HomeMy WebLinkAbout15 Setting Water Rates Agenda Item # 15
TRUCKEE O R
Public Utility District
WORKSHOP
To: Board of Directors
From: Neil Kaufman
Date: September 02, 2009
Subject: Review of the Draft Ordinance Setting Water Rates for 2010 and 2011
1. WHY THIS MATTER IS BEFORE THE BOARD
The purpose of this workshop is to review of the Draft Ordinance setting water rates
for 2010 and 2011.
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 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 H D R.
HDR has performed the water rate study and has conducted a number of workshops
and presentations with the Board regarding the transition to a metered rate structure.
The final step in the process is to establish the metered rates for the year 2010.
3. NEW INFORMATION
A draft ordinance setting water rates has been prepared for Board review and
consideration. A copy of the draft ordinance is attached.
Board approval of an ordinance setting water rates for 2010 is needed on September
16, 2009 to meet the notification requirements set forth in Proposition 218 for
implementation of the new rates to begin at the start of the fiscal year.
Beginning with 2010, the District is moving to a two-year budget. Therefore, the draft
ordinance includes proposed rate increases for 2010 and 2011. The proposed rate
increase for 2011 corresponds to the expected inflationary increases in operational
costs that were outlined in the rate study presentations by HDR.
The draft ordinance addresses the following issues:
• Implementation of the new volume-based rate structure recommended by HDR
• Implementation of the new pump zone configuration
• Projected revenue increases of 1.75 percent for fiscal years 2010 and 2011
• Establishment of a transition period for existing customers as allowed under AB
2572
• Continuation of the small residential water(SRW) rate
• Establishment of a non-conforming bulk rate
4. FISCAL IMPACT
There is no direct fiscal impact associated with this workshop item. However, the net
result of the ordinance is a projected 1.75 percent increase in Water Department
revenue for fiscal years 2010 and 2011.
5. RECOMMENDATION
Receive the draft ordinance and provide comment.
6J " ,0
y
Ed Taylor Michae o ey
Water Utility Manager General Manager
Ne-
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Or finance No. 2009 - XX
AMENDING THE WATER MONTHLY RETAIL RATES
WHEREAS AB 2572 requires the District to bill water system customers on a volumetric basis; and
WHEREAS the District retained HDR Inc. to perform a water rate study to develop a new rate
structure to comply with AB 2572; and
WHEREAS a number of public workshops were held to receive comments from the public
concerning a proposal to adopt such rate increases; and
WHEREAS notices of the proposed retail water rates and public hearing were mailed to all rate
payers and property owners on September(date), 2009; and
WHEREAS a public hearing was held on November 18, 2009; and
WHEREAS the District received less that the majority of District property owners' protest on the
proposed retail water rates; and
NOW, THEREFORE, BE IT ENACTED by the Board of Directors of the Truckee Donner Public
Utility District as follows:
Section 1. Effective with bills for service issued on or after January 15, 2010, the following monthly
water rates shall be effective.
Metered Residential Water Rates - The domestic water rates for single family homes,
individual condominium units and townhouse units equipped with a meter shall consist of three
components, a base charge, a commodity charge and a pump zone charge.
The base charge shall be:
Meter Size Monthly Base Charge
5/8"x 3/4" $53.15
3/4" $53.15
ill $63.40
The commodity charge shall be:
Monthly Usage Commodity Charge
0 to 8,000 gallons $0.55/ 1,000 gallons
Over 8,000 gallons $0.69/ 1,000 gallons
The pump zone charge shall be:
Pump Zone Pump Zone Charge
Pump Zone 1 $0.00/ 1,000 gallons
Pump Zone 2 $0.25/ 1,000 gallons
Pump Zone 3 $0.50/ 1,000 gallons
Pump Zone 4 $0.75/ 1,000 gallons
Pump Zone 5 $1.00/ 1,000 gallons
Pump Zone 6 $1.25/ 1,000 gallons
Pump Zone 7 $1.50/ 1,000 gallons
Ordinance 2009-XX 1
Un-metered Residential Water Rates - The domestic water rates for single family homes,
individual condominium units and townhouse units not equipped with a meter shall be:
Pump Zone Monthly Charge
Pump Zone 1 $58.96
Pump Zone 2 $61.47
Pump Zone 3 $63.98
Pump Zone 4 $66.49
Pump Zone 5 $69.00
Pump Zone 6 $71.51
Pump Zone 7 $74.02
Commercial Water Rates — The commercial water rates for all other multiple dwelling units,
trailer parks, public use, dedicated irrigation and commercial establishments shall consist of
three components, a base charge, a commodity charge and a pump zone charge.
The base charge shall be:
Meter Monthly Base
Size Charge
5/8"x 3/4" $53.15
3/4" $53.15
1" $63.40
1.5" $89.13
2" $122.52
3" $205.09
4" $293.47
6" $440.20
8" $550.25
The commodity charge shall be $1.45/1,000 gallons
The pump zone charge shall be
Pump Zone Pump Zone
Charge
Pump Zone 1 $0.00/ 1,000 gallons
Pump Zone 2 $0.25/ 1,000 gallons
Pump Zone 3 $0.50/ 1,000 gallons
Pump Zone 4 $0.75/ 1,000 gallons
Pump Zone 5 $1.00/ 1,000 gallons
Pump Zone 6 $1.25/ 1,000 gallons
Pump Zone 7 $1.50/ 1,000 gallons
Ordinance 2009-XX 2
Small Residential Unit Rate — The 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 shall be:
Pump Zone Monthly Charge
Pump Zone 1 $44.96
Pump Zone 2 $47.47
Pump Zone 3 $49.98
Pump Zone 4 $52.49
Pump Zone 5 $55.00
Pump Zone 6 $57.51
Pump Zone 7 $60.02
Section 2. Effective with bills for service issued on or after January 15, 2011 following monthly
water rates shall be effective.
Metered Residential Water Rates - The domestic water rates for single family homes,
individual condominium units and townhouse units equipped with a meter shall consist of three
components, a base charge, a commodity charge and a pump zone charge.
The base charge shall be:
Meter Size Monthly Base Charge
5/8"x 3/4" $53.95
3/4" $53.95
1" $64.35
The commodity charge shall be:
Monthly Usage Commodity Charge
0 to 8,000 gallons $0.60/ 1,000 gallons
Over 8,000 gallons $0.75/ 1,000 gallons
The pump zone charge shall be:
Pump Zone Pump Zone Charge
Pump Zone 1 $0.00/ 1,000 gallons
Pump Zone 2 $0.25/ 1,000 gallons
Pump Zone 3 $0.50/ 1,000 gallons
Pump Zone 4 $0.75/ 1,000 gallons
Pump Zone 5 $1.00/ 1,000 gallons
Pump Zone 6 $1.25/ 1,000 gallons
Pump Zone 7 $1.50/ 1,000 gallons
Ordinance 2009-XX 3
Un-metered Residential Water Rates - The domestic water rates for single family homes,
individual condominium units and townhouse units not equipped with a meter shall be:
Pump Zone Monthly Charge
Pump Zone 1 $60.28
Pump Zone 2 $62.79
Pump Zone 3 $65.30
Pump Zone 4 $67.81
Pump Zone 5 $70.32
Pump Zone 6 $72.83
Pump Zone 7 $75.34
Commercial Water Rates — The commercial water rates for all other multiple dwelling units,
trailer parks, public use, dedicated irrigation and commercial establishments shall consist of
three components, a base charge, a commodity charge and a pump zone charge.
The base charge shall be:
Meter Size Monthly Base Charge
5/8"x 3/4" $53.95
3/4" $53.95
1.1 $64.35
1.5" $90.46
2" $124.35
3" $208.17
4" $297.86
6" $446.79
8" $558.49
The commodity charge shall be $1.48/1,000 gallons
The pump zone charge shall be
Pump Zone Pump Zone Charge
Pump Zone 1 $0.00/ 1,000 gallons
Pump Zone 2 $0.25/ 1,000 gallons
Pump Zone 3 $0.50/ 1,000 gallons
Pump Zone 4 $0.75/ 1,000 gallons
Pump Zone 5 $1.00/ 1,000 gallons
Pump Zone 6 $1.25/ 1,000 gallons
Pump Zone 7 $1.50/ 1,000 gallons
Ordinance 2009-XX 4
Small Residential Unit Rate — The 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 shall be:
Pump Zone Monthly Charge
Pump Zone 1 $46.28
Pump Zone 2 $48.79
Pump Zone 3 $51.30
Pump Zone 4 $53.81
Pump Zone 5 $56.32
Pump Zone 6 $58.83
Pump Zone 7 $61.34
Section 3. Placement of a given customer account into a pump zone for billing purposes shall be
based upon that customer's relationship to the 6170 Pressure Zone. The 6170 Pressure Zone is
deemed to be Pump Zone 1 and all customers located within that pressure zone and other areas
where water can be supplied from 6170 Pressure Zone solely without pumping shall also be
considered part of Pump Zone 1.
For all other areas, a given customer shall be re-classified to the next highest pump zone for each
time that water must be pumped from the 6170 Pressure Zone to supply that given customer.
Section 4. It is the District's goal that all customers are equipped with a water meter and that
customers are billed volumetrically based upon their usage. It is the District's intent to install water
meters on all customers and to abolish un-metered water rates by January 1, 2013. However,
circumstances may exist whereby customers refuse to undertake the necessary actions or
improvements to allow that customer to be billed on a volumetric basis.
In those cases, the customer shall be subject to a "non-conforming bulk rate" and shall be charged a
monthly bill for service based on the base charge, commodity charge and pump zone charge
corresponding to that customers location and class (residential or commercial). For determining the
commodity charge and pump zone charge the customer shall be charged a volume equal to the 901h
percentile of usage for all customers with the same customer class and meter size. This
determination of the 90th percentile shall occur annually in January and shall be based upon the
metered usage data for the prior calendar year.
Section 5. AB 2572 allows for a transition period to allow customers that are converting from
nonvolume-based billing to volume-based billing to understand the impact of upon their bill for
service.
The District hereby implements this transition period for all existing residential customers that are
equipped with a meter as of January 1, 2010 and shall charge these customers the appropriate un-
metered residential water rate during calendar 2010. Customers granted this one-year transition
period shall not be able to voluntarily transition to a metered rate during calendar 2010.
Existing residential customers that not are equipped with a meter as of January 1, 2010, where a
new meter is installed on that account during calendar 2010 shall be granted the remainder of
calendar 2010 and all of 2011 as the transition period.
Ordinance 2009-XX 5
All new customer accounts for residential properties equipped with a meter, including customers that
purchase or lease an existing property that would otherwise be subject to the one-year transition
period shall be charged based upon the metered rate for service.
Section 6. 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 7. 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 8. 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 to day of 2009 by the following
roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
J. Ron Hemig, President of the Board
ATTEST:
Michael D. Holley, Clerk of the Board
Ordinance 2009-XX 6