 2017-18 Estimated
Beginning Balance 7/1/2017 $1,775,080
General Fund Loan Repayment ($401,250)
Preliminary Closing (sources less uses)+$4,002,836
FY 2018-19 Proposed
Beginning Balance 7/1/2018 $5,240,296
General Fund Loan Repayment ($537,620)
Projected Uses $26,753,050
Projected Sources $27,643,900
Projected Fund Balance (Reserve) (21%)$5,593,526
Target Reserve Level -20% of Annual Operating $5,064,076
Poway Water Utilities
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Poway Sewer Utilities
Sewer Utilities Operating Costs $8,709,400
City Costs
Sewer Pumping and Transportation
Billing
Accounting, Payroll, Insurance
General Administration
Treatment and Disposal
San Diego Metro
Bernardo System
Penasquitos System
Sewer Utility System Rehabilitation/Other $608,000
Grand Total Sewer Utilities Revenue Requirement $9,317,400
City Costs
48%Metro/Penasquitos/
Bernardo Systems
52%
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Poway Sewer Utilities
Grand Total Revenue for Cost Recovery $8,481,400
Sources of Revenue to Recover System Use
Bi-Monthly Meter Service Charges
Single Family Residential -Universal Capacity
Non-Residential -Meter Size Based Capacity $1,754,900
Interest, Other Service Fees $285,400
Revenue from Sewer Flow
(Residential based on portion of winter water use)
Tier No. of Accounts
Tier 1 1,775
Tier 2 4,848
Tier 3*2,652
Tier 4 989
Tier 5 597
Tier 6 278
Tier 7 (max.)281
Non-Residential 2,354
Total Bi-Monthly Sewer Flow Charges
*Includes 771 Default R3 Customers $6,441,100
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Fixed
Capacity/Service
Charges
24%
System
Use/Volumetric
Charges
76%
Poway Sewer Utilities
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Proposed
Increase
Fixed Sewer Service Charge 3.25%
Sewer Commodity 3.25%
Sewer Fund Balance (Reserve)
FY 2017-18 Estimated
Beginning Balance 7/1/2017 $15,048,035
Preliminary Closing (sources less uses*)+$431,853
FY 2018-19 Proposed
Beginning Balance 7/1/2018 $15,479,888
Projected Uses $9,317,350
Projected Sources $8,481,400
Use Fund Balance (Reserve)($835,950)
Reserve –Metro Pure-Water Program Funds $14,643,938
Poway Sewer Utilities
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Capital Improvement Program (CIP)
•Current & Future CIP projects are a component of the proposed water
and sewer rates
•November 2014 –Water Treatment Plant Condition Assessment
•Evaluation of overall condition of the plant & its individual
components
•December 2014 –Water Distribution System Maintenance &
Rehabilitation Assessment Project
•Inventory and assess existing water distribution system and
prioritize rehabilitation and replacement needs
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Capital Improvement Program (CIP)
•Projects were identified for maintenance and rehabilitation of water
system assets
•Prioritized 10-year CIP was developed
•Estimated cost of $18.4 million (2014 dollars)
•Estimates did not include identified operations & maintenance
projects or other CIP projects that were currently planned by the
City to address regulatory, capacity, or other master planned
efforts
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Capital Improvement Program (CIP)
•September 2013 –Sewer System Infrastructure Evaluation
•Evaluated the capacity and condition of the City’s sewer conveyance system
•Develop and prioritize future sewer CIP project
•Recommended CIP program based upon the report -$9.2 million
•Estimates did not include operations & maintenance projects such as manhole rehabilitation
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Capital Improvement Program (CIP)
•FY 18-19 CIP Includes:
•10 Water projects totaling nearly $5.0 million
•5 Sewer Projects totaling $4.5 million
•Seven-year Water CIP work plan contains
•31 projects –Current total estimated cost of $14.8 million
•Five-year Sewer CIP work plan contains
•17 projects –Current total estimated cost of $4.2 million
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Water System Infrastructure
•Operate & Maintain
•24 Million-Gallon (MG) per Day Water Treatment Plant
•10 MG Clearwell Tank
•289 Miles of Water Distribution Pipes
•14 Pump Stations
•6,794 Water Distribution Main Valves
•2,821 Fire Hydrants
•18 Treated Water Storage Reservoirs
•1 Billion-Gallon Lake Poway Reservoir and Dam
•Approx. 3.25 Billion-Gallons of water treated annually
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Sewer System Infrastructure
•Operate & Maintain
•186 Miles of Collection Pipelines
•12,193 Sewer Laterals
•4,066 Manholes
•5 Sewage Lift Stations
•Collects and Transport approx. 1.465 Billion-Gallons of
sewage annually
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Current Proposed
Increase/Decrease
(reflected beginning
May 2019 billing)
Water Service
(Fixed Meter Charge)$39.33 $42.28 $2.95
Water Commodity $128.25 $134.00 $5.75
Temporary Drought
Recovery Surcharge $18.75 $0.00 -$18.75
Sewer $71.15 $73.46 $2.31
Total Combined Bill $257.48 $249.74 Bimonthly -$7.74
Monthly -$3.87
Single-Family Residential Customer
Combined Bimonthly Water and Sewer Bill
(25 Units, Most Common 3/4-inch Water Meter, Sewer Tier 2)
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* Effective 2018 ** Effective 2019
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$20
$40
$60
$80
$100
$120
$131.32 $119.56 $117.00 $115.24 $113.06 $111.85 $111.16 $108.08 $98.60 $97.87 $96.79 $92.92 $92.30 $89.88 $89.88 $90.82 $86.83 $85.54 $84.25 $78.83 $76.30 $67.41 Based on 13 Unit Water Use and 3/4" Residential Meter Size
Water bill effective January 2019
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$-
$20
$40
$60
$80
$100
$120
$140
120.35 91.09 90.55 82.84 81.75 79.17 78.55 68.53 66.56 65.81 65.47 64.53 63.54 62.91 62.82 61.95 56.45 56.17 54.12 53.90 50.15 48.75 43.51 38.99 35.23 34.21 28.84 28.64 Sewer Rate Comparison in San Diego County
Based on 12.6 units of water and 3/4" Residential meter size for sewer bill January 2019
Water & Sewer Rate Study
•January 8, 2019 Workshop –Council directed staff to proceed with a
Water & Sewer Rate Study to prepare for next rate-setting cycle
•Request for Proposals issued on February 4, 2019
•Staff expects to present contract award for study at the
March 19, 2019 City Council meeting.
•Expect to hold multiple workshops for public comment
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Open the public hearing, hear testimony and accept all written protests against the water and sewer rate increases from affected ratepayers
Close the Public Hearing
Adopt the Resolutions to establish the Schedule of Water and Sewer Service Rates and Charges effective March 1, 2019
New rates appearing on bills beginning in May 2019
Recommendation
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Water and Sewer Rates
Public Hearing
March 5, 2019