HomeMy WebLinkAbout12 Water Rate Study Agenda Item # 12
_e' TRUCKEE DONNER
Public Utility District
WORKSHOP
To: Board of Directors
From: Neil Kaufman
Date: August 05, 2009
Subject: Discussion of Water Rate Study Report
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
A second workshop was held with the Board on June 3, 2009. At that workshop, the
Board identified a favored alternative of a two-tier increasing block rate for residential
customers and a uniform rate structure for commercial customers.
3. NEW INFORMATION
Shawn Koorn from HDR will present the results of the rate study analyses and the
recommended rates.
Board comments from the previous workshops have been incorporated into the
proposed rate structure. Specifically, the proposed rate structure includes:
• A two-tier inclining block rate for residential customers
• A uniform rate for commercial customers
• A volume-based pump zone charge
• A reduction in the number of pump zones from eleven to seven
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
Re iq�e is r po and provide comment.
77
Ed Taylor ichael D. Holley
Water Utility Manager General Manager