Agenda Rio Linda / Elverta Community Water District Planning Committee

Transcription

1 Agenda Rio Linda / Elverta Community Water District Planning Committee Sacramento Metro Fire Dept. Friday, February 5, Rio Linda Blvd. 2:00 pm Rio Linda, CA Public documents relating to any open session items listed on this agenda that are distributed to the Committee members less than 72 hours before the meeting are available for public inspection on the counter of the District Office at the address listed above. The public may address the Committee concerning any item of interest. Persons who wish to comment on either agenda or non-agenda items should fill out the Comment Card and give it to the General Manager. The Committee Chair will call for comments at the appropriate time. Comments will be subject to reasonable time limits (3 minutes). In compliance with the Americans with Disabilities Act, if you have a disability, and you need a disability-related modification or accommodation to participate in this meeting, please contact the District office at (916) Requests must be made as early as possible and at least one-full business day before the start of the meeting. Call to Order Public Comment This is an opportunity for the public to comment on non-agenda items with the subject matter jurisdiction of the Committee. Comments are limited to 2 minutes. Items for Discussion and Action 1. Sun Works Solar Presentation Action Item 2. Marquee Installation - Action Item 3. Park and Community Services District Action Item 4. Water Rate and Capacity Fee Study Action Item 5. Water Supply Strategic Plan Update Discussion Item 6. FY 15/16 Capital Project Schedule and Update Discussion Only Items Requested for Next Month s Committee Agenda Adjournment ************************************ Next Planning Committee Meeting: Friday, March 4, 2016 ************************************ Page 1 of 1

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27 Rio Linda / Elverta Community Water District Water Rate and Capacity Fee Study Planning Committee Presentation February 5, 2016 BARTLE WELLS ASSOCIATES Independent Public Finance Advisors Doug Dove Principal JP Branson Financial Analyst

28 Agenda Water Rate Study Background and Objectives Current Water Rates Recommendations Capital Projects and Funding Proposed Water Rates, Water Rate Survey, Bill Impacts Option 1: Fixed Surcharge Option 2: Volumetric Rate Next Steps Capacity Fee Study Background and Objectives Methodology and Calculation Current and Proposed Capacity Fees Next Steps 2

29 Water Rate - Background and Objectives Background Last Rate Study completed in 2011 San Juan Capistrano case impact on tiered rates Drought restrictions and state mandated 36% cutback Objectives Develop 5 year rate study (FY2016 to FY2020) Recommend rate structures to recover the full cost of providing water service compliant with Prop 218 Ensure fiscal sustainability of water funds 3

30 Current Bi-monthly Fixed Water Rates FIXED CHARGES: Water Rates January 1, 2016 to June 30, 2016 Meter Size Bi-Monthly Service Charge Capital Surcharge Total Base Fixed Charge 5/8" $55.04 $19 $ /4" $66.00 $19 $ " $98.88 $19 $ /2" $ $19 $ " $ $19 $ " $ $19 $ " $ $19 $ Includes 600 cubic foot allotment per meter bimonthly 4

31 Current Volumetric Water Rates VOLUMETRIC CHARGES: Bi-monthly Water Rates January 1, 2016 to June 30, 2016* Tier 1 Tier 2 Tier 3 Rate per 100cf $0.64 $0.80 $1.01 Tier Quantity Meter Size CF CF CF 5/8" 601-2,600 2,601-15,600 15,601+ 3/4" - 1 1/2" 601-5,800 5,801-44,800 44,801+ 2" - 4" ,200 55, , ,001+ *All units in cubic feet. Rates are $$$ per 100 cubic feet (748 gallons). Rates for usage above 600 cubic feet within a bimonthly period. 5

32 Water Rate Recommendations Adjust monthly fixed meter charges to align with American Water Works Association meter capacity ratios Eliminate tiered rate structure and implement uniform rate Adopt proposed drought surcharges to make whole Implement additional capital surcharge to recover financing costs 6

33 Capital Projects Operating Fund Capital Projects FY2016 FY2017 FY2018 FY2019 FY2020 Totals Water Supply Well 10 - Cr6 Treatment 700, ,000 Well 2A - Cr6 Treatment 0 500, ,000 Well 15 - Cr6 Treatment 0 2,000, ,000,000 Well 16 - Replacement Well (Wells 4 and 6) 0 0 3,025, ,025,000 Well 17 - Replacement Well (Wells 8 and 11) ,025, ,025,000 L Street - Storm Drain Extension 50, ,000 SSWD Interconnecton - Extend SCADA to Interconnection ,000 10,000 Subtotal Water Supply Improvements 750,000 2,500,000 3,025,000 3,025,000 10,000 9,310,000 Capital Fund Capital Projects (Water System Expansion) FY2016 FY2017 FY2018 FY2019 FY2020 Totals Distribution Improvements 150 ft of 6"PVC in Adele Court 20, , ft of 8"DI in Paladin Way 20, , ft of 8"DI in 5th/Montague 30, ,000 Abandon 4,850 ft of 4"AC in Oak Lan, 10th Ave and Q St., 90 New Services , ,000 1,800 ft of 12"DI to Loop 14th St and U St , ,000 1,400 ft of 12"DI in Dry Creek Rd, North of Elkhorn Blvd, Bridge Crossing , , ft of 12"DI in Curved Bridge Road, Abandon 4"AC, Relocate 3 Services , ,000 Subtotal Distribution Improvements 70, , ,000 1,280,000 Grand total all Capital Projects 820,000 2,500,000 3,025,000 3,325, ,000 10,590,000 Grant Funding 525, ,025, ,550,000 Funding Required 295,000 2,500, ,325, ,000 7,040,000 $7 Million loan proposed to fund capital projects over 5 years 7

34 Proposed Bimonthly Water Rates Option 1 - Fixed Surcharge WATER Current FY2016 [1] Proposed FY2017 Proposed FY2018 Proposed FY2019 Proposed FY2020 Fixed Rate by Meter Size [2] ($/bimonthly) 5/8" $55.04 $56.73 $57.75 $58.80 $ /4" $66.00 $56.73 $57.75 $58.80 $ " $98.88 $94.55 $96.26 $98.00 $ " $ $ $ $ $ " $ $ $ $ $ " $ $ $ $ $ " $ $1, $1, $1, $1, Inactive Meter $48.98 $52.34 $51.63 $52.50 $53.39 Capital Surcharge #1 $19.00 $19.00 $19.00 $19.00 $19.00 Capital Surcharge #2 (Proposed) $7.90 $7.90 $15.80 $15.80 Volumetric Rates [2] ($/ccf) ($/ccf) ($/ccf) ($/ccf) Non-Drought Volumetric Rate ($ $1.01) $0.55 $0.77 $0.79 $0.81 Drought Rates [3] Stage 2 Drought Volumetric Rate: 30% Conservation N/A $0.63 $0.88 $0.90 $0.92 Stage 3 Drought Volumetric Rate: 40% Conservation [3] N/A $0.73 $1.02 $1.05 $1.08 Stage 4 Drought Volumetric Rate: 50% Conservation N/A $0.88 $1.23 $1.26 $1.29 [1] Current reflects rates as of January 1, 2016 [2] Customers receive a 600 cubic foot water allotment per meter bi-monthly [3] District is currently in Stage 2 ccf = 100 cubic feet or 748 gallons 8

35 Water Rate Bimonthly Bill Impact Option 1 - Fixed Surcharge 3/4" or less meter and 26 ccf of bimonthly water use FY2016 Current [1] FY2017 FY2018 FY2019 FY2020 Normal Year Rates $86.84 $94.62 $ $ $ % Increase 9.0% 5.7% 9.4% 1.4% Stage 2 Rates $86.84 $96.16 $ $ $ % Increase 10.7% 6.2% 9.2% 1.4% Stage 3 Rates $86.84 $98.25 $ $ $ % Increase 13.1% 6.9% 9.0% 1.4% Stage 4 Rates $86.84 $ $ $ $ % Increase 16.5% 7.9% 8.8% 1.5% [1] 5/8" bimonthly meter rate used for comparison purposes in FY

36 Water Rate Bimonthly Bill Impact Option 1 - Fixed Surcharge Rate as of January 1, /8 bi-monthly meter rate used for comparison purposes in FY

37 Water Rate Survey Option 1 - Fixed Surcharge 11 District is currently in Stage 2 Drought

38 Proposed Bimonthly Water Rates Option 2 - Volumetric Increase WATER Current FY2016 [1] Proposed FY2017 Proposed FY2018 Proposed FY2019 Proposed FY2020 Fixed Rate by Meter Size [2] ($/bimonthly) 5/8" $55.04 $56.73 $57.75 $58.80 $ /4" $66.00 $56.73 $57.75 $58.80 $ " $98.88 $94.55 $96.26 $98.00 $ " $ $ $ $ $ " $ $ $ $ $ " $ $ $ $ $ " $ $1, $1, $1, $1, Inactive Meter $48.98 $50.23 $49.52 $48.29 $49.19 Capital Surcharge $19.00 $19.00 $19.00 $19.00 $19.00 Volumetric Rates [2] ($/ccf) ($/ccf) ($/ccf) ($/ccf) Non-Drought Volumetric Rate Non-Drought Capital Surcharge $0.27 $0.26 $0.53 $0.53 Total Non-Drought Volumetric Rate ($ $1.01) $0.81 $1.03 $1.32 $1.34 Drought Rates [3] Stage 2 Drought Volumetric Rate: 30% Conservation Stage 2 Capital Surcharge $0.30 $0.30 $0.60 $0.60 Total Stage 2 Drought Volumetric Rate [3] N/A $0.93 $1.18 $1.50 $1.52 Stage 3 Drought Volumetric Rate: 40% Conservation Stage 3 Capital Surcharge $0.35 $0.35 $0.70 $0.70 Total Stage 3 Drought Volumetric Rate N/A $1.08 $1.37 $1.75 $1.78 Stage 4 Drought Volumetric Rate: 50% Conservation Stage 4 Capital Surcharge $0.42 $0.42 $0.84 $0.84 Total Stage 4 Drought Volumetric Rate N/A $1.30 $1.65 $2.10 $2.13 [1] Current reflects rates as of January 1, 2016 [2] Customers receive a 600 cubic foot water allotment per meter bi-monthly [3] District is currently in Stage 2 ccf = 100 cubic feet or 748 gallons 12

39 Water Rate Bimonthly Bill Impact Option 2 - Volumetric Increase 3/4" or less meter and 26 ccf of bimonthly water use FY2016 Current [1] FY2017 FY2018 FY2019 FY2020 Normal Year Rates $86.84 $92.03 $97.40 $ $ % Increase 6.0% 5.8% 6.9% 1.4% Stage 2 Rates $86.84 $94.31 $ $ $ % Increase 8.6% 6.3% 7.5% 1.4% Stage 3 Rates $86.84 $97.41 $ $ $ % Increase 12.2% 7.0% 8.3% 1.4% Stage 4 Rates $86.84 $ $ $ $ % Increase 17.2% 7.8% 9.2% 1.4% [1] 5/8" bimonthly meter rate used for comparison purposes in FY

40 Water Rate Bimonthly Bill Impact Option 2 - Volumetric Increase Rate as of January 1, /8 bi-monthly meter rate used for comparison purposes in FY

41 Water Rate Survey Option 2 - Volumetric Increase 15 District is currently in Stage 2 Drought

42 Next Steps For Water Rate Study BWA revision of water rates based on input from Planning Committee Preliminary Schedule February 5, 2016: Planning Committee meeting. February 22, 2016: Board of Directors approve Prop 218 process March 4, 2016: Deadline to send out Prop 218 notices May 16, 2016: Prop 218 Hearing July 1, 2016: New rates effective 16

43 Capacity Fee Background and Objectives Background Fees have not been updated since 2007 Water & wastewater capacity charges governed by Government Code Section (AB1600) Key provision: The fee shall not exceed the estimated reasonable cost of providing service for which the fee or charge is imposed Surface Water Treatment Plant (SWP) and Future Development Objectives Comply with government code Are based on industry-standard methodology Recover costs of facilities benefiting growth Are fair and equitable to existing & future customers 17

44 Capacity Fee Methodology And Calculation Future Customers connecting to the water system pay for their share of future costs plus a buy-in portion for existing assets Total Water System Costs Current Water System Asset Valuation $21,268,285 SWTP Expansion Cost $355,139,828 Subtotal Costs for Fee Recovery $376,408,113 Existing and Projected EDUs EDUs Existing Service Area 5,706 Future Service Area 27,577 Total Projected EDUs at Full Buildout 33,283 Water Capacity Fee System Buy-In $639 Facilities Cost $12,878 Water Capacity Fee $13,517 18

45 Capacity Fee Current and Proposed Fees Water Service Capacity Fee Meter Size Current [1] Max. Flow Rate Ratio Proposed [2] 5/8" $3, N/A 3/4" $5, N/A 1" $9, $13, " $19, $27,034 2" $31, $43,254 3" $63, $94,619 4" $99, $170,314 6" $199, $378,475 8" $318, $648,815 10" Varies [3] Varies 12" Varies [3] Varies [1] Last updated August 2007 [2] Structure based on guidelines from the American Water Works Association [3] Fees greater than 8" shall be approved through an agreement with the Board of Directors 19

46 Capacity Fee Current and Proposed Fees Private Fire Hydrant Capacity Fee [1] Sprinkler System Lines [1] Meter Size Current Proposed Meter Size Current Proposed 6" N/A $17,448 1" $1,910 $623 8" $61,230 $29, " $3,825 $1,246 10" $88,015 $47,358 2" $6,125 $1,994 12" $126,280 $62,313 3" $11,480 $4,362 4" $19,130 $7,851 6" $38,270 $17,448 8" $61,225 $29,910 [1] Private fire hydrant capacity fees and Sprinkler system line capacity fees derived using AWWA manual M1 page " is the minimum size for private hydrant fees and 1" is the minimum for sprinkler system lines capacity fees. 20

47 Next Steps For Capacity Fee Study BWA Revision of Capacity Fees based on input from the Planning Committee BWA presents revision of Capacity Fees to Board of Directors in February 21

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