HomeMy WebLinkAbout12 Construction Permit Agenda Item # 12
TRUCKEE O. u !1
Public Utility District
Wor�cstiop
To: Board of Directors
From: Neil Kaufman
Date: June 14, 2007
Subject: Presentation Construction Permitting
1. Why this matter is before the board:
This issue has a potential impact upon the year 2008 budget and should be considered by
the Board before preparation of the 2008 budget begins.
2. History:
Earlier this year, the California State Water Resources Control Board published changes to
the General Permit for Construction Activities that will become effective on January 1, 2008.
These changes will impact District construction projects.
3. New Information:
Glenn Merron and I will be making a PowerPoint presentation regarding the new
construction permitting requirements.
4. Recommendations:
This is a workshop item, there is no formal action required at this time.
Assembly Bill No. 2572
CHAPTER 884
An act to amend Section 521 of,to amend and renumber Sections 110
and 111 of,to add Sections 527, 528, 529, and 529.5 to,and to add the
heading of Article 3.5 (commencing with Section 525)to Chapter 8 of
Division 1 of,the Water Code,relating to water.
[Approved by Governor September 29,2004.Filed
with Secretary of State September 29,2004.]
LEGISLATIVE. COUNSEUS DIGEST
AB 2572,Kehoe. Water meters.
Existing law generally requires the installation of a water meter as a
condition of water service provided pursuant to a connection installed
on or after January 1, 1992. Existing law declares that the state goal for
measurement of water use is the achievement, on or before January 1,
1992, of the installation of water meters on all new water service
connections after that date to systems owned or operated by a water
purveyor.
This bill, with certain exceptions, would require an urban water
supplier, as defined,on or before January 1,2025,to install water meters
on all municipal and industrial water service connections that are located
in its service area.
The bill would require an urban water supplier,beginning on or before
January 1, 2010, but subject to certain exceptions, to charge each
customer that has a service connection for which a water meter has been
installed, based on the actual volume of deliveries, as measured by a
water meter.
The bill would require a water purveyor that becomes an urban water
supplier on or after January 1, 2005, to install water meters on all
municipal and industrial water service connections within 10 years of
becoming an urban water supplier, and, with a certain exception, to
charge each customer for which a meter has been installed,based on the
actual volume of water delivered,as measured by the water meter,within
5 years of becoming an urban water supplier.
The bill would provide that these provisions supersede and preempt
all enactments, including charter provisions and amendments thereto,
and other local action of cities and counties,including charter cities and
charter counties,and other local public agencies that conflict with these
provisions,other than enactments or local action that impose additional
or more stringent requirements regarding matters set forth in the bill.
91
Ch. 884 —2—
The bill,on and after January 1, 2010,would require an urban water
supplier that applies for financial assistance from the state for a
wastewater treatment project,drinking water treatment project,or water
use efficiency project,or a permit for a new or expanded water supply,
to demonstrate that the applicant meets certain requirements.
The bill would authorize a water purveyor, including an urban water
supplier,to recover the cost of providing services related to the purchase,
installation, and operation of a water meter from rates,fees,or charges.
The people of the State of'California do enact as follows:
SECTION 1. Section 110 of the Water Code is amended and
renumbered to read:
525. (a) Notwithstanding any other provision of law, every water
purveyor who sells,leases,rents,furnishes,or delivers water service to
any person shall require,as a condition of new water service on and after
January 1, 1992,that a suitable water meter to measure the water service
shall be installed on the water service facilities in accordance with this
chapter. The cost of installation of the meter shall be paid by the user of
the water, and any water purveyor may impose and collect charges for
those costs.
(b) Subdivision (a)applies only to potable water.
(c) Subdivision (a) does not apply to a community water system
which serves less than 15 service connections used by yearlong residents
or regularly serves less than 25 yearlong residents,or a single well which
services the water supply of a single-family residential home.
SEC. 2. Section I I I of the Water Code is amended and renumbered
to read:
526. (a) Notwithstanding any other provision of law, an urban
water supplier that,on or after January 1,2004,receives water from the
federal Central Valley Project under a water service contract or
subcontract executed pursuant to Section 485h(c) of Title 43 of the
United States Code with the Bureau of Reclamation of the United States
Department of the Interior shall do both of the following:
(1) On or before January 1,2013, install water meters on all service
connections to residential and nonagricultural commercial buildings
constructed prior to January 1, 1992, located within its service area.
(2) On and after March 1, 2013, or according to the terms of the
Central Valley Project water contract in operation,charge customers for
water based on the actual volume of deliveries,as measured by a water
meter.
(b) An urban water supplier that receives water from the federal
Central Valley Project under a water service contract or subcontract
91
—3— Ch. 884
described in subdivision(a)may recover the cost of providing services
related to the purchase, installation, and operation and maintenance of
water meters from rates,fees,or charges.
SEC. 3. Section 521 of the Water Code is amended to read:
521. The Legislature further finds and declares all of the following:
(a) Water furnished or used without any method of determination of
the quantities of water used by the person to whom the water is furnished
has caused, and will continue to cause, waste and unreasonable use of
water, and that this waste and unreasonable use should be identified,
isolated, and eliminated.
(b) Water metering and volumetric pricing are among the most
efficient conservation tools,providing information on how much water
is being used and pricing to encourage conservation.
(c) Without water meters, it is impossible for homeowners and
businesses to know how much water they are using,thereby inhibiting
conservation,punishing those who conserve,and rewarding those who
waste water.
(d) Existing law requires the installation of a water meter as a
condition of water service provided pursuant to a connection installed
on or after January 1, 1992, but the continuing widespread absence of
water meters and the lack of volumetric pricing could result in the
inefficient use of water for municipal and industrial uses.
(e) The benefits to be gained from metering infrastructure are not
recovered if urban water suppliers do not use this infrastructure.
(f) This chapter addresses a subject matter of statewide concern. It is
the intent of the Legislature that this chapter supersede and preempt all
enactments and other local action of cities and counties, including
charter cities and charter counties, and other local public agencies that
conflict with this chapter, other than enactments or local action that
impose additional or more stringent requirements regarding matters set
forth in this chapter.
(g) An urban water supplier should take any available necessary step
consistent with state law to ensure that the implementation of this
chapter does not place an unreasonable burden on low-income families.
SEC.4. The beading of Article 3.5 (commencing with Section 525)
is added to Chapter 8 of Division I of the Water Code, to read:
Article 3.5. Metered Service
SEC. 5. Section 527 is added to the Water Code, to read:
527. (a) An urban water supplier that is not subject to Section 526
shall do both the following:
91
Ch. 884 —4—
(1) Install water meters on all municipal and industrial service
connections located within its service area on or before January 1,2025.
(2) (A) Charge each customer that has a service connection for which
a water meter has been installed, based on the actual volume of
deliveries, as measured by the water meter, beginning on or before
January 1, 2010.
(B) Notwithstanding subparagraph(A),in order to provide customers
with experience in volume-based water service charges,an urban water
supplier that is subject to this subdivision may delay, for one annual
seasonal cycle of water use,the use of meter-based charges for service
connections that are being converted from nonvolume-based billing to
volume-based billing.
(b) A water purveyor,including an urban water supplier,may recover
the cost of providing services related to the purchase, installation, and
operation of a water meter from rates,fees,or charges.
SEC. 6. Section 528 is added to the Water Code,to read:
528. Notwithstanding Sections 526 and 527, any water purveyor
that becomes an urban water supplier on or after January 1, 2005,shall
do both the following:
(a) Install water meters on all municipal and industrial service
connections located within its service area within 10 years of meeting the
definition of urban water supplier.
(b) (1) Charge each customer for which a water meter has been
installed,based on the actual volume of water delivered,as measured by
the water meter, within five years of meeting the definition of urban
water supplier.
(2) Notwithstanding paragraph (1), in order to provide customers
with experience in volume-based water service charges,an urban water
supplier that is subject to this subdivision may delay, for one annual
seasonal cycle of water use, the use of meter-based charges for service
connections that are being converted from nonvolume-based billing to
volume-based billing.
(c) For the purposes of this article,an "urban water supplier" has the
same meaning as that set forth in Section 10617.
SEC. 7. Section 529 is added to the Water Code, to read:
529. (a) This article addresses a subject matter of statewide
concern.
(b) Subject to subdivision(c),this article supersedes and preempts all
enactments, including charter provisions and amendments thereto,and
other local action of cities and counties, including charter cities and
charter counties, and other local public agencies that conflict with this
article.
91
—5— Ch. 884
(c) This article does not supersede or preempt any enactment or other
local action that imposes additional or more stringent requirements
regarding matters set forth in this article.
SEC. 8. Section 529.5 is added to the Water Code,to read:
529.5. On and after January 1, 2010,any urban water supplier that
applies for financial assistance from the state for a wastewater treatment
project, a water use efficiency project, or a drinking water treatment
project, or for a permit for a new or expanded water supply, shall
demonstrate that the applicant meets the requirements of this article.
O
91
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National Pollution Discharge Elimination
System (NPDES
• Changes to the State of California
Water Resources Control Board
NPDES General Permit for
Construction Activities
General
The changes address continued water
impactsquality asso '
dated with storm
water runoff from construction ' '
activities .
The more changes result in
g e regulations for
storm water compliance .
management and
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Pollutants
The primary storm water pollutant at
construction sites is sediment due to the
disturbance of the landscape .
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Inadequate Protection
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Sediment Runoff impacts water quality and affects
ecological processes.
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Consequence
Discharges Can Result i n
Substantial Fi nes
General Permit
The General Permit regulates pollutants ,
particularly sediment, associated with
construction projects that includes
excavation , clearing , and grading .
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General Permit
The General Kermit also regulates non-
storm storm water discharges including
dewatering , flushing , well testing ,
and saw cutting .
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General
One of the changes to the General Permit
will require the District toplace their
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projects into a low, medium , or high risk
category, based on a "sediment Transport
Risk Worksheet" .
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Risk
)�o- Riskparameters includeproximityof a
project to lakes and rivers , size of a
and runoffpotential of soils .
project,
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Sediment
Dependingon the risk level associated
with a construction J ro'ect, specific
p
monitoring required uired to determine
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whether BMPs are preventing sediment
affecting waterquality.
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Construction Projects
1 ) With a minimal potential impact to water
quality will be considered "low risk" and
subject to fewer regulations.
2) With a "medium or high risk" potential impact
to water quality will result in additional
monitoring required by the District to ensure
compliance with the new regulations.
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Storm Water Pollution Prevention
Plans (SWPPPs )
SWPPPs describe the locations of the
construction sites and the BMPs that will
be in place to control erosion and
discharge of storm water sediment.
➢ The District will need to update its
SWPPPs to include the requirements of
the new General Permit.
Training and Certification
➢ The District must ensure that all project
personnel involved with preparing
SWPPPs and inspecting BMPs complete
state certified SWPPP training and
certification .
Rain Event Action Plan ( REAP )
The District must also prepare a REAP to
protect all exposed portions of a site prior
� to a 30% chance of a storm. event.
➢ Monitoring of the site must occur during
and after a storm to ensure BMPs
continue to be effective .
Construction Site Monitoring
Program ( CSMP )
v As part of the reporting requirements the
District must also implement a CSIVIP prior
to the commencement of construction
activities . The CSIVIP shall be a part of the
SWPPP .
Sed 'iment Siz 'in
New includes criteria for design of
permit
sediment basins .
On-going maintenance will be required to
clean sediment basins .
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SUMMARY OF PERMIT CHANGES AND
DISTRICT RESPONSIBILTIES
The changes to the General Permit affect the
District by requiring additional staff time during
the project design phase to satisfy new criteria
for construction drawings including the sizing of
sediment basins and location of staging areas.
The changes to the General Permit affect the
District by requiring additional time during the
monitoring phase of construction by imposing
! new criteria for inspecting projects to ensure
SWPPP compliance.
SUMMARY OF PERMIT CHANGES AND
DISTRICT RESPONSIBILTIES
The District is responsible for assessing the soil
characteristics at project sites and completing the
"Sediment Transport Risk Worksheet" for each project to
determine the risk of sediment transport off-site. An
Active Treatment System (ATS) will be required if the
soils are smaller than 0.02 mm.
° ➢ The District is responsible for updating its SWPPP's and
preparing Construction Site Monitoring Programs and
Rain Event Action Plans for each site to reflect the new
requirements of the General Permit.
SUMMARY OF PERMIT CHANGES AND
DISTRICT RESPONSIBILTIES
The District is responsible for ensuring that
all key personnel ( Engineers and
Inspectors) complete state certified
SWPPP training and certification .
This will also require some training for on-
call personnel
Agenda Item # 11
"TRUCKEE
A
Public Utility Distric J
Workshop
To: Board of Directors
From: Neil Kaufman
Date: June 14, 2007
Subject: Presentation Regarding Water Meters
1. Why this matter is before the board:
Numerous customers have inquired over the years regarding the metering of water.
Additionally, in 2004 the State of California has passed a law governs the metering of water.
This issue has a potential impact upon the year 2008 budget and should be considered by
the Board before preparation of the 2008 budget begins.
2. History: the
In 2004, the Governor signed AB 2572. This bill imposes requirements regarding AB
metering of water and the billing of water customers on a volumetric basis. A copy
of 2572 is attached.
3. New Information:
I will be making a PowerPoint presentation regarding AB 2572, water metering and its
potential impact on the District at the Board meeting.
4. Recommendations:
This is a workshop item, there is no formal action required at this time. However, Staff
would like some direction for preparing the 2008 budget in regards to this issue.
Attachments:
AB 2572
WATER METERING
Board Presentation
June 20, 2007
1
Public Utility District
What we will be covering
• Relevant Regulations
• Possible Rate Structures
• Current Budget and Rate Methodology
• Costs of Metering
• Future Actions
2
Public Utility District
Relevant Regulations
• California Water Code Section 110 / 525
• AB 2572
3
oo-o* ) Public Utility District
Water Code Section 110 / 525
• Requires that all houses constructed since
January 1 , 1992 must have a water meter
installed
• Does not require that meters be read and does
not require volumetric pricing
• The District has complied with this law and
installed meters on all houses built since
January 1 , 1992
4
Y
W Public Utility District
AB 2572
• Requires a water purveyor to:
"Install water meters on all municipal and
industrial service connections located within its
service area on or before January 1 , 2025 . 91
Public Utility District
AB 2572
• Requires a water purveyor to:
"Charge each customer that has a service
connection for which a water meter has been
installed , based on the actual volume of
deliveries, as measured by the water meter,
beginning on or before January 1 , 2010 .
6
TRUCKEE DONNER
Public Utility District
AB 2572
• Allows a water purveyor to:
"In order to provide customers with experience in
volume-based water service charges, an urban water
supplier that is subject to this subdivision may delay,
for one annual seasonal cycle of water use, the use of
meter-based charges for service connections that are
being converted from nonvolume-based billing to
volume-based billing ."
7
Public Utility District
AB 2572
• compliance Language:
"On and after January 1 , 2010, any urban water
supplier that applies for financial assistance from the
state for a wastewater treatment project, a water use
efficiency pJ project, or a drinking water treatment project,
or for a permit for a new or expanded water supply,
shall demonstrate that the applicant meets the
requirements of this article."
8
Public Utility District
Regulatory Timeline
• 2010: Read meters installed since 1992 .
Send sample bills to those customers
• 2011 : Begin actual volumetric billing of meters
installed since 1992
• 2025: Retrofit all customers with meters and
begin volumetric billing
9
Public Utility District
Regulatory Timeline
• How Many Houses ?
• 4,900 should have meters. These meters do
not have radio read capability
• 700 should not have meters but have upgraded
meter boxes
• 5,900 should not have meters or upgraded
meter boxes
10
Public Utility District
Possible Rate Structures
• Declining Block Rates
• Flat Rates
• Inclining Block Rates
• Seasonal Rates
11
Declining Block Rate Structure
$2.50
$2.00
H
C
0 $1.50
M
as
0
0
C
L
d
a
c $1.00
U
$0.50
$0.00
0 50,000 100,000 150,000 200,000 250,000
Monthly Volume
12
Flat Block Rate Structure
$2.50
$2.00
UN
C
c $1.50
w
CD
0
0
0
w
a
.r
c $1.00
U
i
I
$0.50
$0.00
0 50,000 100,000 150,000 200,000 250,000
Monthly Volume 13
Inclining Block Rate Structure
$2.50
$2.00
N
C
$1.50 !,
R i
0
0
0
w
a
.r
$1.00
U
$0.50
0.00
0 50,000 100,000 150,000 200,000 250,000
Monthly Volume 14
Seasonal Rate Structure
$3.50 _
$3.00
$2.50
N
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O
$2.00 _
rn
0
0
0
a�
n$1.50
N
O
U
$1.00
$0.50 _
i
$0.00
0 2 4 6 8 10 12
Month 15
r- Public Utility District
Current Budget and Rates
Residential Sales $7 , 351 , 999
Commercial Sales $ 1 , 048 , 725
Interest Income $ 130,437
From Facility Fees $5397126
From DLAD Surcharge $97 , 636
Other Income $392 ,466
2007 Revenue $9 , 560,389
16
Public Utility District I
Current Budget and Rates
Operations $4 , 269,671
Debt Service $2 ,6397289
To Reserve Funds $446 , 742
Capital from Rates $ 1107376
Other Expenses $2 ,094 , 311
2007 Expenses $9, 560 , 389
17
rPublic Utility District
Water Operations
Power Supply $ 1 , 561 , 023
Maintenance of Sources $481 ,987
Facilities Operations $575, 025
Distribution Operations $9332046
Other Expenses $718 , 590
Total $4,269 ,671
18
I Public Utility District I
Revenue from Sales
Residential Sales $71351 ) 999
Commercial Sales $ 1 , 048 , 725
Total $8 )4001724
19
II uu
Public Utility District
Fixed vs . Variable Costs
Fixed Costs $6,942,904 (72.6%)
Variable Costs $2,6182035 (27.4%)
Total Expenses $97560,939 (100%)
Assume Same Percentage for Revenue Required:
Fixed Costs $6,098,926 (72.6%)
Variable Costs $2,3012798 (27.4%)
Total Expenses $8,400,724 (100%)
20
n
Public Utility District
Past Rate Methodology
• Modification of Prior Year's Rates
• For example: Total budget expenses
increased 3% . Therefore, multiply previous
year's rates by 1 .027 with assumption that
increased customer base will account for the
remaining revenue required
or
Increase all bills by a flat amount
21
rPublic Utility District 1
Example Metered Rate Structure
• Based on 2007 Budget
• Flat Block Rates
• Assumes Cost to Implement Metering is $0
• Does Not Account for Zone Pumping. Charge
22
-oo-* Public Utility District
Fixed Charge
Single Family Houses 11 , 506
Commercial Equivalents (616 Meters) 2 , 392
Total 13 , 898
Charge per SFR = $6 ,098,726 / 13 ,898
Charge per SFR = $438.83 / year
Charge per SFR = $36 . 57 / month
23
i
Public Utility District
2006 Water Sales
• Total Production = 2 . 37 billion gals
• Commercial Sales = 0.453 billion gals ( 19%)
• Residential Sales = ??
• Unaccounted For Water = ??
(Construction Water, Leakage, Internal Uses
Metering Errors)
24
r- Public Utility District I
Volume Charge
Total Production = 2 .37 billion gals
Assume Unaccounted For Water = 20%
Metered Water Sales = 1 .90 billion gals
Variable Costs = $2, 301 ,798
Variable Costs = $2 , 301 ,798 / 1 .90 billion gals
Variable Costs = $ 1 .21 / 1 ,000 gals
25
-00 ublic Utility District
Volume Charge Revenue
Total Production = 2 . 37 billion gals
Commercial Sales = 0 .453 billion gals
Residential Sales = 1 .45 billion gals
Unaccounted For Water = 0 .47 billion gals
26
ui
Public Utility District 1
Volume Charge Revenue
Commercial Sales = 0.453 billion gals
$ = 0.453 billion gals * $1 .21 / 1000 gals
$ = 548, 130
Residential Sales = 1 .45 billion gals
$ = 1 .45 billion gals * $1 .21 / 1000 gals
$ = 11754,500
Unaccounted For Water = $0
27
o; % Public Utility District I
Average Residential Bill
Residential Sales = 1 .45 billion gals
Residential Units = 11 ,506
Average per Unit = 126,021 / year
Average per Unit = 10 , 502 / month
Average per Unit = 350 day
$36 .57 + 10, 502 * 1 .21 / 1000 = $49 .28
28
Public Utility District
Costs to Implement Metering
• Initial Purchase and Installation of Meters
• Sinking Fund/Depreciation for Meter
Replacement
• Labor to Maintain Meters
• Administrative Costs (Meter Reading ,
Customer Service, etc. )
• New Construction Water Program
29
Public Utility District
Purchase and Installation of M ete rs
• Existing Meters Do Not Have Radio
Transmitters or Dial Registers
• Older Meters are 12- 15 years old and Are
Nearing the End of Their Useful Life
• Many Meter Boxes Require Upgrading
• Cannot Be Accomplished in One Summer
30
Public Utility District
Purchase and Installation of Meters
• Estimated cost to purchase a new SFR meter
with register & radio transmitter is about $225
• Estimated cost to install one SFR meter in an
upgraded meter box is about $50
• Estimated cost for meter box upgrade is
$3,500 - $4,000 for a double service. (box
only, no lateral)
31
rT UCKEE DONNER I
Public Utility District I
Purchase and Installation of Meters
• 4,900 houses built after 1 /1 /92
• Assume 50% require meter box upgrades
No Upgrade 21450 * $275 ."ll""I"ll $673 , 750
Upgrade 2 ,450 ' $2 , 275 = $5, 573 , 750
38
Public Utility District
Purchase and-
Installation of Meters
• 700 houses- built before 1 / 1 /92 with upgraded
meter boxes
700 ` $275 = $ 192 , 500
39
r- S Public Utility District
Purchase and Installation of Meters
• 5 ,900 houses built before 1 /1 /92 without
upgraded meter boxes
57900 $27275 = $ 1374227500
40
WAIN DIMMM
Purchase and Installation of Meters
• Total Cost
After 1 /9/92 - Upgraded Meter Box $673,750
After 1 /9/92 - Upgrade Required $5,5737750
Pre 1 /9/92 - Upgraded Meter Box $1927500
Pre 1 /9/92 Upgrade Required $13,422,500
Total $19,862,500
Amortize meter purchase and labor ($3. 1 M) over 15 yrs
Amortize meter box upgrades ($16.7 M) over 30 yrs
41
31
Sinking Fund/Depreciation
• Meter Replacement Cost is $225
• Labor Cost is $50 per meter
• Assume 15,000 meters at buildout
• Need to replace 1 ,000 meters annually
• Cost of $275, 000 annually
42
Public Utility District I
Labor to Maintain Meters
• Assumed to be an additional 1 .5 full time field
employees in the Water Department
• Need to purchase meter test equipment and at
least one additional vehicle
43
ct
Public Utility Distri
Administrative Costs
• One additional full time billing/customer service
clerk
. One additional half-time meter reader
• About $ 150,000 for software upgrades,
equipment purchase, redesign of monthly bills,
customer notices and other direct costs
44
LPublic Utility District
` __00W
Construction -Water Program
• The existing construction water program
utilizes a flat fee of $ 10 per day per water truck
• If metering is required a new approach may be
needed . It may be necessary for the District to
purchase some additional equipment
45
Estimated Costs
• Initial Installation & Purchase = $ 19,862 , 500
• Initial Installation & Purchase = $ 1 .4 M (yearly)
• Annual Costs = $600,000
• Total = $2 million per year
46
Public Utility District
,r'�L
Estimated Costs
• All costs on previous slide are fixed and do not
change with volume of water sold . Therefore,
should be placed into the fixed monthly charge
• The monthly charge rises from $36 .57 to
� $45.71
i
' 47
Pub
lic Utility District
Future Actions
• Determine type of rate structure desired :
Inclining , Declining , Flat, Seasonal ,
Conservation Incentives
. Discussion of pre- 1992 residences. Are they
converted at the same time as newer
residences ? If not, a dual rate structure must
be developed .
48
Public Utility District 1.
Future Actions
. Conduct pilot study.
- Need meters in the ground to determine "average
usage"
• Estimated bill described earlier assumes 20%
of water is lost. Could be higher.
- Need meters on pump stations to estimate lost
water
i
49
I Public Utility District
Future Actions
• Evaluation of Zone Pumping Charge
- Past calculation methodology has not examined
current electrical costs in detail
- Modifications to system have changed zones.
� Billing system has not been updated
- More zones are likely needed
50
I
RU
Public Utility District
Future Actions
• Reserve For Future Meters Fund
- Total Value is $1 , 138,649
- Current Fund Balanced is $287,040
- Loans Against It:
• $450,575 — Water System Improvements
• $401 ,034 — Water Department General Fund Overdraft
51
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