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HomeMy WebLinkAbout17 Power point Water utility rate study 2020 October 7, 2020 Water Utility Rate Study 2020 WORKSHOP ITEM #17 •BACKGROUND / HISTORYBACKGROUND / HISTORY Water Utility Rate Study 2020Water Utility Rate Study 2020 water rates01 setting the current -In 2015 the Board adopted Ordinance 2015•Updates on the Water Rate Study 2020•Review the public process for the adoption of water utility rates •Workshop Item •BACKGROUND / HISTORYBACKGROUND / HISTORY Water Utility Rate Study 2020Water Utility Rate Study 2020 Majority protest provision•Public Hearing •Notification•esigndate rbased -Reasonable, proportional, cost•Procedural requirements•Property related fees or charges•Effective 1997•The Right to Vote on Taxes Act•California Proposition 218 •BACKGROUND / HISTORYBACKGROUND / HISTORY Water Utility Rate Study 2020Water Utility Rate Study 2020 Water Utility Rate Study 2020–HDR Engineering •Improvement Plan (CIP) year Capital -Water Infrastructure 10–Farr West Engineering •two consulting firmsBoard, the District has secured professional services contracts with In preparation for the proposed new water rates and adoption by the •BACKGROUND / HISTORYBACKGROUND / HISTORY Water Utility Rate Study 2020Water Utility Rate Study 2020 Identified an annual capital improvement budget of $7M•Repair and replacement of aging infrastructure•New water pipelines for system redundancy•Harden emergency power supply reliability•year outlook for capital investments-Provided a 10•Presented to the Board May, 20, 2020•Plan (CIP) year Capital Improvement -Water Infrastructure 10–Farr West Engineering •BACKGROUND / HISTORYBACKGROUND / HISTORY Water Utility Rate Study 2020Water Utility Rate Study 2020 Evaluate rate structure•expectationsrise in costs exceeding that of inflationary ontinuing C•Concerns with CA unfunded mandates•year CIP-Utilize the updated Water Utility Infrastructure 1•Cost of service analysis•Water Utility Rate Study 2020–HDR Engineering •NEW INFORMATIONNEW INFORMATION Water Utility Rate Study 2020Water Utility Rate Study 2020 with HDR EngineeringWater Utility Rate Study 2020 update provided by Mr. Shawn Koorn •NEW INFORMATIONNEW INFORMATION Water Utility Rate Study 2020Water Utility Rate Study 2020 2020Rates become effective first billing cycle after January 1, –January 2020 •adopt ordinance setting new water utility ratesHold public hearing regarding proposed water rates and –December 2, 2020 •hearingNotification and advertisement of scheduled public –October to November •and schedule a public hearingReview proposed rate structure, approve new water rates –October 7, 2020 •Workshop to review the water rate study (this evening)–September 2, 2020 •Proposed calendar for adoption of new water utility rates •NEW INFORMATIONNEW INFORMATION Water Utility Rate Study 2020Water Utility Rate Study 2020 owners of the identified parcels, the fee cannot be imposedIf written protests against the fee or charge presented by a majority of •Consider all protests against the proposed fee or charge•days after the mailingConduct a public hearing on the proposed fee or charge not less than 45 •identified parcel of proposed fee or chargeProvide written notification by mail to the owner of record for each •Board schedule of Public Hearing•Prop 218 requirement to schedule Public Hearing Water Utility Rate Study 2020 NEW INFORMATIONNEW INFORMATION Water Utility Rate Study 2020 •FISCAL IMPACTFISCAL IMPACT Water Utility Rate Study 2020Water Utility Rate Study 2020 operations and capital improvements over the next 5 years.generated revenues and budgeted expenditures for water utility rates will have a direct impact on annual water utility rate 2025. The Board approved water -and set water rates for FY2021This item includes a recommendation to the Board to approve 1.RECOMMENDATIONRECOMMENDATION Water Utility Rate Study 2020Water Utility Rate Study 2020 the proposed water rate increasesSet a Public Hearing for December 2, 2020 to receive input related to 3.as substantially completed2025 -Approve the notice of proposed water rate increases for FY20212.2025-Approve Water Rates for FY2021