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HomeMy WebLinkAbout12 Approving FY19 Water RatesAqendaItem#12#‘.‘.%.,,,TRUCKEEDONNERjPublicUtilityDistrictACTIONTo:BoardofDirectorsFrom:ReginaWiseDate:November07,2018Subject:ConsiderationofApprovingFY19WaterRates1.WHYTHISMATTERISBEFORETHEBOARDDistrictOrdinance2015-01wasapprovedAugust19,2015settingmaximumwaterrateincreasesforFY16throughFY20.PertheBoard’sdirection,allannualadjustmentswillbereviewedbytheBoardofDirectorspriortoimplementation.2.HISTORYIn2015theDistrictcontractedwithHDREngineeringtoupdatetheprior2013WaterRateStudy.The2015WaterRateStudyresultswereconsistentwiththe2013WaterRateStudyconfirmingtheDistrictwouldneedtoannuallyraiseratesinordertocompletecapitalprojectsandmaintainaminimumof$5millionincashandreserves.TheWaterUtilityreservegoalis$8million.ThefiveyearannualmaximumrateincreasesrepresentedinDistrictOrdinance2015-01(Attachment1)wereestablishedtoachieveCapitalImprovementPlanandFinancialMasterPlanprojections,inadditiontogivingcustomersadvancenoticeforfutureyearsincompliancewithCaliforniaProposition218.TheforecastFY16andFY17increaseswereestablishedtosupporttheongoingStatelegislativeandregulatorycompliancerequirements,inadditiontomaintainingtheacceleratedpipelinereplacementprogramandothercapitalimprovementprojects.Theseprojectsresultpositivelyinareductionofpumpingofwaterandunaccountedforwaterloss.Theremaining3%annualincreasesforecastforFY18throughFY20wereanticipatedtoberequiredtomaintainoperationsbasedonfutureeconomicforecastswhilemaintainingreservelevelsfortheWaterUtility.3.NEWINFORMATIONFY19revenueisforecasttoincreaseapproximately$286,000basedonthe3%rateincreaserepresentedinOrdinance2015-01.ThisincreasehasbeenincludedintheFY19BudgetandtheTenYearFinancialMasterPlanassumptions.The3%FY19increasewillcontinuetobeappliedtoinfrastructureimprovementsandpumpstationmaintenanceasoutlinedintheWaterDepartmentCapitalImprovement ie6ujieueoJoloe]!ase3!AJeSeA!1JTS!U!WpVAeoQIIHS!7ii.1.0-9I-Ose3UU!pJQU!PelS!IsseiJeM6L)d81flTUeWeIUW!OS13e]!QNOI1VN3VO33H.9U2IdJe1SNI!3UU!d]eAueIeLflU!UO!TdWflSSuS!pu‘je6pn61.AdpeAoJddeqU!P8PflIOU!SIeSeJ3U!S!qIOOO’99$AI8TW!X0JddAqflU8A8J.1e2MS3!]jS!Qeq8S8J3U!II!MI-O-9I-Oe3UU!pJQU!peqosepSseii61.Ad13VdIIJI1VOSIdi6I-Ad8SO3el_IlAqUO!II!W9$Oio6WflW!U!Weqieewsn1ope3e1OJdeisetueseA1!I!TflJ8TMeLI1S‘seiuesejeqwo6U!pUnIU0!1!PP6U!Z!I!lflpewwooeilOUseopUId AttachmentIIa1.iicM1I.ik’I1iaOrdinanceNo2015-01V’..SETTINGWATERRATESWHEREASTheDistrict’sretainedHDREngineeringtoconductawaterratestudy;andWHEREASHDREngineeringcompletedthewaterratestudyandrecommendedseveraloptionstofairlyallocatethecostofservicetotheDistrict’scustomersthroughincreasedrates;andWHEREASapublicworkshopwasheldJune3,2015toreceivecommentsfromthepublicconcerningaproposaltoadoptsuchrateincreases;andWHEREASnoticesoftheproposedretailwaterratesandpublichearingweremailedtoallratepayersandpropertyownersinJune2015;andWHEREASapublichearingwasheldonAugust19,2015;andWHEREAStheDistrictreceivedprotestsontheretailwaterratesfromlessthanthemajorityofparcelswithintheDistrict;andNOW,THEREFORE,BEITENACTEDbytheBoardofDirectorsoftheTruckeeDonnerPublicUtilityDistrictasfollows:SectionI.EffectivewithbillsissuedafterJanuary1ofeachyear2016through2020,thefollowingmonthlywaterratesshallbeeffective.MeteredResidentialWaterRates-Thedomesticwaterratesforsinglefamilyproperties,individualcondominiumunitsandtownhouseunitsequippedwithametershallconsistofthreecomponents,abasecharge,acommoditychargeandapumpzonecharge.MeteredResidential1/1/20161/1/20171/1/20181/1/20191/1/2020BaseChargeUpto3/4$6072$6375$6567$6764$6966I”7242760478.3280.678309Morethan1”chargedasCommercialConsumption(1,000gal)I0S000gal(blockl)$068$071$073$076$0788000+gal(block2)0850.890920.940.97PumpZoneChargesZone1$0.00$0.00$0.00$0.00$0.00Zone2040045050055060Zone30.800.901.001.101.20Zone41.201.351.501.651.80Zone5:1.601.802.002.202.40Zone6•..--2.002.252.502.753.00Zone72.402.703.003.303.60Ordinance2015-011 Un-meteredResidentialWaterRates-Thedomesticwaterratesforsinglefamilyproperties,individualcondominiumunitsandtownhouseunitsnotequippedwithameter.Un-meteredResidential1/1/20161/1/20171/1/20181/1/20191/1/2020Un-meteredResidentialZonel$6890$7235$7452$7675$7905Zone271.5575.1377.3879.7082.09Zone375267902j813983848635Zone478.9782.9285.4187.9790.61Zone582688681894292109486Zone686,1890.4993.2096.0098.88Zone790.1094.6197.44100.37103.38CommercialWaterRates—Thecommercialwaterratesforallothermultipledwellingunits,trailerparks,publicuse,dedicatedirrigationandcommercialestablishmentsshallconsistofthreecomponents,abasecharge,acommoditychargeandapumpzonecharge.Commercial1/1/20161/1/20171/1/20181/1/20191/1/2020BasedCharges___________Upto3/4”$60.72$63.75$65.67$6764$69.661”-:72.4276.0478.3280,6783.0915___________10180106891101011340116802”“139.95146.95151.36155.90160.58311234.28246.00253.38260.98268.814-33523351993625537342384626’502.83527.97543.81560.13576.938”628.54659.96679.76700.16721.16CommercialConsumption[$/l000gatL$166$175$180$185$191PumpZoneChargesZonel1$000$000$000$000Zone20.400.450.500.550.60Zone30.800.901.001.101.20Zone41.201.351.501.651.80Zone51.601.802.002.202.40Zone62.002.252.502.753.00Zone72.402.703.003.303.60Section2.Placementofagivencustomeraccountintoapumpzoneforbillingpurposesshallbebaseduponthatcustomer’srelationshiptothe6170PressureZone.The6170PressureZoneisdeemedtobePumpZoneIandallcustomerslocatedwithinthatpressurezoneandotherareaswherewatercanbesuppliedfrom6170PressureZonesolelywithoutpumpingshallalsobeconsideredpartofPumpZoneI.Forallotherareas,agivencustomershallbere-classifiedtothenexthighestpumpzoneforeachtimethewatermustbepumpedfromthe6170PressureZonetosupplythatcustomer.Ordinance2015-012 Section3ItistheDistrict’sgoalthataifcustomersareequippedwithawatermeterandbilledvolumetricallybasedupontheirusage.ItistheDistrict’sintenttohavewatermetersinstalledonallcustomers’waterservices.However,circumstancesmayexistwherebyacustomerrefusestoundertakethenecessaryactionsorimprovementstoallowthatcustomertobebilledonavolumetricbasis.lnthosecases,thecustomershallbesubjecttoanon-conformingbulkrate”andshallbechargedamonthlybillforservicebasedonthebasecharge,commoditychargeandpumpzonechargecorrespondingtothatcustomer’slocationandclass(residentialorcommercial).Fordeterminingthecommoditychargeandpumpzonechargethecustomershallbechargedavolumeequaltothe90thpercentileofusageforallcustomerswiththesamecustomerclassandmetersize.Thisdeterminationofthe90thpercentileshalloccurannuallyinJanuaryandshallbebaseduponthemeteredusagedataforthepriorcalendaryear.Section4IfnoprotestismadepursuanttoPublicUtilitiesCodeSection16078,thenthetermsofthisordinanceshallbeeffectivethirtydaysafteradoptionbytheboardofdirectorsoftheDistrict.Section&TheClerkoftheDistrictshallimmediatelycauseacopyofthisordinancetobepublishedinanewspaperofgeneralcirculationandpostedinthreeplaceswithintheDistrict.Section6.TheprovisionsofotherOrdinancesshallremainineffecttotheextentthattheydonotconflictwiththisordinance.PASSEDANDADOPTEDbytheBoardofDirectorsoftheTruckeeDonnerPublicUtilityDistrictatameetingdulycalledandheldwithintheDistrictonthe1gthdayofAugust,2015bythefollowingrollcallvote:AYES:Directors:Aguera,Bender,Laliotis,WarmerdamandPresidentEllisNOES:NoneABSENT:NoneTRUCKEEDONNERPUBLICUTILITYDISTRICTBy____________________BobEllis,PresidentoftheBoardATTEST:Az%1;,MichaelD.Holley,Clerk’1TheBoardOrdinance2015-013