*** NOTE: OFFICIAL ACTION MAY BE TAKEN ON ANY AGENDA ITEM ***

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1 COMMON COUNCIL AGENDA April 14, 2015 Call Meeting to Order 6:30 p.m. Pledge of Allegiance Roll Call Approval of Minutes March 24, 2015 Regular Meeting Minutes Page 2 Approval of Bills (Gulick) $ *** NOTE: OFFICIAL ACTION MAY BE TAKEN ON ANY AGENDA ITEM *** PUBLIC COMMENT, PETITIONS, REQUESTS AND COMMUNICATIONS: 1. Recognition of Alderpersons 2. Change of Agent for MK Corner Saloon, LLC Page 5 CONSENT AGENDA: 3. Resolution Authorizing Purchase of a 2016 Single Axle Plow Truck Page 8 4. Resolution Approving Request for City Assistance for River Falls FFA Alumni Showdown Event July 11, Resolution Regarding Governmental Responsibility for Runoff Management Grants Page 22 ORDINANCES AND RESOLUTIONS: 6. Resolution Regarding Water Rate Study Page Resolution Approving Application for Stewardship Local Assistance Funds from the Wisconsin Department of Natural Resources Page 77 REPORTS: 8. Tornado and Severe Weather Awareness Week, April 13-17, 2015 Overview of the City s Weather Siren Network 9. Plan Commission Report 10. Administrator s Report Page 81 ANNOUNCEMENTS: 11. Mayor s Appointments Page Arbor Day 2015 Proclamation 13. Earth Day 2015 Proclamation Page 96 Page 101 CLOSED SESSION: 14. Recess into Closed Session per Wisconsin State Statutes (1)(e) for the following purposes: deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session; to-wit: property conveyance and use agreement with Knights of Columbus. RECONVENE INTO OPEN SESSION: 15. Take action on Closed Session Items if necessary Page 12 ADJOURNMENT Publish: River Falls Journal ; Revised and reposted

2 CITY OF RIVER FALLS, WISCONSIN COMMON COUNCIL PROCEEDINGS March 24, 2015 Mayor Dan Toland called the meeting to order at 6:30 p.m. in the City Council Chambers located in City Hall. City Council Members Present: Dan Gulick, Scott Morrissette, Jim Nordgren, Diane Odeen, David Reese, Aaron Taylor Members Absent: David Cronk, Jim Nordgren Staff Present: Scot Simpson, City Administrator; Bill Thiel, City Attorney; Reid Wronski, Public Works Director/City Engineer; Roger Leque, Police Chief; Ray French, Management Analyst; Julie Bergstrom, Finance Director/Assistant City Administrator; Kevin Westhuis, Utility Director; David Hovel, Building Inspector; Tony Steiner, City Planner; Keri Schreiner, Management Analyst Fellow; Crystal Raleigh, Senior Civil Engineer; David Keating, Civil Engineer; Mike Noreen, Conservation and Efficiency Coordinator Others: Chris Gagne, Mike Stifter, others The Pledge of Allegiance was said. APPROVAL OF MINUTES: March 10, 2015, regular meeting minutes and March 10, 2015, workshop minutes MSC Morrissette/Odeen move to approve minutes as submitted. Unanimous. APPROVAL OF BILLS: Bills of $435, MSC Odeen/Morrissette move to approve bills subject to the comptroller. Unanimous. PUBLIC COMMENT, PETITIONS, REQUESTS AND COMMUNICATIONS: Reid Wronski, Public Works Director/City Engineer introduced two new staff members: Crystal Raleigh, Senior Civil Engineer, and David Keating, Civil Engineer. The Mayor welcomed them. Chris Gagne, 75 E. Johnson, River Falls is a former Council member who is running for District 2. He thanked Council for recognizing his service. He encouraged everyone to get out and vote on Tuesday, April 7. The Mayor announced that the Change of Agent for MK Corner Saloon would not be taking place at tonight s meeting but at the April 14 meeting. PUBLIC HEARING: Storm Water Permit 2014 Annual report - Resolution No Authorizing Content of 2014 Annual Report to Discharge Storm Water At 6:34 p.m., the Mayor recessed the meeting into a public hearing. Crystal Raleigh, Senior Civil Engineer, provided a report for Council on the 2014 Annual Report. She talked about the MS4 permit which stands for municipal separate storm sewer system, and refers to the City s pipes, manholes, ditches, and ponds, which convey the storm water. Raleigh provided a brief background talking about her work and school history. Raleigh talked about the Clean Water Act and its history. She talked about the 2014 MS4 activity and the six different control measures. She showed Council a map of the City s sewer system. Raleigh talked about the permit re-issue which happened in May She talked about the TMDL changes which happened with the permit and also the 2013 Wisconsin Act 20. Raleigh stood for questions. Alderperson Odeen asked for the definition of outfall and chemicals regulated for TMD. Alderperson Gulick asked for information on the 2014 illicit discharge and about the school district chemical usage reporting. City 2

3 City of River Falls, Wisconsin March 24, 2015 Page 2 Administrator Simpson talked about the City s tracking of run off and working with the Wisconsin DNR. Alderperson Morrissette asked about the storm water run-off from downtown in connection with the Kinnickinnic River corridor. There was further discussion. Alderperson Reese asked about phosphorus. There was discussion. The Mayor asked for public comments. Mike Stifter from the University of Wisconsin-River Falls spoke. The University holds the other permit. He thanked the City for its assistance. He looks forward to working with the City in the future. At 6:56 p.m. with no other comments, the Mayor closed the Public Hearing. MSC Morrissette/Odeen move to approve resolution. Unanimous. CONSENT AGENDA: Acknowledgement of the following minutes: Police and Fire Commission 2/2/15; Special Meeting Minutes 1/19/15; Ambulance Commission 2/2/15; Park and Recreation Advisory Board 2/18/15; Business Improvement District 3/10/15; Historic Preservation Commission 1/14/15 Resolution Regarding Refinancing of State Trust Fund Loan Pulled by Morrissette Resolution No Approving City Administrator Contract Resolution No Regarding Purchase of Taxi Replacement for River Falls Shared Ride Taxi Service MSC Gulick/Morrissette to approve remainder of Consent Agenda. Unanimous. Resolution No Regarding Refinancing of State Trust Fund Loan Alderperson Morrissette felt the item required a roll call vote. MS Morrissette/Odeen moved to approve resolution. The Mayor asked for a roll call vote which passed 5-0 with all voting in favor of the resolution. ORDINANCES AND RESOLUTIONS: Resolution No Regarding Reallocation of Renewable Energy Finance Program Utility Director Westhuis gave a brief introduction about the program which was started in 2009 and introduced Mike Noreen, Conservation and Efficiency Coordinator. Noreen talked about the different programs available to customers including renewable energy block, pre-pay meter pilot, renewable energy finance program, educational and innovation fund and solar LED street lighting pilot program. When the presentation was completed, Noreen stood for questions. Alderperson Morrissette asked if the City had to talk to the PSC about the programs and what is the effect on the rates. Finance Director Bergstrom didn t believe so. Administrator Simpson provided a more detailed explanation of the program and the rate effect. He encouraged the Council to look at the merits of the programs and whether it is a wise investment of dollars. If the City does or doesn t do the programs, the rates are not affected. Simpson spoke about the education fund program he felt it was better than he thought it would be. There was further discussion. Morrissette followed up with a question about pre-paid meters. He offered his support. Alderperson Reese asked about who had the oversight on the funds. Alderperson Odeen noted she has seen the presentation three times. She said the goal was to honor the original program but have some forward thinking ideas and this was a way to have a way to re-invest how to use the funds. 3

4 City of River Falls, Wisconsin March 24, 2015 Page 3 There was continued discussion. Simpson provided more history and background. He also talked about the POWERful Choices! program. He felt landlords would be supportive of the pre-pay program. He talked about customers interested in pay as you go. Alderperson Gulick asked Noreen about if established goals exist for the program. Noreen talked about the different programs and touched upon the different goals of the programs. Reese had questions about the renewable energy block program. Simpson provided a detailed answer. With no other questions, the Mayor asked for a motion. MSC Gulick/Morrissette moved to approve resolution. Unanimous. REPORTS: Design Review Committee Dave Hovel, Building Inspector, provided a presentation to Council on the Downtown Design Plan. He said the goal is to preserve the unique historic buildings and to coordinate design for new and existing buildings. Hovel provided a history of the program, talked about the committee, and showed some different projects that have been done. He also talked about signs and murals. Hovel talked about DRC s work plan. He addressed internal lighting, sandwich boards and signing. When finished, Hovel stood for questions. Morrissette asked about reader boards. Hovel said it is not on the DRC s plan right now. Administrator s Report Simpson said recreation registration is ahead of last year. Comptroller s Report for February 2015 Comptroller Reese read the following: General Fund revenues through the end of February were $2,400,007 and include the February property tax settlement and $226,000 in the payment for municipal services from the State of Wisconsin. Expenditures for the same period were $1,098,978 or 12 percent of budgeted for a net of revenues over expenditures of $1,301,030. Motion by Reese to adjourn meeting at 7:49 p.m. Respectfully submitted, Kristi McKahan, Deputy City Clerk 4

5 MEMORANDUM 2 TO: FROM: Mayor Toland and City Council Bridget Hieb, Deputy Clerk DATE: April 14, 2015 TITLE: Change of Agent Request MK Corner Saloon LLC dba Maverick s Corner Saloon RECOMMENDED ACTION Please consider appointment and approve or deny by motion Mike Kappers as Agent for MK Corner Saloon LLC. BACKGROUND According to Wis. Stat (6), Corporations and Limited Liability Companies must appoint an agent and that agent shall be approved by the issuing authority. Mike Kappers has successfully completed the requirements to be appointed as Agent. CONCLUSION Consider appointing and approve by motion the change of Agent request for MK Corner Saloon LLC. 5

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8 MEMORANDUM 3 TO: FROM: Mayor Toland and City Council Terry Kusilek, Public Works Supervisor DATE: April 14, 2015 TITLE: Resolution Authorizing Purchase of a 2016 Single Axle Plow Truck RECOMMENDED ACTION Adopt the resolution authorizing purchase of a new 2016 Snow Plow Truck equipped with Dump Box, Front Plow, Side Wing, Underbody Scraper, Sander and Pre-wet system and authorizing trade-in of the City s 1999 International snow plow truck and equipment. DISCUSSION The City snow plow truck fleet consists of 5 plow trucks, the 1999 listed above is the oldest truck in the City snow plow fleet. At 16 years old, it is at the end of its programed life in the City s fleet, with its reliability decreasing but maintaining a reasonable trade value. Staff recommends replacing the current truck with a new 2016 Single Axle Dump Truck equipped with a reversible front plow, right side rear mounted wing, underbody scraper, sander and pre-wet system with dual tanks. Staff is recommending purchasing the truck with stainless steel box, front plow, wing and sander. The price difference between stainless steel and a steel painted box, front plow, wing and sander has equalized to the point it is cheaper to purchase stainless units rather than sandblasting & repainting these items every 5 years. Stainless will also not deteriorate over the life of the truck causing structural integrity concerns. The truck we are proposing to purchase is very similar to the 2008 (pictured on page 2) - dual pre-wet saddle tanks and current emissions are the two most notable differences. 8

9 Memorandum to Mayor and City Council April 14, 2015 Page 2 Staff received quotes from various suppliers using the Wisconsin and Minnesota state bid programs. The purchase is broken into a two items 1. Cab and chassis which major components consist of the trucks main frame, engine, transmission, cab and axles. 2. Fitting the cab & chassis with a Municipal Snow & Ice Package consisting of the box and hoist, front plow, side wing, underbody scraper, spreader, pre-wet system and electrical controls. Cab and Chassis quotes: 1. $77, Boyer Trucks Lauderdale MN 2016 Freightliner model SD 108, MN State bid 2. $78, Astleford International, Minneapolis Mn 2016 model 4400 SBA, MN State bid 3. $82, Astleford International, Minneapolis Mn 2016 model 7400 SFA, MN State bid 4. $83, Nuss Group, Burnsville, Mn 2015 Mack model GU532SBA, MN State bid Municipal Snow & Ice Package quotes: 1. $89, Crysteel Truck Equipment, Fridley MN, MN State bid, 2. $94, Monroe Truck, Marshfield WI, WI State bid, 3. $106,462 Towmaster, Litchfield, MN, MN State bid, Blades included in bid Note: Cost for Crysteel & Monroe do not include blade cost, additional $5, needs to be added to their bid price to be equal for comparisons purposes. Demo unit quote (already put together ready to go): 1. I State Truck Center, Inver Grove Heights, 2015 Freightliner model M2-106 MN, with Municipal Snow & Ice Package from Aspen Equipment, Bloomington. Total of this Demo Unit is $174, with trade allowance for 1999 International of $25, for a net after trade $149, Trade allowances; 1. Boyer Trucks offered $29,

10 Memorandum to Mayor and City Council April 14, 2015 Page 3 2. Nuss Truck offered $22, Astleford International did not quote a trade allowance, Recommendations Staff recommends purchase of a 2016 Freightliner model SD 108 from Boyer Trucks for $77, with a trade allowance of $29, for a net cost of $47, and purchase of municipal snow & ice package from Crysteel Truck for $89, The net outlay for this recommendation is $136, FINANCIAL CONSIDERATIONS The Capital Improvement Plan includes a Vehicle Replacement Plan that estimates $174, for the replacement of our yard Dump/Plow Truck. This figure was based on an estimated new vehicle cost of $193,000 - $19,000 for trade value. The vehicle is planned for financing with a local bank over a five year term. Financing will be obtained in the fall of 2015 when payment for the vehicle is required, with estimated principal and interest payments of $30,000 per year. CONCLUSION Staff recommends approval of the attached resolution. 10

11 RESOLUTION NO. RESOLUTION APPROVING PURCHASE OF 2016 FREIGHTLINER PLOW TRUCK WHEREAS, the Vehicle Replacement Plan in the CIP allocated $174,000 to replace the 1999 plow truck; and WHEREAS, this truck is beyond its planned 16 years replacement schedule and unreliable for continued dedicated use; and WHEREAS, four quotes were obtained for cab and chassis using state contract bids with the lowest being a 2016 Freightliner model SD 108, MN quoted at $77, from Boyer Trucks in Lauderdale, Minnesota; and WHEREAS, three quotes were obtained using state bids for equipping the cab and chassis with a Municipal Snow & Ice Package with the lowest being a $89, from Crysteel Truck Equipment, Fridley, Minnesota; and WHEREAS, Boyer Trucks offered the highest trade value for our 1999 plow truck at $29,500.00; and WHEREAS, a fully equipped 2015 Freightliner demo truck located by staff was a higher cost than the above quotes for a 2016; NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of River Falls hereby authorizes the purchase of a 2016 Freightliner model SD 108 MN from Boyer Trucks for $77,000.0 with a trade allowance of $29, for a net cost of $47,500.00, and authorizes purchase of a municipal snow & ice package from Crysteel Truck for $89,120.78; and BE IT FURTHER RESOLVED that the financing for the equipment will be obtained in the fall of Dated this 14th day of April, ATTEST: Dan Toland, Mayor Lu Ann Hecht, City Clerk 11

12 MEMORANDUM 4 TO: FROM: Mayor Toland and City Council Bridget Hieb, Deputy Clerk DATE: April 14, 2015 TITLE: 2015 River Falls FFA Request for City Assistance for Alumni Showdown RECOMMENDED ACTION Adopt the resolution approving the request for City assistance from River Falls FFA Alumni. BACKGROUND The River Falls Chamber Board of Director s recently voted to transition the ownership of the River Falls Tractor Pull to the FFA Alumni to run in its entirety starting this year. This event has been a yearly event in the City held during River Falls Days. Please also find attached a letter from Ryan Joy, a member of the River Falls FFA Alumni. The River Falls FFA Alumni are requesting varied levels of City assistance for the event. A detailed list of assistance requested by River Falls FFA can be found in their attached letter. DISCUSSION Below is a discussion of one exemption to current Municipal Code that River Falls FFA is requesting. Council has approved this exemption for the River Falls Chamber in previous years. Loud and Unnecessary Noise Prohibited Exemption Request This event involves a request by the River Falls FFA to grant an exemption to Section of the Municipal Code for Prohibited Loud and Unnecessary Noises. At this time, Staff does not have any objections to the exemption of this event from this ordinance. FINANCIAL CONSIDERATIONS If approved, the City will provide these services and use room tax funds to partially offset expenses. CONCLUSION A resolution supporting the River Falls FFA Alumni request for City assistance is attached for Council action. Ryan Joy, member of the River Falls FFA Alumni, will be present at the Council 12

13 Memorandum to Mayor and City Council April 14, 2015 Page 2 meeting to answer any questions that may arise. Staff recommends adopting the resolution for 2015 and evaluating support again on an annual basis. 13

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21 RESOLUTION NO. RESOLUTION APPROVING REQUEST FOR CITY ASSISTANCE ON BEHALF OF THE RIVER FALLS FFA ALUMNI FOR ALUMNI SHOWDOWN EVENT JULY 11, 2015 WHEREAS, the RF FFA Alumni has made a request for City assistance pursuant to their letter to the Mayor and City Council for their 2015 event Alumni Showdown located in the North End Industrial Park on the corner of Moundview and Troy; and WHEREAS, this request relates to picnic tables, bleachers, garbage barrels, police reserve assistance and security, hanging speakers, temporary power, fire department and emergency medical assistance, track preparation, and fencing the area, restricted parking on Moundview Road from Troy Street to Benson Street, and use of the City s pay loader; and WHEREAS, the RF FFA Alumni further requests that the City Council grant an exception to Section 8.28 of the Municipal Code, Prohibiting Excessive and Unnecessary Noises for the Alumni Showdown event; and WHEREAS, a RF FFA Alumni representative shall coordinate with City staff in facilitating these requests for City assistance; NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of River Falls hereby approves the request for City assistance as outlined in a letter from the RF FFA Alumni received February 9, 2015, attached hereto and made a part hereof; and BE IT FURTHER RESOLVED that the Common Council hereby grants the City staff the ability to modify the assistance provided to the event should equipment or staff not be available as requested. Such modifications shall be communicated to the FFA Alumni group; and BE IT FURTHER RESOLVED that the Common Council hereby grants the Police Chief the ability to close additional streets to facilitate a safe and successful event. Such modifications shall be reported to the City Council but shall not require further authorization. Dated this 14th day of April, ATTEST: Dan Toland, Mayor Lu Ann Hecht, City Clerk 21

22 MEMORANDUM 5 TO: FROM: Mayor Toland and City Council Crystal M. Raleigh, PE - Sr. Civil Engineer DATE: April 14, 2015 TITLE: 2015 Urban Nonpoint Source & Storm Water Management Program Construction Grant Application RECOMMENDED ACTION Adopt the resolution approving the 2015 Wisconsin DNR Urban Nonpoint Source & Storm Water Management Program Construction Grant application for the City of River Falls. BACKGROUND Outfall 036 is a 36 concrete storm sewer outfall that discharges runoff from about 47 acres of City and University property into the South Fork of the Kinnickinnic River, just south of the University Maintenance Building. Field inspections from the past several years have shown separation of the pipe joints and erosion of the soils around the pipe. Large sink holes are being formed around the pipe as sediments are washed into the pipe and into the river. This area is heavily wooded and access is limited. The state of this outfall prompted the City to include outfall maintenance in this location on the Capital Improvement Plan. DISCUSSION This pipe could be repaired by tying together the last 4-5 sections of pipe and recompacting the soils around the pipe; however, this would provide minimal improvements to water quality in the South Fork. If additional funds were available, the City could remove several feet of pipe and create a settling basin for the discharge coming through this pipe. This basin would allow sediments to settle out of the runoff and it would also provide for a slower release of water into the river. The Wisconsin DNR Urban Nonpoint Source & Storm Water Management Program Construction Grant would provide a 50/50 match for construction projects like this one up to a maximum grant amount of $150,000 for construction in 2016 and (The grant is a two year cycle and the City wouldn t have another opportunity to apply until 2017 for 2018/2019 funds.) Preliminary estimates put this project around $60,000 and the City has $29,000 budgeted in the 22

23 Memorandum to Mayor and City Council April 14, 2015 Page 2 CIP plan. Without the grant dollars, the City will simply fix the problem but if the grant is awarded, the City would be able to dramatically improve the water quality and rate of runoff entering the South Fork at Outfall 036. CONCLUSION Staff recommends City Council approval of the attached Governmental Responsibility Resolution for Runoff Management Grants. V:\Council\Agendas\2015\ \Urban Nonpoint Grant\Council Memo re 2015 Urban Nonpoint Grant docx 23

24 RESOLUTION NO. GOVERNMENTAL RESPONSIBILITY RESOLUTION FOR RUNOFF MANAGEMENT GRANTS WHEREAS, the City of River Falls is interested in acquiring a Grant from the Wisconsin Department of Natural Resources for the purpose of implementing measures to control agricultural or urban storm water runoff pollution sources (as described in the application and pursuant to ss or , Wis. Stats., and chs. NR 151, 153 and 155); and WHEREAS, a cost-sharing grant is required to carry out the project: THEREFORE, BE IT RESOLVED, that the City of River Falls HEREBY AUTHORIZES, Reid Wronski, Director of Public Works/City Engineer to act on behalf of the City of River Falls to: 1. Sign and submit an application to the State of Wisconsin Department of Natural Resources for any financial aid that may be available; 2. Sign a grant agreement between the local government (applicant) and the Department of Natural Resources; 3. Sign and submit reimbursement claims along with necessary supporting documentation; 4. Sign and submit interim and final reports and other documentation as required by the grant agreement; 5. Sign and submit an Environment Hazards Assessment Form, if required; and 6. Take necessary action to undertake, direct and complete the approved project. BE IT FURTHER RESOLVED that the City of River Falls shall comply with all state and federal laws, regulations and permit requirements pertaining to implementation of this project and to fulfillment of the grant document provisions. Adopted this 14 th day of April, I hereby certify that the foregoing resolution was duly adopted by the River Falls City Council at a legal meeting on the 14th day of April, ATTEST: Dan Toland, Mayor Kristi McKahan, Deputy Clerk 24

25 MEMORANDUM 6 TO: FROM: Mayor Toland and City Council Members Julie Bergstrom, Finance Director/Asst. City Administrator DATE: April 14, 2015 TITLE: Water Rate Study Presentation RECOMMENDED ACTION Adopt the resolution approving the overall increase in water rates of 6.3%, subject to approval by the Wisconsin Public Service Commission (PSC). Report prepared by Trilogy Consulting is recommending an overall increase in water revenues of $84,127, which will provide an estimated rate of return of 6.5% to the water fund. BACKGROUND Trilogy Consulting was hired to review the City s water and sewer rates for a possible rate adjustment based on current operating costs and projected capital projects. The water rates were last updated in 2012, when revenues were increased by 3%, and included an increase in the base fee as well as the volume charge, and a decrease in the public fire protection (PFP) rate. The PSC also recommended an increase in irrigation water rates as a conservation measure as well. Current Situation The current fixed charge for a typical residential user is $5.25 per month and $1.40 per 1,000 gallons used. The average household uses 4,000 gallons per month, which results in a monthly charge of $10.85 for water. The public fire protection fee is in addition to the fixed and volume charges, for a total typical water bill of $ Trilogy has reviewed the recent costs related to water services, added in future capital and infrastructure plans and presented a proposal of recommended rates. The new rates include an increase in the fixed monthly charge, an increase in irrigation rates, implementation of an inclining volume rate for residential customers, and a decrease in the public fire protection rates for all customers. The Water Rate Study report reviews in detail the entire process establishing revenue requirements, cost to provide the service and the rate design. 25

26 Memorandum to Mayor and City Council April 14, 2015 Page 2 The rate setting process for water and electric is established with the Wisconsin Public Service Commission and involves approximately eight main steps: 1. Review historical data by consultant and staff 2. Complete rate change application and submit to PSC 3. PSC accepts and processes request 4. PSC provides draft exhibits to City (discussion point for City and PSC) 5. Customers are notified of public hearing date and time 6. Public hearing is held at PSC 7. PSC issues rate order and prepares final exhibits 8. City Council accepts rate order and sets effective date We are currently at step 2 of the process, which involves internal review by staff, review of the methodology by the Utility Advisory Board, and finally review by the City Council for comments and changes before being presented to the PSC. DISCUSSION The proposed rate increase involves several changes from the current rate structure, including adding an inverted rate for residential water customers, an increase in the fixed rate, a decrease in the public fire protection fee and setting rates for the multi-family class. Increase in Fixed Rates Water systems are unique in that the majority of the costs are related to infrastructure that must be in place in order to serve the customer, very little cost is related to the product. As the weather and consumers habits can affect the volume of water that is sold, it is important to build in fixed revenue to offset the capital costs that are being recovered over time, such as wells, water towers and mains. An increase in the fixed costs is recommended for all classes of customers. The proposed increase ranges from $2.75 per month for residential customers with 5/8 and 3/4 meters, to $15.25 per month for large industrial and public authority customers. Inverted Rates for Residential Customers The current water rate for residential customers is $1.40 per 1,000 gallons, regardless of how much water is used. The recommendation is to promote conservation through an inverted rate, or an increase in water rates for higher water usage. For most residential customers, this will not be a significant portion of their water bill, and may decrease costs for those using less than 4,000 gallons per month. Those customers that are using over 8,000 gallons per month will see an increase in the volume charge from $1.40 per 1,000 gallons to $2.30 per 1,000 gallons. This should provide incentive for conservation, but only 5% of the residential customers use over 8,000 gallons on average. 26

27 Memorandum to Mayor and City Council April 14, 2015 Page 3 Public Fire Protection Public fire protection charges were added to the utility bill in 1991 based on assessed values of improved parcels. As the City grew, the rates for fire protection were not in sync with the actual costs of providing the service, and the rates were adjusted downward in the 2012 rate case. The current rate case also reduces the public fire protection fees, to more accurately match the actual cost. The recommendation is to decrease the PFP charges by 20%, which mitigates much of the increase in the fixed and volume water charges. Multi-Family Customers The addition of Multi-Family properties as a separate customer class became effective in As a separate class, the recommendation is to charge multi-family dwellings a flat rate of $1.37 per 1,000 gallons, as conservation rates would not be effective in rental situations. The current rate is $1.40 per 1,000 gallons, so this would be a minor decrease in the volume rate. The fixed rate will be based on the meter size, and the public fire protection rate would decrease for multi-family customers. Irrigation Rates The PSC looks unfavorably on irrigation meters as a waste of resources. This became evident in the 2012 study, when the rate was established 46% higher than general service customers. The recommendation continues to keep the irrigation rate high, with an increase of 12% or $2.30 per 1,000 gallons used. This is also the rate that is charged for residential customers using over 8,000 gallons per month. Irrigation meters are expensive to install for the customer, and to maintain for the utility. There are approximately 500 irrigation meters in place, including commercial and residential. Most residential customers have installed the meters to avoid paying for sewer charges on use of water to fill the pool, water lawns and gardens and other uses. In lieu of this, we will be looking at a seasonal rate for sewer charges to exclude water used in the summer months and assumed not processed through the wastewater treatment system. Customers with current irrigation systems would continue to be billed under the current method unless they decide to remove the irrigation meter. The water rate study has been presented to the Utility Advisory Board with no proposed changes to the report. Christy Cramer from Trilogy Consulting will be at the Council meeting to summarize the report and answer any questions. Next Steps Make any necessary changes to the report as directed by Council, send in application to the PSC for their review and processing. Recommendation Approval of the report is recommended. 27

28 Memorandum to Mayor and City Council April 14, 2015 Page 4 FINANCIAL CONSIDERATIONS Overall increase in water revenues of 6.3% or $84,127 annually. Rates to be adjusted after approval by the PSC. CONCLUSION Presentation by Trilogy Consulting and approval of the water rate report is recommended. 28

29 RESOLUTION NO. RESOLUTION REGARDING WATER RATE ADJUSTMENT WHEREAS, the City of River Falls operates a water utility, which operates under the approved rate structure of the Wisconsin Public Service Commission; and WHEREAS, the water rates were last revised in the spring of 2012; and WHEREAS, Trilogy Consulting was hired to update the cost of service rate study and provide a recommendation for updated rates; and WHEREAS, an overall increase of 6.3% is proposed. NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of River Falls hereby approves the proposed increase in rates as outlined in the water rate study prepared by Trilogy Consulting; and BE IT FURTHER RESOLVED that the rate study be submitted to the Wisconsin Public Service Commission for review and approval. Dated this 14th day of April, ATTEST: Dan Toland, Mayor Lu Ann Hecht, City Clerk 29

30 Water Rate Study - DRAFT Prepared for the City of River Falls by Trilogy Consulting, LLC March

31 IMPETUS FOR THE RATE INCREASE The City of River Falls owns and operates a water supply and distribution system that provides water service to over 4,000 customers within the City limits. The Wisconsin Public Service Commission (PSC) regulates the water utility and approves any increases in the City s water rates. The City last requested a water rate increase in October 2011, for a 2012 test year. In April 2012, the PSC approved an overall increase of 3.3 percent in water rates. Although the utility has been generating enough cash flow to cover operation and maintenance expenses, debt service and capital outlay, there are several factors that make a rate increase necessary in order to maintain a healthy financial position moving forward. The City has some major expenditures planned for 2015 and subsequent years for elevated tank painting, water main replacement projects and other capital replacement and rehabilitation projects. In addition, water use per customer has declined somewhat since the last water rate increase, resulting in reduced revenues. In order to provide for an adequate program of infrastructure maintenance and renewal and keep the utility financially sound, regular rate updates are necessary. For these reasons, the City hired Trilogy Consulting to conduct a formal Water User Rate Study and assist with an application to the PSC to increase water rates. The study consisted of setting user rates based on a detailed cost of service study for 2015, as well as projecting user rates and cash flow for the next four years. STUDY METHODOLOGY The water rate study was comprised of three components: 1. Revenue Requirements. For this step, the total amount of revenues that the utility needs to collect was determined. This amount was then compared to estimated revenues at current rates (based on projections of customer demand for 2015) to estimate the overall percentage rate increase needed. 2. Cost of Service Study. For this step, each line item within the utility s revenue requirements was allocated to the various functions that the utility provides. Functional costs were then allocated among the major customer classes. 3. Rate Design. Rates were developed to recover the appropriate amount from each customer class, based on the amount of cost allocated to and the amount and characteristics of demand for each customer class. 2 31

32 REVENUE REQUIREMENTS The utility s revenue requirements for the 2015 test year were calculated using the standard application form provided by the PSC. The user rates for the 2015 test year were calculated using a utility-based method as required by the PSC. The utility-based method calculates rates to recover the cost of operating and maintenance expenses and taxes, as well as depreciation and a return on investment on utility-financed assets net of accumulated depreciation. The utility is not allowed to collect depreciation expense and rate of return on contributed assets (developer contributions, impact fees, etc.). The requested rate of return of 6.50 percent was set to recover all operating, maintenance and replacement expenses and make existing debt service payments and debt coverage requirements and fund a portion of the utility s capital outlay expenditures. It is planned that utility reserves will be used to fund a portion of major maintenance expenses and capital outlay expenditures in the next five years. The following table summarizes the proposed revenue requirements and compares them to the approved revenue requirements for the 2012 water rate increase. As shown, the increase in revenue requirements has outpaced the growth in both total revenues and user charge revenues. An overall revenue increase of $85,185 is projected for 2015, or an increase of 6.3 percent over current user charge revenues Change Proposed Revenues: Operation and Maintenance $805,000 $915, % Taxes $327,294 $323, % Depreciation $140,576 $164, % Return on Investment $234,523 $247, % Total $1,507,393 $1,650, % Total Revenues at Current Rates $1,507,393 $1,565, % User Charge Revenues at Current Rates $1,330,433 $1,414, % Percent Increase in User Charges 3.3% 6.3% A five-year cash flow was also prepared, incorporating the City s capital improvement program and the cost of elevated storage tank painting in 2015 (which is treated within the PSC s determination of revenue requirements as an expense that is normalized over 20 years). With a 6.3 percent overall rate increase in 2015, the utility would still have a negative cash flow in 2015 due to the expense of the tank painting. However, the utility would have more than 3 32

33 enough revenue bond debt coverage and its reserves are sufficient to finance a portion of capital outlay from reserves. Even though net cash flow fluctuates between positive and negative, this is due to fluctuation in annual capital needs and no additional rate increases are anticipated through 2019 based on the assumptions used in this study. However, changing conditions or increases in the utility s capital improvement program could result in the need for a rate increase sooner than anticipated. COST OF SERVICE STUDY Schedules 1 through 10 summarize the cost of service study allocating the utility s revenue requirements first to utility functions and then to each customer class. Costs were first allocated to the functions served by the utility, using the base-extra capacity method. Under this method, costs were allocated to the base costs of supplying average day demand, the extra capacity costs of supplying max day and max hour demand, consumer costs (billing, equivalent meters, and equivalent services), and fire protection. Costs were then allocated to each customer class (residential, multi-family, commercial, industrial, public authority, irrigation and fire protection) based on the demand characteristics of each customer class. Each customer class was allocated a share of the cost for each utility function based on its 4 33

34 estimated share of the demand. For example, each class was allocated a share of base costs in proportion to its projected share of average daily water demand. For max day and max hour costs, costs were allocated based on the estimated ratios of max day and max hour demand to average day demand for each customer class. Consumer costs were allocated based on the number of meters, equivalent meters and equivalent services for each class. Schedule 10 shows the amounts allocated to each customer class and the percentage increase in revenues to be recovered from each customer class, which range from a 26% decrease for public fire protection to an increase of 24% for the residential customer class. The decrease in public fire protection reflects the fact that public fire protection charges were not set at a level equal to the full decrease calculated in the 2012 rate case. PROPOSED RATES Schedules 11 through 19 show the detail of the rate calculations for each component of the proposed rate structure. The following changes are proposed to the City s water rate structure: 1. Inclining block rates for the residential customer class, where the rate per 1,000 gallons of water used increases for water used above certain amounts, or blocks, of water use. Currently, residential customers pay the same rate per 1,000 gallons for all water use. The proposed structure would result in a decrease in rates for the first 4,000 gallons per month, a very small decrease in the rate for the next 4,000 gallons per month, and a substantial increase for any water use above 8,000 gallons per month. The highest rate is proposed to be the same as the rate charged for irrigation meters. 2. A separate rate for multi-family customers (residential buildings with more than 3 units per connection). These customers are currently charged the same rates as nonresidential customers. The proposed rate is a flat rate for all water used. Schedule 13 details the current and proposed public fire protection charges for each customer class. Schedule 18 summarizes the current and proposed rates for general service charges and volumetric rates for each customer class. Schedule 19 summarizes the estimated bill impacts for customers of various sizes in each customer class, including public fire protection, general service charges, and volumetric rates. Including the impact of the substantial decrease in public fire protection charges, the bill impacts for average residential customers would be an increase of about 6 percent. Large residential users would experience much larger increases of 30 percent or more due to the change to an inclining block rate. Non-residential users bills would vary depending on their customer class and amount of usage. RECOMMENDATION AND CONCLUSIONS It is recommended that the City apply for an overall rate increase of 6.3 percent, with a rate of return of 6.5 percent, and approval of the cost of service study and rate design as shown in 5 34

35 Schedules 1 through 19 attached to this report. The PSC will review the City s application and may make changes in the revenue requirements cost of service study and rate design. As this study uses a number of assumptions and projections, City staff should continue to monitor the utilities financial situation on an annual basis going forward, using this study as a plan and guide to ensure that the recommended rates adequately recover revenues, in case conditions change significantly from the projected results. 6 35

36 Proposed Cost-of-Service Study and Rate Design Prepared for the River Falls Municipal Utility Docket No WR-104 by Trilogy Consulting, LLC DRAFT 36

37 Schedule 1 - System Demand Ratios River Falls Municipal Utility Maximum Day System Demand Total Annual Pumpage 420,216,972 Gallons Average Daily Pumpage 1,151,279 Gallons Maximum Day Pumpage 2,446,376 Gallons Fire Flow Gal/Min 4,000 Duration (hours) ,000 Gallons Average Day Plus Fire Flow 2,111,279 Ratio - Base to Max Day 1,151,279 Base = 47.06% 2,446,376 Max Day Base = 52.94% Maximum Hour System Demand Average Hour on Max Day 101,932 Gallons Maximum Hour Pumpage 152,898 Gallons Average Hour Plus One Hour Fire Flow 287,970 Gallons Ratio - Base to Max Hour 1,151,279 Base = 16.66% 6,911,279 Max Hour Base = 83.34% Ratio - Base / Max Day / Max Hour USE Base 1,151,279 = 16.66% 16.66% MD less Base 1,295,097 = 18.74% 18.74% MH less MD 4,464,903 = 64.60% 64.60% Docket No WR

38 Schedule 2 - Allocation of Transmission and Distribution Mains Inch-Feet Size (Inches) Quantity (Feet) Total Distribution Transmission ,023 1,517 1, ,484 1, ,281 3,203 3, ,635 86,540 86, , , , , , , , , , , , , ,633 78,862 78, , , ,000 Total 335,403 2,821,245 1,989, ,954 % Transmission 18.4% % Distribution 81.6% 70.51% 29.49% Use for Allocation Inch-Feet Linear Feet Transmission Mains 29.49% 18.44% Distribution Mains 70.51% 81.56% Source: 2013 PSC Annual Report. Docket No WR

39 Schedule 3 - Allocation of Operation and Maintenance Expenses to Service Cost Functions BASE Acct No. Account Description Total System Distribution System Distribution System Distribution Storage Billing SOURCE OF SUPPLY EXPENSES 600 Operation supervision and engineering Operation labor and expenses CONSUMER COSTS Equivalent Meter Equivalent Service ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) 602 Purchased water Miscellaneous expenses Rents Maintenance supervision and engineering Maintenance of structures and improvements Maint. of collecting and impounding reservoirs Maintenance of lake, river and other intakes Maintenance of wells and springs Maintenance of supply mains Maintenance of misc. water source plant PUMPING EXPENSES 620 Operation supervision and engineering 5,756 2,709 3, Fuel for power production Power production labor and expenses Fuel or power purchased for pumping 95,000 95, Pumping labor and expenses 15,072 7,093 7, Expenses transferred - credit Miscellaneous expenses Rents Maintenance supervision and engineering Maintenance of structures and improvements 2, , Maintenance of power production equipment 5,500 2,588 2, Maintenance of pumping equipment 15,173 7,141 8,032 WATER TREATMENT EXPENSES 640 Operation supervision and engineering 2,985 1,405 1, Chemicals 38,000 38, Operation labor and expenses 26,289 12,372 13, Miscellaneous expenses Rents Maintenance supervision and engineering Maintenance of structures and improvements Maintenance of water treatment equipment 8,090 3,807 4,283 MAX DAY EXTRA-CAPACITY MAX HOUR Fire Protection SUBTOTAL 213, , , Eligible cost for G & A allocation purposes 80,865 38, , PERCENTAGE % 47.06% 0.00% 52.94% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% TRANSMISSION AND DISTRIBUTION EXPENSES 660 Operation supervision and engineering 35,638 1,384 1, ,799 1,402 6,203 5, ,563 9,404 1, Storage facilities expenses 2, , Transmission lines expenses 6,267 1,044 1,174 4, Distribution lines expenses 27,721 4,618 5,195 17, Meter expenses 44,084 44, Customer installations expenses 15,604 15,604 Docket No WR

40 BASE Acct No. Account Description Total System Distribution System Distribution System Distribution Storage Billing MAX DAY EXTRA-CAPACITY MAX HOUR CONSUMER COSTS 665 Miscellaneous expenses 42,559 1,652 1, ,149 1,675 7,408 6, ,837 11,231 2, Rents Maintenance supervision and engineering 38,337 1,489 1, ,936 1,509 6,673 5, ,060 10,117 1, Maintenance of structures and improvements 6, , ,236 1, Maintenance of distr. reservoirs and standpipes 39,216 6,533 32, Maintenance of transmission mains 8,315 1,385 1,558 5, Maintenance of distribution mains 36,778 6,126 6,892 23, Maintenance of services 47,569 47, Maintenance of meters Maintenance of hydrants 11,838 11, Maintenance of miscellaneous plant Equivalent Meter Equivalent Service Fire Protection SUBTOTAL 362,636 14,080 16,275 4,139 18,309 14,271 63,119 52, ,779 95,696 17,932 Subtotal for allocation of supervision and misc expenses 239,392 9,295 10,744 2,733 12,086 9,421 41,668 34, ,084 63,173 11,838 PERCENTAGE % 3.88% 4.49% 1.14% 5.05% 3.94% 17.41% 14.35% 0.00% 18.41% 26.39% 4.95% CUSTOMER ACCOUNTS EXPENSES 901 Supervision Meter reading labor 4,220 4, Customer records and collection expenses 75,835 75, Uncollectible accounts 1,000 1, Miscellaneous customer accounts expenses Customer service and information expenses 0 0 SALES EXPENSES 910 Sales expenses 2,000 2,000 SUBTOTAL 83, , Subtotal for allocation of G & A expenses 500,377 52,136 16,275 46,949 18,309 14,271 63,119 52,034 56,876 66,779 95,696 17,932 PERCENTAGE 10.42% 3.25% 9.38% 3.66% 2.85% 12.61% 10.40% 11.37% 13.35% 19.12% 3.58% GENERAL AND ADMINISTRATIVE EXPENSES 920 Administrative and general salaries 48,698 5,074 1,584 4,569 1,782 1,389 6,143 5,064 5,535 6,499 9,313 1, Office supplies and expenses 11,804 1, , ,489 1,228 1,342 1,575 2, Administrative expenses transferred - credit Outside services employed 20,103 2, , ,536 2,091 2,285 2,683 3, Property insurance 2, Injuries and damages 9,600 1, , ,091 1,281 1, Employee pensions and benefits 128,284 13,366 4,173 12,037 4,694 3,659 16,182 13,340 14,582 17,121 24,534 4, Regulatory commission expenses Duplicate charges - credit Miscellaneous general expenses 8, , ,021 1,198 1, Rents 26,265 2, , ,313 2,731 2,985 3,505 5, Maintenance of general plant SUBTOTAL 255,834 26,642 8,382 24,018 9,429 7,445 32,506 26,474 28,841 34,066 48,765 9,265 TOTAL 915, ,778 24,657 70,967 27,737 21,716 95,626 78, , , ,460 27,198 Docket No WR

41 Schedule 4 - Allocation of Depreciation Expense to Service Cost Functions BASE CONSUMER COSTS Equivalent Equivalent Fire Acct No. Account Description Total System Distribution System Distribution System Distribution Storage Billing Meter Service Protection ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) INTANGIBLES 301 Organization Franchises and consents Miscellaneous intangible plant SOURCE OF SUPPLY 310 Land and land rights Structures and improvements Collecting and impounding reservoirs Lake, river, and other intakes Wells and springs 2,347 1,104 1, Supply mains Other water source plant PUMPING PLANT 320 Land and land rights Structures and improvements 23,467 11,044 12, Other power production equipment 2,862 1,347 1, Electric pumping equipment 5,009 2,357 2, Diesel pumping equipment Other pumping equipment WATER TREATMENT PLANT 330 Land and land rights Structures and improvements Sand or other media filtration equipment Membrane filtration equipment Other water treatment equipment 1, MAX DAY EXTRA-CAPACITY MAX HOUR SUBTOTAL 35,166 16, , PERCENTAGE 47.06% 0.00% 52.94% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Docket No WR

42 Acct No. Account Description Total System Distribution System Distribution System Distribution Storage Billing BASE MAX DAY EXTRA-CAPACITY MAX HOUR CONSUMER COSTS TRANSMISSION AND DISTRIBUTION PLANT 340 Land and land rights Structures and improvements SUBTOTAL Distribution reservoirs and standpipes 16,113 2,684 13, Transmission mains 7,306 1,217 1,369 4, Distribution mains 17,469 2,910 3,273 11, Services 12,736 12, Meters 44,579 44, Hydrants 7,364 7, Other transmission and distribution plant 2, , Equivalent Meter Equivalent Service Fire Protection SUBTOTAL 105,566 3,901 2,910 1,369 3,273 4,720 11,285 13, ,579 12,736 7,364 PERCENTAGE 3.70% 2.76% 1.30% 3.10% 4.47% 10.69% 12.72% 0.00% 42.23% 12.06% 6.98% Cost for allocation of General Plant expenses 143,748 20,562 2,993 20,025 3,367 4,855 11,608 13, ,853 13,099 7,574 PERCENTAGE 14.30% 2.08% 13.93% 2.34% 3.38% 8.07% 9.61% 0.00% 31.90% 9.11% 5.27% GENERAL PLANT 389 Land and land rights Structures and improvements 6, , Office furniture and equipment Computers Transportation equipment 4, , Stores equipment Tools, shop and garage equipment Laboratory equipment Power-operated equipment 2, Communication equipment SCADA equipment 6, , Miscellaneous equipment SUBTOTAL 20,883 2, , ,686 2, ,661 1,903 1,100 TOTAL 164,631 23,549 3,428 22,934 3,856 5,560 13,294 15, ,514 15,002 8,675 Docket No WR

43 Schedule 5 - Allocation of Total Plant to Service Cost Functions BASE CONSUMER COSTS Equiv. Equiv. Fire Acct No. Account Description Total System Distribution System Distribution System Distribution Storage Billing Meter Service Protection ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) INTANGIBLES 301 Organization Franchises and consents Miscellaneous intangible plant SOURCE OF SUPPLY 310 Land and land rights 2,707 1,274 1, Structures and improvements Collecting and impounding reservoirs Lake, river, and other intakes Wells and springs 234, , , Supply mains Other water source plant PUMPING PLANT 320 Land and land rights Structures and improvements 1,437, , , Other power production equipment 215, , , Electric pumping equipment 398, , , Diesel pumping equipment 29,465 13,866 15, Other pumping equipment WATER TREATMENT PLANT 330 Land and land rights Structures and improvements Sand or other media filtration equipment Membrane filtration equipment Other water treatment equipment 83,786 39,430 44,356 MAX DAY EXTRA-CAPACITY MAX HOUR SUBTOTAL 2,402,198 1,130, ,271, PERCENTAGE 47.06% 52.94% Docket No WR

44 BASE EXTRA-CAPACITY MAX HOUR Acct No. Account Description Total System Distribution System Distribution System Distribution Storage Billing MAX DAY CONSUMER COSTS TRANSMISSION AND DISTRIBUTION PLANT 340 Land and land rights 20, , ,628 2,347 5, ,285 2,682 1, Structures and improvements 15, , ,265 1,824 4, ,776 2,084 1,501 SUBTOTAL 36,276 1,429 2,572 1,210 2,893 4,171 9,973 1, ,061 4,766 3, Distribution reservoirs and standpipes 848, , , Transmission mains 2,580, , ,535 1,667, Distribution mains 6,169,969 1,027,792 1,156,183 3,985, Services 1,904,854 1,904, Meters 1,623,208 1,623, Hydrants 1,371,593 1,371, Other transmission and distribution plant 832,326 32,787 59,005 27,759 66,376 95, ,834 40, , ,357 78,742 Equiv. Meter Equiv. Service Fire Protection SUBTOTAL 14,498, ,108 1,027, ,535 1,156,183 1,667,008 3,985, , ,623,208 1,904,854 1,371,593 PERCENTAGE 3.94% 7.09% 3.34% 7.97% 11.50% 27.49% 4.88% 0.00% 11.20% 13.14% 9.46% Subtotal for allocation of General Plant 17,768,862 1,735,813 1,089,369 1,784,213 1,225,452 1,766,881 4,224, , ,720,457 2,018,977 1,453,767 PERCENTAGE 9.77% 6.13% 10.04% 6.90% 9.94% 23.78% 4.22% 0.00% 9.68% 11.36% 8.18% GENERAL PLANT 389 Land and land rights Structures and improvements 214,062 20,911 13,124 21,494 14,763 21,286 50,896 9, ,726 24,323 17, Office furniture and equipment 13,912 1, , ,383 3, ,347 1,581 1, Computers 57,641 5,631 3,534 5,788 3,975 5,732 13,705 2, ,581 6,549 4, Transportation equipment 69,602 6,799 4,267 6,989 4,800 6,921 16,549 2, ,739 7,908 5, Stores equipment Tools, shop and garage equipment 12,940 1, , ,287 3, ,253 1,470 1, Laboratory equipment 11,063 1, , ,100 2, ,071 1, Power-operated equipment 27,229 2,660 1,669 2,734 1,878 2,708 6,474 1, ,636 3,094 2, Communication equipment 1, SCADA equipment 178,744 17,461 10,958 17,948 12,327 17,774 42,499 7, ,307 20,310 14, Miscellaneous equipment SUBTOTAL 587,064 57,349 35,992 58,948 40,488 58, ,583 24, ,842 66,705 48,031 TOTAL 18,355,926 1,793,163 1,125,360 1,843,162 1,265,940 1,825,257 4,364, , ,777,299 2,085,682 1,501,798 Docket No WR

45 Schedule 6 - Allocation of Utility-Financed Plant to Service Cost Functions BASE CONSUMER COSTS Equiv. Equiv. Fire Acct No. Account Description Total System Distribution System Distribution System Distribution Storage Billing Meter Service Protection ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) INTANGIBLES 301 Organization Franchises and consents Miscellaneous intangible plant SOURCE OF SUPPLY 310 Land and land rights 2,707 1,274 1, Structures and improvements Collecting and impounding reservoirs Lake, river, and other intakes Wells and springs 168,635 79,361 89, Supply mains Other water source plant PUMPING PLANT 320 Land and land rights Structures and improvements 733, , , Other power production equipment 65,047 30,612 34, Electric pumping equipment 305, , , Diesel pumping equipment 29,465 13,866 15, Other pumping equipment WATER TREATMENT PLANT 330 Land and land rights Structures and improvements Sand or other media filtration equipment Membrane filtration equipment Other water treatment equipment 63,581 29,922 33,659 MAX DAY EXTRA-CAPACITY MAX HOUR SUBTOTAL 1,368, , , PERCENTAGE 47.06% 52.94% Docket No WR

46 BASE EXTRA-CAPACITY MAX HOUR Acct No. Account Description Total System Distribution System Distribution System Distribution Storage Billing MAX DAY CONSUMER COSTS TRANSMISSION AND DISTRIBUTION PLANT 340 Land and land rights Structures and improvements 15, ,119 2,675 2, ,995 1,353 1,031 SUBTOTAL 16, ,148 2,744 2, ,124 1,388 1, Distribution reservoirs and standpipes 848, , , Transmission mains 561,975 93, , , Distribution mains 1,343, , , , Services 439, , Meters 1,621,068 1,621, Hydrants 334, , Other transmission and distribution plant 52,379 2,390 2,277 1,071 2,562 3,693 8,831 7, ,491 4,468 3,405 Equiv. Meter Equiv. Service Fire Protection SUBTOTAL 5,148, , , , , , , , ,621, , ,727 PERCENTAGE 4.56% 4.35% 2.05% 4.89% 7.05% 16.86% 13.73% 0.00% 31.48% 8.53% 6.50% Subtotal for allocation of General Plant 6,585, , , , , , , , ,642, , ,190 PERCENTAGE 13.39% 3.44% 12.62% 3.87% 5.59% 13.36% 10.88% 0.00% 24.94% 6.76% 5.15% GENERAL PLANT 389 Land and land rights Structures and improvements 214,062 28,664 7,373 27,010 8,294 11,959 28,594 23, ,396 14,465 11, Office furniture and equipment 13,912 1, , ,858 1, , Computers 57,641 7,718 1,985 7,273 2,233 3,220 7,700 6, ,378 3,895 2, Transportation equipment 69,202 9,266 2,384 8,732 2,681 3,866 9,244 7, ,262 4,676 3, Stores equipment Tools, shop and garage equipment 12,940 1, , ,729 1, , Laboratory equipment 11,063 1, , ,478 1, , Power-operated equipment 27,229 3, ,436 1,055 1,521 3,637 2, ,792 1,840 1, Communication equipment 1, SCADA equipment 133,052 17,816 4,583 16,788 5,155 7,433 17,773 14, ,189 8,991 6, Miscellaneous equipment SUBTOTAL 540,972 72,438 18,633 68,259 20,961 30,222 72,263 58, ,942 36,557 27,864 TOTAL 7,126, , , , , , , , ,777, , ,054 Docket No WR

47 Schedule 7 - Summary of Allocation of Operating Costs to Service Cost Functions Overall Rate of Return 6.50% BASE MAX DAY EXTRA-CAPACITY MAX HOUR CONSUMER COSTS Equivalent Equivalent Fire Operating Cost Total System Distribution System Distribution System Distribution Storage Billing Meter Service Protection ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Operation and Maintenance 915, ,778 24,657 70,967 27,737 21,716 95,626 78, , , ,460 27,198 Depreciation Expense 164,631 23,549 3,428 22,934 3,856 5,560 13,294 15, ,514 15,002 8,675 Amortization Expense Taxes and Tax Equivalent 323,104 31,564 19,809 32,444 22,283 32,128 76,823 13, ,284 36,713 26,435 Return on Net Investment Rate Base 247,097 33,087 8,511 31,178 9,574 13,804 33,007 26, ,637 16,698 12,727 Total 1,650, ,978 56, ,523 63,451 73, , , , , ,873 75,034 Docket No WR

48 Schedule 8 - Customer Class Demand Ratios EXTRA-CAPACITY MAX DAY DEMAND EXTRA-CAPACITY MAX HOUR DEMAND Customer Class Annual Volume 1000 Gallons Average Day Volume Gallons System Percent (%) Distribution Percent (%) Max Day / Average Day Ratio Extra Capacity Ratio Extra Capacity Volume Rate Gallons Per System Adjust. Day Percent (%) Percentage (%) Distr. Adjust. Percentage (%) Max Hour / Average Day Ratio Extra Capacity Ratio Extra Capacity Volume Rate Gallons per Hour Residential 173, , % 45.07% , % 28.33% 28.33% , % 21.44% 21.44% 18.64% Multi-Family 30,008 82, % 7.80% , % 4.29% 4.29% , % 2.78% 2.78% 2.42% Commercial 55, , % 14.34% , % 7.89% 7.89% , % 5.12% 5.12% 4.45% Industrial 10,372 28, % 2.70% , % 1.06% 1.06% , % 0.80% 0.80% 0.70% Public Authority 50, , % 13.14% , % 7.23% 7.23% , % 4.69% 4.69% 4.07% Irrigation 61, , % 15.94% , % 22.55% 22.55% , % 15.17% 15.17% 13.19% Public Fire Protection 3,845 10, % 1.00% 960, % 28.65% 28.65% 240, % 50.00% 50.00% 56.53% Total 384,482 1,053, % 100.0% 3,351, % % % 424, % % % % Percent (%) System Adjust. Percentage (%) Distr. Adjust. Percentage (%) Storage Adjust. Percentage (%) 50.00% 50.00% PFP % Limits 50.00% 50.00% 80.00% Max-Day Demand = 3,434,178 (Gallons/Day) Sum of General Service Average and Maximum Day Extra Capacity Demand Max-Hour Demand = 227,988 (Gallons/Hour) Sum of General Service Average and Maximum Hour Extra Capacity Demand 1.40 = Non-Coincident / Coincident Ratio for Max Day 1.49 = Non-Coincident / Coincident Ratio for Max Hour Docket No WR

49 Schedule 9 - Customer Costs Allocation Factors Number of Meters Customer Class 5/8 3/ /4 1 1/ / Residential 16 4, , % Multi-Family % Commercial % Industrial % Public Authority % Irrigation % Total 17 4, , % Total Meters Percent Total Equivalent Meters Allocation factor: Total Meter Size (Inches): 5/8 3/ /4 1 1/ / Equiv. Percent Equiv. Meters Ratio: Meters Total Customer Class Residential 16 4, , % Multi-Family % Commercial % Industrial % Public Authority % Irrigation % Total 17 4, , % Equivalent Services Allocation factor: Total Meter Size (Inches): 5/8 3/ /4 1 1/ / Equiv. Percent Equiv. Services Ratio: Services Total Customer Class Residential 16 4, , % Multi-Family % Commercial % Industrial % Public Authority % Irrigation % Total 17 4, , % Docket No WR

50 Schedule 10 - Allocation of Service Cost Functions to Customer Classes Total Residential Multi-Family Commercial Industrial Public Authority Irrigation Total Fire Protection ($) ($) ($) ($) ($) ($) ($) ($) BASE COSTS: System 299, ,206 23,413 43,026 8,092 39,412 47,830 3,000 Distribution 56,405 25,423 4,402 8,090 1,522 7,411 8, EXTRA-CAPACITY COSTS: Max-Day System 157,523 44,632 6,763 12,428 1,670 11,384 35,525 45,123 Max-Day Distribution 63,451 17,978 2,724 5, ,585 14,310 18,176 Max-Hour System 73,209 15,696 2,038 3, ,431 11,105 36,604 Max-Hour Storage 134,824 25,130 3,264 5, ,494 17,780 76,219 Max-Hour Distribution 218,749 46,900 6,091 11,194 1,754 10,253 33, ,375 CUSTOMER COSTS: Billing 111,896 88,147 1,495 6, ,517 13,825 0 Equivalent Meters 246, ,497 10,980 27,513 2,370 25,017 32,904 0 Equivalent Services 212, ,548 5,004 15,375 1,135 7,797 27,014 0 FIRE PROTECTION 75, ,034 TOTAL COST 1,650, ,156 66, ,918 19, , , ,095 LESS OTHER REVENUE 204,281 82,269 7,742 18,253 2,236 13,607 28,369 51, % 3.79% 8.94% 1.09% 6.66% 13.89% 25.36% COST OF SERVICES 1,445, ,886 58, ,665 16, , , ,291 REVENUE AT PRESENT RATES 1,360, ,339 56, ,135 14,420 83, , ,068 DIFFERENCE 85, ,547 1,883 15,530 2,455 19,038 36,511 (111,777) PERCENT INCREASE/DECREASE 6.26% 24.34% 3.33% 14.77% 17.02% 22.76% 20.56% % Docket No WR

51 Schedule 11 - Private Fire Protection Service Charge Calculation Total Cost - Fire Protection: 364,095 Less - Direct Fire Protection: 75,034 Total Fire Protection Capacity Cost 289,060 Size of Connection No. Eq. 6" Ratio 1 1/2-inch - x 0.08 = - 2-inch 1 x 0.16 = inch 5 x 0.30 = inch 10 x 0.50 = inch 65 x 1.00 = inch 23 x 1.60 = inch 3 x 2.40 = inch - x 3.50 = - 14-inch - x 4.00 = - 16-inch - x 5.40 = - No. of Hydrants assume all (6-inch) TOTAL SIX INCH EQUIVALENTS Annual Billing Periods = 12 Total Fire Protection Capacity Cost = $ Total 6-Inch Equivalents Per Billing Period = $30.47 Size of Connection Calculated Private Fire Charges PRESENT Private Fire Charges No. Conn. Revenue at Present Rates Proposed Monthly Charge Revenue at Proposed Rates 1 1/2-inch $30.47 x 0.08 = $2.44 $ $0 $8.00 $0 2-inch $30.47 x 0.16 = $4.87 $ $96 $8.00 $96 3-inch $30.47 x 0.30 = $9.14 $ $720 $12.00 $720 4-inch $30.47 x 0.50 = $15.23 $ $2,400 $20.00 $2,400 6-inch $30.47 x 1.00 = $30.47 $ $28,860 $37.00 $28,860 8-inch $30.47 x 1.60 = $48.75 $ $16,560 $60.00 $16, inch $30.47 x 2.40 = $73.12 $ $3,168 $88.00 $3, inch $30.47 x 3.50 = $ $ $0 $ $0 14-inch $30.47 x 4.00 = $ $ $0 $ $0 16-inch $30.47 x 5.40 = $ $ $0 $ $0 $51,804 $51,804 Docket No WR

52 Schedule 12 - Allocation of Public Fire Protection to Customer Class Total Residential Multi-Family Commercial Industrial Public Authority ($) ($) ($) ($) ($) ($) ASSESSED VALUE 1,290,508, ,302,700 39,550, ,202,100 25,406, ,046,729 Allocation 55.6% 3.1% 9.4% 2.0% 30.0% BASE COSTS: System 3,000 1, Distribution EXTRA-CAPACITY COSTS: Max-Day System 45,123 25,081 1,383 4, ,533 Max-Day Distribution 18,176 10, , ,451 Max-Hour System 36,604 20,346 1,122 3, ,978 Max-Hour Storage 76,219 42,365 2,336 7,158 1,501 22,859 Max-Hour Distribution 109,375 60,794 3,352 10,272 2,153 32,803 CUSTOMER COSTS: Billing Equivalent Meters Equivalent Services FIRE PROTECTION 75,034 41,706 2,300 7,047 1,477 22,504 TOTAL COST 364, ,375 11,158 34,195 7, ,199 LESS OTHER REVENUE 51,804 28,794 1,588 4,865 1,020 15, % 3.06% 9.39% 1.97% 29.99% COST OF SERVICES 312, ,580 9,571 29,330 6,148 93,662 REVENUE AT PRESENT RATES 424, ,202 15,777 39,531 11, ,412 DIFFERENCE (111,777) (44,621) (6,207) (10,201) (4,997) (45,751) PERCENT INCREASE/DECREASE % % % % % % Docket No WR

53 Schedule 13a - Public Fire Protection Service Charge Calculation - Residential Class Cost of Service Units Cost per Month ($/Unit) Equivalent Meters $173,580 4,077 $3.55 $173,580 Size of Connection Equivalent Meter Ratio Calculated Monthly Charge ($/unit) Current Monthly PFP Charge ($/unit) Proposed Monthly PFP Charge ($/unit) No. Connections Revenues at Current Rates Revenues at Proposed Rates 5/8-inch 1.0 $3.55 $4.46 $ $856 $682 3/4-inch 1.0 $3.55 $4.46 $3.55 4,046 $216,542 $172,360 1-inch 2.5 $8.87 $11.16 $ $804 $ /4-inch 3.7 $13.13 $16.52 $ $0 $0 1 1/2-inch 5.0 $17.74 $22.32 $ $0 $0 2-inch 8.0 $28.38 $35.71 $ $0 $0 3-inch 15.0 $53.22 $66.96 $ $0 $0 4-inch 25.0 $88.70 $ $ $0 $0 6-inch 50.0 $ $ $ $0 $0 8-inch 80.0 $ $ $ $0 $0 10-inch $ $ $ $0 $0 12-inch $ $ $ $0 $0 4,068 $218,202 $173,680 $173, % Docket No WR

54 Schedule 13b - Public Fire Protection Service Charge Calculation - Multi-Family Class Cost of Service Units Cost per Month ($/Unit) Equivalent Meters $9, $2.63 $9,571 Size of Connection Equivalent Meter Ratio Calculated Monthly Charge ($/unit) Current Monthly PFP Charge ($/unit) Proposed Monthly PFP Charge ($/unit) No. Connections Revenues at Current Rates Revenues at Proposed Rates 5/8-inch 1.0 $2.63 $4.33 $ $0 $0 3/4-inch 1.0 $2.63 $4.33 $ $987 $600 1-inch 2.5 $6.57 $10.83 $ $910 $ /4-inch 3.7 $9.72 $16.03 $ $0 $0 1 1/2-inch 5.0 $13.14 $21.66 $ $7,278 $4,415 2-inch 8.0 $21.02 $34.66 $ $5,823 $3,531 3-inch 15.0 $39.42 $64.99 $ $780 $473 4-inch 25.0 $65.70 $ $ $0 $0 6-inch 50.0 $ $ $ $0 $0 8-inch 80.0 $ $ $ $0 $0 10-inch $ $ $ $0 $0 12-inch $ $ $ $0 $0 69 $15,777 $9,571 $9, % Docket No WR

55 Schedule 13c - Public Fire Protection Service Charge Calculation - Commercial Class Cost of Service Units Cost per Month ($/Unit) Equivalent Meters $29, $3.21 $29,330 Size of Connection Equivalent Meter Ratio Calculated Monthly Charge ($/unit) Current Monthly PFP Charge ($/unit) Proposed Monthly PFP Charge ($/unit) No. Connections Revenues at Current Rates Revenues at Proposed Rates 5/8-inch 1.0 $3.21 $4.33 $ $52 $39 3/4-inch 1.0 $3.21 $4.33 $ $10,340 $7,665 1-inch 2.5 $8.03 $10.83 $ $6,368 $4, /4-inch 3.7 $11.89 $16.03 $ $0 $0 1 1/2-inch 5.0 $16.07 $21.66 $ $8,317 $6,171 2-inch 8.0 $25.71 $34.66 $ $6,655 $4,936 3-inch 15.0 $48.21 $64.99 $ $2,340 $1,736 4-inch 25.0 $80.35 $ $ $1,300 $964 6-inch 50.0 $ $ $ $0 $0 8-inch 80.0 $ $ $ $4,159 $3, inch $ $ $ $0 $0 12-inch $ $ $ $0 $0 302 $39,531 $29,318 $29, % Docket No WR

56 Schedule 13d - Public Fire Protection Service Charge Calculation - Industrial Class Cost of Service Units Cost per Month ($/Unit) Equivalent Meters $6, $7.82 $6,148 Size of Connection Equivalent Meter Ratio Calculated Monthly Charge ($/unit) Current Monthly PFP Charge ($/unit) Proposed Monthly PFP Charge ($/unit) No. Connections Revenues at Current Rates Revenues at Proposed Rates 5/8-inch 1.0 $7.82 $14.18 $ $0 $0 3/4-inch 1.0 $7.82 $14.18 $ $681 $375 1-inch 2.5 $19.55 $35.45 $ $2,127 $1, /4-inch 3.7 $28.94 $52.46 $ $0 $0 1 1/2-inch 5.0 $39.11 $70.90 $ $4,254 $2,347 2-inch 8.0 $62.58 $ $ $4,084 $2,253 3-inch 15.0 $ $ $ $0 $0 4-inch 25.0 $ $ $ $0 $0 6-inch 50.0 $ $ $ $0 $0 8-inch 80.0 $ $1, $ $0 $0 10-inch $ $1, $ $0 $0 12-inch $1, $2, $1, $0 $0 17 $11,145 $6,148 $6, % Docket No WR

57 Schedule 13e - Public Fire Protection Service Charge Calculation - Public Authority Class Cost of Service Units Cost per Month ($/Unit) Equivalent Meters $93, $11.29 $93,662 Size of Connection Equivalent Meter Ratio Calculated Monthly Charge ($/unit) Current Monthly PFP Charge ($/unit) Proposed Monthly PFP Charge ($/unit) No. Connections Revenues at Current Rates Revenues at Proposed Rates 5/8-inch 1.0 $11.29 $16.80 $ $0 $0 3/4-inch 1.0 $11.29 $16.80 $ $1,613 $1,084 1-inch 2.5 $28.22 $42.00 $ $4,536 $3, /4-inch 3.7 $41.76 $62.16 $ $0 $0 1 1/2-inch 5.0 $56.44 $84.00 $ $9,072 $6,096 2-inch 8.0 $90.30 $ $ $27,420 $18,421 3-inch 15.0 $ $ $ $66,531 $44,698 4-inch 25.0 $ $ $ $20,161 $13,545 6-inch 50.0 $ $ $ $10,080 $6,772 8-inch 80.0 $ $1, $ $0 $0 10-inch $1, $2, $1, $0 $0 12-inch $1, $2, $1, $0 $0 70 $139,412 $93,663 $93, % Docket No WR

58 Schedule 14 - General Service Charge Calculation Cost of Service Units Cost per Month ($/Unit) Billing Cost $111,896 5,164 $1.81 Equivalent Meters $246,281 6,808 $3.01 Equivalent Services $212,873 5,534 $3.21 Size of Connection $571,050 Monthly Billing Cost ($/unit) Equivalent Meter Ratio Monthly Meter Cost ($/unit) Equivalent Service Ratio Monthly Service Cost ($/unit) Calculated Monthly Charge ($/unit) PRESENT Monthly Charge ($/unit) Proposed Monthly Service Charge ($/unit) No. Connections Revenues at Current Rates Revenues at Proposed Rates 5/8-inch $ $ $3.21 $8.03 $5.25 $ $1,071 $1,632 3/4-inch $ $ $3.21 $8.03 $5.25 $8.00 4,850 $305,550 $465,600 1-inch $ $ $4.17 $13.51 $11.50 $ $14,766 $17, /4-inch $ $ $5.45 $18.41 $15.50 $ $0 $0 1 1/2-inch $ $ $6.41 $23.29 $20.00 $ $21,840 $25,389 2-inch $ $ $9.62 $35.54 $30.00 $ $21,960 $25,986 3-inch $ $ $12.82 $59.85 $51.25 $ $18,450 $21,510 4-inch $ $ $16.03 $93.20 $80.50 $ $5,796 $6,696 6-inch $ $ $19.23 $ $ $ $1,800 $2,061 8-inch $ $ $22.44 $ $ $ $3,000 $3, inch $ $ $25.64 $ $ $ $0 $0 12-inch $ $ $28.85 $ $ $ $0 $0 Total 5,164 $394,233 $569,391 Cost of Service $571,050 Percent of Cost 99.7% Docket No WR

59 Schedule 15 - Estimated General Service Charge Revenue by Customer Class Residential Multi-Family Commercial Industrial Public Authority Irrigation Size of Connection Proposed Monthly Service Charge ($/unit) No. of Connections Estimated Annual Revenue No. of Connections Estimated Annual Revenue No. of Connections Estimated Annual Revenue No. of Connections Estimated Annual Revenue No. of Connections Estimated Annual Revenue No. of Connections Estimated Annual Revenue 5/8-inch $ $1,536 0 $0 1 $96 0 $0 0 $0 0 $0 3/4-inch $8.00 4,046 $388, $1, $19,104 4 $384 8 $ $55,104 1-inch $ $972 7 $1, $7,938 5 $810 9 $1, $5, /4-inch $ $0 0 $0 0 $0 0 $0 0 $0 0 $0 1 1/2-inch $ $0 28 $7, $8,928 5 $1,395 9 $2, $4,743 2-inch $ $0 14 $5, $6,816 3 $1, $7, $4,686 3-inch $59.75 $0 1 $717 3 $2,151 0 $0 22 $15,774 4 $2,868 4-inch $93.00 $0 0 $0 1 $1,116 0 $0 4 $4,464 1 $1,116 6-inch $ $0 0 $0 0 $0 0 $0 1 $2,061 0 $0 8-inch $ $0 0 $0 1 $3,183 0 $0 0 $0 0 $0 10-inch $ $0 0 $0 0 $0 0 $0 0 $0 0 $0 12-inch $ $0 0 $0 0 $0 0 $0 0 $0 0 $0 Subtotal 4,068 $390, $17, $49, $3, $34, $73,539 Total $569,391 Cost of Service $571,050 Percent of Cost 99.7% Docket No WR

60 Schedule 16 - General Volumetric Charge Calculation Residential Customers Water Use Block (gallons) Base Cost Base Cost ($/1000 gallons) Max Day Factor Extra Capacity Cost Extra Capacity Cost ($/1000 gallons) Max Hour Factor Extra Capacity Cost Extra ($/1000 Capacity Cost gallons) Calculated Total Charge ($/1000 gallons) PRESENT Charge - Residential ($/1000 gallons) Proposed Charge - Residential ($/1000 gallons) Annual Water Use - Residential (1000 gallons) FIRST 4,000 $78,359 $ $125,219 $ $350,903 $0.506 $1.337 $1.40 $ ,715 $93,266 NEXT 4,000 $78,359 $ $156,524 $ $438,628 $0.633 $1.554 $1.40 $ ,682 $94,781 OVER 8,000 $78,359 $ $281,743 $ $701,805 $1.012 $2.295 $1.40 $ ,435 $42, ,832 $230,449 $228,694 Estimated Revenues Cost of Service Water Use Block (gallons) Residential Max Day Sum Max Hour Sum FIRST 4,000 79,715 NEXT 4,000 68,682 OVER 8,000 18,435 Total 166, , ,172 Percent of Cost % Multi-Family Customers Water Use Block (gallons) Base Cost Base Cost ($/1000 gallons) Max Day Factor Extra Capacity Cost Extra Capacity Cost ($/1000 gallons) Max Hour Factor Extra Capacity Cost Extra ($/1000 Capacity Cost gallons) Calculated Total Charge ($/1000 gallons) PRESENT Charge - Multi-Family ($/1000 gallons) Proposed Charge - Multi- Family ($/1000 gallons) Annual Water Use - Multi- Family (1000 gallons) FIRST 15,000 $20,073 $ $16,601 $ $34,179 $0.380 $1.365 $1.40 $ ,212 $13,990 NEXT 135,000 $20,073 $ $16,601 $ $34,179 $0.380 $1.365 $1.10 $ ,206 $22,202 OVER 150,000 $20,073 $ $16,601 $ $34,179 $0.380 $1.365 $0.85 $1.37 3,590 $4,918 30,008 $41,111 $40,952 Estimated Revenues Cost of Service Water Use Block (gallons) Multi-Family Max Day Sum Max Hour Sum FIRST 15,000 10,212 NEXT 135,000 16,206 OVER 150,000 3,590 Total 30,008 52,514 90,024 Percent of Cost % Commercial Customers Water Use Block (gallons) Base Cost Base Cost ($/1000 gallons) Max Day Factor Extra Capacity Cost Extra Capacity Cost ($/1000 gallons) Max Hour Factor Extra Capacity Cost Extra ($/1000 Capacity Cost gallons) Calculated Total Charge ($/1000 gallons) PRESENT Charge - Commercial ($/1000 gallons) Proposed Charge - Commercial ($/1000 gallons) Annual Water Use - Commercial (1000 gallons) FIRST 15,000 $32,862 $ $30,508 $ $115,155 $0.696 $1.608 $1.40 $ ,378 $35,133 NEXT 135,000 $32,862 $ $26,150 $ $73,281 $0.443 $1.310 $1.10 $ ,779 $38,117 OVER 150,000 $32,862 $ $21,792 $ $31,406 $0.190 $1.012 $0.85 $0.99 2,989 $2,959 55,146 $76,210 $71,233 Estimated Revenues Cost of Service Water Use Block (gallons) Commercial Max Day Sum Max Hour Sum FIRST 15,000 22,378 NEXT 135,000 29,779 OVER 150,000 2,989 Total 55,146 96, ,438 Percent of Cost % Docket No WR

61 Industrial Customers Water Use Block (gallons) Base Cost Base Cost ($/1000 gallons) Max Day Factor Extra Capacity Cost Extra Capacity Cost ($/1000 gallons) Max Hour Factor Extra Capacity Cost Extra ($/1000 Capacity Cost gallons) Calculated Total Charge ($/1000 gallons) PRESENT Charge - Industrial ($/1000 gallons) Proposed Charge - Industrial ($/1000 gallons) Annual Water Use - Industrial (1000 gallons) FIRST 15,000 $7,378 $ $4,099 $ $18,049 $0.696 $1.724 $1.40 $1.57 1,783 $2,799 NEXT 135,000 $7,378 $ $3,513 $ $11,486 $0.443 $1.425 $1.10 $1.28 5,886 $7,534 OVER 150,000 $7,378 $ $2,928 $ $4,922 $0.190 $1.127 $0.85 $0.99 2,703 $2,676 10,372 $13,009 $13,002 Estimated Revenues Cost of Service Water Use Block (gallons) Industrial Max Day Sum Max Hour Sum FIRST 15,000 1,783 NEXT 135,000 5,886 OVER 150,000 2,703 Total 10,372 12,965 25,930 Percent of Cost % Public Authority Customers Water Use Block (gallons) Base Cost Base Cost ($/1000 gallons) Max Day Factor Extra Capacity Cost Extra Capacity Cost ($/1000 gallons) Max Hour Factor Extra Capacity Cost Extra ($/1000 Capacity Cost gallons) Calculated Total Charge ($/1000 gallons) PRESENT Charge - Public Authority ($/1000 gallons) Proposed Charge - Public Authority ($/1000 gallons) Annual Water Use - Public Authority (1000 gallons) FIRST 15,000 $33,215 $ $27,946 $ $105,483 $0.696 $1.670 $1.40 $1.57 8,380 $13,157 NEXT 135,000 $33,215 $ $23,954 $ $67,125 $0.443 $1.371 $1.10 $ ,563 $35,281 OVER 150,000 $33,215 $ $19,961 $ $28,768 $0.190 $1.073 $0.85 $ ,571 $14,425 50,514 $62,863 $68,363 Estimated Revenues Cost of Service Water Use Block (gallons) Public Authority Max Day Sum Max Hour Sum FIRST 15,000 8,380 NEXT 135,000 27,563 OVER 150,000 14,571 Total 50,514 88, ,542 Percent of Cost 91.95% Irrigation Customers Water Use Block (gallons) Base Cost Base Cost ($/1000 gallons) Max Day Factor Extra Capacity Cost Extra Capacity Cost ($/1000 gallons) Max Hour Factor Extra Capacity Cost Extra ($/1000 Capacity Cost gallons) Calculated Total Charge ($/1000 gallons) PRESENT Charge - Irrigation ($/1000 gallons) Proposed Charge - Irrigation ($/1000 gallons) Annual Water Use - Irrigation (1000 gallons) ALL $28,455 $ $224,256 $ $496,540 $1.012 $2.290 $2.05 $ ,304 $140,999 61,304 $140,999 $140,357 Estimated Revenues Cost of Service Water Use Block (gallons) Irrigation Max Day Sum Max Hour Sum ALL 61,304 Total 61, , ,432 Percent of Cost % Docket No WR

62 Schedule 17 - Comparison of Revenue at Present Rates, Cost-of-Service and Proposed Rates Retail Customer Class Revenue at Present Rates Cost of Service Revenue Required Increase Over Present Rates Revenue Proposed Rates Increase Over Present Rates Percent of Cost of Service Residential $499,339 $620, % $621, % 100.1% Multi-Family $56,549 $58, % $58, % 100.2% Commercial $105,135 $120, % $125, % 104.0% Industrial $14,420 $16, % $16, % 100.0% Public Authority $83,656 $102, % $97, % 94.6% Irrigation $177,589 $214, % $214, % 100.2% Subtotal General Service $936,688 $1,133, % $1,134, % 100.0% Public Fire Protection Residential $218,202 $173, % $173, % 100.1% Multi-Family $15,777 $9, % $9, % 100.0% Commercial $39,531 $29, % $29, % 100.0% Industrial $11,145 $6, % $6, % 100.0% Public Authority $139,412 $93, % $93, % 100.0% Subtotal Public Fire Protection $424,068 $312, % $312, % 100.0% Total $1,360,756 $1,445, % $1,446, % 100.0% Total - General and PFP Residential $717,541 $794, % $795, % 100.1% Multi-Family $72,326 $68, % $68, % 100.2% Commercial $144,666 $149, % $154, % 103.2% Industrial $25,565 $23, % $23, % 100.0% Public Authority $223,068 $196, % $190, % 97.2% Irrigation $177,589 $214, % $214, % 100.2% Total $1,360,756 $1,445, % $1,446, % 100.0% Docket No WR

63 Schedule 18 - Comparison of Current and Proposed Rate Schedules General Service Charges Service Charge Connection Size Current Monthly Charge Proposed Monthly Charge Percent Change Volume Charge - Commercial Water Use Block (gallons) Current Charge ($/1000 gallons) Proposed Charge ($/1000 gallons) Percent Change 5/8-inch $5.25 $ % FIRST 15,000 $1.40 $ % 3/4-inch $5.25 $ % NEXT 135,000 $1.10 $ % 1-inch $11.50 $ % OVER 150,000 $0.85 $ % 1 1/4-inch $15.50 $ % 1 1/2-inch $20.00 $ % Volume Charge - Industrial 2-inch $30.00 $ % Current Proposed 3-inch $51.25 $ % Water Use Charge Charge 4-inch $80.50 $ % Block ($/1000 ($/1000 Percent 6-inch $ $ % (gallons) gallons) gallons) Change 8-inch $ $ % FIRST 15,000 $1.40 $ % 10-inch $ $ % NEXT 135,000 $1.10 $ % 12-inch $ $ % OVER 150,000 $0.85 $ % Volume Charge - Residential Water Use Block (gallons) Current Charge ($/1000 gallons) Proposed Charge ($/1000 gallons) Percent Change Volume Charge - Public Authority Water Use Block (gallons) Current Charge ($/1000 gallons) Proposed Charge ($/1000 gallons) Percent Change FIRST 4,000 $1.40 $ % FIRST 15,000 $1.40 $ % NEXT 4,000 $1.40 $ % NEXT 135,000 $1.10 $ % OVER 8,000 $1.40 $ % OVER 150,000 $0.85 $ % Volume Charge - Multi-Family Water Use Block (gallons) Current Charge ($/1000 gallons) Proposed Charge ($/1000 gallons) Percent Change Volume Charge - Irrigation Water Use Block (gallons) Current Charge ($/1000 gallons) Proposed Charge ($/1000 gallons) Percent Change FIRST 15,000 $1.40 $ % ALL n/a $2.05 $ % NEXT 135,000 $1.10 $ % OVER 150,000 $0.85 $ % Docket No WR

64 Schedule 19 - Customer Water Bill Comparison at Current and Proposed Rates Customer Type Meter Size (Inches) Volume Gallons Bill at Old Rates Monthly Bill Bill at New Rates Percentage Change Bill at Old Rates Monthly Bill with Public Fire Protection Bill at New Rates Dollar Change Percentage Change Small Residential 3/4 2,000 $8.05 $ % $12.51 $13.89 $ % Average Residential 3/4 4,000 $10.85 $ % $15.31 $16.23 $ % Residential 3/4 10,000 $19.25 $ % $23.71 $26.35 $ % Residential 3/4 20,000 $33.25 $ % $37.71 $49.35 $ % Residential 3/4 25,000 $40.25 $ % $44.71 $60.85 $ % Multi-Family 3/4 10,000 $19.25 $ % $23.58 $24.43 $ % Multi-Family 1 50,000 $71.00 $ % $81.83 $89.07 $ % Multi-Family 1 1/2 300,000 $ $ % $ $ $ % Multi-Family 2 500,000 $ $ % $ $ $ % Small Commercial 3/4 10,000 $19.25 $ % $23.58 $26.91 $ % Commercial 3/4 25,000 $37.25 $ % $41.58 $47.56 $ % Commercial 1 1/2 300,000 $ $ % $ $ $ % Commercial 2 300,000 $ $ % $ $ $ % Large Commercial 2 1,000,000 $ $1, % $ $1, $ % Large Commercial 3 600,000 $ $ % $ $ $ % Industrial 1 30,000 $49.00 $ % $84.45 $ $ % Industrial 2 100,000 $ $ % $ $ $ % Public Authority 3/4 50,000 $64.75 $ % $81.55 $87.64 $ % Public Authority 1 100,000 $ $ % $ $ $ % Public Authority 3 500,000 $ $ % $ $ $ % Public Authority 4 400,000 $ $ % $ $ $ % Irrigation 3/4 5,000 $15.50 $ % $15.50 $19.50 $ % Irrigation 1 1/2 25,000 $71.25 $ % $71.25 $80.75 $ % Irrigation 2 100,000 $ $ % $ $ $ % Irrigation 3 200,000 $ $ % $ $ $ % Docket No WR

65 City of River Falls Water Rate Study City Council Meeting April 14, 2015 Presented by Trilogy Consulting, LLC Christy Cramer & Erik Granum 65

66 Introduction Last increase was done in spring 2012 At that time, implemented new rates for residential and irrigation customers, plus new method of charging public fire protection Objectives for 2015 Adjust rate base to reflect revised impact fee study from 2014 Update rate structure to more accurately reflect water usage and develop rate for multi-family customers Generate adequate revenue to cover operation & maintenance expenses, taxes, depreciation, capital and debt obligations 66

67 Results and Recommendations 67

68 Revenue Requirements Test Year 2012 Operation & Maintenance Expenses $805,000 Taxes $327,294 Depreciation $140,576 Return on Investment $234,523 %6.50 Test Year 2015 Operation & Maintenance Expenses $915,390 Taxes $323,104 Depreciation $164,631 Return on Investment $247,097 %

69 Capital Improvement Plan Project* Replace SCADA System $150,000 Hydrant Replacement $40,000 $40,000 $40,000 $40,000 $40,000 Meter Replacement $50,000 $50,000 $50,000 $50,000 $50,000 Golf Course Crossing $200,000 Water Tower Painting** $500,000 Well #7 $100,000 Main Replacement Funding $92,200 $92,200 $92,200 $92,200 $92,200 *Excludes projects funded through impact fees **Recovered as an expense that is normalized over 20 years 69

70 Projected Cash Flow Projected Rate Increase 6.3% 0% 0% 0% 0% Total Revenues $1,739,246 $1,739,246 $1,739,246 $1,739,246 $1,739,246 Expenses Subtotal O&M $915,390 $942,852 $971,137 $1,000,271 $1,030,280 Subtotal Taxes $323,104 $324,131 $325,189 $326,278 $327,400 Subtotal Debt Service $251,482 $155,448 $158,479 $156,175 $159,000 Other Capital Outlay - Cash $590,000 $182,200 $532,200 $182,200 $282,200 Total Expenses $2,079,976 $1,604,631 $1,987,005 $1,664,924 $1,798,880 Net Cash Flow ($340,730) $134,616 ($247,759) $74,322 ($59,633) Debt Coverage 314% 490% 462% 449% 422% Reserves Beginning Balance - Unrestricted $1,121,605 $880,835 $1,015,451 $767,692 $842,014 Net Cash Flow ($340,730) $134,616 ($247,759) $74,322 ($59,633) Ending Balance $780,875 $1,015,451 $767,692 $842,014 $782,380 Debt Reserve - Restricted $319,860 $220,900 $220,900 $220,900 $220,900est. 70

71 Proposed Rates General Service Fixed Charges Current Rates (per month) 5/8 $5.25 ¾ $ $ $ $ $ $ $ $ Proposed Rates (per month) 5/8 $8.00 ¾ $ $ $ $ $ $ $ $

72 Proposed Rates Public Fire Protection Charges Current Charges Proposed Charges Percentage Change Residential $218,202 $173, % Multi-Family $15,777 $9, % Commercial $39,531 $29, % Industrial $11,145 $6, % Public Authority $139,412 $93, % 72

73 Proposed Rates Volumetric Rates Current Rates (per month) Residential $1.40/1k gallons Non-Residential (inc. Multi-Family) $1.40/1k gallons (first 15k gals) $1.10/1k gallons (next 135k gals) $0.85/1k gallons (over 150k gals) Irrigation $2.05/1k gallons Proposed Rates (per month) Residential $1.17/1k gallons (first 4k gals) $1.38/1k gallons (next 4k gals) $2.30/1k gallons (over 8k gals) Multi-Family $1.37/1k gallons Irrigation $2.30/1k gallons Non-Residential $1.57/1k gallons (first 15k gals) $1.28/1k gallons (next 135k gals) $0.99/1k gallons (over 150k gals) 73

74 Overall Increase / (Decrease) in Revenues from Proposed Rates General Service and Volumetric Public Fire Protection Total Residential $122,034 ($44,522) $77,512 Multi-Family $2,013 ($6,207) ($4,194) Commercial $20,407 ($10,213) $10,194 Industrial $2,456 ($4,998) ($2,541) Public Authority $13,485 ($45,749) ($32,265) Irrigation $36,949 NA $36,949 Total $197,344 ($111,688) $85,655 74

75 Customer Bill Impacts Monthly Bill with Public Fire Protection Customer Type Meter Size (Inches) Volume Gallons Bill at Old Rates Bill at New Rates Dollar Change Percentage Change Small Residential 3/4 2,000 $12.51 $13.89 $ % Average Residential 3/4 4,000 $15.31 $16.23 $ % Residential 3/4 10,000 $23.71 $26.35 $ % Residential 3/4 20,000 $37.71 $49.35 $ % Residential 3/4 25,000 $44.71 $60.85 $ % Multi-Family 3/4 10,000 $23.58 $24.43 $ % Multi-Family 1 50,000 $81.83 $89.07 $ % Multi-Family 1 1/2 300,000 $ $ $ % Multi-Family 2 500,000 $ $ $ % Small Commercial 3/4 10,000 $23.58 $26.91 $ % Commercial 3/4 25,000 $41.58 $47.56 $ % Commercial 1 1/2 300,000 $ $ $ % Commercial 2 300,000 $ $ $ % Large Commercial 2 1,000,000 $ $1, $ % Large Commercial 3 600,000 $ $ $ % Industrial 1 30,000 $84.45 $ $ % Industrial 2 100,000 $ $ $ % Public Authority 3/4 50,000 $81.55 $87.64 $ % Public Authority 1 100,000 $ $ $ % Public Authority 3 500,000 $ $ $ % Public Authority 4 400,000 $ $ $ % Irrigation 3/4 5,000 $15.50 $19.50 $ % Irrigation 1 1/2 25,000 $71.25 $80.75 $ % Irrigation 2 100,000 $ $ $ % Irrigation 3 200,000 $ $ $ % 75

76 What s Next? Trilogy will submit the PSC Application to Increase Rates PSC staff reviews application PSC prepares a finalized revenue requirements document Trilogy will prepare a revised cost-of-service and rate design based on any revisions to the revenue requirements PSC public hearing (via telephone) 76

77 MEMORANDUM 7 TO: FROM: Mayor Toland and City Council Tony Steiner, City Planner DATE: April 14, 2015 TITLE: Resolution Approving Application for Funds from the Wisconsin Department of Natural Resources - Stewardship Local Assistance Programs RECOMMENDED ACTION Adopt the resolution approving an application for funds from the Wisconsin Department of Natural Resources Stewardship Local Assistance Programs. BACKGROUND In order to proceed with a grant application from the Wisconsin Department of Natural Resources (DNR), a resolution of the City Council approving the grant request is needed. The DNR is requesting a commitment on the part of the City to move forward with this project if approved. This project is currently included in the City s Capital Improvement Plan for design in 2017 and construction in In March of 2014 the City applied to the Wisconsin Department of Transportation, Transportation Alternatives Program (TAP) for funds available for the Veteran s Park Bike Ped Path Extension. The City was notified in late 2014 that it did not receive the grant. At this time staff would like to pursue available grant funding through the DNR-Stewardship Program. Stewardship grant awards cover up to 50% of eligible project costs. DISCUSSION Attached you will find a map of the Kinnickinnic Trail System (Exhibit 1) for your background information. The City Council has discussed a Kinnickinnic River Pathway along the River from Division Street to Winter Street for many years and trail construction has been incremental. The White Pathway was constructed in the 1980 s and has been expanding over time. The Winter Street Bridge was reconstructed in 1990 with pedestrian sidewalk connections to the path. The Veterans Park Bridge was reconstructed and made accessible to the pathway in In the past five years the following portions of the trail have been developed in various stages. In 2010 a pathway segment was built as part of the University Falls project. 77

78 Memorandum to Mayor and City Council April 14, 2015 Page 2 In 2013 the City acquired property behind Family Fresh including a pathway segment that was built in the mid-1980s and is in need of resurfacing. Currently the City is working with property owners on easements to connect the path between Family Fresh and University Falls. The City has also actively been seeking other funding resources to complete the trail on the west side of the Kinnickinnic River from the Veterans Park Bridge to Division Street. Originally a portion of this section in TID #7 was to be completed as part of the Frisbee development. Our application to the DNR is for the segment from Heritage Park to Division Street. The total estimated project cost is approximately $50,000 for design and $475,000 for construction, so the estimated project share by the City at 50 percent would be $262,500. The design and construction of this portion of the Kinnickinnic River Trail is an identified project in the Capital Improvement Plan with planned funding from tax increment district #7. The DNR grant application is due on May 1. A successful application would be approved in October, with an agreement by December. Design and engineering would take place in 2016 and the project would be put out for bid and constructed in FINANCIAL CONSIDERATIONS Currently $50,000 is budgeted for design in 2017 and $475,000 for construction in A successful grant application would require a budget adjustment for design in 2016 and construction in 2017 that would take in to account grant funding we may receive. CONCLUSION The project is a good fit with the Stewardship Program. The City has participated in the Stewardship Program in the past and has been very successful. Staff met with the DNR representative on March 27 and this project would be competitive in three different funding programs under the Stewardship umbrella. 1. ADLP- Acquisition or Development of Local Parks 2. Urban Rivers 3. Recreational Trails Act (LWCF-Land and Water Conservation Fund) Attached you will find a resolution written in the format acceptable to the DNR for your review and action. Staff recommends that the resolution be approved. 78

79 N F EXHIBIT 1 W Division St Connect to Division St Sidewalks W Cedar St N Dallas St N Pearl St N Fremont St W Pine St Lewis St City Hall Clark St River St Kinnickinnic River N Main St E Pine St E Cedar St W Maple St Connect to paved trail in Heritage Park W Elm St N Riverwalk Maple Street Bridge Veteran's Park Bridge E Maple St N Second St E Elm St W Walnut St White Pathway E Walnut St Lake George S Main St Family Fresh Segment (to be re-surfaced) Spruce St E Locust St Segment from University falls to Family Fresh (to be built in 2016) S Second St Spring St S Third St N Feet Kinnickinnic Trail System Heritage Park to W Division Street Pathway Extension Future Trails Project Boundary 79

80 RESOLUTION NO. RESOLUTION APPROVING OUTDOOR RECREATION AIDS WHEREAS, the City of River Falls is interested in developing lands for public outdoor recreation purposes as described in the application; and WHEREAS, financial aid is required to carry out the project; and WHEREAS, the City of River Falls has budgeted a sum sufficient to complete the project; NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of River Falls hereby authorizes Tony Steiner, City Planner, Community Development Department, to act on behalf of the City of River Falls to: Submit an application to the State of Wisconsin Department of Natural Resources for any financial aid that may be available: Submit reimbursement claims along with necessary supporting documentation within 6 months of project completion date: Submit signed documents; and Take necessary action to undertake, direct and complete the approved project. BE IT FURTHER RESOLVED THAT the City of River Falls will comply with State or Federal rules for the programs to the general public and will be open during reasonable hours consistent with this type of facility; and will obtain from the State of Wisconsin Department of Natural Resources or the National Park Service approval in writing before any change is made to the use of the project site. Dated this 14th day of April, ATTEST: Dan Toland, Mayor Lu Ann Hecht, City Clerk 80

81 10 Administrator s Report April 9, 2015 Council Member Meetings/Events of Note April 9-12 Blues Festival (See Chamber website for more info: April 14, 6:30 p.m. City Council Meeting April 21, 5 p.m. Organizational Meeting April 24 Arbor Day April 28, 4:30 p.m. City Council/School Board Joint Workshop at Meyer Middle School Library April 28, 6:30 p.m. City Council Meeting Tuesday s Council Meeting Preview: Recognition of Outgoing Alderpersons Change of Agent for MK Corner Saloon, LLC Purchase of a 2016 Single Axle Plow Truck Request for City Assistance for River Falls FFA Alumni Showdown Event July 11, 2015 Resolution Regarding Governmental Responsibility for Runoff Management Grants Resolution Regarding Water Rate Study Application for Stewardship Local Assistance Funds from the WI Dept. of Natural Resources Monthly Department Dashboards In an effort to more consistently measure the performance of the City s Departments, staff is working to develop monthly dashboards that provide a snapshot their activity for the previous month. This and other information can be found on the City s transparency page at Ambulance Service Inspections - Building Activity Municipal Utilities Public Library Upcoming Workshops The Joint City Council and School Board meeting has been scheduled for Tuesday, April 28, at 4:30 p.m. at the Meyer Middle School. More information will follow. Ambulance Billing Service Changeover We have made the change in ambulance billing and collection as of March 1, There will be some changeover issues bringing in the data to the new companies and establishing confidence that the data is correct. Letters were sent to all outstanding accounts last week regarding past due accounts, we 81

82 will be lenient towards customers that either did not know they had a balance, or are working with payment plans. Additional information will be provided as the process continues. Taxi Service Provider Transition Tony Steiner and Julie Bergstrom met with the representative from Running, Inc., the new taxi service management company, and also the local manager. Issues that were discussed include maintenance of the vehicles, marketing initiatives, transition of existing drivers to the new company and planning for the 2015 taxi van replacement. Running, Inc. has offered to donate driver time for special events in the City this year, we will be reviewing the schedule to set up those dates. End of Winter Moratorium The winter moratorium for electric service disconnections ends on April 16. Customer service representatives have been in contact with customers with significant outstanding balances to inform them of the disconnect process and the expectations for payment. A revised policy has been submitted to the Public Service Commission which outlines the situations when a deferred pay arrangement will be offered, which is more limited than the previous policy. In general, if a customer defaults on a deferred pay arrangement, the total past due balance will be required before the service is restored. However, all customers will be offered a pay arrangement for the April 16 event, if desired. The new policy will be implemented going forward. Cross Connections Inspections The water department will be starting their efforts to inspect residential homes for cross connection exposures. They are coordinating the inspections with the planned meter change outs, to avoid duplication of effort and disturbance to the customer. The department is expected to inspect 250 residential meters this year, with General Engineering contracted to inspect the commercial meters. EMS Notes March call volume has been busy for both stations. They continue to evaluate their system status management approach with their on duty personnel. The system of shifting ambulances and resources between stations during high call volumes seems to be working fine. The RF Bar Crawl and the Motorcycle Flood Run are both being held on April 18. Each of these events by themselves can overwhelm the Department. This date will be a challenge for RF EMS. They will staff all five ambulances, rotate an extra ambulance to Prescott for the flood run and have the remaining three in River Falls for the bar crawl Salt Purchase Untreated road salt orders for the winter season were due on March 20, We have used approximately 420 ton of untreated salt this season and have 432 tons remaining. Our storage facility can hold 696 tons. Library HCVAC Upgrading of the HVAC system and controls at the library building have been completed. 82

83 Compost Site Pond A breach was discovered in a small weir that controls water levels at the spring fed ponding area located south of the City s compost site. This ponding area is where quarrying and dumping was conducted when the site operated as a concrete plant. It was also part of a fish hatchery at one time as there is significant spring activity. Engineering staff met with representatives of WisDNR and Trout Unlimited to discuss ideas for repairing and maintaining the ponding area. Chip Sealing Engineering staff are in the process of identifying streets in the City that should be part of our 2015 chip sealing project. We are again working with St. Croix County to perform this maintenance work for us as they have done an outstanding job with this the past few years. Grass Mowing Public works staff attended a Grounds Care and Maintenance Course offered by UW-Extension. We plan to change our mowing techniques based on recommendations put forth. In particular, we plan to mow grasses to a 3½ height this year. Mowing to a longer height promotes deeper roots, provides better tolerance to summer conditions, blocks out weed growth, prevents browning, and improves the aesthetic value of the lawn. Library Notes There were 33 entries in the Peeps competition this year. Plans for the Summer Library Program are well along for both youth and adults. The Library Foundation Board approved funding for the children s program at their last meeting. The mortgage pay-off on the library building is in May. We will be holding a celebration on Sunday, May 17, with sundaes on Sunday, some music, and a ceremonial mortgage burning. In April, we have National Poetry Month, National Volunteer Week, National Library Week, etc. Community Development Notes The Architectural and Historic Survey continues. Our consultant has now completed approximately 50 percent of the project. The work is being funded by a grant from the State and will be completed by July 15, We are drawing closer to the beginning of construction for the Hoffman Park Safe Room. City site plan review took place in March and the revised building plan and HVAC changes are scheduled for review and approval at the state in mid-april. Staff reviewed options for the security system with Tom Schwalen and Roger Leque in mid-march. Construction is scheduled to begin in mid-april and will be completed by mid-august. Staff circulated site plans for the Renaissance School leasehold alterations to the former PR s Place property. The site plan review concluded in late March. There were no significant issues of concern and the site plan was approved. 83

84 Staff met with the DNR Stewardship representative in March to discuss a stewardship grant application for a trail section between the Veterans Park Bridge and Division Street. Staff completed a conditions report for a section of North Main Street, ranging from Quarry Road to Division Street. This study is a continuation of a report for South Main Street completed by a City Intern in We are in the process of completing the study and presented the findings to the Plan Commission. The presentation included a description of the study area, methods for obtaining information, issues and assets the site provides the community and an analysis for future improvements as a major entry corridor to the City of River Falls. Staff has been collaborating with Express Employment regarding the creation of a community Blue Bike program. The Blue Bike project would establish a bike share program within the community that would aid youth and adults to navigate the community, primarily the downtown on a bike. March we began planning for our annual Arbor Day Activities. This year Arbor Day is on Friday, April 24. This year s activities will take place in Glen Park with students from Westside Elementary. An educational talk on birds and trees will be given by a speaker from the St. Croix Valley Bird Club. Also for the second year there will be a volunteer planting activity for City employees. Our good friends at the Lions Club will be participating in planting activities for the fourth year and we thank them for their time and donation. The City received its Tree City USA recertification for the year 2014 from the National Arbor Day Society in late March. This is our 17th year of certification. Registration for spring summer classes started. Approximately $44,000 was collected since the Activity Guide was released. There were 1,405 participants in two weeks and 85 percent was done online. Revenue collected and percent of online registrations are both an increase from Utility News Repaired three broken water mains located on Wasson, Bartosh and intersection of Roosevelt and Fremont. Created partnership with the Community Arts Base to develop and implement a Utility Box Beautification project o Two utility boxes will be painted by River Falls Days Help create a new marketing program called customer spotlight o Highlight customers who have used and benefitted from RFMU programming o Produced a large fake check showing five years of energy savings o NCCM was presented with a large check for $150,000 based on their energy savings through the Shared Savings program o Ad with customer and check will be in the River Falls Journal and our social media sites Personnel Notes Tracy Biederman has returned from maternity leave on a part time basis through the end of We are happy to have her back. Tracy works in the Finance Department. 84

85 Suzanne Meyers, a student from the Renaissance Academy, has started working with us for 12 hours per week through the end of the school year. Suzanne will be working with the recreation and customer service staff on various projects. The vacant Community Service Officer position has been filled by Bill Rasmussen. Bill previously served many years on the River Falls Police Department and retired in Bill has continued to provide service to the Department as part of our Police Reserve Program and also served a temporary position as the Community Service Officer in Bill brings a wealth of expertise and knowledge to the position and we congratulate him on his appointment. RF EMS is currently recruiting for more paid-per-call volunteers for the Prescott Station. We have five that have applied and they will be interviewing them in early April. Two of the existing paid-on-call volunteers originally from Prescott have opted to resign. They have been advised to reapply in the future. The EMS Department is still short two regular part-time paramedics for the Prescott station. They continue to advertise and attempt to recruit for these positions. Public works staff began recruiting seasonal workers for 2015 by advertising positions, reviewing applications and conducting interviews. John Holck s last day was March 27. He and wife, Connie, will be moving to Michigan in late April or early May. John worked at the library. Alice Olson began working at the library on March 9. Ginny Scheiderer will be moving over to help Monica in the Children s Library, and Nancy will also be having Alice help Katie downstairs when new exhibits go up. Wendy Tokheim started on April 6. She is filling John s spot. Concern Location Resolution Group Home Safety Royal Oaks Police Chief contacted owner of home regarding Neighborhood recent police activity. City Administrator Comings and Goings Staff One on Ones Division Head Meeting Interviews Leadership Training RFEDC Council 1 on 1s Shadowing of the Police Department and Municipal Court Xcel Energy Meeting Chancellor Meeting Biz Town Items Attached: River Falls Days Parade Etiquette and Rules Information from Regional Business Fund 85

86 MEMORANDUM TO: FROM: Mayor Toland and City Council Keri Schreiner, Management Analyst Fellow DATE: April 14, 2015 TITLE: River Falls Days Parade Etiquette BACKGROUND In 2014, the River Falls Chamber of Commerce held its 40 th annual River Falls Days celebration. Traditionally, the three day event is from Friday-Sunday, and includes parades, dances, carnivals, activities, fireworks and more throughout River Falls. In the past, there have also been events beginning on Thursday night, as well. The parade, which takes place on the Friday of River Falls Days, begins at North Main and Union Streets and continues to Division Street ending at Second and Spring Streets. The parade route is approximately one mile. Over the past ten years the number of personal items (e.g. blankets, chairs) placed along the parade route in advance of the parade has increased. The City owns the boulevard between the street and sidewalk where the personal property is placed. In the past, the City has not taken any action regarding the placement of personal items along the River Falls Days Parade route days in advance. Ordinance , which created Section of the Municipal Code requiring parade permits, was passed by City Council on June 13, Established parade rules are included in the ordinance and are attached for your review. DISCUSSION Leading up to the River Falls Days Parade, personal items are placed along the parade route up to a week in advance. Currently, the City and Police Department does not confiscate or remove any of the personal items that are placed along the parade route before the parade. In the past, the Police Department has not received complaints over the placement of these personal items. However, the Police Department has received complaints from citizens who have had their personal items stolen from the parade route. Currently, the City does not have an ordinance that prohibits the placement of personal items along the parade route in the days leading up to the River Falls Days Parade. 86

87 Memorandum to Mayor and City Council April 14, 2015 Page 2 The River Falls Chamber of Commerce is supportive of the current practice and views it as a marketing opportunity for the parade. In the past, the Chamber has found ways to capitalize on the placement of personal items along the parade route by having a best decorated space contest. The Chamber has not heard any complaints or concerns from businesses and property owners about the placement of the personal items leading up to the parade. Possible Action Steps While there have been few complaints in the past, there may be potential issues stemming from the placement of personal items along the parade route so far in advance of the event. One issue could be the clutter and litter of personal items that are left unattended days before the parade. Because the City is responsible for that area of the boulevard, this could possibly add to the City s expense in regards to the clean-up of the River Falls Days events for those items left after the parade. There are also the occasional issues of reported theft of items. There are two areas of municipal code that can be amended to address these issues. First, Section of the Municipal Code requiring parade permits can be amended to accommodate the restriction of placing personal items along the parade route leading up to the River Falls Days Parade. This section states that the Common Council may establish rules of conduct for parade participants and spectators. Any new rules adopted by the City Council will be incorporated into the current parade rules. Second, amend Chapter 8.32 in the City s Municipal Code. Chapter 8.32 focuses on General Nuisances. Specifically, this section could be amended to state that placing personal property along a parade route in the days leading up to a parade is considered a general nuisance. A policy could be enacted to allow items to be placed out on terraces only after a certain time or day leading up to the parade or prohibit unattended items altogether. CONCLUSION Over the past ten years, the number of personal items (e.g. blankets, chairs) placed along the parade route in the days leading up to the River Falls Days Parade has increased. If the Council finds issue with this practice, Section and Section of the Municipal Code could be amended with alternative methods of enforcement. Without further direction from City Council, staff will continue to take a tolerant attitude towards those reserving spots. In short, items that will cause obvious and significant damage to terraces (plastic sheeting etc.) and those that present a major hazard to pedestrians or drivers (in vision triangle, sharp metal poles, etc.) may continue to be removed by staff. Otherwise, no action by staff will be initiated other than an annual friendly reminder to be considerate of others. 87

88 CITY OF RIVER FALLS Parade Rules No person, firm, association, group of persons, organization or corporation taking part in a parade will be allowed to do any of the following: Throw any object, including candy, toys, leaflets, etc., from moving vehicles. Canvas parade route as a street vendor while parade is in progress. Motor vehicle operators in parade must hold a valid operator's license. This includes all golf carts, lawn mowers, etc. Parade participant shall not have any portion of parade unit higher than 13'6". Parade participant shall not operate unit at a speed or in such a manner that unreasonably endangers the safety of occupants, spectators, or other participants. Parade units utilizing live animals shall be prepared and are responsible for removing and disposing of animal waste. Animals shall be closely supervised and under the control of the owner/designee. Parade applications shall include the following information: Date - Time Assembly/Disassembly Area Special Parking/Street Closing Requests Contact Person to Coordinate the Event Parade participant or spectator will not engage in behavior that unreasonably endangers the safety of any person at the event. This includes riding on or clinging to a parade unit in a manner likely to cause injury. The River Falls Police Department has express authority to regulate behavior/operation of any parade unit, operator or spectator in the interest of safety for the event. Police personnel have authority to remove and/or issue citations to any person/unit or spectator not conforming to these rules. 88

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90 MEMORANDUM 11 TO: FROM: Council Members Dan Toland, Mayor DATE: April 14, 2015 TITLE: Mayor s Appointments to Boards and Commissions RECOMMENDED ACTION Consideration of appointments: POLICE AND FIRE COMMISSION AND AMBULANCE COMMISSION Reappointment of Carole Mottaz through April 2020 HISTORIC PRESERVATION COMMISSION Reappointment of Betty Most through January 2018 PARK AND RECREATION BOARD Appointment of Jim Nordgren through May 2018 RIVER FALLS HOUSING AUTHORITY Reappointment of Peter Dahm through December 2019 UTILITY ADVISORY BOARD Reappointment of Tim Thum through May

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96 MEMORANDUM 12 TO: FROM: Mayor Toland and City Council Tony Steiner, City Planner DATE: April 14, 2015 TITLE: Proclamation for River Falls Arbor Day 2015 BACKGROUND The idea for Arbor Day originated in the 1800 s and is a traditional spring event. Attached you will find a History of Arbor Day from the National Arbor Day Foundation. Arbor Day is observed on the last Friday of April. This year Arbor Day is on Friday, April 24. This year we will be planting trees at Glen Park with students from Westside Elementary. The Lions Club will again be participating and has generously donated trees to plant. Their members will be taking part in planting activities at Glen Park. Also this year we are planning our Second Arbor Day event with City employees and will be planting trees in Glen Park. CONCLUSION River Falls has been a Tree City USA Community since 1994 and was recently recertified for Observance of Arbor Day is a requirement for Tree City USA designation and has been observed by our community for many years. Attached is a proclamation for the Mayor to read at the Council meeting to help publicize the observance of Arbor Day

97 THE HISTORY OF ARBOR DAY The idea for Arbor Day originally came from Nebraska. A visit to Nebraska today wouldn't disclose that the state was once a treeless plain. Yet it was the lack of trees there that led to the founding of Arbor Day in the 1800s. Among pioneers moving into the Nebraska Territory in 1854 was J. Sterling Morton from Detroit. He and his wife were lovers of nature, and the home they established in Nebraska was quickly planted with trees, shrubs and flowers. Morton was a journalist and soon became editor of Nebraska's first newspaper. Given that forum, he spread agricultural information and his enthusiasm for trees to an equally enthusiastic audience. His fellow pioneers missed their trees. But, more importantly, trees were needed as windbreaks to keep soil in place, for fuel and building materials, and for shade from the hot sun. Morton not only advocated tree planting by individuals in his articles and editorials, but he also encouraged civic organizations and groups to join in. His prominence in the area increased, and he became secretary of the Nebraska Territory, which provided another opportunity to stress the value of trees. Arbor Day's Beginnings On January 4, 1872, Morton first proposed a tree-planting holiday to be called Arbor Day at a meeting of the State Board of Agriculture. The date was set for April 10, Prizes were offered to counties and individuals for planting properly the largest number of trees on that day. It was estimated that more than one million trees were planted in Nebraska on the first Arbor Day. Arbor Day was officially proclaimed by the young state's Gov. Robert W. Furnas on March 12, 1874, and the day itself was observed April 10, In 1885, Arbor Day was named a legal holiday in Nebraska and April 22, Morton's birthday, was selected as the date for its permanent observance. According to accounts from the Nebraska City News, April 1885, the City celebrated Arbor Day with a grand parade and a speech by J. Sterling Morton. Students of different grades met at their respective schoolrooms in the morning for the purpose of planting at least one tree. Each tree that was planted was labeled with the grade; the time planted, and was to be cared for by that grade. When the plantings were completed, 1000 students formed a line to begin the parade from the various schools to Nebraska City's opera house. In the parade, each class 97

98 carried colorful banners made of satin with silk lining and trimmed with gold fringe. The letters on the banners were painted in oil colors. By the time the parade reached the opera house the throng numbered well over the 1000 as townspeople joined the march. Every available foot of space in the opera house was occupied, the students having the front seats and gallery while the older persons stood. At 11:00, the throng of celebrants was addressed by the founder of Arbor Day, J. Sterling Morton. Mr. Morton was listened to with much attention, and loudly applauded at the close of his address. At the conclusion of the ceremonies, the students sang "America," and the large audience was dismissed. This ended the first celebration of Arbor Day as a legal holiday, and, as reported by the newspaper,... to say that it was a complete success but faintly expresses it. A celebration of this kind results in good to all, and is worthy of imitation by every school in the state. During the 1870s, other states passed legislation to observe Arbor Day, and the tradition began in schools nationwide in Today the most common date for the state observances is the last Friday in April, and several U.S. presidents have proclaimed a national Arbor Day on that date. But a number of state Arbor Days are at other times to coincide with the best tree planting weather, from January and February in the south to May in the far north. Arbor Day has now spread beyond the United States and is observed in many counties of the world. 98

99 ARBOR DAY 2014 River Falls observe the Arbor Day tradition every year on the last Friday in April. Other holidays repose upon the past. Arbor Day Proposes for the future - J. Sterling Morton 99

100 PROCLAMATION ARBOR DAY 2015 and WHEREAS, trees are a vital resource in River Falls, across Wisconsin, the nation and the world; WHEREAS, trees help to conserve soil and energy, create jobs through a large forest products industry, provide wildlife habitat, and make our homes, cities and countryside more livable and beautiful; and WHEREAS, human activities, along with acts of nature, threaten our trees, creating the need for concerted action to ensure the future of our rural and urban forests; and WHEREAS, each year on the last Friday in April Arbor Day people across the country pay special attention to the wonderful treasure our trees represent, and dedicate themselves to the continued health of our forests; NOW, THEREFORE, BE IT RESOLVED that I, Dan Toland, Mayor of the City of River Falls, do hereby proclaim April 24, 2015, to be Arbor Day in the City of River Falls, Wisconsin; BE IT FURTHER RESOLVED that I urge all citizens to become more aware of the importance of trees to their well-being, and to participate in tree planting programs that will ensure a healthy and green City and an inheritance for future generations in River Falls. Given under my hand and seal of the City of River Falls this 14 rd day of April 2015 ATTEST: Dan Toland, Mayor Lu Ann Hecht, City Clerk 100