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HomeMy WebLinkAbout16 Water Rate Study Consultant Agenda Item # 16 Public Utility District WORKSHOP To: Board of Directors From: Neil Kaufman Date: February 18, 2009 Subject: Retention of a Consultant to Perform a Water Rate Study 1. WHY THIS MATTER IS BEFORE THE BOARD This item is informational regarding the planned retention of a consultant to perform a water rate study. 2. HISTORY AB 2572 requires that the District begin reading the water meters installed since 1992 and commence billing on a volumetric basis by January 1, 2010. AB 2572 also requires that all connections be equipped with water meters and billed on a volumetric basis by January 1, 2025. A number workshops were held during 2008 regarding this state mandate. In September 2008, the Board awarded a contract to Measurement & Control Systems (MCS) for the installation of water meters, meter-mounted radios and associated components with the water metering pilot program. All of the water meters and meter-mounted radios have been installed and the pilot study is underway. 3. NEW INFORMATION Another facet of compliance with AB 2572 involves the development a new volumetric rate structure. The current volumetric rate structure applies only to commercial accounts and utilizes a declining block format. It is recommended that an outside consultant be retained to work with the District to develop a new rate structure that will allow compliance with AB 2572. A draft Request For Proposals(RFP)has been prepared and is attached. One key component of the scope of work is an initial workshop with the Board of Directors to discuss volumetric billing and alternative rate structures at a conceptual level. There are numerous parameters to be considered in developing water rates, including: Base consumption allowances vs. no consumption allowance Pumping cost recovery Flat rate volumetric pricing vs. inclining block volumetric pricing Seasonal pricing Conservation incentives 0 Matching of revenues to operational costs The focus of this initial workshop is to allow the Board to obtain information regarding rate structure alternatives and then provide direction regarding the potential rate structures where efforts should be focused. The anticipated rate study schedule is given below: • Issue RFP- February 23 • Proposal submission deadline- March 20 • RFP Review- March 23-27 • Board of Directors authorizes contract-April 1 • Board Workshop on water rate structure concepts- May 6 • Preliminary rate study report presented to Board -August 5 • Final rate study report presented to Board of Directors-August 19 • Public Workshop/Board Mtg. on proposed water rates-September 2 • Review and approval of new Water Rates-September 16 • Mailing of Notices of Public Hearing -After September 16 • Public Hearing on Proposed Water and Sewer Rates and Board adoption vote after protests presented - November 4 • Implementation of New Rates-January 1, 2010 Attachments: Draft RFP 4. FISCAL IMPACT The funding source for the rate study is rates. 5. RECOMMENDATION R vp his repo and provide comment. Ed Taylor Michael D. Holley Water Utility Manager General Manager F TRUCKEE DONNER Public Utility District REQUEST FOR PROPOSALS FOR A WATER RATE STUDY Submission Deadline: 5:00 PM, March 20, 2009 Contact Person: Neil Kaufman, (530) 582-3950 Truckee Donner Public Utility District P.O. Box 309 (11570 Donner Pass Road), Truckee, CA 96160 Page 1 of 8 INTRODUCTION & BACKGROUND The Truckee Donner Public Utility District (District) is located in eastern Nevada County, California and provides water service for domestic and irrigation purposes to about 12,400 customers in the Truckee area. The District is also a retail electric utility and serves about 13,000 electric meters. Currently, all water system customers are classified into two groups: single-family residential (SFR) and commercial. The commercial category encompasses all customers that are not SFR includes a wide range of customers such as retail establishments, restaurants, office space, schools, parks, irrigation accounts, multi-family residential and light industrial. The District's current SFR rate structure entails a flat monthly bill for service that consists of two components. The first component is a fixed base charge applied to all SFR customers equally. The second component is a fixed zone charge that varies depending upon the elevation of the customer and is based upon the rationale that more electricity must be expended to pump water to customers at higher elevations. The District's current commercial rate structure consists of three components: • A fixed base charge that varies with the size of the meter. • A declining-block volumetric rate based upon monthly meter readings. Commercial customers are granted a base consumption allowance that varies with the size of the meter. • A zone charge that is applied to all water consumed that varies depending upon the elevation of the customer and is based upon the rationale that more electricity must be expended to pump water to customers at higher elevations. The District is subject to the requirements of AB 2572 and the District's Board of Directors has set a goal of implementing full metering and volumetric billing of all customer accounts by June 1, 2013. The District has developed a program to install a new automated meter reading system and begin billing all water system customers on a volumetric basis. The AMR implementation program involves three phases: • Phase 1 involves the install ation/equipping of about 430 SFR customers with new AMR meters during the later Fall of 2008. The purpose of Phase 1 is twofold: technology testing to ensure that the selected AMR system will function with the climate and construction practices of the Truckee area; and gather actual customer consumption data to be utilized in developing a volumetric water rate structure. Phase 1 is currently underway and all 430 meters should be operational by mid-January 2009. • Phase 2 involves the installation/equipping of about 7,000 additional customers with AMR meters during the Summer of 2009. Phase 2 will bring the District into compliance with the requirements of AB 2572. • Phase 3 involves the installation/equipping of all remaining water system customers with AMR meters. Phase 3 will occur during 2010-2012 and will involve the installation of new meter boxes where a meter does not currently exist and the modification of a number of problematic existing meter boxes. Page 2 of 8 Effective January 1, 2009, the District will impose a charge of monthly charge of $5.00 on all potable water system customers to assist in funding compliance with AB 2572. This charge will expire in December 2013. The District does not require a review of its electric system rate structure at this time. The District does not require a review of its Connection Fee and Facility Fee structures at this time. RATE STUDY OBJECTIVES The District has identified two main tasks or objectives it wishes to accomplish through the Water Rate Study: 1) For Proposition 218 rate setting purposes, the District desires to develop a rate structure that is based on a uniform rate-setting methodology while recognizing that the fee or charge may not exceed the proportional cost of services attributable to a customer. 2) The District desires that a new water rate structure be in place in order to begin volumetric billing by January 1, 2010. The District is not wedded to the existing rate structure format and desires to investigate alternate rate structures that may involve one or more of the following components: • Base consumption allowances vs. no consumption allowance • Pumping cost recovery • Flat rate volumetric pricing vs. inclining block volumetric pricing • Seasonal pricing RATE STUDY REQUIREMENTS The study shall be performed in accordance with the following concepts: • The recommended rate structure shall be based on cost of service and shall be sufficient to meet the short and long-term revenue requirements of the District's water utility operations. • The recommend rate structure (or structures) shall consider and make provisions for the following factors: 1. Current and future cost of providing water service in accordance with established and anticipated standards and regulations 2. Projected demands 3. Availability of supply 4. Age and condition of the water system and the need to fund long-term capital improvement/replacements. 5. Any anticipated revisions to California state regulations • The recommended rate structures shall provide direct identification of revenues appropriate to fund operating activities and infrastructure. • The recommended rate structures shall be consistent with industry practice for utility rate making in California. Page 3 of 8 • Justifications for any special classes of customers under the recommended rate structure shall be clearly demonstrated. • The recommended rate structure shall result in a minimal decrease in stability of Water Department revenue stream as compared to the current structure. • Funding for ongoing life-cycle replacement of existing water system facilities shall be considered. • The recommended rate structure shall consider the type and amount of reserves appropriate to the District's water operations taking into consideration reserves for cash flow, catastrophes, infrastructure replacement and other appropriate purposes. • The recommended rate structure shall be easy to administer and understand. • The recommended rate structure shall be planned for at least five years. RATE STUDY ELEMENTS In making its rate structure recommendations, the final report shall include the following elements and analysis: • Current Rate Structure: Discuss the current rate structure's performance as a baseline for comparison against the new recommended volumetric rate structure. • Equity: Assess the equity of recommended water rates for all types of customers. • Conservation Impacts: Assess the interaction between the water conservation elements of the recommended rate structure and their impacts on the ability to fund water operations as well as their impact on the economic well-being of the community. • Other Service Charges: Identify other potential areas for service and system charges (shut-down activities, back-flow device administration, water service shut-offs, etc.) and recommend changes, if appropriate. This assessment shall note any resulting increase in liability the City may incur as result of assessing the fees. • Annual operating fund balance targets. Recommend reserve levels for operating and capital replacement as well as cash flow and unforeseen events. SERVICES TO BE PROVIDED BY THE CONSULTANT The services to be provided by the Consultant include, but are not necessarily limited to, the following: • Conduct an initial workshop with the District's Board of Directors to discuss volumetric billing and alternative rate structures at a conceptual level. • Conduct a detailed review of the existing water rates and the financial status of the Water Department • Meet or confer with District staff as necessary • Conduct analyses as required to address the project scope of work • Prepare and submit ten copies of the preliminary rate study report including recommendations regarding potential rate structures. • Conduct a Workshop with the Board of Directors to discuss the preliminary report. The Consultant shall be prepared to respond to questions from both the Board and the general public. • Prepare and submit ten copies of the final rate study report pursuant to input from the Board of Directors. Submit the final report in PDF format to be posted on the District's website and used for future reproduction of additional copies of the final report. Page 4 of 8 • Conduct a Workshop with the Board of Directors to present the final report. The Consultant shall be prepared to respond to questions from both the Board and the general public. • Attend the public hearing where the proposed water rates are considered for adoption. SERVICES TO BE PROVIDED BY THE DISTRICT The services to be provided by the District include, but are not necessarily limited to, the following: • Furnish all reasonably available records and information, including financial reports, budgets, and data regarding commercial water consumption, meter sizes and customer classes. • Furnish data regarding SFR water consumption data from the ongoing pilot program as it becomes available. • Provide a copy of the District's 2004 Water System Master Plan on CD in pdf format. • Provide information on the Water Department's ongoing Capital Improvement Program. INSTRUCTIONS FOR SUBMITTING PROPOSALS Proposals shall take the form of two separate documents—a Technical Proposal and a Cost Proposal. The Technical Proposal shall include the following: • Firm name, address, telephone number and contact person • Description of firm, including past experience with similar rate studies • Resumes and experience of the staff members to perform the services provided • Description of the project approach and services to be provided. • Description of the anticipated staffing level required for the work • Listing of any subcontractors to be used. • Any other information deemed relevant by the consulting firm The Technical Proposal shall consist of a maximum of 15 pages discussing the proposed Scope of Work, Project Approach and prior experience of the firm. Resumes and CV of project team members may be included in an appendix and do not count against the 15 page limit. The Cost Proposal shall contain a fee proposal for the work to be performed. Costs shall be based upon hourly rates listed in the Cost Proposal. The Cost Proposal shall also discuss any non-labor costs, such as travel expenses or reproduction. The Technical Proposal and Cost Proposal shall be contained in separate envelopes that are labeled and individually sealed. Proposals shall be submitted no later than 5:00 PM on March 20, 2009. Six copies of the overall proposal shall be submitted to the District and should be addressed to: Neil Kaufinan—Water Rate Study Proposal Water System Engineer Truckee Donner Public Utility District PO Box 309 Truckee, California 96160 Page 5 of 8 Late submittals will not be accepted. The District reserves the right to accept or reject, in total or in part, any proposal. While each proposal will be considered objectively, the District assumes no obligation to accept or take action on any proposal. All proposals must be complete, including cost the cost proposal. The proposal can be withdrawn at any time, if requested in writing, until the deadline date, at which time it will be considered firm. The Consultant assumes the responsibility for all costs incurred in responding to this RFP. It is understood and agreed that the District assumes no liability for the Consultant's costs incurred in responding to this RFP. EVALUATION OF PROPOSALS The District will review the proposals on the basis of the following criteria. • Project Approach • Experience and qualifications of the firm with similar studies • Experience and qualifications of the project team members • Cost After review of the written proposals, the District may select a consultant, or at its option, determine a short list of up to three firms and then conduct interviews with the short listed firms to determine the selected consultant. ANTICIPATED PROJECT SCHEDULE The District currently anticipates the following schedule for the Water Rate Study: • Proposal Submission Deadline—March 20, 2009 • RFP Review—March 23-27, 2009 • Board of Directors Authorizes Contract—April 1, 2009 • Board Workshop on water rate structure concepts—May 6, 2009 • Preliminary Rate Study Report presented to Board—August 5, 2009 • Final Rate Study Report presented to Board of Directors—August 19, 2009 • Public Workshop/Board Mtg. on proposed water rates— September 2, 2009 • Review and Approval of new Water Rates— September 16, 2009 • Mailing of Notices of Public Hearing—After September 16, 2009 • Public Hearing on Proposed Water and Sewer Rates and Board adoption vote after protests presented—November 4, 2009 • Implementation of New Rates—January 1, 2010 Attachments A—Professional Services Agreement B—Current Water Rate Structure Page 6 of 8 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSULTING SERVICES AGREEMENT This Agreement is entered into this day of 2009, by and between Truckee Donner Public Utility District, a public utility district organized and existing under the laws of the State of California ("DISTRICT"), and , ("CONSULTANT"), for professional services to be provided to DISTRICT. DISTRICT and CONSULTANT may be referred to individually as "Party" or collectively as "Parties". 1. SCOPE OF SERVICES A. Professional Services CONSULTANT will provide services to DISTRICT as set forth in the agreement dated , 2009, attached hereto as Exhibit"A". B. Additional Services Any work or services in addition to the work or services described herein shall be performed by CONSULTANT according to such rates and charges as may be agreed upon by CONSULTANT and DISTRICT. In no event shall CONSULTANT be entitled to compensation for extra work unless a written authorization or change order describing the work and payment terms has been executed by DISTRICT prior to commencement of the work. 2. FEES FOR SERVICES For services provided by CONSULTANT to DISTRICT pursuant to this Agreement, DISTRICT shall pay CONSULTANT a total fee of Dollars ($.00) plus travel expenses not to exceed Dollars ($.00). DISTRICT's payments to CONSULTANT shall not exceed this amount unless extra work is requested by DISTRICT and compensation for such extra work is agreed upon in advance by DISTRICT and CONSULTANT. 3. BILLING AND PAYMENT CONSULTANT will invoice the DISTRICT one-half of the total fee, which is equal to Three Dollars ($.00), following the signing of this Agreement. The second half of the total fee will be due following the CONSULTANT's completion of the staff/contractor training set forth in Section 2.b. of Exhibit A. CONSULTANT shall submit a monthly statement to DISTRICT itemizing amounts due for expenses. DISTRICT shall pay the full amount of such statement within thirty (30) days after receipt. Any sums billed, not disputed in written form setting forth specific exceptions and unpaid after thirty (30) days from the date of receipt, shall be subject to a late payment charge equal to the lesser of one and one-half(1-1/2) percent or the maximum rate permitted by law, for each month or fraction thereof past due. 4. INDEPENDENT CONTRACTOR CONSULTANT shall provide services to DISTRICT as an independent contractor, not as an employee of DISTRICT. CONSULTANT shall not have or claim any right arising from employee status. 5. TERMINATION OF AGREEMENT A. Unless otherwise terminated as provided herein, this Agreement shall terminate when the services provided for herein have been fully and completely performed. B. Notwithstanding any other provision of this Agreement, either party may terminate this Agreement by giving thirty(30) days advance written notice to the other party. C. Upon termination of this Agreement, CONSULTANT shall have no further obligation to provide services to DISTRICT. If the Agreement is terminated prior to completion of the services to be provided hereunder, CONSULTANT shall render a final bill for services to DISTRICT within thirty (30) days after the date of termination, and DISTRICT shall pay CONSULTANT for all fees earned and expenses incurred prior to the date of termination in accordance with Section 3. 6. INSURANCE A. CONSULTANT shall maintain in effect at its own expense, employer's liability insurance, one million dollars ($1,000,000) aggregate of comprehensive general liability insurance (bodily injury and property damage), and five-hundred thousand dollars ($500,000) aggregate of comprehensive automobile liability insurance (bodily injury and property damage) with respect to CONSULTANT employees and vehicles assigned to the prosecution of work under this Agreement. CONSULTANT shall also maintain statutory worker's compensation insurance. B CONSULTANT shall obtain and thereafter maintain in effect, if available, such additional insurance as may be requested in writing by DISTRICT, the cost of which will be reimbursed by DISTRICT. C CONSULTANT shall maintain in effect at its own expense professional liability insurance in the amount of one million dollars $1,000,000 which will insure against losses suffered by DISTRICT as a result of CONSULTANT's performance of services pursuant to this Agreement. D. For each policy of insurance listed in this Section 6, CONSULTANT shall procure a certificate of insurance naming DISTRICT as an additional named insured. 7. OWNERSHIP OF WORK PRODUCT CONSULTANT acknowledges that all reports, plans, specifications, field data and other documents, including all documents on electronic media, prepared by CONSULTANT pursuant to this Agreement are the property of DISTRICT for all purposes, and the DISTRICT shall be considered the author of all such documents for purposes of copyright law and retain all rights thereto. DISTRICT may make such use of the documents as DISTRICT sees fit, including reusing documents on other projects. CONSULTANT may not reuse or resell any information or document generated by CONSULTANT in the course of performing work under this Agreement, and may not transfer such documents to a third party without the prior written consent of DISTRICT. CONSULTANT may keep a reference copy of any document generated by CONSULTANT. 8. LIABILITY A. CONSULTANT shall indemnify and hold harmless DISTRICT, its directors, officers, partners, agents, and employees from and against any and all liability, claims, demands, damages, losses, and expenses, including but not limited to attorney's fees, for which CONSULTANT is determined to be legally liable resulting from negligent acts, errors, or omissions by CONSULTANT, its directors, officers, agents, and employees in performance of services required by this Agreement. Liability, claims, demands, damages, losses, or expenses resulting from the negligent acts, errors or omissions, whether active or passive, by DISTRICT, its directors, officers, partners, agents, employees, or by others are excluded from CONSULTANT's obligations pursuant to this paragraph. B. Nothing in this Agreement shall be construed to create a duty to, any standard of care with reference to, or any liability to any person not a Party to this Agreement. 9. SUCCESSORS IN INTEREST No Party shall assign, transfer, or otherwise dispose of this Agreement in whole or in part to any individual, firm, or corporation without the prior written consent of the other Party. Subject to the provisions of the preceding sentence, this Agreement shall be binding on, and inure to the benefit of, each Party's successors in interest, including their heirs, legatees, assignees, and legal representatives. 10. WAIVER Any waiver at any time by either Party of its rights with respect to a default under this Agreement, or with respect to any other matters arising in connection with this Agreement, shall not be deemed a waiver with respect to any subsequent default or other matter. 11. SEVERAL OBLIGATIONS Except where specifically stated in this Agreement to be otherwise, the duties, obligations, and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall be construed to create an association, partnership, or joint venture or impose a trust or partnership duty, obligation, or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Agreement. 12. AMENDMENT All changes or modifications to this Agreement shall be in writing and signed by both Parties. 13. GOVERNING LAW This Agreement shall be construed and interpreted according to, and the rights of the Parties shall be governed by, the laws of the State of California. Venue shall be in Nevada County for purposes of mediation, arbitration, or litigation. 14. ALTERNATIVE DISPUTE RESOLUTION In the event of disagreement or dispute between the Parties arising out of or connected with this Agreement which cannot be adjusted by and between the Parties, the disputed matter shall be resolved as follows: A. DISTRICT and CONSULTANT agree to mediate any dispute or claim arising between them out of this Agreement or any resulting transaction before resorting to arbitration or court action. Mediation fees, if any, shall be divided equally between DISTRICT and CONSULTANT. If either Party commences an arbitration or court action (including any cross-complaint, counterclaim or third-party claim) against the other based on a dispute or claim to which this paragraph applies without first attempting to resolve the matter through mediation, the Party commencing the arbitration or court action shall not be entitled to recover attorneys' fees, even if they would otherwise be available in any such arbitration or court action. B. DISTRICT and CONSULTANT agree that any dispute or claim in law or equity arising between them out of this Agreement or any resulting transaction which is not settled through mediation shall be decided by neutral,binding arbitration and not by court action. The arbitration shall be conducted by a retired judge or justice, unless the Parties mutually agree to a different arbitrator, who shall render an award in accordance with substantive California law. In all other respects, the arbitration shall be conducted in accordance with applicable California law and the rules and standards of the American Arbitration Association. Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction. 15. ATTORNEY'S FEES If either Party becomes involved in litigation arising out of this Agreement or the performance thereof, the prevailing Party shall be entitled to reasonable attorney's fees, costs and expenses, in addition to any other relief to which that Party may be entitled. This provision shall be construed as applicable to the entire Agreement. 16. ENTIRE AGREEMENT This Agreement constitutes the complete and final expression of the agreement of the Parties and is intended as a complete and exclusive statement of the terms of their agreements and supersedes all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof. 17. SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the Parties shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the stricken provision. 18. FEES, PERMITS AND COMPLIANCE WITH LAWS AND REGULATIONS A. DISTRICT shall be responsible for procuring all necessary permits and approvals for the performance of the work listed herein, and for paying all fees assessed in connection therewith. B. In the course of providing services pursuant to this Agreement, CONSULTANT shall comply with all applicable federal, state, and local statutes,regulations, orders and standards. 19. NOTICES Any notice, demand, information, invoice, report, or item otherwise required, authorized, or provided for in this Agreement, unless otherwise specified herein, shall be deemed properly given if delivered in person or sent by United States Mail, First Class postage prepaid to the addresses below. All notices shall be deemed effective upon receipt by the Party to whom such notice is given. To CONSULTANT: To DISTRICT: General Manager Truckee Donner Public Utility District P.O. Box 309 Truckee, CA 96160 20. TIME OF ESSENCE Time is of the essence in this Agreement. 21. SIGNATURE CLAUSE The signatories hereto represent that they are authorized to enter into this Agreement on behalf of the party for whom they sign. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By: By: Its: Its: Date: Date: R R ublic Utility District Ordinance No. 2006 - 06 AMENDING THE WATER MONTHLY RETAIL RATES WHEREAS the District is engaged in construction of various water system capital projects during the next five years; and WHEREAS to provide funds for this water capital program the District intends to secure long- term financing through issuance of Certificates of Participation; and WHEREAS a analyses of the District's financial status demonstrates that it does not have an adequate cash reserve; and WHEREAS the financial markets look for financial strength in a water utility as a condition for lending money; and WHEREAS the Board has been advised that a six percent water rate increase implemented on January 1, 2007 and again on January 1, 2008 would provide a revenue stream to establish a cash reserve and cover increasing operating costs: and WHEREAS, on July 5, 2006 and July 13, 2006 public hearings were held to receive comments from the public concerning a proposal to adopt such rate increases; and NOW, THEREFORE, BE IT ENACTED by the Board of Directors of the Truckee Donner Public Utility District as follows: Section 1. Effective January 1, 2007 following monthly water rates shall be effective. Residential Water Rates - The Domestic Water Rates for single family homes, individual condominium units and townhouse units shall relate to the pressure zone in which said service is located. The Domestic Flat Rate Base for all zones shall be the fixed monthly rate of $48.57. The appropriate zonal pumping costs shall be added to the base monthly rate yielding the appropriate flat zonal rates as follows: Zone Charge Zone 1 51.38 Zone 2 53.85 Zone 3 54.99 Zone 4 56.23 Zone 5 56.96 Zone 6 57.43 Zone 7 60.28 Zone 8 62.09 Zone 9 62.80 Zone 10 66.69 Zone 11 70.42 Ordinance 2006-06 1 Commercial Water Rates - The following Commercial Rates shall apply to all duplex and other multiple dwelling units, trailer parks, and other commercial establishments: Size Gallons Per Service Month Water Rate Allowance 3/4" 6,000 42.43 1" 11,000 50.61 1 1/4" 17,000 60.91 1 1/2" 24,000 71.14 2" 43,000 97.79 3" 96,000 163.71 4" 171,000 234.24 Water used in any month above the allowance will be charged as follows: Gallons Charge 0 to 16,000 gallons 1.89/1,000 16,000 - 56,000 gallons 1.49/1,000 56,000 - 96,000 gallons 1.19/1,000 96,000 and above .97/1,000 The following Zone Charge per 1,000 gallons shall be added for all water used: Zone Charge Zone 1 $ .33 Zone 2 .61 Zone 3 .76 Zone 4 .91 Zone 5 .98 Zone 6 1.06 Zone 7 1.40 Zone 8 1.59 Zone 9 1.67 Zone 10 2.13 Zone 11 2.58 Until meters are installed, the Commercial Flat Rate shall be based on the foregoing allowance, and the Zone Charge shall be levied against the maximum number of gallons in said allowance. Ordinance 2006-06 2 Small Residential Unit Rate - Domestic water rates for single family homes, individual condominium units and townhouses units under 300 square feet with no provisions for washer/dryer, dishwasher or outside hose bib, no improved landscaping needing water other than that provided by nature, no leaking plumbing fixtures as determined by District staff. The Domestic Flat Rate Base for all zones shall be the fixed amount of $34.57. The appropriate zonal pumping costs shall be added to the base monthly rate yielding the appropriate flat zonal rates as follows: Zone Rate Zone 1 $37.37 Zone 2 39.85 Zone 3 40.99 Zone 4 42.24 Zone 5 42.96 Zone 6 43.43 Zone 7 46.28 Zone 8 46.92 Zone 9 48.79 Zone 10 52.69 Zone 11 58.76 Section 2. Effective January 1, 2008 following monthly water rates shall be effective. Residential Water Rates - The Domestic Water Rates for single family homes, individual condominium units and townhouse units shall relate to the pressure zone in which said service is located. The Domestic Flat Rate Base for all zones shall be the fixed monthly rate of $51.48. The appropriate zonal pumping costs shall be added to the base monthly rate yielding the appropriate flat zonal rates as follows: Zone Charge Zone 1 54.46 Zone 2 57.08 Zone 3 58.29 Zone 4 59.60 Zone 5 60.38 Zone 6 60.88 Zone 7 63.90 Zone 8 65.82 Zone 9 66.56 Zone 10 70.69 Zone 11 74.64 Ordinance 2006-06 3 Commercial Water Rates - The following Commercial Rates shall apply to all duplex and other multiple dwelling units, trailer parks, and other commercial establishments: Size Gallons Per Month Water Rate Service Allowance 3/4" 6,000 44.97 ill 11,000 53.64 1 1/4" 17,000 64.57 1 1/2" 24,000 75.41 2" 43,000 103.66 3" 96,000 173.53 4" 171,000 248.30 Water used in any month above the allowance will be charged as follows: Gallons Charge 0 to 16,000 gallons 2.01/1,000 16,000 - 56,000 gallons 1.58/1,000 56,000 - 96,000 gallons 1.26/1,000 96,000 and above 1.03/1,000 The following Zone Charge per 1,000 gallons shall be added for all water used: Zone Charge Zone 1 $ .35 Zone 2 .64 Zone 3 .80 Zone 4 .97 Zone 5 1.04 Zone 6 1.13 Zone 7 1.49 Zone 8 1.69 Zone 9 1.77 Zone 10 2.26 Zone 11 2.73 Until meters are installed, the Commercial Flat Rate shall be based on the foregoing allowance, and the Zone Charge shall be levied against the maximum number of gallons in said allowance. Ordinance 2006-06 4 Small Residential Unit Rate - Domestic water rates for single family homes, individual condominium units and townhouses units under 300 square feet with no provisions for washer/dryer, dishwasher or outside hose bib, no improved landscaping needing water other than that provided by nature, no leaking plumbing fixtures as determined by District staff. The Domestic Flat Rate Base for all zones shall be the fixed amount of $36.64. The appropriate zonal pumping costs shall be added to the base monthly rate yielding the appropriate flat zonal rates as follows: Zone Rate Zone 1 $39.62 Zone 2 42.24 Zone 3 43.45 Zone 4 44.77 Zone 5 45.54 Zone 6 46.04 Zone 7 49.06 Zone 8 46.74 Zone 9 51.72 Zone 10 55.85 Zone 11 62.28 Section 3. 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 4. 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 5. 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 131h day of July 2006 by the following roll call vote: AYES: Directors Aguera, Hemig and Taylor NOES: Directors Sutton and Thomason ABSENT: None TRUCKEE DONNER PUBLIC UTILITY DISTRICT By J. Ron Hemig, President of the Board ATTEST: Peter L. Holzmeister, Clerk of the Board Ordinance 2006-06 5