HomeMy WebLinkAbout7 Consideration of an Updated Water Rate Study
ACTION ITEM #7 Study Contract to Conduct a Water Utility Rate and Cost of Service Consideration for Approval of a Professional Services Study Contract to Conduct a Water Utility Rate
and Cost of Service Consideration for Approval of a Professional Services April 15, 2020
2020 Water Utility Rate Study Update 3%3%3%5%6%Approved Maximum Increase20202019201820172016Fiscal Year end of FY20 01 expires at the -Water rate schedule approved by Ordinance 2015•20-increases
in water rates for FY1601 setting maximum -In 2015 the Board adopted Ordinance 2015•(Prop 218)are subject to the provisions outline in California Proposition 218 The District's water
utility rates are set by the Board of Directors and •BACKGROUND / HISTORY 2020 Water Utility Rate Study Update
2020 Water Utility Rate Study Update approve a water rate schedule to accomplish each of these goalsAs a result of the 2015 Water Rate Study the Board was able to •Funding for State
mandates requiring 28% water use reductions•Establish updated cost of service to pumping zones•Implementation of an accelerated water main replacement program•The 2015 Water Rate Study
scope of work included financial •Engineering to conduct the 2015 Water Rate StudyThe District entered into a professional services contract with HDR •BACKGROUND / HISTORY 2020 Water
Utility Rate Study Update
NEW INFORMATION 2021 and beyond making process in determining the Water Utility Rates Schedule for An updated water rate study will better inform the Board’s decision •increasing operational
costs and pending unfunded State mandateswater rate study to more accurately reflect current revenue, Staff has determined the need for the District to update the previous •2020 Water
Utility Rate Study Update2020 Water Utility Rate Study Update
NEW INFORMATION replacement and construction of new infrastructureAccount for continuing rise in costs beyond inflation for repair, •emergency power supply generatorsThe ongoing need
to harden the water system’s reliability with additional •associated with water loss performance requirementsFiscal impact of yet to be fully implemented unfunded State mandates •among
others, the following analysisThe scope of work for the 2020 Water Rate Study Update will include •2020 Water Utility Rate Study Update2020 Water Utility Rate Study Update
NEW INFORMATION The total estimated fees for the study are $33,700•Rate Study Updateservices associated with the development of the District’s 2020 Water HDR Engineering has submitted
a proposal for the professional •rates structureand has developed a strong familiarity with the District’s water utility studies for the District’s 2013 and 2015 updated water rate
schedule HDR Engineering, Inc. has completed utility rate and cost of service •2020 Water Utility Rate Study Update2020 Water Utility Rate Study Update
NEW INFORMATION conducted in the 2020 Water Rate StudyThe updated CIP will be utilized to support the data analytics •Year Capital Improvement Plan (CIP)-Utility 10contract with Far
West Engineering to develop an updated Water In December, 2019 the Board approved a professional service •2020 Water Utility Rate Study Update2020 Water Utility Rate Study Update
NEW INFORMATION Proposed new water rates implemented (if approved)January 2021, advertisements, Public HearingPublic notificationsOctober–September for approvalBoard review and considerationSeptember
Draft Reports and Public WorkshopsAugust-July collection & analytics)Water Rate Study (DataAugust–May rate approval processThe following is a proposed tentative timeline for the District's
water •public hearing in accordance with Prop 218District will conduct a series of workshops, public notifications, and a Following the completion of the 2020 Water Rate Study Update,
the •2020 Water Utility Rate Study Update2020 Water Utility Rate Study Update
FISCAL IMPACT exist in the Board approved FY20 Water Utility BudgetSufficient funds for the procurement of the updated water rate study •$33,700The cost associated with the 2020 Water
Rate Study Update is •2020 Water Utility Rate Study Update2020 Water Utility Rate Study Update
RECOMMENDATION Update in the total amount not to exceed $33,700agreement with HDR Engineering, Inc. for the 2020 Water Rate Study Authorize the General Manager to execute a professional
services •2020 Water Utility Rate Study Update2020 Water Utility Rate Study Update