HomeMy WebLinkAbout10 FY18 Water Rates10
To: Boarol e�f Directors
From: Regina Wise
Date. November 01, 2017
subject: Consideration of Approving the FY18 Water Rates
Yule
1. VlI•iY
MATTER I0 BEFORE TWE BOARD
District Ordinance 2015-01 was approved August 019, 2015 setting water rates for
FY16 through FY20. Per the Board's direction all annual adjustments will be
approved by the Board of Directors prior to implementation.
2. F1iS`�ORY
In 2015, the District contracted with HDR Engineering to update the prior 2013 Water
Rate Study. The 2015 Water Rate Study results were consistent with the 2013 Water
Rate Study confirming the District would need to annually raise water rates in order to
complete capital projects and maintain a minimum of $5 million in cash and reserves.
T he Water Utility reserve goal is $8 million.
The five year annual maximum rate increases represented in District Ordinance
2015-01 (Attachment 1) were established to achieve Capital Improvement Plan and
Financial Master Plan projections, in addition to giving customers advanced notice for
future years in compliance with California Proposition 218. The FY16 and FY17
increases were established to support the ongoing State legislative and regulatory
compliance requirements, in addition to maintaining the accelerated pipeline
replacement program and other capital improvement projects. These projects provide
positive results in achieving reduced pumping of water and unaccounted for water
loss. The remaining 3% annual increase forecast for FY18 through FY20 was
anticipated to be required to restore reserves and maintain operations based on
future economic forecasts. Each year the Board will review the projections and
determine whether the forecast increase is required.
FY18 revenue will increase approximately $204,000, based on the 3% rate increase
represented in Ordinance 2015-01. The average monthly bill for metered residential
customers is approximately $71.00, this increase represents an additional $2.13 per
month. This increase has been included in the draft FY18 and FY19 budget and the
Ten Year Financial Master Plan assumptions.
Although the drought regulations from FY15 have been lifted, the
permanent State mandated water waste regulations remain in effect. The reduced
consumption from conservation measures continues to offset the revenues expected
from the planned rate increases.
Additionally, the 1/Vater Utility has also been aggressively working to complete system
improvements. The planned projects, in conjunction with timing of other projects and
unanticipated system maintenance and repairs required the utilization of $800,000
from the operating reserve fund in FY16 drawing reserves below the District's $5
million rninimum reserve goal level.
The 3% FY18 increase is crucial to continue the District's annual pipeline replacement
program and repair and maintenance of District facilities as outlined in the Water
Utility Capital Improvement Plan without utilizing additional reserves. Staff does not
recommend utilizing additional funding from the reserves as the Water Utility reserves
continue to remain just at the District's minimum reserve goal of $5 million.
4. FI�C,AI� 11141P�4Ci
FY18 rates as described in Ordinance 2015-01 will increase the District's water
revenue by approximately $204,000. This increase is included as an assumption in
the Ten Year Financial Master Plan.
�. aI�CCJI6AM�ND.,"�TBOW
Direct staff to implement the FY18 water rates as listed in Ordinance 2015-01.
cr
hegina Wise
Interim Administrative Services Manager
Michael D.
Holley
General Manager
Attachment 1
Ordinance No. 2015-01
SETTING WATER RATES
WHEREAS The District's retained HDR Engineering to conduct a water rate study; and
WHEREAS HDR Engineering completed the water rate study and recommended several options to
fairly allocate the cost of service to the District's customers through increased rates; and
WHEREAS a public workshop was held June 3, 2015 to receive comments from the public
concerning a proposal to adopt such rate increases; and
WHEREAS notices of the proposed retail water rates and public hearing were mailed to all rate
payers and property owners in June 2015; and
WHEREAS a public hearing was held on August 19, 2015; and
WHEREAS the District received protests on the retail water rates from less than the majority of
parcels within the District; and
NOW, THEREFORE, BE IT ENACTED by the Board of Directors of the Truckee Donner Public
Utility District as follows:
Section 1. Effective with bills issued after January 1 of each year 2016 through 2020, the following
monthly water rates shall be effective.
Metered Residential Water Rates -The domestic water rates for single family properties,
individual condominium units and townhouse units equipped with a meter shall consist of three
components, a base charge, a commodity charge and a pump zone charge.
Metered Residential 1/1/2016 ; 1/1/2017 1/1/2018 1/1/2019 � 1/1/2020
Base Charge
$6072 -$63J5 $65.67Up to 3/4$67 64 $69.66
1 ( 72.42 76.04 78.32 80.67 83_.09
More than V charged as Commercial
Consumption (1,000 gal)
0 - 8000 gal (block 1) $0.68 $0.71 $0.73 $0.76 '1 $0.78
--- - -- --
8000 +gal (block 2) 0.85 0.89 0.92 0.94 0.97
Pump Zone Charges
Zone 1 $0.00 _ $0.00 $o.00 $0.00 $0.00
Zone 2 _ 0,40_ 0.45 _ 0.50__� 0.55 0.60
Zone 3 _ 0.80 0.90 1.00 1.10 1.20
Zone 4 ( 1.20 ! 1.35 1950_1.65 1.80
Zone 5 1.60 T 1680 100 T 2 20 2.40
Zone 6 _1 2.00 2.25_ 2.50 2 75 3.00
Zone 7 I 2.40 2.70 3.00 3.30 3.60
Ordinance 2015-01 1
Un-metered Residential Water Rates - The domestic water rates for single family properties,
individual condominium units and townhouse units not equipped with a meter.
Un-metered Residential 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020
Un-metered Residential I
Zone 1 $68.90 _ $72.35 - $74.52 1- $76.75 $79.05
- Zone 2 - - -- - 71.55 _ 75._13 I 7_7.38 79.70 - -- 82.09
Zone 3 75.26 79.02 81.39 83.84 86.35
Zone 4 78.97 82.92 85.41 87.97 I 90.61
Zone 5 82.68 _86.81 89.42 92.10 94.86
Zone 6 - - - -- - - - 86.18 -- - 90.49 - 93.20 - - 96.00 - 98.88
Zone 7 -_- --- - - - _ 90.10 - 94.61 -97.44 i - 100.37 j-103.38
Commercial Water Rates -The commercial water rates for all other multiple dwelling units,
trailer parks, public use, dedicated irrigation and commercial establishments shall consist of
three components, a base charge, a commodity charge and a pump zone charge.
Commercial
-
1/1/2016
1/1/2017
1/1/2018
i 1/1/2019
--
1/1/2020
Based Charges
U to 3/4
$60.72
I $63.75
$65.67
I
$67.64
1"
83.09
72.42
I 76.04
78.32
80.67
1.5"
101.80
110.10
113.40
116.80
_-106.89
146.95
151.36
155.90
- _ _
139.95
234.28
160.58
268.81
3"
_ 246.00
253.38
260.98
_ _
4"
384.62
335.23
351.99
362.55
373.42
6"
502.83
527.97
543.811
560.13
576.93
8" -
628.54
_
659.96
_ 679.76
700.16
1-721.16
Commercial Consumption
I
$/1,000 gal
$1.66
$1.75
I $1.80
- -
$1.85
$1.91
Pump Zone Charges
Zone 1
$0.00
$0.00
-----
$0.00
---- - -
$0.00
I $0.00
Zone 2
0.45
-
0.50
- -
0.55
-
I 0.60
0.40
Zone 3
0.80
0.90
1.00
1.10
1.20
Zone 4
1.20
1.35
1.80
1.50
1.65
Zone 5
- _ --- - _ - - --
1.60
1.80
- -
2040
---
2.00
2.20
--- 2.50
-----
--- 2.75 �
---
Zone 6
- -- - -
2.00
- - --
2.25
-- --
3.00
- - --
Zone 7
2.40
2.70
3.00
3.30
l
3.60
Section 2. Placement of a given customer account into a pump zone for billing purposes shall be
based upon that customer's relationship to the 6170 Pressure Zone. The 6170 Pressure Zone is
deemed to be Pump Zone 1 and all customers located within that pressure zone and other areas
where water can be supplied from 6170 Pressure Zone solely without pumping shall also be
considered part of Pump Zone 1.
For all other areas, a given customer shall be re-classified to the next highest pump zone for each
time the water must be pumped from the 6170 Pressure Zone to supply that customer.
Ordinance 2015-01 2
Section 3. It is the District's goal that all customers are equipped with a water meter and billed
volumetrically based upon their usage. It is the District's intent to have water meters installed on all
customers' water services. However, circumstances may exist whereby a customer refuses to
undertake the necessary actions or improvements to allow that customer to be billed on a volumetric
basis.
In those cases, the customer shall be subject to a "non -conforming bulk rate" and shall be charged a
monthly bill for service based on the base charge, commodity charge and pump zone charge
corresponding to that customer's location and class (residential or commercial). For determining the
commodity charge and pump zone charge the customer shall be charged a volume equal to the 90'h
percentile of usage for all customers with the same customer class and meter size. This
determination of the 901h percentile shall occur annually in January and shall be based upon the
metered usage data for the prior calendar year.
Section 4. If no protest is made pursuant to Public Utilities Code Section 16078, then the terms of
this ordinance shall be effective thirty days after adoption by the board of directors of the District.
Section 5. The Clerk of the District shall immediately cause a copy of this ordinance to be
published in a newspaper of general circulation and posted in three places within the District.
Section 6. The provisions of other Ordinances shall remain in effect to the extent that they do not
conflict with this ordinance.
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at a
meeting duly called and held within the District on the 19'h day of August, 2015 by the following roll
,all vote:
AYES: Directors: Aguera, Bender, Laliotis, Warmerdam and President Ellis
NOES: None
ABSENT: None
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Bob Ellis, President of the Board
ATTEST:
Michael D. Holley, CI
e Board
Ordinance 2015-01 3