Item 9 - Public Hearing for Proposed Four Year Water, Recylced Water and Wastewater RatesNovember 2, 2021, Item #9DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway November 2, 2021 Honorable Mayor and Members of the City Council Aaron Beanan, Director of Finance ;ft;; Aaron Beanan, Director of Finance (858) 668-4411 or abeanan@poway.org CITY COUNCIL Public Hearing for Proposed Four-Year Water, Recycled Water, and Wastewater Rates On September 7, 2021 the City set the November 2, 2021 public hearing date for proposed four-year rate increases for water, recycled water, and wastewater rates. The California Constitution, Article XIIID, Section 6, states that local governments must hold a Majority-Protest Public Hearing and notify property owners at least 45 days in advance of the public hearing related to proposed water, recycled water, and wastewater rates. The notice (Attachment C) was mailed to 13,300 property owners with municipal water and/or wastewater service on September 15, 2021, at least 45 days prior to the public hearing. Under the law, if written protests against the proposed rate increases are presented by a majority of property owners (i.e. more than 6,650 property owners), the increases shall not be approved. If a majority protest does not exist, Council may elect to approve the proposed four-year rates and related items at the conclusion of the public hearing. As of October 26, 2021, a total of 382 protests were filed with the City Clerk. A summary of the protests filed with the city is shown in Attachment E. The actual protests are on file with the City Clerk's Office. Recommended Action: It is recommended that the City Council take public input, close the public hearing, and adopt the resolutions if a majority protest does not exist. Discussion: After a review of water, recycled water, and wastewater projections, new rate increases are needed to ensure the financial sustainability of the enterprise system. The September 7, 2021 staff report contained a lot of information explaining why rate increases were needed and why four-year rate increases, instead of two-year, were being proposed. As such, this staff report will briefly summarize the information contained in that staff report. The September 7, 2021 staff report has been included as a courtesy (Attachment D) for those that did not have the opportunity of attending or reading that staff report. 1 of 35
November 2, 2021, Item #9Proposed Water Rates Four-year revenue increases of 10% in January 2022, 9% in January 2023, 8% in January 2024, and 8% in January 2025 are being proposed for water to cover the increasing costs of providing safe, reliable water on demand to ratepayers. The increases are necessary to fund the costs of imported water, capital expenses, operational expenses, and appropriate reserve levels. The two largest rate drivers are the cost of imported water and capital projects. Imported Water: Imported water represents almost 60% of water.operating costs. When imported water costs increase, this impacts City of Poway water rates. The average San Diego County Water Authority (SDCWA) rate and charge increase to the City is 6.87% for calendar year 2022. SDCWA used reserves to temper this increase, otherwise it would have been greater. Their rate increase was driven by an average rate and charge increase of 8.16% from the Metropolitan Water District (MWD), one of SDCWA water suppliers, and the Quantification Settlement Agreement (QSA) increase of 4.1 %. The QSA is a long-term water supply reliability project that secured a major water supply source for San Diego County through the Imperial Irrigation District water transfer. Water Capital Improvement Program: Water infrastructure includes water assets to transport water from the SDCWA system to the city's system, assets to treat the water to safe drinking levels, and assets to deliver safe, reliable water on demand to each rate payer's property. The water enterprise is planning both generational system improvements and routine maintenance and rehabilitation improvements over the next 5 years. As discussed at numerous City Council meetings, the Clearwell Bypass, Clearwell Replacement, and SDCWA Treated Water Connection (Water Program) are generational system improvements that will increase the resiliency, redundancy, and sustainability of the water system. The Water Program is estimated to cost $69.SM. In addition, the next five years have $13.SM in routine maintenance and rehabilitation projects WATER ENTERPRISE OVER $64M IN INFRASTRUCTURE: • • • • • • • • 294 MILES OF PIPE 5,044 WATER VALVES 21 PRESSURE REDUCING STATIONS 14 PUMP STATIONS 19 RESERVOIRS ONE 24 MGD* TREATMENT PLANT 2,435 FIRE HYDRANTS -45,000 ANNUAL WATER QUALITY TESTS PLANNED INFRASTRUCTURE: • $69.SM WATER PROGRAM • $13.SM REGULAR PROJECTS *MILLION GALLONS PER DAY planned. These projects ensure the water enterprise's over $64M in existing infrastructure continues to deliver safe reliable water. Proposed Water Program Financing: DEBT FINANCING MINIMIZES NEAR-TERM IMPACTS TO RATEPAYERS AND CREATES INTERGENERATIONAL EQUITY. 2 of 35 Based on the potential cost of the Water Program and the impact to ratepayers under a pay-go approach, as described at previous Council meetings, debt financing is being proposed. Given the timing of the proposed debt issuances to accommodate the cash flow needs of the Water Program, staff is recommending four-year rate increases this rate setting cycle. When the bonds go to market, this will benefit ratepayers by giving investors
November 2, 2021, Item #9assurances that the City will have a sufficient revenue stream to pay the annual debt service which translates to a lower cost of debt, all else being equal. The proposed revenue increases of 10%, 9%, 8%, and 8% over the next four years include estimates to finance the $69.SM Water Program using water revenue bonds. The first phase of the financing was approved on October 19, 2021 when City Council authorized the issuance of the Series 2021 A Water Revenue Bonds. This is the first of three planned debt issuances to finance the Water Program. Series 2021A will predominantly finance the Clearwell Bypass portion of the Water Program. The second and third debt issuances are planned for calendar years 2023 and 2024. Staff will actively pursue all available grant opportunities for the Water Program. And grant funds received will help defray the costs of the future debt issuances. Proposed Fixed/Variable Ratio Adjustment: The fixed/variable ratio reflects the amount of revenue collected between fixed charges which are not dependent on water usage and volumetric, or variable, charges which are dependent on water usage. The greater the revenue collected from fixed charges is, the more financially sustainable the water enterprise is. As discussed at prior Council meetings, the proposed rate INCREASING THE FIXED/VARIABLE RATIO SLOWLY BALANCES SUSTAINABILITY WITH RATEPAYER IMPACTS. increases include the revenue collected from fixed charges slowly increasing over time to minimize the impacts to ratepayers while helping increase the sustainability of the water enterprise. The proposed four-year water rate structure includes small adjustments to the ratio each year. The following table shows the changes to the fixed/variable ratio over the proposed four-year rates. Table 1: Estimated Fixed/Variable Ratios Existing Jan. 2022 Jan. 2023 Jan.2024 Jan.2025 Proposed Revenue Increase(%) N/A 10% 9% 8% 8% Fixed Charge(% of total revenue) 19.22%1 20.16% 21.21% 22.28% 23.39% Variable Rate (% of total revenue) 80.78% 79.84% 78.79% 77.72% 76.61 % 1. The currently approved fixed/variable ratio is 20/80%. However, the actual ratio is impacted based on things like water sales. The actual ratio will always be slightly different than the projected ratio. Estimated Residential Impacts: Poway's share of the SDCWA and Metropolitan Water District (MWD) settlement was $1,167,915. These funds were used to mitigate the required rate increase in calendar year 2022. If the City did not receive the MWD settlement, an 18% increase would have been needed, or 8% more than the current proposed rate increase, for calendar year 2022. The $1,167,915 settlement translates to roughly $20 in bimonthly savings for the average residential customer who has a ¾" meter and uses 37 units of water bimonthly. The following table shows the estimated bimonthly impacts of the proposed increases, which include the benefit of the MWD settlement as well as the costs to finance the Water Program, to the average residential customer by year. Table 2: Estimated Residential Impacts (Water) Debt Funding Option Existing Jan. 2022 Jan. 2023 Jan.2024 Jan.2025 Revenue Increase(%) N/A 10% 9% 8% 8% Estimated Water Bill1 $249.33 $275.08 $300.70 $325.90 $353.09 Impact($) N/A $25.75 $25.62 $25.20 $27.18 1. Assumes the average residential customer has a¾" meter and uses 37 units of water bimonthly. 3 of 35
November 2, 2021, Item #9As the table shows, the average residential customer would be paying over $103 more per bimonthly billing period for water in January 2025. This increase helps finance significant generational investments into the water system as well as the anticipated costs of providing safe, reliable water on demand to ratepayers. Proposed Wastewater Rates Four-year rate increases of 4.0% in January 2022, 2023, 2024, and 2025 are being proposed for wastewater to cover the increasing costs of providing safe, reliable wastewater services to ratepayers. The increases are necessary to fund the costs of wastewater treatment, capital expenses, and operational expenses. These proposed rate increases reflect the use of reserves to temper the impacts to ratepayers. Funds to cover Poway's estimated share of the San Diego Pure Water project were set aside as part of a strategic financial management decision to help mitigate the impacts to ratepayers and is discussed in more detail below. Wastewater Treatment: The most significant rate driver for the proposed revenue increases is wastewater treatment costs. Wastewater generated in Poway is collected by the City's wastewater system and conveyed to the City of San Diego Metropolitan Wastewater System (Metro), where it is treated at the Point Loma Wastewater Treatment Plant and ultimately discharged to the Pacific Ocean. Wastewater treatment represents almost 43 percent of all operating expenses. Similar to how SDCWA increases impact Poway's water rates, Metro wastewater treatment cost increases impact City of Poway wastewater rates. The largest factor increasing wastewater treatment costs is the San Diego Pure Water project. San Diego's Pure Water project is a multi-year project that is projected to supply one-third of San Diego's water supply locally by 2035. Based on projections from May 2020, Poway's estimated share of WASTEWATER ENTERPRISE OVER $36M IN INFRASTRUCTURE: • 186 MILES OF PIPE • 5 LIFT STATIONS • 4,000 MAINTENANCE COVERS PLANNED INFRASTRUCTURE: • • $20M PURE WATER SHARE $5.7M REGULAR PROJECTS the project is over $4 million annually for the next five years. However, several years ago staff began incorporating these costs into rates as part of a long-range financial management strategy to mitigate the impacts of this project to ratepayers. Funds collected have been set aside in reserves. As such, a combination of reserve drawdowns and rate increases will be used over the coming years to temper the impacts to ratepayers. Additionally, a wastewater treatment plant is designed to treat certain types of waste. As people dispose of pharmaceuticals, food waste, cooking oil, industrial chemicals, etc. down the wastewater system, the treatment process gets extended which increases costs. Wastewater Capital Improvement Program: The next largest factor driving the proposed revenue increases is rate-funded capital improvement projects. Rate-funded capital is paid for via rates or reserves; no debt is currently used or being proposed to fund capital projects. Rate funded capital is also being proactively invested in the rehabilitation and repair of the wastewater infrastructure to ensure Poway continues to provide safe, reliable, and affordable wastewater services. [Remainder of page intentionally left blank] 4 of35
November 2, 2021, Item #9Estimated Residential Impacts: Table 3 shows the estimated bimonthly impacts of the proposed four-year increases to the average residential customer by year. Table 3: Estimated Residential Impacts (Wastewater} Proposed Increases Existing Jan.2022 Jan. 2023 Jan.2024 Jan. 2025 Rate Increase(%) N/A 4% 4% 4% 4% Estimated Water Bill1 $98.21 $102.20 $106.23 $110.60 $115.03 Impact($) N/A $3.99 $4.03 $4.37 $4.43 1. Assumes the average residential customer has 15 units of winter wastewater flow bimonthly. As the table shows, the average residential customer would be paying over $16 more per bimonthly billing period for wastewater in January 2025. Community Outreach In addition to the 13,300 Prop 218 Notices mailed to property owners, to help the community understand the impacts of the proposed four-year rate increases, staff updated the residential bill estimator tool (https://poway.org/Rates-Fees). This was provided to help ratepayers evaluate how the proposed increases impact their specific usage patterns. This tool, as well as information specifically about the majority-protest public hearing, and proposed rates, was posted to the homepage of the City's website and the Water and Sewer Services section of the Finance Department webpage. This information was also actively communicated to the public via the City's Nextdoor public agency account, its City of Poway Facebook page, its City of Poway Twitter account, and the Poway Today e-newsletter. Utility Assistance Programs The COVID-19 pandemic has impacted people throughout the country. A variety of policies and programs have been put in place to aid those impacted by the pandemic. For example, the State of California declared through Executive Order No. N-42-20 issued on April 2, 2020 that residential customers and certain business customers could not have service discontinued or be shut-off for utility non-payment. Based on the City's normal policies, a total of 2,007 accounts could have been tagged due to non-payment. Tagging is the precursor to discontinuing service. The tags would have created additional fees for ratepayers. Since the City was not discontinuing service, the decision was made not to tag ratepayers. The savings to ratepayers for these fees cannot be reasonably estimated due to several factors leading to the tag fee charged. The City went beyond the State's action and extended the shut off moratorium to all Poway ratepayers. Another example of the City going beyond the State's policy is the waiver of late fees. The City has been waiving late fees since the beginning of the pandemic even though it has not been required by the State. The City waived 7,747 late fees totaling over $232k between March 18, 2020 and June 30, 2021. Late fees were resumed on July 1 consistent with the timing of the State's reopening plan. Given a full economic recovery will take time and there are still customers that are experiencing financial uncertainty, there are several programs to help provide assistance. The State of California is currently putting together a California Water and Wastewater Arrearage Payment Program based on the $985M received from federal funding. This funding will help cover water debt from residential and commercial customers accrued between March 4, 2020 and June 15, 2021. If the program still has funding available after addressing water debt, it will extend to wastewater residential and commercial arrearages as well. While this program is not fully operational yet, it is anticipated to provide relief to certain Poway ratepayers. Once the program is operational, applicable Poway ratepayers will be notified about how it can benefit them. 5 of35
November 2, 2021, Item #9The County of San Diego has a fully operational 2021 Emergency Rental Assistance Program (www.sdhcd.org). This program also helps eligible households who have been financially impacted by the COVID-19 pandemic by providing payment assistance on utilities (and rent) to qualifying individuals. To date, 23 Poway ratepayers have received a total of $26,986 in assistance to cover their water and wastewater bills. Timeline The following graphic shows the proposed four-year rate cycle as well as the current schedule for the potential three series of debt to fund the Water Program. Set Public Hearing: Sept. 7, 2021 Potential 2021 Debt Series: Nov. 10, 2021 Year 3 Rates Effective: Jan. 1, 2024 Environmental Review: Mail 218 Notice: By Sep. 18, 2021 Year 1 Rates Effective: Jan. 1, 2022 Potential 2024 Debt Series: Aug.2024 Consider Debt: Oct. 19, 2021 Year 2 Rates Effective: Jan. 1,2023 Year 4 Rates Effective: Jan. 1, 2025 Public Hearing: Nov. 2, 2021 Potential 2023 Debt Series: Mar. 2023 This project is exempt from the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15273(a): modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges by public agencies. Fiscal Impact: Based on the information contained in this staff report, sufficient revenues to fund operations, investment in capital infrastructure, and appropriate reserve levels will be generated from the recommended water and wastewater revenue increases. Over the next four-year period, it is estimated approximately $23.3M in additional water revenues will be generated while approximately $3.3M in additional wastewater revenues will be generated if the proposed rates are adopted at the public hearing. Safe reliable water delivered on demand to an average residential ratepayer costs approximately one penny per gallon. Treating the average residential ratepayer's wastewater in a safe and reliable fashion costs approximately nine-tenths of one penny per gallon. [Remainder of page intentionally left blank] 6 of35
November 2, 2021, Item #9Public Notification: The California Constitution, Article XIIID, Section 6, states that local governments must hold a Majority-Protest Public Hearing and notify property owners at least 45 days in advance of the public hearing related to proposed water, recycled water, and wastewater rates. The notice (Attachment C) was mailed on September 15, 2021, at least 45 days prior to the public hearing. A Notice of Public Hearing was published in the Poway News Chieftain on October 14, 2021 and October 21, 2021. As of October 26, 2021, a total of 382 protests were filed with the City Clerk. Attachments: A. Resolution Establishing Water Service Charges and Rates B. Resolution Establishing Wastewater Service Charges and Rates C. Notice of Public Hearing D. September 7, 2021 Staff Report E. Summary of Protests Received Reviewed/ Approved By: ~~x~ W~Kaserman Assistant City Manager 7 of 35 Reviewed By: Alan Fenstermacher City Attorney City Manager
November 2, 2021, Item #9RESOLUTION NO. 21-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING WATER SERVICE CHARGES AND RATES PER SECTION 13.11.120 OF THE POWAY MUNICIPAL CODE WHEREAS, the City of Poway provides water services to residents of Poway; WHEREAS, the California Constitution Article XIII D §6(a)(2) requires local governments hold a majority-protest public hearing and notify rate payers not less than 45 days in advance of the public hearing before increasing water rates and charges; WHEREAS, the city is four-year water and recycled water rates and charges, effective January 1, 2022, January 1, 2023, January 1, 2024, and January 1, 2025; WHEREAS, the City Council of the City of Poway held a duly noticed public hearing on November 2, 2021, pursuant to the provisions of Article XIIID of the California Constitution and the Proposition 218 Omnibus Implementation Act; WHEREAS, the City Council received a final tabulation of all written protests received by the City Clerk at the November 2, 2021 Proposition 218 hearing; and WHEREAS, the City Council considered all written protests and heard oral arguments to the proposed rate structure changes and rates and charges at the public hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: That the above recitations are true and correct; SECTION 2: The City Council hereby finds that no majority protest for the water and recycled rates and charges were received; SECTION 3: The City Council hereby establishes and approves the four-year rates and charges for water and recycled water, effective January 1, 2022, January 1, 2023, January 1, 2024, and January 1, 2025, as set forth in the Notice of Public Hearing (Attachment C), for all water used on or after January 1, 2022. Any water rates or fees associated with water service, including raw water, not addressed within the Notice of Public Hearing shall remain in full force and effect as previously adopted; SECTION 4. That the setting of such charges and rates is statutorily and categorically exempt from the requirements of CEQA, pursuant to Section 21080(b)(8) of the Public Resources Code, and Title 14 of the California Code of Regulations, Sections 15273(a) and 15307; SECTION 5. This Resolution shall take effect immediately. 8 of35 ATTACHMENT A
November 2, 2021, Item #9Resolution No. 21-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California at a regular meeting this 2nd day of November, 2021 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, City Clerk 9 of35
November 2, 2021, Item #9RESOLUTION NO. 21-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING SEWER SERVICE CHARGES AND RATES PER SECTION 13.03.010 OF THE POWAY MUNICIPAL CODE WHEREAS, the City of Poway provides sewer services to residents of Poway; WHEREAS, the California Constitution Article XIII D §6(a)(2) requires local governments hold a majority-protest public hearing and notify rate payers not less than 45 days in advance of the public hearing before increasing water rates and charges; WHEREAS, the city is proposing sewer rate structure modifications and four-year sewer rates and charges, effective January 1, 2022, January 1, 2023, January 1, 2024, and January 1, 2025; WHEREAS, the City Council of the City of Poway held a duly noticed public hearing on November 2, 2021, pursuant to the provisions of Article XIIID of the California Constitution and the Proposition 218 Omnibus Implementation Act; WHEREAS, the City Council received a final tabulation of all written protests received by the City Clerk at the November 2, 2021 Proposition 218 hearing; and WHEREAS, the City Council considered all written protests and heard oral arguments to the proposed rate structure changes and rates and charges at the public hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: Section 1: That the above recitations are true and correct; Section 2: The City Council hereby finds that no majority protest for the sewer rates and charges were received; Section 3: The City Council hereby establishes and approves the four-year rates and charges for sewer, effective January 1, 2022, January 1, 2023, January 1, 2024, and January 1, 2025, as set forth in the Notice of Public Hearing (Attachment C), for all wastewater generated on or after January 1, 2022. Any sewer rates or fees associated with sewer service not addressed within the Notice of Public Hearing shall remain in full force and effect as previously adopted; Section 4: Residential wastewater generation calculations take place once per year and will be based on the water use for the property. The residential wastewater generation amount is determined based on November through April water usage (winter water use) to help exclude water used on landscaping in the warmer months. The lowest water consumption during this period is selected for each of the three most recent years, and then averaged. Eighty-five percent of that averaged amount is estimated as wastewater generation. For newly constructed single-family residential properties with no winter water use history, the customer will be billed for 15 units of wastewater generation (the average residential generation calculated in the December 12, 2019 Water and Wastewater Cost of Service Study Report) until winter water use is established with one full billing cycle during the winter months of November through April. After 10 of 35 ATTACHMENT B
November 2, 2021, Item #9Resolution No. 21-Page 2 one year of winter water use is established, the customer will be billed based on the methodology above for existing residential properties. For single family properties that have both potable well water and municipal water, the customer will be billed based on the winter water use but no less than 15 units of wastewater generation. If any rate increases are proposed within 90 days of any residential wastewater generation calculations, the residential wastewater generation calculations will not occur until the new rates have been adopted; Section 5: That the setting of such charges and rates is statutorily and categorically exempt from the requirements of CEQA, pursuant to Section 21080(b)(8) of the Public Resources Code, and Title 14 of the California Code of Regulations, Sections 15273(a) and 15307; Section 6: This Resolution shall take effect immediately. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California at a regular meeting this 2nd day of November, 2021 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, City Clerk 11 of 35
November 2, 2021, Item #9The City is committed to providing the highest quality water and wastewater services at the lowest possible rates. To keep this commitment, the City regularly evaluates infrastructure needs, and operations and maintenance costs for the upcoming years. In compliance with Proposition 218, enclosed in this notice are the proposed rate adjustments for 2022 through 2025. The rate adjustments being considered will become effective January 1 of each year and reflected on bimonthly bill statements in March or April. NOTICE OF PUBLIC HEARING JL PROPOSED WATER AND WASTEWATER RATES ~~~ Tuesday, November 2, 2021 at 7 p.m. City Council Chambers I 13325 Civic Center Drive, Poway Your are invited to participate in person, by phone or online poway.org/councilmeetings On Tuesday, November 2, 2021 at 7 p.m. the Poway City Council will consider adopting proposed changes to water and wastewater charges. If adopted, the rate adjustments will become effective January 1 of each year and reflected on bimonthly bill statements in March or April. The City bills for water and wastewater service bimonthly (every two months) based on consumption during the two months prior to the billing date. All interested persons are invited to appear at the meeting to give oral or written testimony on the proposed rate adjustments. Rate protests must be submitted in writing ahead of the council meeting. Details on the written protest process is located on the back page of this notice. Why are you receiving this notice? The City of Poway is mailing this notice to you because you are a water and/or wastewater customer responsible for payment of water and/ or wastewater fees, or you are the owner of record for a property that receives water and/ or wastewater service. This notice describes proposed adjustments to water and wastewater rates, rate structure changes, and provides notice of the upcoming public hearing at which these proposed changes will be considered by the Poway City Council. For rates information and links to resources quoted in this notice, scan this QR code or visit poway.org/rates-fees. 12 of 35 ATTACHMENT C
November 2, 2021, Item #9Proposed Changes to Water and Wastewater Rates The City of Poway provides safe, reliable water on demand to its customers and purchases nearly 100 percent of its water from the San Diego County Water Authority (SDCWA). The cost to purchase and treat imported water continues to increase. The City proactively plans for increases in these costs, along with costs associated with operations, maintenance, and replacement of infrastructure along with maintaining appropriate reserves. To accommodate these increases, the City is proposing adjustments in potable water rates over the next four years. The City of Poway maintains a wastewater system that provides customers with wastewater collection and conveyance services to the San Diego Metropolitan Wastewater System (Metro) where the wastewater is treated at the Point Loma Wastewater Treatment Plant and then discharged into the ocean. The City proactively plans for increases in costs associated with operations, maintenance, and replacement of infrastructure along with maintaining appropriate reserves. The City also pays a percentage share of the operation, maintenance, and capital replacement costs of the Metro system. To accommodate these increases in costs, adjustments in wastewater rates over the next four years are being proposed. A four-year rate setting process strikes a balance between investor preferences and flexibility. A four-year period is long enough to increase investor confidence ( see "Debt Financing" for more details) while still short enough to allow rate changes if future projections are different than anticipated. How were rates determined? Changes to how Poway's water and wastewater rates are structured involve a deliberate series of steps to ensure rates remain affordable, fair, and equitable. First, future demands on our wa-ter and wastewater systems are projected, as well as water quality impacts, potential risks to system reliability, and anticipated chang-ing conditions to sustainability. Next, specific water and wastewa-ter infrastructure improvements are prioritized and incorporated into the framework. These proj-ects support near-and long-term needs, from regular system operations and maintenance to proactive investments to improve system quality, reliability, and sustainability. 17 Wastewater projects 26 Water projects Finally, a third-party rate consul-tant leads a cost of service study in partnership with City Council and staff. The study designs a legally compliant rate frame-work that recovers water and wastewater costs across different customer classes. These studies are typically updated every four to six years to ensure the rate design is still affordable, fair, and equitable. The most recent study was performed in December 2019 for rates effective during calendar year 2020. 0 For additional information on how your rates have been calculated, please refer to the staff report on September 7, 2021 titled "Set Public Hearing for Proposed Four-Year Water, Recycled Water, and Wastewater Rates." 13 of 35
November 2, 2021, Item #9CURRENT AND PROPOSED WATER RATES 5/8" 43.00 49.67 56.79 64.28 72.69 3/4" and 1" fire 58.13 67.15 76.78 86.90 98.27 1" 88.39 102.10 116.74 132.13 149.41 1 1 /2" 164.03 189.47 216.64 245.20 277.27 2" 254.80 294.30 336.51 380.87 430.67 3" 542.25 626.31 716.13 810.54 916.53 4" 965.85 1,115.57 1,275.55 1,443.72 1,632.50 6" 1,979.46 2,286.29 2,614.17 2,958.82 3,345.71 8" 3,643.63 4,208.40 4,811.93 5,446.33 6,158.49 Single Family Residential Tier 1: 1-20 Units 4.80 5.22 5.62 6.00 6.40 Tier 2: 21-56 Units 5.60 6.09 6.56 7.00 7.46 Tier 3: 57+ Units 7.79 8.47 9.12 9.73 10.37 Multi-family Residential 4.91 5.35 5.76 6.15 6.56 Landscape Irrigation 6.82 7.43 8.00 8.53 9.09 Non-residential 5.22 5.69 6.13 6.54 6.97 Recycled Water 4.25 4.63 4.99 5.33 5.68 City Potable Usage 5.22 5.69 6.13 6.54 6.97 Water Rate Notes: 1 unit= 748 gallons Consistent with Council direction during the prior rate-setting cycle, the fixed/variable ratio for water is being increased by approximately 1 % each year. This means the fixed charges will increase at an amount greater than the proposed revenue increase each year while the variable rates will increase at an amount less than the proposed revenue increases. Slowly increasing the fixed/variable ratio increases financial sustainability while helping minimize impacts to lower volume users. Any water rates or fees associated with water service, including raw water, not addressed within this notice shall remain in full force and effect as previously adopted by the Poway City Council. 14 of 35
November 2, 2021, Item #9CURRENT AND PROPOSED WASTEWATER RATES ~~~~~~~ CUSTOMER CLASS CURRENT 1/1/2022 1/1/2023 1/1/2024 1/1/2025 Residential Single Family 4.66 4.85 5.04 5.25 5.46 Residential Multi-family & Mobile 5.85 6.09 6.33 6.59 6.85 Home Non-Residential General Commercial 5.04 5.25 5.46 5.68 5.91 Medium-low 5.65 5.88 6.12 6.36 6.61 Medium 6.34 6.60 6.86 7.14 7.42 Medium-high 6.48 6.74 7.01 7.29 7.58 High 8.92 9.28 9.65 10.04 10.44 Light Industry 5.49 5.71 5.94 6.18 6.42 Industrial Special User 5.53 5.76 5.99 6.23 6.48 Government & Membership 4.14 4.31 4.48 4.66 4.85 Organizations Churches 5.04 5.25 5.46 5.68 5.91 Elementary School 5.11 5.32 5.53 5.75 5.98 (ADA) Secondary & High 5.06 5.27 5.48 5.70 5.93 School (ADA) Wastewater Rate Notes: Single family residential wastewater flow based on 85% of lowest winter water use averaged over the past three years. Multi-family and mobile home customers' wastewater flow is calculated based on 75% of bimonthly water use for accounts without a landscape meter and 85% of bimonthly water use for accounts with a landscape meter. Non-residential customers' wastewater flow is calculated based on 75%, 85% or 90% of bimonthly water use depending on customer class. Wastewater flow for schools is estimated based on the average flow per student per day using 75% or 85% of the water use from the March/April billing period. 15 of 35
November 2, 2021, Item #9WATER INFRASTRUCTURE IMPROVEMENTS With the goal of increasing the reliability of drinking water for water customers now and generations to come, the City of Poway is undertaking the largest capital improvement program (CIP) in the city's 40-year history. The CIP will include replacing the clearwell (water storage reservoir) at the water treatment plant and a new (SDCWA) treated water connection and re-dundant pipeline. In order to replace the clearwell, a temporary bypass project will include two 1.4 mil-lion-gallon tanks for storing treated water. These infrastructure improvement projects have been in the planning stage for a long time and are moving ahead as part of a mutually beneficial agreement between Poway and the State Division of Drinking Water. Construction on the clearwell bypass project will begin by early October. For more information: poway.org/water-projects. sdcounty.ca.gov/sdhcd 16 of 35 DEBT FINANCING The capital projects along with those described above are currently estimated to cost $63.2 million over the next five years, or slightly over $12.6 million per year (not including $13.7 million already included in the 2020-21 fiscal year). Based on the potential cost of these projects and the impact to current ratepayers, the City is exploring financing al-ternatives. Debt financing is a reasonable solution in that it provides the cash upfront to construct the projects while spreading the repayments out over a longer time horizon. This helps create intergenerational equity by aligning the water CIP costs to the people who benefit from the project. When debit is issued, current ratepayers would not be responsi-ble for fully funding projects today that will have a useful life beyond 30 years. The City is planning for a series of water bond issuances to fund the Water Infrastructure Improvement Program commencing in Fall 2021. The proposed four-year rate increases give investors assurances the City will have a sufficient revenue stream to pay the annual debt service which helps to lower the cost of debt and the impacts to ratepay-ers. While this debt financing plan helps ensure the City has a solution in place to fund the program, City staff is also committed to pursuing every available grant opportunity these projects may be eligible for.
November 2, 2021, Item #9PO Box 789 Poway, California 9207 4-0789 www.poway.org DATED MATERIAL -DO NOT DELAY DELIVERY Important information about your WATER and WASTEWATER account! Proposed Rate Change Protests As part of the rate setting process, on November 2, 2021, the City of Poway will conduct a public hearing on the proposed changes to water and wastewater rates and will consider all oral and written protests to the proposed changes. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. Only one written protest will be counted per identified parcel. While email is not an official rate protest mechanism under California law, the City Council values resident input and will read all email correspondence regarding rates. Written protests must include: • A description of the property, such as the address or assessor's parcel number; and • The name and signature of the customer submitting the protest. The City Council will receive a final tabulation of all written protests received by the City Clerk. Written protests must be received by the City Clerk's office no later than 12 p.m. November 2, 2021 or can be submitted in writing in the Council Chambers before the public hearing is closed. If a majority of the affected customers do not file written protests of the proposed rate changes, the Council will then consider and may adopt the rate changes described in this notice. If a majority of affected customers file written protests, the City Council will not adopt the proposed rate adjustments and the City will reconsider the rate structure and rates. Please send written protests to: City Clerk of the City of Poway PO Box 789 Poway, CA 9207 4-0789 If you have any questions regarding this notice, please call (858) 668-4409. 17 of 35
November 2, 2021, Item #9DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CiyofPoway September 7, 2021 Honorable Mayor and Members of the City Council Aaron Beanan, Director of Finance ~ Aaron Beanan, Director of Finance (858) 668-4411 or abeanan@poway.org CITY COUNCIL Set Public Hearing for Proposed Four-Year Water, Recycled Water, and Wastewater Rates The City previously adopted new rate structures and two-year rate increases for water, recycled water, and wastewater rates on March 3, 2020 that were effective for calendar years 2020 and 2021. After a review of water, recycled water, and wastewater projections, new rate increases are needed to ensure the financial sustainability of the enterprise systems. This staff report recommends setting the public hearing date on November 2, 2021 for proposed four-year rate increases for water, recycled water, and wastewater rates. The focus of this staff report will be the drivers of the proposed rate increases. Recommended Action: It is recommended that the City Council direct staff to set the public hearing for November 2, 2021 and proceed with the Proposition 218 process which includes mailing the notice of public hearing to ratepayers (Attachment A) pursuant to California law. Discussion: On March 3, 2020, the City adopted new rate structures and two-year rate increases for water, recycled water, and wastewater rates that were effective for calendar years 2020 and 2021. After a review of water, recycled water, and wastewater projections, new rate increases are needed to ensure the financial sustainability of the enterprise system. This staff report will focus on what is driving the proposed four-year rate increases. Proposed Water Rates Four-year revenue increases of 10% in January 2022, 9% in January 2023, 8% in January 2024, and 8% in January 2025 are being proposed for water to cover the increasing costs of providing safe, reliable water on demand to ratepayers. The increases are necessary to fund the costs of imported water, capital expenses, operational expenses, and appropriate reserve levels. Staff will discuss the rate drivers and reasons behind the proposed four-year increases, instead of proposed two-year increases, below. 1 of 18 18 of 35 ATTACHMENT D September 7, 2021, Item #6
November 2, 2021, Item #9Imported Water: One of the largest factors driving the proposed revenue increases is imported water costs. San Diego County has a semi-arid climate. Before 1947, the San Diego region relied on rainfall and groundwater to meets its water needs (San Diego County Water Authority "SDCWA", Urban Water Management Plan 2010). As the economy and population grew, local water resources became insufficient to meet the region's water supply needs and required imported water from hundreds of miles away to support the growth. Much of the region's water is imported from northern California near San Francisco and Sacramento (i.e. the Bay-Delta). Importing water is very energy intensive. Over time, the cost to transport this water increases as factors like energy prices increase. Investment by SDCWA into regional water supply and infrastructure projects to reduce reliance on imported water and mitigate the effects of natural disasters, such as earthquakes, is also expensive. For example, SDCWA's investment into the Claude "Bud" Lewis Desalination Plant cost close to $1 B, but it gave the region a new drought-proof, locally controlled supply of water. Imported water represents almost 60% of water operating costs. When imported water costs increase, this impacts City of Poway water rates. The average SDCWA rate and charge increase to the City is 6.87% for calendar year 2022. SDCWA used reserves to temper this increase, otherwise it would have been greater. Their rate increase was driven by an average rate and charge increase of 8.16% from the Metropolitan Water District (MWD), one of SDCWA water suppliers, and the Quantification Settlement Agreement (QSA) increase of 4.1 %. The QSA is a long-term water supply reliability project that secured a major water supply source for San Diego County through the Imperial Irrigation District water transfer. While imported water costs continue to increase, the settlement payment from SDCWA's lawsuit with MWD should provide long-term benefits to member agencies in the San Diego County region. In THE MWD SETTLEMENT PROVIDES AN ESTIMATED $20 BIMONTHLY BENEFIT TO THE AVERAGE RESIDENTIAL CUSTOMER. February 2021 the SDCWA Board of Directors announced the distribution of $44.4 million to its 24 member agencies after receiving the settlement payment from MWD lawsuit. The settlement was the result of SDCWA's decade-long rate case litigation seeking to compel MWD to set legal rates and repay overcharges. SDCWA won several issues it was litigating, which will help avoid future overcharges. According to SDCWA, those charges, had they continued, would have cost San Diego County residents over $500 million over the life of the SDCWA water delivery contract with MWD. Poway's share of this settlement was $1,167,915. To understand the positive impact this has on the average residential customer, the potential rate increase needed with and without the MWD settlement was analyzed. This was done by looking at the projected ending position for FY 2021-22 with the MWD settlement and then increasing rates until the same projected ending position was achieved without the MWD settlement. If the City did not receive the MWD settlement, an 18% increase would have been needed, or 8% more than the current proposed rate increase, for calendar year 2022. The $1,167,915 settlement translates to roughly $20 in bimonthly savings for the average residential customer who has a¾" meter and uses 37 units of water bimonthly. Water Capital Improvement Program: The other primary proposed rate increase driver is the City's capital projects. The City of Poway's water system includes over $64M in infrastructure necessary to provide associated services. This 2 of 18 19 of 35 September 7, 2021, Item #6
November 2, 2021, Item #9infrastructure includes water assets to transport water from the SDCWA's system to the City's system, assets to treat the water to safe drinking levels, and assets to deliver safe, reliable water on demand to each ratepayer's property. The following are some facts about the water system: • 294 miles of transmission and distribution pipelines • 5,044 water valves, 21 pressure reducing stations and 14 pump stations (designed to raise water to higher elevations) • 19 reservoirs (Lake Poway holds -one billion gallons of water) • One 24 million gallon/day water treatment plant • 2,435 fire hydrants • Approximately 45,000 tests are performed annually to ensure Poway water meets or exceeds the State and Federal standards for water quality The capital projects are currently proposed to cost approximately $63.2M ($56.7M related to the Water Program) over the next 5 years, or slightly more than $12.6M per year on average, not including the $13.7M ($12M related to the Water Program; $0.8M was incurred prior) in FY 20-21 projects. Historically the City has rate-funded its water capital projects. Rate-funded capital projects are paid for via rates or reserves, not debt. However, as previously discussed at the City Council Meetings on March 18, 2020, June 16, 2020, October 20, 2020, November 17, 2020, March 16, 2021, April 20, 2021, June 1, 2021,July 20, 2021, and August 17, 2021, to improve the reliability, redundancy and resiliency of Poway's water system, the City is embarking on a significant Water Infrastructure Improvement Program (Water Program). The Water Program is comprised of the Clearwell Bypass, the Clearwell Replacement, and the SDCWA Treated Water Connection projects. Preliminary work on these projects has already begun with the completion estimated in FY 2025-26, or roughly 5 years from now. The total cost of this program is anticipated to cost $69.SM. As discussed in the November 17, 2020 staff report, there are several approaches to financing these projects. For example, they can be financed using a pay-go approach (using cash on hand and yearly rate increases to provide the necessary cash flow). They can also be debt or grant funded or a combination of all three. As staff had indicated in that report, comparing cash on hand to the estimated cost of the projects helps determine which funding option may be most appropriate. When cash on hand exceeds the estimated cost of the proposed project, there is a strong argument for pay-go financing. When the estimated cost of the THE LARGEST WATER RATE DRIVERS INCLUDE IMPORTED WATER COSTS AND CAPITAL PROJECTS. proposed capital projects exceed cash on hand, there is a strong argument for debt financing. As detailed above, current cost estimates for the Water Program are $69.5 million, which exceed the current cash on hand (approximately $11 million on hand in the Water Operations Fund as of June 30, 2020). Another factor to consider when specifically looking at capital projects financed by water ratepayers is how pay-go financing impacts the annual water rates. Water rates could be increased over the next three to five years to finance the program. However, based on the estimated cost of the Water Program the annual increases to ratepayers would likely be so large that it would be financially unfeasible for many ratepayers. This would create an undue burden on ratepayers and impact the sustainability of the water enterprise. To raise $69.SM over the next 5 years, the City would need to substantially increase rates to fund these projects. The assumptions used to estimate the required rate increases included the cashflow timing, leaving at least $2M in reserves for emergencies (well below the target reserve of 120 days of 3 of 18 20 of 35 September 7, 2021, Item #6
November 2, 2021, Item #9operating expenditures, or approximately $1 OM), and returning reserves to targeted levels by FY 2025-26. Based on these assumptions, four-year revenue increases of 45% in January 2022, 15% in January 2023, 10% in January 2024, and 10% in January 2025 would be needed. Since the rate increases were being used to fund one-time projects, a 25% decrease in rates would need to occur in January 2026 to ensure funds were not being over-collected from ratepayers at the completion of the projects. The following table shows the estimated bimonthly impacts to the average residential customer by year. Table 1a: Estimated Pay-Go Residential Impacts (Not Recommended} Pay-Go Funding Option Existing Jan. 2022 Jan.2023 Jan. 2024 Jan. 2025 Revenue Increase(%) N/A 45% 15% 10% 10% Estimated Water Bill1 $249.33 $362.62 $418.38 $461.73 $509.45 Impact($) N/A $113.29 $55.76 $43.35 $47.72 1. Assumes the average residential customer has a¾" meter and uses 37 units of water bimonthly. As the table shows, the average residential customer would be paying over $260 more per bimonthly billing period for water in January 2025. The following table shows the estimated bimonthly impacts to the average non-residential customer by year. Table 1 b: Estimated Pay-Go Non-Residential Impacts (Not Recommended} Pay-Go Funding Option Existing Jan.2022 Jan. 2023 Jan. 2024 Jan. 2025 Revenue Increase(%) N/A 45% 15% 10% 10% Estimated Water Bill1 $860.95 $1,588.90 $1,814.91 $1,982.96 $2,165.11 Impact($) N/A $727.95 $226.01 $168.05 $182.15 1. Assumes the average non-residential customer has a 1" meter and uses 148 units of water bimonthly. As the table shows, the average non-residential customer would be paying over $1,304 more per bimonthly billing period for water in January 2025. These short-term rate spikes would put significant burden on residents and businesses impacting their ability to pay and the sustainability of the water enterprise. Additionally, current ratepayers, instead of all ratepayers who will be benefiting from them, would be completely funding improvements that are expected to last upwards of 50 years. Proposed Water Revenue Bond Issuance: Based on the potential cost of the Water Program and the impact to ratepayers under a pay-go approach as described above, debt financing is a reasonable solution. Debt financing provides the cash upfront to construct the projects while spreading the repayments out over a longer time horizon. This helps create intergenerational equity by aligning the Water Program costs to the people who benefit from the projects. When debt is issued, current ratepayers would not be responsible for fully funding projects today that will have a useful life beyond 30 years. In order to understand how issuing debt for the Water Program could impact rates, Fieldman Rolapp & Associates, Inc. ("Fieldman"), the City's municipal advisor, put together three projected debt issuances to provide financing for the Water Program. These were also reviewed by the City's underwriter, Stifel, Nicolaus & Company, Inc. ("Stifel"), to ensure consistency with their view of current market conditions. Three series of debt are proposed to match the potential debt issuances to the cash flow timing of the projects. The three phases would include a 2021, 2023, and 2024 series of debt to generate $14.8M, $30.3M, and $24.5M respectively. Market conditions were projected out for each of the three series and include buffers, similar to the contingency used for construction projects, to 4 of 18 21 of 35 September 7, 2021, Item #6
November 2, 2021, Item #9allow for adverse market changes (e.g. rising interest rates over time). For example, Series 2021 includes a 25 basis point ("BP", 100 BPs = 1 %) buffer, the Series 2023 include a 75 BP buffer, and the Series 2024 include a 125 BP buffer over August 20, 2021 market rates. The projected annual debt service for the three series of debt would total approximately $3.8M. Given the timing of the proposed issuances to accommodate the cash flow needs of the Water Program, staff is recommending four-year rate increases this rate setting cycle. This will give investors assurances that the City will have a sufficient revenue stream to pay the annual debt service. The longer the term of an approved rate increase, the more comfortable investors are debt service will be paid. This generally translates to a lower total cost of debt as they are more willing to accept a lower interest rate given the perceived risk of the deal is lower. Staff believes a four-year rate increase strikes a good balance between investor DEBT FINANCING MINIMIZES NEAR-TERM IMPACTS TO RATEPAYERS AND CREATES INTERGENERATIONAL EQUITY. preferences and flexibility. The four-year period is long enough to increase investor confidence while still short enough to allow rate changes if future projections are different than anticipated. As part of a revenue bond issuance, the City will also seek a credit rating for the water enterprise. A high credit rating can also positively impact the cost of debt. In general, the higher the underlying credit rating the lower the cost of debt, all else being equal. The longer four-year rate increase cycle gives rating agencies the assurances the water enterprise can meet its anticipated obligations over the near-term. This in turn would help strengthen the credit of the water enterprise helping promote a lower cost of debt. The proposed revenue increases of 10%, 9%, 8%, and 8% over the next four years include estimates to finance the $69.SM Water Program estimate using water revenue bonds. The following table shows the estimated bimonthly impacts of the proposed increases to the average residential customer by year. a e a: s Imate T bl 2 E t· es, en Ia d R "d t· 11 mpacts o fW t P a er rogram e t un mg D b F d" (R d d) ecommen e ■11.1:.ao,--■•• I •••~IHHII : • • ... , , ..... ._ Revenue Increase(%) NIA 10% 9% 8% 8% Estimated Water Bill1 $249.33 $275.08 $300.70 $325.90 $353.09 Impact($) NIA $25.75 $25.62 $25.20 $27.18 1. Assumes the average residential customer has a¾" meter and uses 37 units of water bimonthly. As the table shows, the average residential customer would be paying over $103 more per bimonthly billing period for water in January 2025. However, this is approximately $157 less than what they would be paying if the City pursued a pay-go financing approach for the Water Program as shown in Table 1 a. The following table shows the estimated bimonthly impacts of the proposed increases to the average non-residential customer by year. Table 2b: Estimated Non-Residential Impacts of Water Program Debt Funding (Recommended) Debt Funding Option Existing Jan.2022 Jan.2023 Jan. 2024 Jan. 2025 Revenue Increase(%) NIA 10% 9% 8% 8% Estimated Water Bill1 $860.95 $1,204.98 $1,304.34 $1,399.29 $1,500.01 Impact($) NIA $344.03 $99.36 $94.95 $100.72 1. Assumes the average non-residential customer has a 1" meter and uses 148 units of water bimonthly. 5 of 18 22 of 35 September 7, 2021, Item #6
November 2, 2021, Item #9As the table shows, the average non-residential customer would be paying over $639 more per bimonthly billing period for water in January 2025. However, this is approximately $665 less than what they would be paying if the City pursued a pay-go financing approach for the Water Program as shown in Table 1 b. This rate increase structure helps smooth the rate increases to current ratepayers which helps reduce the burden on residents and businesses and increases the sustainability of the water enterprise. Additionally, the payment for the improvements is more closely aligned to the ratepayers benefiting from the improvements as they are expected to last upwards of 50 years. This promotes intergenerational equity. As discussed above, the debt estimates include projections for future market conditions to allow for adverse market movements. If the market is more favorable when debt is issued, it lowers the cost of debt and the annual revenue needed to support the annual debt service payments. Additionally, the City is scheduled to receive a $1 M grant from Congressman Scott Peters office for use towards the Clearwell Bypass portion of the Water Program. The City should receive official word on whether it will THE PROPOSED RATES ARE MAXIMUMS. THEY CAN BE ADMINISTRATIVELY REDUCED BASED ON ACTUAL NEED. be awarded this grant later this year. City staff is committed to pursuing every available grant opportunity these projects may be eligible for. Additionally, the $1 trillion Federal Infrastructure Bill approved by the Senate on August 10, 2021, if passed by the House and signed by the President, could also impact the necessity of future debt issuances. Each of these can decrease the proposed revenue increases over the four-year rate setting cycle. For example, if debt issuance costs are lower than anticipated, less revenue is needed to ensure the City's ability to pay the annual debt service. If the grant is received or the City receives money from an adopted Infrastructure Bill it would help reduce the amount of debt issuance anticipated in turn reducing the required rate increase. Pursuant to the California Constitution, rates cannot be increased beyond the rates established upon the conclusion of the Public Hearing without proceeding through the Proposition 218 process again. However, rates can be administratively reduced at a staff level if the adopted rates increases are too high. Staff will analyze the necessity of the proposed rates, if adopted, each year to ensure ratepayers are not being charged more than necessary. The proposed rate increases ensure the Water Enterprise has the solutions in place to ensure financing for the Water Program but do not preclude the pursuit of other financing options as the Water Program projects progress over the next several years. Looking at potential rate increases without the Water Program helps people understand the impact of the Water Program on the proposed rate increases. If the Water Program did not exist, increases of 7%, 7%, 7%, and 5% as shown in the following table would be necessary to fund the costs of imported water, capital expenses, operational expenses, and appropriate reserve levels. The table also shows the estimated bimonthly impacts of the proposed increases to the average residential customer by year. Table 3a: Estimated Residential Impacts Without Water Program Without Water Program Existing Jan.2022 Jan.2023 Jan. 2024 Jan. 2025 Revenue Increase (%) NIA 7% 7% 7% 5% Estimated Water Bill1 $249.33 $267.72 $287.30 $308.51 $324.96 Impact($) N/A $18.39 $19.58 $21.22 $16.45 1. Assumes the average residential customer has a¾" meter and uses 37 units of water bimonthly. As the table shows, the average residential customer would be paying over $75 more per bimonthly billing period for water in January 2025. However, this is approximately $185 less than what they 6 of 18 23 of 35 September 7, 2021, Item #6
November 2, 2021, Item #9would be paying if the City pursued a pay-go financing approach for the Water Program as shown in Table 1 a or approximately $28 less than if the City pursued a debt financing option as shown in Table 2a. The following table shows the estimated bimonthly impacts of the proposed increases to the average non-residential customer by year. Table 3b: Estimated Non-Residential Impacts Without Water Program Debt Funding Option Existing Jan.2022 Jan. 2023 Jan. 2024 Jan. 2025 Revenue Increase(%) N/A 7% 7% 7% 5% Estimated Water Bill1 $860.95 $1,173.39 $1,246.83 $1,325.52 $1,382.05 Impact($) N/A $312.44 $73.44 $78.69 $56.54 1. Assumes the average non-residential customer has a 1" meter and uses 148 units of water bimonthly. As the table shows, the average non-residential customer would be paying over $521 more per bimonthly billing period for water in January 2025. However, this is approximately $783 less than what they would be paying if the City pursued a pay-go financing approach for the Water Program as shown in Table 1 b or approximately $118 less than if the City pursued a debt financing option as shown in Table 2b. Therefore, pursuing the $69.5M Water Program to improve the reliability, redundancy and resiliency of Poway's water system costs the average residential customer approximately $28 more per bimonthly billing period in January 2025 and the average non-residential customer approximately $118 more per bimonthly billing period. Given the benefits afforded by debt financing the Water Program, staff believes this is the least impactful and most equitable approach to funding the Water Program. Staff will return to Council for their consideration of a 2021 series debt issuance on October 19, 2021. IMPORTANT This recommendation does not obligate the Council to issue debt and does not authorize the issuance of debt. By law, Council must approve the issuance of debt. Staff will return to Council for their consideration of any debt issuances related to the Water Program. Proposed Fixed/Variable Ratio Adjustment: Over the course of the workshops leading up to the March 3, 2020 Public Hearing (October 15, 2019 and November 19, 2019) for the current rates, staff discussed the importance of the fixed/variable ratio. The fixed/variable ratio reflects the amount of revenue collected between fixed charges which are not dependent on water usage and volumetric, or variable, charges which are dependent on water usage. This ratio is important for understanding the level of revenue stability. The more revenue is collected via a fixed charge, the less likely the water system will be impacted by changes in ratepayer usage. For example, the more INCREASING THE FIXEDNARIABLE RATIO SLOWLY BALANCES SUSTAINABILITY WITH RATEPAYER IMPACTS. revenue that is collected via fixed charges, the less likely a water system will be to increase rates in times of conservation as less of its revenue is affected by decreased demand, all else being equal. Under the prior rate structure, the fixed/variable ratio was 16/84%. At the Public Hearing on March 3, 2020 a fixed/variable ratio of 20/80% was approved to start increasing the amount of revenue 7 of 18 24 of 35 September 7, 2021, Item #6
November 2, 2021, Item #9collected via fixed charges. A higher ratio was not selected at that time due to the potential impacts on lower volume users though discussions were had discussing the importance of slowly raising this ratio over time. As such, Council directed staff to slowly increase the fixed/variable ratio with each subsequent rate setting process. The proposed four-year water rate structure includes small adjustments to the ratio each year. The following table shows the changes to the fixed/variable ratio over the proposed four-year rates. Table 4: Estimated FixedNariable Ratio (Recommended) Existing Jan.2022 Jan. 2023 Jan. 2024 Jan. 2025 Proposed Revenue Increase(%) NIA 10% 9% 8% 8% Fixed Charge(% of total revenue) 19.22%1 20.16% 21.21% 22.28% 23.39% Variable Rate(% of total revenue) 80.78% 79.84% 78.79% 77.72% 76.61% 1. The currently approved fixed/variable ratio is 20/80%. However, the actual ratio is impacted based on things like water sales. The actual ratio will always be slightly different than the projected ratio. As the table shows, the fixed charges are being increased each year to a level such that the fixed portion of the fixed/variable ratio increases by approximately 1 % each year. This means the fixed charges will increase at an amount greater than the proposed revenue increase each year while the variable rates will increase at an amount less than the proposed revenue increases. For example, the bimonthly fixed charge for a ¾" meter is currently $58.13. In January 2022 it is proposed to increase to $67.15, or by $9.02 (15.5%) bimonthly. If the fixed charge were increased solely by the proposed revenue increase, it would increase to $63.95 in January 2022, or $5.82 (10%) bimonthly. The additional $3.02 bimonthly in this example for a¾" meter is what helps increase the revenue collected from fixed charges by approximately 1 % each year. To help ensure revenue is not over-collected, the variable rates are increased at a lower rate. For the variable rates, a 10% increase would increase the current Tier 1 residential rate from $4.80/unit to $5.28/unit. Instead, the Tier 1 residential rate is only increased to $5.22/unit, or 8.75%. At the end of the proposed four-year rate cycle, the fixed/variable ratio will be approximately 23%177%, or roughly 4% more than they are today. The following two tables provide more detailed information on the estimated residential impacts of adjusting the fixed/variable ratio. Table 4a: Estimated Impacts of Keeping the Existing Fixed/Variable Ratio Jan. 2022 Increase from Increase from Existing (Same F/V Ratio) Existing($) Existing(%) FixedNariable Ratio 19.22/80.78% 19.22/80.78% Fixed Charge $58.13 $63.95 $5.82 10% Variable Charges $191.20 210.32 $19.20 10% Total Estimated Bill1 $249.33 274.27 $24.94 10% 1. Assumes the average residential customer has a¾" meter and uses 37 units of water bimonthly. Table 4b: Estimated Impacts of Increasing the Existing FixedNariable Ratio Jan.2022 Increase from Increase from Existing (Increased FN Ratio) Existing($) Existing(%) FixedNariable Ratio 19.22/80.78% 20.16179.84% Fixed Charge $58.13 $67.15 $9.02 15.5% Variable Charges $191.20 $207.93 $16.73 8.75% Total Estimated Bill1 $249.33 $275.082 $25.75 10.3%3 2. Assumes the average residential customer has a¾" meter and uses 37 units of water bimonthly. 3. Matches Table 2a estimated residential impacts for January 2022. 4. Total percentage change slightly higher than 10% due to rounding. 8 of 18 September 7, 2021, Item #6 25 of 35
November 2, 2021, Item #9Proposed Wastewater Rates Four-year rate increases of 4.0% in January 2022, 2023, 2024, and 2025 are being proposed for wastewater to cover the increasing costs of providing safe, reliable wastewater services to ratepayers. The increases are necessary to fund the costs of wastewater treatment, capital expenses, and operational expenses. These proposed rate increases reflect the use of reserves to temper the impacts to ratepayers. Funds to cover Poway's estimated share of the San Diego Pure Water project were set aside as part of a strategic financial management decision to help mitigate the impacts to ratepayers and is more fully discussed below. Wastewater Treatment: The most significant rate driver for the proposed revenue increases is wastewater treatment costs. Wastewater treatment represents almost 43 percent of all operating expenses. When wastewater treatment costs increase, this impacts City of Poway wastewater rates. The largest factor increasing wastewater treatment costs is the San Diego Pure Water project. San Diego's Pure Water project is a THE LARGEST WASTEWATER RATE DRIVERS INCLUDE WATER TREATMENT COSTS AND CAPITAL PROJECTS. multi-year project that is projected to supply one-third of San Diego's water supply locally by 2035. Based on projections from May 2020, Poway's estimated share of the project is over $4 million annually for the next five years. However, several years ago staff began incorporating these costs into rates as part of a long-range financial management strategy to mitigate the impacts of this project to ratepayers. Funds collected have been set aside in reserves. As such, a combination of reserve drawdowns and rate increases will be used over the coming years to temper the impacts to ratepayers. Additionally, a wastewater treatment plant is designed to treat certain types of waste. As people dispose of pharmaceuticals, food waste, cooking oil, industrial chemicals, etc. down the wastewater system, the treatment process gets extended which increases costs. Wastewater Capital Improvement Program: The next largest factor driving the proposed revenue increases is rate-funded capital improvement projects. Rate-funded capital is paid for via rates or reserves; no debt is currently used to fund capital projects. The City of Poway's wastewater system includes over $36 million in infrastructure necessary to provide associated services. Rate funded capital is also being proactively invested in the rehabilitation and repair of the wastewater infrastructure to ensure Poway continues to provide safe, reliable, and affordable wastewater services. Wastewater infrastructure includes infrastructure to transport wastewater from the city to various treatment plants within the County of San Diego in a safe and reliable manner including over 186 miles of wastewater pipes, five lift stations (designed to raise wastewater material to a higher elevation), and over 4,000 maintenance covers. Rate-funded capital is currently proposed at approximately $5.7 million over the next five years, or slightly more than $1 million per year on average. Table 4 shows the estimated bimonthly impacts of the proposed four-year increases to the average residential customer by year. 9 of 18 26 of 35 [Remainder of page intentionally left blank] September 7, 2021, Item #6
November 2, 2021, Item #9Table 4: Estimated Residential Impacts (Recommended) Proposed Increases Existing Jan.2022 Jan. 2023 Jan.2024 Jan. 2025 Rate Increase(%) NIA 4% 4% 4% 4% Estimated Water Bill1 $98.21 $102.20 $106.23 $110.60 $115.03 Impact($) NIA $3.99 $4.03 $4.37 $4.43 1. Assumes the average residential customer has 15 units of winter wastewater flow bimonthly. As the table shows, the average residential customer would be paying over $16 more per bimonthly billing period for wastewater in January 2025. Given the number of non-residential wastewater categories the impacts were not analyzed as an average grouping is less obvious on the wastewater side. Community Outreach To help the community understand the impacts of the proposed four-year rate increases, staff updated the residential bill estimator tool (https://poway.org/175/Rates-Fees). This will help evaluate how the proposed increases impact their specific usage patterns. This tool, as well as information specifically about the majority-protest public hearing, and proposed rates, was posted to the homepage of the City's website and the Water and Sewer Services section of the Finance Department webpage. This information was also actively communicated to the public via the City's Nextdoor public agency account, its City of Poway Facebook page, its City of Poway Twitter account, and the Poway Today e-newsletter. Utility Assistance Programs The COVID-19 pandemic has impacted people throughout the country. A variety of policies and programs have been put in place to aid those impacted by the pandemic. For example, the State of California declared through Executive Order No. N-42-20 issued on April 2, 2020 that residential customers and certain business customers could not have service discontinued or be shut-off for utility non-payment. Based on the City's normal policies, a total of 2,007 accounts could have been tagged due to non-payment. Tagging is the precursor to discontinuing service. The tags would have created additional fees for ratepayers. Since the City was not discontinuing service it would not be tagging ratepayers. The savings to ratepayers for these fees cannot be reasonably estimated due to several factors leading to the tag fee charged. The City went beyond the State's prescription and extended the shut off moratorium to all Poway ratepayers. Another example of the City going beyond the State's policy is the waiver of late fees. The City has been waiving late fees since the beginning of the pandemic even though it has not been required by the State. The City has waived 7,747 late fees totaling over $232k between March 18, 2020 and June 30, 2021. Late fees were resumed on July 1 consistent with the timing of the State's reopening plan. Given a full economic recovery will take time and there are still customers that are experiencing financial uncertainty, there are several programs to help provide assistance. The State of California is currently putting together a California Water and Wastewater Arrearage Payment Program based on the $985M received from federal funding. This funding will help cover water debt from residential and commercial customers accrued between March 4, 2020 and June 15, 2021. If the program still has funding available, it will extend to wastewater residential and commercial arrearages as well. While this program is not fully operational yet, it is anticipated to provide relief to Poway ratepayers. Once the program is operational, applicable Poway ratepayers will be notified about how it can benefit them. 10 of 18 27 of 35 September 7, 2021, Item #6
November 2, 2021, Item #9The County of San Diego has a fully operational 2021 Emergency Rental Assistance Program (www.sdhcd.org). This program also helps eligible households who have been financially impacted by the COVID-19 pandemic by providing payment assistance on utilities (and rent) to qualifying individuals. To date, 20 Poway ratepayers have received a total of $25,663 in assistance to cover their water and wastewater bills. Timeline The following graphic shows the proposed four-year rate cycle as well as the current schedule for the potential three series of debt to fund the Water Program. Set Public Hearing: Sept. 7, 2021 Potential 2021 Debt Series· Nov. 10, 2021 Vear 3 Rates Effective: Jan. 1, 2024 Environmental Review: Mail 218 Notice: By Sep. 18, 2021 Vear 1 Rates Effective: Jan. 1, 2022 Potential 2024 Debt Series: Aug.2024 Consider Debt: Oct. 19, 2021 Vear 2 Rates Effective: Jan. 1, 2023 Year 4 Rates Effective: Jan. 1, 2025 Public Hearing Nov. 2, 2021 Potential 2023 Debt Series: Mar. 2023 This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: There is no direct fiscal impact associated with this staff report because it only sets the public hearing. However, based on the information contained in this staff report, sufficient revenues to fund operations, investment in capital infrastructure, and appropriate reserve levels will be generated from the recommended water and wastewater revenue increases. Over the next four-year period, it is estimated approximately $23.3M in additional water revenues will be generated while approximately $3.3M in additional wastewater revenues will be generated if the proposed rates are adopted at the public hearing. Safe reliable water delivered on demand to an average residential ratepayer costs approximately one penny per gallon. Treating the average residential ratepayer's wastewater in a safe and reliable fashion costs approximately nine-tenths of one penny per gallon. 11 of 18 28 of 35 [Remainder of page intentionally left blank] September 7, 2021, Item #6
November 2, 2021, Item #9Public Notification: The California Constitution, Article XIIID, Section 6, states that local governments must hold a Majority-Protest Public Hearing and notify property owners at least 45 days in advance of the public hearing related to proposed water, recycled water, and wastewater rates. The notice (Attachment A) will be mailed at least 45 days prior to the public hearing, or on or before September 18, 2021. The public hearing will take place as follows: Attachments: Tuesday, November 2, 2021 at 7:00 p.m. City of Poway City Hall 13325 Civic Center Drive Poway, CA 92064 A. Notice of Public Hearing Reviewed/ Approved By: WenKaserman Assistant City Manager 12 of 18 29 of 35 Reviewed By: Alan Fenstermacher City Attorney Approved By: Chris Hazeltine City Manager September 7, 2021, Item #6
November 2, 2021, Item #930 of 35ATTACHMENT ADate Count Received Last Name 1 9/22/2021 Swanson 2 9/23/2021 Barger 3 9/23/2021 Boyce 4 9/23/2021 Rice 5 9/23/2021 Wurtz 6 9/23/2021 Woll 7 9/23/2021 Delaney 8 9/23/2021 Patel 9/23/2021 Patel 9 9/23/2021 Rumrill 10 9/23/2021 Hoadley 11 9/23/2021 Martin 12 9/23/2021 Parkinson 13 9/23/2021 Roddy 14 9/23/2021 Kohler/Heath 15 9/23/2021 Wilson 16 9/23/2021 Teplitz 17 9/24/2021 St. Martin 18 9/24/2021 Lawless/Miyazaki 19 9/24/2021 Graham 20 9/24/2021 Robertson 21 9/24/2021 Accordino/Holyk 22 9/24/2021 Poole 23 9/24/2021 Rosenberg 24 9/24/2021 Armstrong 9/24/2021 Friedman 25 9/24/2021 Bryant 26 9/24/2021 Fett/Owen 27 9/24/2021 Skeen 28 9/24/2021 lgarta 29 9/24/2021 Poota 30 9/24/2021 Gornbein 31 9/24/2021 Kozlowski 32 9/24/2021 Griffin 33 9/24/2021 Rowean 34 9/24/2021 Edstrom 35 9/24/2021 Sahagian 36 9/24/2021 Ching 37 9/27/2021 Dennis 38 9/27/2021 Carruthers 39 9/27/2021 Fort 40 9/27/2021 Allison 41 9/27/2021 Belasco 42 9/27/2021 Still 43 9/27/2021 Carter 44 9/27/2021 Hock 45 9/27/2021 Benham 46 9/27/2021 Murphy 47 9/27/2021 Hessler 48 9/27/2021 Childs 49 9/27/2021 Gutschow 50 9/27/2021 Ryan 51 9/27/2021 De Blasio 52 9/27/2021 De Blasio 53 9/27/2021 Brooks 54 9/27/2021 Czerwinski 55 9/27/2021 von Brendel 56 9/27/2021 Middleberg/Du 57 9/28/2021 Miller 58 9/28/2021 Duddy 59 9/28/2021 Quaglietta 60 9/28/2021 Casad 61 9/28/2021 Velazquez 62 9/28/2021 McCormack 63 9/28/2021 Lawless 64 9/28/2021 May 65 9/28/2021 De Blasio 66 9/28/2021 Deatrick 67 9/28/2021 Young First Name Stephen & Deborah Catherine Jason Graceanne Jeff & Dianne Jerry Deena C. Kunjan & Megha Kunjan & Megha Dennis Wiliam Donald Jeff Michael G. & Cheryl P. Robert/Christine David M. & Kelly M. Charles J. Cherry Mark/Noriko Charles S. Susan L. Barbie/Len Sandra Eric M. Sheryl Assi Paula Russell/Cindy Jay Ramon & Shienna Ray Norman & Suzzette Colleen Tom Donald R. Paul & Anne James & Jane Randy & Gale Donna Nicholas Nathan Paula Charlotte & Jay Constance John & Dianne Scott Dianne Peggy Cheryl & Bob John T. Mari Patrick Angeline Mario Rebekah Todd William Richard/Kellie Michael C. Sue Anthony Tavya Todd & Jenna Kevin Alice 5. Robert & Michelle Doreen William & Debra Kathy WATER SEWER RATE INCREASE 2021 PROTESTS Street Name Address No. (AVE, CT, DR, LN, PL, RD, ST, TRL, WAY) 14054 Valley Springs Rd 12859 Papago Dr 12704 Coachman Ct 14609 Jeff Park Ln 14558 Budwin Ln 16571 Corte Paulina 14465 Twin Gables Ct 12735 Gate Dr 15563 Canton Ridge Terr 14762 Poway Mesa Dr 13603 Sunset View Rd 15570 Garden Rd 17654 Saint Andrews Dr 17759 Valle Verde Rd 13005 Corte Susana 12726 Triumph Dr 16921 Cloudcroft Dr 12811 Orpha Ct 15059 Eastvale Rd 16636 Martincoit Rd 13036 Decant Dr 17746 St. Andrews Dr 13705 Pequot Dr 13460 Cayuga Dr 16637 Orchard Bend Rd 14662 Dash Way 14924 Cinchring Dr 15357 Midland Rd 15034 Hat Creed Rd 12717 Via Sombras 13740 Buford Way 15594 Oakstand Rd 14239 Silver Ridge Rd 13147 Avenida La Valencia 13540 Cloudcroft Ct 13847 Deergrass Ct 12799 Indian Trail Rd 13476 Calle Colina 13983 Poway Valley Rd 14370 Silver Heights Rd 13365 Via Stephan 14858 Budwin Ln 14445 Twin Peaks Rd 14227 Powers Rd 12663 Butterwood Ct 14467 Maplewood St 15946 Cumberland Dr 13406 Brian Park Ln 15497 Oakstand Ct 13134 Via Del Toro 14435 Harvest Ct 14731 Dash Way 13232 El Delora Way 14142 El Delora Way 17123 Tam O Shanter Dr 14790 Deerwood St 13511 Summit Circle 14923 Huntington Gate Dr 12528 Arabian Way 12664 Butterwood Ct 14747 Fairtree Terrace 13907 Carriage Rd 13701 Powers Rd 15704 Piparian Rd 12280 Sage View Rd 15454 Oakstand Ct 14119 El Delora Way 14683 Woodhue Ln 13636 Pequot Dr Comments 314-413-11-00 314-860-04-00 323-290-12-00 Not within City limits 267-261-39-00 314-741-46-00 273-801-01-00 2 75-103-03-00 Invalid Missing Signature 278-462-22-00 327-340-00-22 321-141-25-00 321-291-26-00 321-410-26-00 321-292-04-00
November 2, 2021, Item #931 of 3568 9/28/2021 Fernandez 69 9/28/2021 Phillips 70 9/28/2021 Lluch 71 9/29/2021 Minn 72 9/29/2021 Zack 9/29/2021 Boutin 73 9/29/2021 Krafton 74 9/29/2021 Burg 75 9/29/2021 Arambulo 76 9/29/2021 Reithler-Barros 77 9/29/2021 Walder 78 9/29/2021 Vu 79 9/29/2021 Vu 80 9/29/2021 Dalessandro 81 9/29/2021 Schreiber 82 9/29/2021 Mannino 83 9/29/2021 Horton 84 9/29/2021 Hussey 85 9/30/2021 Suriel 86 9/30/2021 Foster 9/30/2021 Foster 87 9/30/2021 Ficken 88 9/30/2021 Miller 89 9/30/2021 Wayland 90 9/30/2021 Clay 91 9/30/2021 Velasco 92 9/30/2021 Bowers 93 9/30/2021 Paras 94 9/30/2021 Arvin 95 9/30/2021 Falchetti 96 10/4/2021 McKay 97 10/4/2021 Flinspach 98 10/4/2021 Pollard 99 10/4/2021 Capozzoli 100 10/4/2021 Hallin 101 10/4/2021 Camargo 102 10/4/2021 Williams 103 10/4/2021 Chon 104 10/4/2021 Boe 105 10/4/2021 Russin 106 10/4/2021 Wampler 107 10/4/2021 Smith 108 10/4/2021 Corney 109 10/4/2021 Colingwood 10/4/2021 Collingwood 110 10/4/2021 Pieterse 111 10/4/2021 Lunt 112 10/6/2021 Datte 113 10/6/2021 Morikawa 10/6/2021 Morikawa 10/6/2021 Morikawa 114 10/6/2021 Kavanagh 115 10/6/2021 McCoy 116 10/6/2021 Jensen 10/6/2021 Jensen 117 10/6/2021 Rumbaugh 118 10/6/2021 Knuth 119 10/6/2021 Behringer 120 10/6/2021 Hardy 121 10/6/2021 Chadwick 122 10/6/2021 Sendig 123 10/6/2021 Mitchell 124 10/6/2021 Young 125 10/7/2021 Pilgeram 126 10/7/2021 Helbling 127 10/7/2021 Sandall 128 10/7/2021 Steinmetz 129 10/11/2021 Forsythe 130 10/11/2021 Young 131 10/11/2021 Tabereaux 132 10/11/2021 Freeman Darryl K Diane Elizabeth Kay Elizabeth Don Margarita Jennifer Emmanuel/Evangeline Marie Herrad Robert Kevin David Raffaela Joe Marcia and Frank Christina Helena Tawny Jean Terry Mercedes Janna S.L. Katharine Becky Colleen Marien & Aristedes James Charles Roberta Angela Jeanette Debra Helen Andrew & Amber Cindy Yun Todd Alicia Loretta Larry June Stephanie Joshua Jacques Dale Darrell Vicki Katelyn Daniel Eamon Norman Sonja Christopher Michael Debbie Maren & Stephen Christensen Ann Fred & Dori Mary Kathy Summer Timothy Ted Jane & Dennis Nannette Julie Marc Mary WATER SEWER RATE INCREASE 2021 PROTESTS 13529 Los Olivos Ave 13437 Montego Dr 18515 Old Coach Way 13325 Cicero Ct. 12965 Lomas Verdes Dr 12965 Lomas Verdes Dr 12610 Roberto Way 14625 Plumwood St 12807 Indian Trail Rd 15204 Skyridge Rd 15335 Poway Springs Court 13642 Acorn Patch Ln 14058 Iris Ln 13653 Midland Rd 14350 Sandhill Rd 13311 Betty Lee Way 17263 Saint Andrews Dr 13824 San Sebastian Way 15139 Sycamore Canyon Rd 12725 Stone Canyon Rd 12725 Stone Canyon Rd 16291 Rostrata Hill Rd 13625 El Mar 13701 Somerset Rd 14545 Budwin Ln 14647 Tierra Bonita Rd 14715 Dash Way 13151 Ridgedale Dr 16316 Orchard Bend Rd 14289 Arbolitos Dr 13987 Midland Rd 13330 Fallen Leaf Rd 14415 Crestwood Ave 15125 Huntington Gate Dr 12445 Witt Pl 15344 Midland Rd 13712 Somerset Rd 15849 Dogwood Ct 13922 Pomerado Rd 12874 Indian Trail Rd 14728 Fairtree Terrace 12224 Colony Dr 14764 Dash Way 14711 Budwin Ln 14711 Budwin Ln 13513 Melissa Ln 12451 Robison Blvd 15763 Quiet Valley Ln 17664 Saint Andrews Dr 17664 Saint Andrews Dr 17664 Saint Andrews Dr 13243 Evanston Dr 15064 Oak Canyon Rd 13415 Tarascan Dr 13415 Tarascan Dr 12311 Witt Rd 16744 Valle Verde Rd 14103 Roaring Camp Rd 14601 Selsey St 12937 Papago Dr 15000 Saddle brook Ct 12832 Luiseno St 13636 Pequot Dr 17632 Tam O Shanter Dr 14543 High Pine St 13510 Cloudcroft Ct 13995 Hickory St 14736 Roberto Rio Rd 13348 Fallen Leaf Rd 13515 Utopia Rd 13185 Triumph Dr duplicate address 314-641-06-00 duplicate address Invalid Missing Signature 321-400-01-00 duplicate address 323-451-38-00 duplicate address duplicate address duplicate address 329-023-00-22
November 2, 2021, Item #932 of 35133 10/11/2021 Colle Jr. 134 10/11/2021 Colle Jr. 135 10/11/2021 Colle Jr. 136 10/11/2021 Colle Jr. 137 10/11/2021 Yarman 138 10/11/2021 Inman 139 10/13/2021 Browning 140 10/13/2021 Becca re Iii 10/13/2021 Lennon 141 10/13/2021 Russell 142 10/13/2021 Roether 143 10/13/2021 Bentley 144 10/13/2021 Campillo 145 10/13/2021 Lindsay 146 10/13/2021 Sixt 10/13/2021 Payne 147 10/13/2021 Pelletier 148 10/13/2021 Vandervelden 149 10/13/2021 Menck 150 10/13/2021 James 151 10/13/2021 Neal 152 10/13/2021 Chatman 153 10/13/2021 Brown 10/13/2021 Brown 154 10/13/2021 Twining 155 10/13/2021 Zimmerman 156 10/13/2021 Ring 10/13/2021 Grimmer 157 10/13/2021 Poe 158 10/13/2021 Davison 10/13/2021 Brulee 159 10/13/2021 Boggiano 160 10/13/2021 Morris 161 10/13/2021 Campion 162 10/13/2021 Galope 163 10/13/2021 Koestner 164 10/14/2021 St. Lucas 165 10/18/2021 Kellhofer 166 10/18/2021 Wield 167 10/18/2021 Luckham 168 10/18/2021 Luckham 169 10/18/2021 Harrison 170 10/18/2021 Harrison 171 10/18/2021 Sicilia 172 10/18/2021 Suh 173 10/18/2021 Newman 174 10/18/2021 Wheeler 175 10/18/2021 Cudmore 176 10/18/2021 Leverette 177 10/18/2021 Kleiser 178 10/18/2021 Wagner 179 10/18/2021 Campbell 180 10/18/2021 Zabrosky 181 10/18/2021 Duoto 182 10/18/2021 Probst-Gagnon 183 10/18/2021 Dietzen 184 10/18/2021 Ricciardoll 185 10/18/2021 Reyes 186 10/18/2021 Vijayakumar 187 10/18/2021 Kirby 188 10/18/2021 Starkey 189 10/18/2021 Lockhart 190 10/18/2021 Martinez Caceres 191 10/18/2021 Musliu 192 10/18/2021 Marusak 193 10/18/2021 Wells 194 10/18/2021 Betteker 195 10/18/2021 Reheiser 196 10/18/2021 Young 197 10/18/2021 Do 198 10/18/2021 Orgas/ Widmer Gary Gary Gary Gary Jen Kenneth Mark Michele Bill &Cyndy Rory Vernon Jennifer Jody Rebecca Sheryl Greg Michael Carol Walter Brian Timothy Irene Brian Britany Arianna & Brian Jon Eric Kevin & Francine Dennis & Mary Steven Linda Marlene Melissa Douglas Elmari Gisela Joseph Kyle Michele Stephen Stephen James & Amy Max Annette Allison Joy Larry Jeffrey & Christine Jim Karen Karen Shawn David Bryan & Lauryn Maria Beverly Guy Rachel & Carlos Vijey Torrey Sharon Jacqueline Cristina Jahush Michal Lynn & Lloyd Penny Laurel Alan & Julie Joseph Angelo & Jolene WATER SEWER RATE INCREASE 2021 PROTESTS 14878 Eastvale Rd 12130 Dearborn Pl 14178 Halper Rd 12190 Tech Center Dr 13272 Poway Hills Dr 13991 Poway Valley Rd 12817 Camino Del Valle 14047 Dogwood Rd 14115 Donart Dr 17114 Cloudcroft Dr 16780 Espola Rd 14454 Range Park Rd 17216 Cuvee Ct 16718 Avenida Florencia 17049 Saint Andrews Dr 13862 Temple St 12924 Chee Drive 12958 Slack Street 13867 York Ave 12210 Morningside Ct 14436 High Pine St 12965 Slack St 12765 Welton Ln 12765 Welton Ln 12923 Standish Dr 12811 Cedar Tree Way 14860 Indian Peak Ln 16823 Avenida Florencia 14423 Midland Rd 13030 Papago Dr 13717 Utopia Rd 13844 San Sebastian Way 13718 Sagewood Dr 13836 San Sebastian Way 13227 Lingre Ave 13252 Olive Meadows Dr 14829 Sunrise Dr 13005 Ashgate Pl 15913 Wild Holly Ln 13665 Sycamore Tree Ln 12754 Indian Mail Rd 13347 Fallen Leaf Rd 12942 Buckley St 13235 Holly Tree Ln 15444 Harrow Ln 13637 Comuna Dr 13633 Comuna Dr 13365 Birch Tree Ln 13639 Comuna Dr 13369 Birch Tree Ln 13671 Sycamore Tree Ln 13764 Sycamore Tree Ln 13385 Birch Tree Ln 13524 Comuna Dr 13544 Comuna Dr 13381 Birch Tree Ln 13634 Del Pontiente Rd 13254 Birch Tree Ln 13609 Sycamore Tree Ln 13607 Sycamore Tree Ln 13732 Sycamore Tree Ln 13378 Birch Tree Ln 13551 Comuna Dr 13552 Comuna Dr 13617 Comuna Dr 17083 Old Coach Rd 17245 Saint Andrews Dr 14473 Trailwind Rd 13663 Comuna Dr 13535 Cloudcroft Ct 13429 Orange Blossom Ln business address 321-390-37-00 Invalid Missing Signature 273-171-18-00 Invalid Missing Signature 314-681-38-00 duplicate address Invalid Missing Signature 314-192-40-00 Invalid Missing Signature 314-550-45-00 314-670-36-00
November 2, 2021, Item #933 of 35199 10/18/2021 Collins 200 10/18/2021 Brettelle 201 10/18/2021 Tiernan 202 10/18/2021 Long 203 10/18/2021 Engle 204 10/18/2021 Cahan 205 10/18/2021 Graber 10/18/2021 Welsh 206 10/18/2021 Parker 207 10/18/2021 McCord 208 10/18/2021 Bucciantini 209 10/18/2021 Mallow 210 10/18/2021 Bergland 211 10/18/2021 Yu 212 10/18/2021 Gibson 213 10/18/2021 Lynch 214 10/18/2021 Loomis 215 10/18/2021 Wong 216 10/18/2021 Swank 217 10/18/2021 Amend 218 10/18/2021 Rubacky 219 10/18/2021 Rubacky 220 10/18/2021 Rubacky 10/18/2021 Ziminsky 221 10/18/2021 Krueger 10/18/2021 Pa pier 222 10/18/2021 Hayes 223 10/18/2021 Hayes 10/18/2021 Hayes 10/18/2021 Hayes 224 10/19/2021 Farber 10/19/2021 Farber 225 10/19/2021 Moncrief 226 10/19/2021 Stewart 227 10/19/2021 Baldwin 228 10/19/2021 Lord 229 10/19/2021 Lancaster 230 10/19/2021 Finn 231 10/19/2021 Rigby/ Appelson 232 10/19/2021 Forbes 233 10/19/2021 Usher 234 10/19/2021 Feinstein 235 10/19/2021 Pace 236 10/19/2021 Garcia 237 10/19/2021 Dentel 238 10/19/2021 Keefer 239 10/19/2021 McCandless 240 10/19/2021 Richards 241 10/19/2021 Kellhofer 242 10/19/2021 Kellhofer 243 10/19/2021 Berman 244 10/19/2021 Fisher 245 10/19/2021 Senteno 246 10/19/2021 Naraghi 247 10/19/2021 Smith 248 10/19/2021 Johnson 249 10/19/2021 Siegel 250 10/19/2021 Newman 251 10/20/2021 Neuerswander 252 10/20/2021 Hoyt 253 10/21/2021 Kim 10/21/2021 Kim 10/21/2021 Fisher 254 10/21/2021 Ballas Ill 255 10/21/2021 Ballas Ill 256 10/21/2021 Ballas Ill 257 10/21/2021 Roberts 258 10/21/2021 Picone 259 10/21/2021 Wingo 260 10/21/2021 Cuirzyusk 261 10/21/2021 Tydings Howard Bret Barbara Mike Susan & Roger Judy Jeff Steve Wayne Jeremiah & Katie Christina & Ryan Brian David & Deborah Lan Rhonda Michael Jan& Bob Llewny &Kyle Rod Dave &Jill Janice Charles Charles Louise Kody & Alexis Dr. Maurice Charles & Judith Charles & Judith Charles & Judith Charles & Judith Amy Gary Benjamin Camille Barbara Carol Frances Thomas John/Sean & Teri Richard & Nanci David & Veronica Eloise Logan Cynthia Georgia Brian Mike & Heidi Aleksandra Edna Scott & Cheri David Theresa Tina Kathy Dennis Joel Eric & Christine Jeffrey John Wilbur & Micelle Micah Kelsey Theresa Gus Gus Gus Clara Eugene Lobrenzo Judith Vernon WATER SEWER RATE INCREASE 2021 PROTESTS 16886 Saint Andrews Dr 12542 Glenoak Rd 12207 Colony Dr 14111 Sky Mountain Trail 16740 Avenida Florencia 18030 Old Coach Dr 13742 Comuna Dr 17488 Plaza Otonal 13532 Comuna Dr 13559 Comuna Dr 13563 Comuna Dr 13627 Sycamore Tree Ln 13756 Comuna Dr 13372 Birch Tree Ln 13530 Comuna Dr 14353 Blue Sage Rd 16939 Saint Andrews Dr 13750 Comuna Dr 13792 Sycamore Tree Ln 16820 Avenida Florencia 13333 Rollin Glen Rd 13331 Red Cloud Ln 13333 Red Cloud Ln 17055 Butterfield Tri 13554 Comuna Dr 15273 Hilltop Cir Parcel 278-301-14-00 Parcel 321-080-38-00 Parcel 321-090-01-00 Parcel 321-080-32-00 15215 Eastvale Rd 15215 Eastvale Rd 14452 Kentfield Pl 12947 Slack St 14358 Harvest Crescent 16955 Old Espola Rd 12954 Francine Terrace 17124 Cloudcroft Dr 15643 Oakstand Rd 15345 Midland Rd 13667 Sycamore Tree Ln 17118 Pomard Ct 17117 Pomard Ct 17125 Pomard Ct 13868 Midgrove Ct 14368 Blue Sage Rd 13555 Comuna Dr 13611 Comuna Dr 14449 Ortez Pl 14141 Mazatlan Wy 14049 Painted Desert Rd 17323 Saint Andrews Dr 13513 Scots Wy 13351 Silver Lake Dr 13387 Birch Tree Ln 14302 Carnitas St 12952 Avenida La Valencia 13003 Ashgate Pl 14204 Bounty Way 14822 Midland Rd 14157 Ezra Ln 14157 Ezra Ln 17323 Saint Andrews Dr 12320 Oak Knoll Rd 12309 Old Stone Rd 15641 Boulder Mt. Rd 12836 Elmfield Ln 14721 Fairtree Terrace 13663 Sycamore Tree Ln 13764 Comuna Dr 13685 Comuna Dr Not within City limits Invalid Missing Signature Missing Name Invalid Missing Signature Invalid not connected to municipal water Invalid not connected to municipal water duplicate address 2 73-781-22-00 273-781-19-00 273-781-18-00 2 75-530-06-00 Invalid Duplicate Address Invalid Duplicate Address #244
November 2, 2021, Item #934 of 35262 10/21/2021 Sztechmiler 263 10/21/2021 Sztechmiler 264 10/21/2021 Lopez 265 10/22/2021 Jacoby 266 10/22/2021 Ling 267 10/22/2021 Muscat 268 10/22/2021 Bachar 269 10/22/2021 Fuller 270 10/22/2021 Sandoval 271 10/22/2021 Parent 272 10/22/2021 Bostenero 273 10/22/2021 Johnson 274 10/22/2021 Chapman 275 10/22/2021 Valentine 276 10/22/2021 Carr 277 10/22/2021 Allen 10/22/2021 Neuenswander 278 10/25/2021 Matthies 279 10/25/2021 Chapin 280 10/25/2021 Noorolhi 281 10/25/2021 Adamson 282 10/25/2021 Kodadek 283 10/25/2021 Christensen 284 10/25/2021 Murelli 285 10/25/2021 Sparrow 286 10/25/2021 Pellegrini 287 10/25/2021 Chevne 288 10/25/2021 Cauldren 289 10/25/2021 Neal 290 10/25/2021 St. Onge 291 10/25/2021 Chase 292 10/25/2021 Angel 293 10/25/2021 Tobias 294 10/25/2021 Gerdts 295 10/25/2021 Liptak 296 10/25/2021 Wagster 297 10/25/2021 Yarnall 298 10/25/2021 Shelton 299 10/25/2021 O'Briant 300 10/25/2021 Alvarez 301 10/25/2021 Liptak 302 10/25/2021 May 303 10/25/2021 Moore 304 10/25/2021 Marshall 305 10/25/2021 Brennick 306 10/25/2021 Fitzpatrick 307 10/25/2021 Wypiszynski 308 10/25/2021 Mize 309 10/25/2021 Roy 310 10/25/2021 Weyl 311 10/25/2021 Jenkins 312 10/25/2021 Dunlap 313 10/25/2021 Lohner 314 10/25/2021 Rabenstein 315 10/25/2021 Collins 316 10/25/2021 Harvey 317 10/25/2021 Wall 10/25/2021 Wall 318 10/25/2021 Morris 319 10/25/2021 Dexter 320 10/25/2021 Walker Janina Janina David Michelle William & Mary Michelle Virginia Patricia Christina Bonnie Kevin Mark Christopher Bonnie Margaret Ronda Becky Colleen Lisa Mohammad Michel J Darwin Robert Andrea Ian Jennifer Jamie Jackie Ja Tyson Jacob David Nancy Lee Lindsey Ellen Michelle Ross Shaun Lee Tamara James Michelle Kevin Carol Angela Robyn Tonya Nora & Vincent Kelly Anne Marie Kevin Bianca & Jake Kristine Crystal Anthony Amy Gregg Mark John WATER SEWER RATE INCREASE 2021 PROTESTS 12327 Kozy Crest Ln 14706 Pomerado Rd 13340 Miguel Garden Wy 12948 Francine Terrace 11966 Allbrook Dr. 14949 Eastvale Rd 13264 Birch Tree Ln 13020 Standish Dr 14451 Kentfield Pl 13807 San Sebastian Way 14648 Woodhue Ln 15114 Oak Canyon Rd 13946 Sagewood Dr 17532 Tam O Shanter Dr 13619 Sycamore Tree Ln 14702 Fairtree Terrace 14204 Bounty Way 13606 El Mar Avenue 13522 El Mar Avenue 13824 Olive Grove Pl 13857 Olive Park Pl 13827 Olive MillWy 13850 Olive Park Pl 13801 Olive Park Pl 13835 Olive Park Pl 13843 Olive Park Pl 13247 Olive Grove Dr 13879 Olive MillWy 13852 Olive MillWy 13353 Olive Grove 13359 Olive Grove Dr 13848 Olive Grove Pl 13847 Olive Mill Wy 13887 Olive MillWy 13648 Mulberry Tree Ct 13242 Olive Grove Dr. 13864 Olive Grove Pl 13855 Olive Grove Pl 13820 Olive MillWy 13225 Olive Grove Dr 13650 Mulberry Tree Ct 13217 Olive Grove Dr 13853 Olive Park Pl 13323 Olive Grove Dr 14818 Midland Rd 17202 Merlot Pl 14052 Olive Meadows Dr 13631 Sycamore Tree Ln 12929 Grimsley Ave 14938 Golden Sunset Ct. 13865 Sagewood Dr 12937 Grimsley Ave 14065 Olive Meadows Dr 13685 Quiet Hills Dr 12809 Estrella Vista St 13653 Comuna Dr 14116 Donart Dr 14116 Donart Dr 14741 Oakline Rd 13389 Birch Tree Ln 13542 Comuna Dr 314-350-10-00 314-350-03-00 275-791-32-00 Invalid Duplicate Address #251 207-134-90-00 773-174-79-33 Invalid Duplicate Address #317 314-732-13-00
November 2, 2021, Item #935 of 35321 10/25/2021 Devries 10/25/2021 Devries 322 10/25/2021 Morrell 323 10/25/2021 Powers-Richard 324 10/25/2021 Ramirez 325 10/25/2021 Brennick 326 10/25/2021 Ramos 327 10/25/2021 Gutzmer 328 10/25/2021 Hsu 329 10/25/2021 Grodsky 330 10/25/2021 Evans 10/25/2021 Vans lager 331 10/25/2021 Vans lager 332 10/25/2021 Urena 333 10/25/2021 Urena 334 10/25/2021 Urena 335 10/25/2021 Urena 336 10/25/2021 Urena 337 10/25/2021 Urena 338 10/25/2021 Urena 339 10/25/2021 Urena 340 10/25/2021 Urena 341 10/25/2021 Urena 342 10/26/2021 Grela 343 10/26/2021 Urena 344 10/26/2021 Urena 345 10/26/2021 Urena 346 10/26/2021 Matthews 10/26/2021 Matthews 347 10/26/2021 Crook 10/26/2021 Crook 348 10/26/2021 Clark 349 10/26/2021 Eickhoff 350 10/26/2021 Pearce 351 10/26/2021 Parsa/ Shun 352 10/26/2021 Gonzalez 353 10/26/2021 New 354 10/26/2021 Lee 355 10/26/2021 Rexford 356 10/26/2021 Kosmo 357 10/26/2021 Dezan 358 10/26/2021 Pontell 359 10/26/2021 Stoltze 360 10/26/2021 Daley 361 10/26/2021 Gener 362 10/26/2021 Giafaglione 363 10/26/2021 Lee 364 10/26/2021 Martin 365 10/26/2021 Withrow 366 10/26/2021 Suneal 367 10/26/2021 Fenn 10/26/2021 Fenn 368 10/26/2021 Grotz 369 10/26/2021 Gowin 370 10/26/2021 Preckel 371 10/26/2021 Huang 372 10/26/2021 Parker 373 10/26/2021 Johnson 374 10/26/2021 Heie 375 10/26/2021 Walsh 376 10/26/2021 Davis 377 10/26/2021 Mello 10/26/2021 Mello 378 10/26/2021 Nutting 379 10/26/2021 Galaski 10/26/2021 Pontell 380 10/26/2021 Wong 381 10/26/2021 Palmer-Gillum/ Angel 382 10/26/2021 Christiansen 10/26/2021 Wong Deana Robert Christine Vivian Cynthia Clayton Joanna& Joseph Jason Cody & Kevin Julie Jason Zack Leslie Sherry Sherry Sherry Sherry Sherry Sherry Sherry Sherry Sherry Sherry Pattie Jennifer Jennifer Jennifer Gregory Wendy Bruce Sandra Diana Steve Roger & Evangeline Ali/ Jill Alberto Gabrielle Lonnie Elizabeth Christopher Dave & Barb Peter Sandra John Maryann Salvatore Ginger Joseph & Patricia Monica Chris & Cheri Larry Maryland Paul Ryan & Vanessa Allan Lin Donna Gregory & Michiru Anders David & Susan Matt & Sarah Joshua Lisa Priscilla Hideko Lorraine George Elaine/William Fred Diane WATER SEWER RATE INCREASE 2021 PROTESTS 13415 Neddick Ave 13415 Neddick Ave 13832 Frame Rd 15544 Hidden Valley Dr 13276 Birch Tree Ln 14812 Midland Rd 13201 Acton Ave 14566 Garden Rd 13209 Valle Verde Ter 13008 Vista View Dr 14108 Tobiasson Rd 13008 Vista View Dr 13315 Powers Rd 13657 Cynthia Ln 13257 Wanesta 13556 Olive Tree Ln 12921 Oak Knoll Rd 12623 Oak Knoll Rd 12702 Oak Knoll Rd 12650 Oak Knoll Rd 13005 Golden Way 12430 Oak Knoll Rd 14185 Arbolitos Dr 12835 Grimsley Ave 13106 Coyotero Drive 13725 Buford Way 13358 Via Stephen 13540 Spruce Ln 13540 Spruce Ln 14864 Espola Rd 14864 Espola Rd 13736 Sycamore Tree Ln 13350 Birch Tree Ln 14625 Fairburn St 14570 Kent Hill 14642 Evening Star Dr 13409 Utopia Rd 13415 Utopia Rd 11570 Creek Rd 14252 Sandhill Rd 13892 Oakstand Rd 13884 Belvedere Dr 13644 Mulberry Tree Ct 14033 Blue Ridge Tri 13970 Crossrock Rd 13451 Orange Blossom Ln 13434 Tarascan Dr 14266 Palisades Dr 14424 Twin Peaks Rd 14903 Heath Dr 14670 Sunrise Canyon Dr 14670 Sunrise Canyon Dr 13046 Tuscarora Dr 13704 Tierra Bonita Rd 13621 Holly Oak Wy 12656 Footman Ln 12929 Standish Dr 13756 Sycamore Tree Ln 12902 Dorathea Ter 13558 Comuna Dr 13623 Sycamore Tree Ln 14109 Hermosillo Wy 14109 Hermosillo Wy 14561 Hillndale Wy 12651 Peachwood Ct 13884 Belvedere Dr 12732 Metate Ln 14670 Buckwood St. 15181 Huntington Gate Dr 12732 Metate Ln Invalid Duplicate Address #321 Invalid Duplicate Address #329 323-393-01-00 Invalid Duplicate Address #346 Invalid Duplicate Address #347 Invalid Duplicate Address #367 317-620-15-00 Invalid Duplicate Address #377 Invalid Duplicate Address #358 Invalid Duplicate Address #380