The URL can be used to link to this page

Home My WebLink About9 Water Rate Increase AJ ends Item # � . r 1. Memorandum To: Board of Directors From: Peter Holzmeister Date: December 13, 2002 Subject: Proposed water rate increase 1. WHY THIS ITEM IS BEFORE THE BOARD: We have adopted a budget for 2003. That budget requires us to raise an additional $708,806 in revenues from retail water rates. Our retail water rates are set by ordinance and only the board of directors can adopt an ordinance establishing water rates. 2. HISTORY With the help of the management staff, I prepared a draft budget for 2003. We have held a workshop on it and recognized that there are some significant unresolved issues that have significant fiscal impact. These unresolved issues will clear up during the first half of 2003, so we will need to revisit this budget later in the year. However, at this point the bare bones budget that we have been considering requires a water rate increase of approximately 11%. Sixty-five percent of the costs that result in the need for this increase are: 1. Debt for the new 6160 water tank $150,000 2. Repayment of the internal loan owed to 212,968 The electric fund 3. Power to pump water 100,000 3. Total $462,968 But for these large cost impacts, the proposed rate increase would be 3.8%, rather than 11%. As is, the rate increase averages $4.65 per month for residential customers. 3. NEW INFORMATION: Attached for your review is a draft ordinance increasing the District's water rates. It proposes increasing the base residential rate by $4.00 per month, and the average pumping zone cost increases by $.65. The commercial rate increases by 11% across the board. I have also proposed establishing a construction water rate of $20.00 per month. Currently, we begin billing new homes only at the time an occupancy permit is issued by the Town. I propose billing at a flat rate of$20 per month once permanent connection is made. During construction the home benefits from the water system and should pay some fee. The home benefits from fire protection, and some quantity of water is being used for dust control, landscaping, and so forth. This construction water service rate will raise approximately $48,000 per year. Attached for your review is a comparison of the current and proposed residential water rates by zone, and the change. 4. RECOMMENDATION: I recommend that the board adopt the ordinance increasing the District's water rates. Ordinance No . 2002 - XX Establishing Water Rates WHEREAS,the Board of Directors of the Truckee Donner Public Utility District, hereinafter referred to as District, has adopted a budget for the year 2003; and WHEREAS,that budget allocates resources to provide for the operation, maintenance, and repair of the District's water system; and WHEREAS the water budget for 2003 requires the district to raise and additional $708,806; and WHEREAS,on December 18, 2002 a public hearing was held to receive comments from the public concerning the 2003 budget and planned water rate increase; NOW, THEREFORE, BE IT ENACTED by the Board of Directors of the Truckee Donner Public Utility District as follows: 1. Effective with the effective date of this ordinance, all portions of prior ordinances and/or resolutions that are inconsistent with the provisions of this ordinance are hereby repealed insofar as they are inconsistent. 2. Residential Water Rates -The Domestic Water Rates for single family homes, individual condominium units and townhouse units shall relate to the pressure zone in which said service is located. The Domestic Flat Rate Base for all zones shall be the fixed monthly rate of $39.93. The appropriate zonal pumping costs shall be added to the base monthly rate yielding the appropriate flat zonal rates as follows: Zone Rate Zone 1 42.33 Zone 2 44.45 Zone 3 45.43 Zone 4 46.49 Zone 5 47.11 Zone 6 47.51 Zone 7 49.95 Zone 8 51.50 Zone 9 52.10 Zone 10 55.44 Zone 11 58.63 3. Commercial Water Rates- The following Commercial Rates shall apply to all duplex and other multiple dwelling units, trailer parks, and other commercial establishments: Size Service Gallons Per Water Rate Month Allowance 3/4" 6,000 34.91 1" 11,000 41.55 11/4" 17,000 49.78 11/2" 24,000 58.36 2" 43,000 80.35 Y 96,000 134.73 4" 171,000 193.24 Water used in any month above the allowance will be charged as follows: Gallons Charge 0 to 16,000 gallons 1.62/1,000 16,000 - 56,000 gallons 1.27/1,000 56,000 - 96,000 gallons 1.02/1,000 96,000 and above .83/1,000 The following Zone Charge per 1,000 gallons shall be added for all water used: Zone Charge 1 .283 2 .519 3 .649 4 .779 5 .842 6 .909 7 1.199 8 1.365 9 1.432 10 1.824 11 2.207 Until meters are installed, the Commercial Flat Rate shall be based on the foregoing allowance, and the Zone Charge shall be levied against the maximum number of gallons in said allowance. 4. Construction water rate. During construction of any residence or commercial building for which water service has been applied and service facilities have actually been installed, such that water service is available to that property, a construction water rate shall be charged. The construction water service and rate shall terminate at the time an occupancy permit is issued by the Town of Truckee or the appropriate County building department. Once occupancy permit is issues the building is no longer eligible for service under the construction water rate. The construction water rate shall be twenty dollars ($20.00) per month. 5. 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. The Domestic Flat Rate Base for all zones shall be the fixed amount of$27.95. The appropriate zonal pumping costs shall be added to the base monthly rate yielding the appropriate flat zonal rates as follows: Zone Rate Zone 1 $30.35 Zone 2 32.47 Zone 3 33.45 Zone 4 34.51 Zone 5 35.13 Zone 6 35.53 Zone 7 37.97 Zone 8 38.52 Zone 9 40.12 Zone 10 43.46 Zone 11 48.65 6. If no protest is made pursuant to Public Utilities Code Section 16078, then this ordinance shall be effective thirty days after adoption by the board of directors of the District, but the rate adjustments made by this ordinance shall become effective with the billing cycle commencing in January 2003. 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. 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 eighteenth day of December 2002 by the following roll call vote: AYES: NOES: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By J. Ronald Hemig, President, Board of Directors ATTEST: Peter L. Holzmeister, Clerk of the Board COMPARISON OF CURRENT AND PROPOSED RESIDENTIAL WATER RATES Current Proposed Zone Rate Rate Change 1 38.07 42.33 4.26 2 39.94 44A5 4.51 3. 40.81 45.43 4.62 4. 41.81 46A9 4.68 5. 42.30 47.11 4.81 6. 42.76 47.51 4.75 7. 44.91 49.95 5.04 8. 46.20 51.50 5.30 9. 46.73 52.10 5.37 10. 49.70 55A4 5.74 11. 52.54 58.63 6.09 Prepared December 13, 2002 PLH