HomeMy WebLinkAbout8 Water Rate Structure Alternatives Agenda Item # 8
TRUCKEE DONNER
Public Utility District
WORKSHOP
To: Board of Directors
From: Neil Kaufman
Date: June 03, 2009
Subject: Discussion of Water Rate Structure Alternatives
1. WHY THIS MATTER IS BEFORE THE BOARD
The purpose of this workshop is to discuss various water rate structure alternatives at
the concept level.
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.
Another facet of compliance with AB 2572 involves the development a new volume-based
water rate structure. The current volumetric water rate structure applies only to
commercial accounts and utilizes a declining block format. The District issued a Request
for Proposals (RFP) for a consultant to assist the District in developing the new rate
structure. On April 15, the Board awarded a contract to perform the Water Rate Study
to HDR.
A workshop to discuss water rate structures at the concept level was held on May 6,
2009. At that workshop, the Board identified three alternatives for further
investigation.
• Uniform Rate Structure
• Two-Tier Increasing Block Rate Structure
• Season Rate Structure
3. NEW INFORMATION
Shawn Koorn from HDR will discuss the three rate alternatives using data specific to
the District. The rate values discussed at the meeting should be considered
preliminary and will change once HDR conducts more detailed analyses over the next
two months.
The current rate study schedule is given below:
• First Board Workshop on water rate structure concepts- May 6
• Second Board Workshop on water rate structure concepts- June 3
• 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 Rates and Board adoption vote - November 4
• Implementation of New Rates - January 1, 2010
4. FISCAL IMPACT
There is no direct fiscal impact associated with this workshop item.
5. RECOMMENDATION
Receiv eport and provide comment.
r'
Ed Taylor Michael D. Holley
Water Utility Manager General Manager