The URL can be used to link to this page

Home My WebLink About#12 Adopt Water Rates Agenda Item # 12 Public Utility DistricL ACTION To: Board of Directors From: Mary Chapman Date: November 18, 2009 Subject: Consideration of an Ordinance to Adopt Water Rates 1. WHY THIS MATTER IS BEFORE THE BOARD The matter before you involves consideration of adopting an ordinance to increase water rates for FY10 and FY11. Only the Board can adopt ordinances. 2. HISTORY Proposition 218 was adopted in 1996 and became effective in 1997. It is also known as the "Right to Vote on Taxes Act." The adoption of new water rates is subject to the requirements of Proposition 218. To date, the Board has held many public meetings to review and discuss various aspects of restructuring and increasing the District's water rates. The Board has taken the following action: 4/15/09 Awarded a contract to perform a Water Rate Study to HDR 5/6/09 Held a workshop to discuss water rate structure alternatives 5/20/09 Held a workshop to discuss non-conforming water accounts 6/3/09 Held a workshop to discuss water rate structure alternatives 8/5/09 Held a workshop to discuss the Water Rate Study Report 8/19/09 Held a workshop to discuss the Water Rate Study Report 9/2/09 Held a workshop to review the draft ordinance on the Proposed Water Rates for FY10 and FY11 9/2/09 Held a workshop to discuss the process to adopt the proposed water rates 9/2/09 Held a workshop to discuss non-conforming water accounts 9/16/09 Adopted the Water Rate Study Report 9/16/09 Approved the proposed draft ordinance setting water rates for FY10 and FY11 9/16/09 Scheduled a public hearing for November 18, 2009 9/23/09 Mailed notices regarding the public hearing to property owners and customers 10/7/09 Held a workshop to discuss the schedule for adopting new water rates 10/15/09 Published notice in Moonshine Inc regarding the public hearing on November 18, 2009 10/21 & Published notices in the Sierra Sun regarding the public hearing 10/23/09 on November 18, 2009 3. NEW INFORMATION The remaining schedule for implementation of the the new rate structure is: 11/18/09 Hold public hearing on Proposed Water Rates (tonight) 11/18/09 Consider adopting the water rate increase ordinance (tonight) A copy of the proposed ordinance is included as Attachment 1. 4. FISCAL IMPACT The proposed rate increase for FY10 will raise $170,000 in revenue and $173,000 in revenue for FY11. These amounts have been included in the FY10 and FY11 Budget. 5. RECOMMENDATION Adopt the proposed water rate increase ordinance increasing water rates by 1.75% for FY10 and 1.75% for FY11. The rate increase will not take affect for 30 days from the date of adopting the ordinance. Mary Ch an Michael D. Holley Administrative Services Manager General Manager AMENIF-IF ATTACHMENT 1 Or finance No. 2009 - XX U--- -.A 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 17 to September 25, 2009; and WHEREAS a public hearing was held on November 18, 2009; and WHEREAS the District received less than 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 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 properties, 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 1" $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 properties, 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 townhouse 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 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 properties, 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 properties, 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" $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 townhouse 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 the water must be pumped from the 6170 Pressure Zone to supply that customer. Section 4. It is the District's goal that all customers are equipped with a water meter and billed volumetrically based upon their usage. It is the District's intent to install water meters on all customers' water services and to abolish un-metered water rates by January 1, 2013. However, circumstances may exist whereby a customer refuses 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 customer's 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 90th 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 upon their bill for service. The District hereby implements this transition period for all existing residential customers with services that are equipped with a meter as of January 1, 2010 and shall charge these customers the appropriate un-metered residential water rate through January 14, 2011. Customers granted this one-year transition period shall not be able to voluntarily transition to a metered rate during this period. Existing residential customers with services that are not equipped with a meter as of January 1, 2010, where a new meter is installed on that service during calendar 2010 shall be granted the remainder of calendar year 2010 and all of 2011 as the transition period. Ordinance 2009-XX 5 All new construction, account connects or transfers for residential properties equipped with a meter, including customers that purchase, auto-transfer 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 th 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