HomeMy WebLinkAbout1996-05-14; Municipal Water District; 322; Water & Wastewater Rate Study & Financial PlanACCEPTANCE OF THE
WATER AND WASTEWATER RATE STUDY
AND FINANCIAL PLAN
RECOMMENDED ACTION:
Staff will be presenting the District’s Water and Wastewater Rate Study and Finance Plan and
requesting the Board to set a Public Hearing on the study’s recommendations for June 4, 1996.
ITEM EXPLANATION:
In April of 1995, the Carlsbad Municipal Water District embarked on a rate study that was to look
at the following issues and arrive at certain recommendations.
Issues
. Customers with large meters do not pay water delivery charges proportional to the
demand they place on the system. Multi-family units are required to pay delivery
charges for each multi-family unit in addition to the delivery charge established for
each water meter.
. Currently, water connection fees are based on Equivalent Dwelling Units (EDU’s)
defined for sewer use. This allows some users to receive water service without
paying their full share of connection fees.
. The financing of several major capital improvement projects needs to be reviewed.
. The Metropolitan Water District has revised its rate structure. As a result, CMWD
rates need to be adjusted to produce adequate revenues to meet expenses.
. The impacts of reclaimed water service on potable water need to be examined.
. Residential wastewater service charges for single family and multi-family units need
to be reviewed to enhance equity between these user groups.
A review was done with input from a Citizens Review Committee (Committee). After educating
Committee members on the various issues, the intent was to solicit input from the Committee
to assist staff in identifying available alternatives to address these issues and to analyze the
impacts of changes on the District as well as the District’s customers. This Committee produced
a final report that represented their efforts to provide community input to the process of
designing a new water rate structure. This Committee report was presented to the Water
Commission and Board of Directors in September of 1995.
Once the Committee’s report was presented and received, the consultant used the report to
produce the Water and Wastewater Rate Study and Financial Plan.
This plan has been reviewed by staff over the last few months and a final draft has been
produced. The following recommendations are presented in the Plan:
ki I
Page 2 of Agenda Bill No. 3 & 2
Recommendations - Water
I. Water Rates - Delivery Charge: Revise the monthly fixed charge (“Delivery Charge”) to
more fairly reflect the demand each meter places on the system. This revision will result
in an increase in the monthly fixed charge for each meter size and type of water user.
Analvsis - The existing Delivery Charge is a fixed charge which includes a capacity charge
and a customer charge that is fixed for each customer. This charge should be revised in
accordance with the attached Exhibit 1 (“Monthly Delivery Charges”). This table shows the
existing Delivery Charge in accordance with meter size. This existing charge has been
adjusted to show the proposed new Delivery Charge as listed in the right-hand column. The
proposed new charge more accurately reflects the demand each meter places on the water
system. This adjusted Delivery Charge includes a portion of the new Ready-To-Serve (RTS)
charge previously imposed by the Metropolitan Water District.
The Delivery Charge should also be revised to create equity for Multi-family residential
customers. This would be accomplished by charging only the Delivery Charge for the
meter, based on size, and not for each additional residential unit as now exists.
2. Water Rates - Commodity Charge: Retain the existing rate structure and rates; i.e., no
rate increase is recommended.
Analvsis - The Commodity Charge (the charge for each unit of water consumed) reflects
those costs that vary with the quantity of water used. These costs include the cost of
purchasing and treating water. In addition, a part of the operations and maintenance costs,
and capital costs of improvements are allocated to the Commodity Charge.
The existing rate structure, including a conservation rate, should be retained. The
Committee recommended that the conservation rate be extended to all classes of
customers. This would be accomplished by establishing a conservation usage limit for each
meter size as shown on the attached Exhibit 2 (‘Commodity Charges”). This new rate
includes the remaining portion of the Ready-To-Serve (RTS) charge, the balance of which
is placed on the aforementioned delivery charge. The Metropolitan Water District is also
imposing an increase of $5.00 per acre foot on imported water costs. Both of these charges
are scheduled to take effect January, 1997.
3. Connection Fees: The Connections Fees should be revised to more fairly reflect the
demand each new meter places on the water system. This “fair share” approach will result
in some increases and some decreases in actual connection costs depending on the type
of account and size of meter connected to the system.
Analvsis - The method of assessing Connection Fees should be revised and based on
meter size rather than the existing Equivalent Dwelling Unit (EDU) calculation. The
recommended connection fee for different meter sizes are as shown on the attached Exhibit
3 (“Water Connection Fees”). Connection Fees should be revised annually to recover the
increased New Demand Charge (NDC) previously charged by the Metropolitan Water
District. Connection Fees should not be charged for retrofits if there is no increase in
capacity.
Page 3 of Agenda Bill No. 3 a%
4. Backflow Connection Program: The monthly fee for administering the backflow
connection program should be increased by $0.50, from $2.50 to $3.00 per account.
Analvsis - The Backflow Connection Charge is required for non-residential users only and
covers administrative costs related to maintaining records and administering the Backflow
Program.
5. The Water Enterprise Fund: The Water Enterprise Fund Operating and Capital
Replacement Reserves have adequate balances and do not need additional cash.
Normal utility practice Analvsis - For FY 199596, the Operating Reserve is at 49 percent.
is to provide a balance in the Operating Reserve of between 10 to 50 percent of annual
operating expenses. This reserve is used for working capital and emergencies. Interest
on the funds in this reserve may be used to finance operations.
Normal utility practice is to maintain a Capital Replacement Reserve with a balance of
between 50 to 100 percent of the average annual capital expense for the next five to ten
years. The District has adequate reserves to meet this requirement. This reserve should
be maintained at the present level to fund future capital replacement and upgrade projects.
The Capital Expansion Reserve is projected to be depleted by the planned capital
expansion projects due to the slow growth and reduced connection fee revenues. The
District should consider delaying some of the capital expansion projects if the growth rate
does not pick up.
Recommendations - Reclaimed Water
1. Reclaimed Water Rate - Commodity Charge: Implement a five percent discounted
Commodity Charge rate for reclaimed water use with water users bearing the costs of
retrofitting; or, continue existing Commodity Charge parity with domestic water use and
continue to provide assistance with retrofit programs.
Analvsis - The Committee recommended a five percent discount for reclaimed water use.
The District has the option to either retain the existing parity with domestic water use and
continue to provide assistance with retrofit programs, or to provide a discount of five percent
and let users bear the costs of retrofitting. Retrofits are required to convert, or replace
potable water connections with reclaimed water connections to provide reclaimed water
service.
2. Reclaimed Water - Connection Fee: Revise new reclaimed water connection fees as
shown in Exhibit 3.
Analvsis - New reclaimed water connections should be charged a Connection Fee as shown
on Exhibit 3. Reclaimed water users are not required to pay San Diego County Water
Authority’s connection fee.
Page 4 of Agenda Bill No. $3 &!. L
3. Reclaimed Water - Debt Financing: Seek low cost loans from the State Revolving Fund.
Analvsis - The expansion of reclamation facilities will require debt financing. The District
should seek low cost loans from the State Revolving Fund.
Recommendations - Wastewater Services
1. Wastewater Services - Enterprise Fund: Increase wastewater rates based on a projection
of three percent per year.
Analvsis - The Wastewater Enterprise Fund is in good financial condition. Only small rate
increases are needed to maintain pace with inflation. The projected rate increases are three
percent per year.
2. Wastewater Services - Rates: Revise the rate system for charging wastewater services
for residential multi-family units from the existing fixed rate to a water use-based (“flow
based”) system; continue to charge single family homes a fixed charge.
Analvsis - The Committee recommended that wastewater rates for residential customers be
based on water use. This would be similar to rates for non-residential customers. Since
the major portion of the wastewater service charges are from residential customers, and
water use can vary significantly from year to year, this type of rate structure makes the
District vulnerable to fluctuations in revenue. To ensure that revenues are not too high or
too low, rates would need to be reviewed on an annual basis. Staff recommendation is to
switch multi-family units to a water use-based system, but continue to charge single family
homes a uniform charge. Flat or uniform residential rates, as well as rates based on
average winter use for single family residences and based on monthly water use for multi-
family residences, are presented on the attached Exhibit 4 (“Wastewater Rate Options”).
It is recommended that multi-family wastewater rates be based on a portion of monthly water
use. It should be noted that the rate increase for single family units will be significantly
higher and other users will actually benefit from a rate reduction.
3. Wastewater Fee - Second Dwelling Units (Granny Flats): Implement a new wastewater
fee for second dwelling units (“granny flats”).
Analvsis - An additional wastewater fee should be charged for second dwelling units
(“granny flats’) to ensure that adequate fees are collected for wastewater service. It is
expected that these units will be used by single individuals in most cases; therefore, this
new charge should be 40 percent of that for a single family residence. Larger units that may
be used as rentals may be charged 75 percent of that for a single family residence.
4. Wastewater Services - Enterprise Reserves: The Wastewater Enterprise Reserves have
adequate balances and do not need additional cash.
Analvsis - The Wastewater Enterprise Reserves are in good condition and should be
maintained to meet operating and capital replacement needs in the future. The Capital
Expansion Reserve which is used to pay off debt service is being depleted at a fast pace
because of reduced revenues from connection fees due to slow growth.
,* A,
,
Page 5 of Agenda Bill No. 3 &k%
5. Wastewater Services - Capital Improvement Projects: The District will need to issue
debt of $5 million in 1996-97 and $4 million in 1998-99 to meet the cost of expansion-
related wastewater capital improvement projects.
Staff will be making a presentation to the Board at the meeting to review this report.
FISCAL IMPACT:
Water - Retail water rates must be increased to cover the wholesale increases from the
Metropolitan Water District through the San Diego County Water Authority or an annual shortfall
would exist that amounts to $ 390,000 for 1996-97. These increases represent the Ready-to-
Serve charge to CMWD of $316,072 and the increase of $5.00 per acre foot to the cost of water.
The increase of $415 to the Water Connection Fee represents the New Demand Charge that
has been instituted by Metropolitan Water District. This connection fee must be increased to
offset the New Demand Charge or a shortfall will occur when the District increases its average
baseline imported water purchases.
A monthly Backflow Device Inspection Fee of $2.50 is currently charged to cover the costs of
administering the backflow connection program and the charge is made only to those customers
requiring a backflow device. The recommended fee increase to $3.00 will cover the
administration costs of maintaining records of the locations, tests and repairs on each backflow
device.
Reclaimed Water - A five percent discount for the commodity charge would result in a shortfall
of $52,000 based on reclaimed water sales of 1,400 acre feet. This shortfall is proposed to be
made up through a subsidy of the potable water rate. The effect on the potable water rate would
be $0.01 per unit of water and results in the proposed $1.70 per unit rate.
Wastewater - There is no fiscal impact to the wastewater enterprise fund as a result of the
recommendations in this rate study. The adjustments to the single family residential customer
and to the multi-family residential customer offset each other, therefore, total revenue remains
unchanged.
EXHIBITS:
1. Table titled, Monthlv Deliverv Charoes.
2. Table titled, Commoditv Charoes.
3. Table titled, Water Connection Fees.
4. Table titled, Wastewater Rate Options.
5-
EXHIBIT 1
MONTHLY DELIVERY CHARGES
Meter Size Actual 1994-95
518” $8.50
3/r $8.70
1 II $8.75
1 -l/2” $9.30
2” $25.70
3” $30.60
4” $37.65
6” $40.55
8” $46.15
Multi-Family Unit $4.90 per unit
Recommended
Rates (I)
$9.25
$11.75
$16.75
$29.25
$44.25
$79.50
$129.50
$254.50
$404.50
Eliminated
(1) Includes a portion of the new Ready-to-Serve (RTS) charge previously imposed by
the Metropolitan Water District in 1995-96.
/ pi I-’
EXHIBIT 2
COMMODITY CHARGES
Meter Size
l-7 units/month, Single Family
518”
314”
1 I,
l-1 12”
2”
3”
4”
6”
8”
Conservation Rate
Standard Water Rate
Reclaimed Water Rate
Actual 1994-95
$1.51
$1.51
$1.70
$1.70
Recommended
Rates (I)
Conservation
Block, per unit
7
10
16
30
45
79
123
228
336
$1.52
$1.70
$1.62
(I) includes the other portion of the previously imposed Ready-To-Serve (RTS) charge, the balance of
which is placed on the District’s Delivery Charge.
-. P
EXHIBIT 3
WATER AND RECLAIMED CONNECTION FEES
mnded Fees (I) Recomme _ _
Disdacement Turbine Turbo I Meter Size
: ,: ,: : :: .: j :: :: :: :: j j' j :xj; :'.; :. . 518" $2,815 .~.::j~j:~::..:..~;l : : :. :: :. ,. ,. .-3 :. . . ; .A': :. bj j: ,: i ,' :: >:: j:.: ::.; .: ::
314" $4,043
1 II $6,438
l-l/2" $12,275
2" $18,680
: :, :. : : : : : : : : :. : ..: : : : ,:.. :, ..: ~ +j : j :\,: j::: :,,~(::.:::..: :.: .: : .:.:: . ‘: .: : : : : : ,.,. .: .v.:. . . :. .:..:y : . . . ; ,,,:, ; I :;, yI,,?.j :;:.;y;” j..:.:: . . . . :.: :.: .: :..: .:.. ;.,: .; ,. : ,. : j j j
: :.: j:: F:‘:‘: ?. :,,:,. :::,;::.: ,:., :.j,:.i .:.: :.:::::.: :.:: i::, .~. ;::ig,;;:.; .: ..:. . . . . . ‘:,::::: ,: .: ..j : :.j:.:.:.: : j . . ,. : ., :.. :.. :.: : ..‘: : j ;:;:.; : . . . . . ..’ :, .: ., .: : :. : . . : ,. : : : : ::: : :.::I.: A.: :.:.,::.: :,.: . . . . . ::.: :.; ,:,,; :. : :. . . : : : .. : j j :j::,.:‘,:,:::,),:: ,.,., :,.,.; : . . : :: : : ,: ::.,: :. : : . : j:::,:. :., ,? .:..: :j, ..:xi.:.:i’::i,:<:. :‘...: j.:.,:.:..:.:: ;..:: ;ji ;..: ..,,: : .A.. a:.: : .:.:: :.I j ::. j i:,.: ::, j: i:.: ,: . . :. i :. : :..
:..:.: .:..i < : .v. .,( .: : ,.,., . . : .:..:c:.: . . ..y :...:..:.:...: . . j. ..:.. ::;.:.j,,:.j,: :.: : ,.,,, ,.,,: ,, ..:, ., ..:, ,, ,. . . . : : :.:.: :.j: : ::‘:::“I:: : ,.,. ?,.. ..(. .: j .: :..:.:.‘:::..::,.~:~:.i:i :i,‘~::j,:i:j:i:,,i:,i.:i:.i:i: .j j:j:j:‘j:: ~
: ,: . ,: ,: ,, _ j :, : ,: : : : ,: : :,j’ j, j:‘,,j ; ,; 1; ,: I :’ ‘: :, i: :(:j,(. j,.:. j,.: j,.: j ,; ,,:,:...,; .:: j: ij: ,.: :.:.:‘,.::..:,.,:..::,..:.:j:j.::::.j,
f : : : : ,. .: I 3 I !. I: i j :i :: .: :: :’ :: : :: j::? : :j : j : j ! ? : .j! .,:.,.. :.:: .: ::::::.:.:
:: : ,: : .j : i: :‘,’ :; ; :’ :. j : i : i : ‘: : :
3" $33,225 $49,263 ~~~~~:~.~~~~~~~~~,~~~~,~~~~~~~~,~_:i,.~II._~
4" $52,375 $84,450 $140,750
6" $98,750 $175,938 $281,500
8" $148.400 $253.350 $492,625
(1) Includes =New Demand Charge”; excludes San Diego County Water Authority Charge. As the New
Demand Charge increases every year, the connection fee needs to be revised accordingly.
,-
k ‘i
.
EXHIBIT 4
WASTEWATER RATE OPTIONS
Fiscal Year 1996-97
User Category
Group I Residential:
Single Family Residence (I)
Multi-Family Residence (2)
Mobile Home (2)
Group II Commercial (3)
Group Ill Commercial (3)
Group IV Commercial (3)
Group V Institutional
Schools per ADA (4)
Elementary
Junior
High
Boarding
Group VI Large Volume Users
Beckman Micro Oper I
Culligan
Unit Cost
$Ihcf of Water
$2.05
$2.05
$1.69
$2.22
$3.51
$0.22*
$0.43”
$0.65’
$3.23”
$4.60
$1.31
MinJMax.
Monthly
Charge, $
$11.00136.65
$11.00136.65
$15.00
$15.00
$15.00
$15.00
$15.00
Uniform
Rate
$15.00
(I) Single Family Residential wastewater flow is 75 percent of average water use in winter months
December to March of prior year.
(2) Multi-Family Residential wastewater flow is 90 percent of metered water use.
(3) Non-Residential wastewater flow is 95 percent of metered water use.
(4) Schools - assumes a 200-day working year; ADA - Average Daily Attendance.
l Denotes charge per student based on average daily attendance
4
WATER & WASTEWATER RATE STUDY ,;< <~.;~$,:.:,: a .*i I :. ,L:. , , -:.v M&’ .~~~~~~~,,,~~~~.~~~~ ~q$c,~~;~~~~~<~~~~w.> XI *<“+,,T,*x* I X*IT”
+:e Study began in I995
+ Study issues:
CL Water Delivery Charges for Different Meter Sizes
4 Connection Fees Based on EDUs v. Meter Size
& Financing of Major Capital Improvement Projects
4 Impacts of Reclaimed Water on Potable Water Rates
b Wastewater Charges for Residential Customers
4 MWD Rate Adjustments
WATER & WASTEWATER RATE STUDY
Water Rate Sfdy Objectives
4 Revenue Sufficiency
4 Equitability
& Simplicity
4 Flexibility
WATER & WASTEWATER RATE STUDY
Creation of Citizens’ Review Committee
& Provided Input to Design of a New Rate
Structure
o Report Presented to Water Commission and
Board in September, 1995
4 Committee Report Used To Produce
&Water and Wastewater Rate Study and
Financial PIann
WATER & WASTEWATER RATE STUDY
Wafe iffee
Gary Akin San Diego Gas & Electric Bret Berry Carltas Company
Lee Bohlmann Chamber of Commerce Hal De Weese AIicante Hills HOA
Doug Duncanson Cay Parks Dept. Ofie Escobedo Barrio Cadsbad
Karen Messer Audubon Society Andy Moritz Mobile Home Park
Oakley Parker Apartment Owner Nancy Powers School District
Chuck Pridham Hughes Aircraft Co. Darrell Sheaffer La Costa Resort
David Thompson farm Bureau Allan Wannamaker Business Owner
WATER & WASTEWATER RATE STUDY
Glossary of Terms
l Conrmodify Charge: a variable charge based on the amount of
water that flows through a meter
4 Delivery Charge: a fixed monthly charge based on meter size;
covers the cost of having water available to customers for their use
4 Connecfion Fee: the charge to connect new development to the
water system
4 Potable Wafer: water that is suitable for drinking
4 New Demand Charge (A/DC): a new charge imposed by MWD that
covers capital costs for meeting new demand
4 Ready-to-Serve Charge (RIS): a new charge imposed by MWD to
cover the costs necessary to meet reliability and quality needs of
existing users
I.
WATER & WASTEWATER RATE STUDY
Customer Base Water Consumption
87
I Residential Wgriculture & I Commercial &
Irrigation Industrial
WATER & WASTEWATER RATE STUDY
Distribution of Meters by Size
Mefer Size Quanfify
5/8” ......... 12,908
314" ........ ..1.30 5
1" ........... ..67 2
l-1/2" ........ ..43 4
2" ........... 1,146
2.1/2"...........17
3" ............ ..6 5
4" ............ ..2 5
6" ............... 9
8" ............... 1
, f
WATER & WASTEWATER /?ATf STUDY
Deljvery Charge:
Revise monthly fixed charge (delivery charge) to
more fairly reflect the demand each meter places
on the system. This revision will result in an
increase in the monthly fixed charge for each
meter size and type of water user.
, d
.
WATER & WASTEWATER RATE STUDY
es
Meter Size Actual 1994-95 Recommended Rates
5/8n $8.50 $9.25
314" $8.70 $11.75
1" $8.75 $16.75
l-112" $9.30 $29.25
2" $25.70 $44.25
3# $30.60 $79.50
4# $37.65 $129.50
6" $40.55 $254.50
8n $46.15 $404.50
Multi-Family $4.90 per unit Eliminated
, ,
WATER & WASTEWATER RATE STUDY
Monthly Delivery Charge
1 00-unit Apartment Building w/ 2” meter
Before Rate Study After Rate Study
2”meter 25.70 2” meter 44.25
99 du’s x $4.90 + 485.10 (no du charge) + 0
$510.80 $44.25
WATER & WASTE WATER b4 TE STUDY
5/8"
3/4*
1"
l-l/2"
2"
3"
4"
6"
8"
Multi-Family
$ 9.25
$ 11.75
$ 16.75
$ 29.25
$ 44.25
$ 79.50
$129.50
$254.50
$404.50
Eliminated
$ 8.23
$ 11.75
$ 22.33
$ 36.43
$ 58.75
$119.85
$200.93
$423.00
$763.75
$ 7.25
$ 10.90
$ 18.20
$ 36.25
$ 58.00
$116.00
$181.25
$362.50
$580.00
$ 3.55
*includes the M WD uReady-to-Ser ve” charge imposed in Fy 95-96
Delivery Charge
4 Commodity Charge
Connection &es
4 BackHo connection
Pmgrwn Fees
WATER & WASTEWATER RATE STUDY
Recommendation
Commodity Charge:
Retain the existing rate structure and rates; no
rate increase is recommended.
*one unit = 748 gallons
WATER & WASTEWATER RATE STUDY
Metropolitan costs 426.00
CWA costs 80.00
CMW D operations 234.52
Total $740.52
Recommended $/acre foot
Metropolitan costs 431.00
Metropolitan RTS charge 11.00
CWA costs 80.00
CMWD operations 217.80
Total $740.52
$/unit
0.98
0.18
0.54* * includes 16C per unit
$1.70 for depreciation
%/unit
0.99
0.03
0.18
0.50**
$1.70
** includes 164 per
unit for depreciation
and 1s for reclaimed
water
WATER & WASTEWATER RATE STUDY _ ..>m<q.*,?;.,,. xc “?*;F, .: I < a..~~~~.~~~~~~~~~:.a.~~ ,i I ,.
A//ocation of Water Costs
MWD 984 MWD 994
Existing Recommended
$2.04
$1.70-
$150
$1.00
$050
$0
Allocation of Water Costs
Commodity Charge
.......... ...........
..................
.................. ...................
q CMWD
q ICWA
n RTS
MWD
Existing Recommended
WATER & WASTEWATER RATE STUDY
Commoditv Charge:
One adjustment to commodity charge (rate
structure) is to incorporate the existing
conservation rate for single family residential
customers to all customer classifications by meter
size.
WATER & WASTEWATER RATE STUDY
Meter Size Actual 1994-95
518” 7 units or less
3/4@ n/a
In n/a
1-1/2n n/a
2n da
3" n/a
4n n/a
6" n/a
8@ n/a
Conservation Rate $1.51
Standard Rate $1.70
Recommended Rates
Conservation Block
7ur
1oun
16 un
30 un
45 un
79 un
123 un
228 un
336 un
$1.5:
$1.7(
its or less
its w
its 44
its
its
its
its
its
its
Single Family 9 S/8” meter
Delivery Charge . . . . . . . . . . . . . . 9.25
. . . . . . . . ..*.....*...*....... Total. . . . . . . . . . . . $33.05
City of Carlsbad
Utility Bill
Single Family l 5AY meter
14 units @ 1.78hnit . . . . . 24.92
To ta/. . . . . . . . . . . . $33.42 1
,
City of Carlsbad
Utility Bill I
250 units @ $1.70 . . . . . . . . . 425.00
Delivery
Charge . . . . . . . . . . . . . . s . . . . . . .
Total. . . . . . . . . . . . $450.70 II
r City of Carlsbad
Utility Bill
Restaurant l 2” meter Restaurant l 2” meter
. . . . . . . . . . . . . . 425.00
Total . . . . . . . . . . . . $469.25
Restaurant l 2” meter
250 units @ 1.78 . . . . . . . . 445.00
Delivery Charge.
Total . . . . . . . . . . . . $470.70
.I
City of Carlsbad
Utility Bill
Utility l 8”meter
2,000 units@ $1.70..3,400.00 - .
Delivery
Charge . . . . . . . . . . . . . . . . . . . . . . . . . . 46.15
Total. . . . . . . . . . . . $3,446.15
City of Carlsbad
Utility Bill
Delivery Charge.. ...... .404.50
Total.. .......... $3,804.50
.
L .
.
Total . . . . . . . . . . . . $3,606.15
Utibty l 8” meter
6 Delivery Charge
4 Comtnod~ Charge
4 Connection Fees
4 Ba&low Coi7taection
Program F&es
I L
.
WATER & WASTEWATER RATE STUDY
Fees
Meter Size CMWD Olivenhain Vallecitos
518" $ 2,815 (Charges $ 1,900
3/4" $ 4,043 vary based $ 2,850
1" $ 6,438 on #zones of $ 4,750
l-1/2" $12,275 benefif”) $ 9,500
2" $18,680 (Charges
3" $33,225 above 2”
4" $52,375 vary based
6" $98,750 on impact
8" $148,400 of proposed
use)
WATER & WASTEWATER RATE STUDY
Connedon fees:
Revise the method used to determine connection
fees from the EDU (Equivalent Dwelling Unit*)
method to meter size.
* an Equivalent Dwelling Unit is equal to the amount of sewage
generated by the average single family unit
WATER & WASTEWATER RATE STUDY
Reco Fees
Recommended
Meter Size NDC + System Fee = Connection Fees
518" $ 415 $ 2,400 $ 2,815
314" $ 623 $ 3,420 $ 4,043
V $ 1,038 $ 5,400 $ 6,438
l-1/2" $ 2,075 $ 10,200 $ 12,275
2n $ 3,320 $ 15,360 $ 18,680
3n $ 6,225 $ 27,000 $ 33,225
4@ $10,375 $ 42,000 $ 52,375
6" $20,750 $ 78,000 $ 98,750
8" $33,200 $115,200 $148,400
WATER & WASTEWATER RATE STUDY
Fees
Meter Size CMWD Olivenhain Vallecitos
S/S" $ 2,815 (Charges $ 1,900
314" $ 4,043 vary based $ 2,850
1" $ 6,438 on “zones of $ 4,750
l-1/2" $ 12,275 benefit”) $ 9,500
2" $18,680 (Charges
3n $33,225 above Zn
4" $52,375 vary based
6" $98,750 on impact
8n $148,400 of proposed
use)
City of Carlsbad
Connection Fees
?O,OOO sq fi Wafehouse w/
518” meter & 2” irrigation meter
10,000 sq ft warehouse
= 5.56 EDUs
5.56 EDUs x $2,400
Total. . . . . . . . . . . . $13,344 fee
City of Carlsbad
Connection Fees
10,000 sq fi Waehouse w/
5/8” meter & 2” irrigation meter
5/8” meter = $2,815
2” meter = $18,680
Total. . . . . . . . . . . . $21,495 fee
City of Carlsbad
Connection Fees
Large Turf Lot
w/ 2” ifhgation meter
No EDU calculation made since
there is no wastewater flow
Total . . . . . . . . . . . . $0 fee
City of Carlsbad
Connection Fees
Large Turf lot
w/ 2” irrigation meter
Connection Fee for
2@ irrigation meter
= $18,680
Total . . . . . . . . . . . . $18,680 fee
b Delivery Charge
4 Commality Charge
4 connection Fees
4 Backflow Connection
Program Fees
.
.
WATER & WASTEWATER RATE STUDY
8acMo w-Connection Program:
The monthly fee for the Backflow Connection
Program should increase by 506 to $3.00:
o used to protect against contamination from water
flowing back into water system
4 current fee for inspection is $2.50/mo.
b covers inspection, maintaining records, tests and
repairs for each device
.
l Summary of Recommendations
Delivery Charge (effective 1/97)
4 Adjust the delivery charge for larger meters to be
consistent with size and demands they place on the
system
4 Incorporate a portion of Metropolitan% “Ready-to-
Serve” charge
Commodity Charge (efiective I/97)
4 Include conservation rate for all customer
classifications by meter size
I, Incorporate the remaining portion of MWD’s “Ready-t*
Serve” charge and the $5 per acre foot commodity
charge increase into the rate structure
C
.
Summary of Recommendations
Connection Fee
4 Connection fee is recommended to be based on meter
size rather than present EDU method
4 Connection fee is recommended to include the New
Demand Charge (NDC) from Metropolitan
New Demand Charge:
4 recovers MWD’s capital costs for meeting new
demand
4 current four-year average must exceed base period
average
4 $l,OWaf of water used over base period
+ charges expected to begin FY 2000-2001
Summary of Recommendations
Backflow Connection Program
4 Backflow Connection fee is recommended to be
increased by 5Oa to $3.00
,-
WATER & WASTEWATER RATE STUDY
Implement a five percent discounted commodity charge
for reclaimed water use with water users bearing the
costs of retrofitting.
option:
Continue existing commodity charge parity with potable
water and continue to provide financial assistance with
retrofit programs.
t c
.
WATER & WASTEWATER RATE STUDY
ued)
tef Commoditv Rate:
4 Potable water commodity rate = $1.7Ohnit
4 Recommended reclaimed water commodity rate =
$1.62/unit
4 Recommended potable water commodity rate of $lJO/unit
includes subsidy for the reclaimed water commodity discount
l Optjon.. Keep reclaimed water commodity rate at $1.70/unit
and continue financial assistance to “retrofit” existing
potable water service for customers
WATER & WASTEWATER RATE STUDY
Create new reclaimed water connection fees equal to
the potable water connection fees.
WATER & WASTEWATER RATE STUDY
Recommended Reclaimed Water Connection fees
Meter Size
518"
314"
1"
l-1/2"
2n
3n
4"
6"
8"
Recommended
Connection Fees
$ 2,815
$ 4,043
$ 6,438
$ 12,275
$ 18,680
$ 33,225
$ 52,375
$ 98,750
$148,400
l Summary of Recommendations
4 Implement five percent discount (commmodity rate =
$1.62/unit)
opfio~~: continue charge parity with potable water
(commodity rate = $1.70/unit)
4 Implement new reclaimed water connection fees equal to
potable water connection fees
WATER & WASTEWATER RATE STUDY
Waste wa ter Charges:
It is recommended to switch multi-family units from a
uniform monthly charge to a monthly water use-based
system, but continue to charge single family residences a
uniform monthly charge.
WATER & WASTEWATER RATE STUDY
Recommen ter Rates
Existing Rates Recommended Rates
Unit Cost Minimum Unit Cost Minimum Maximum
Users $/hd Charge/ma. Flat Rate $hcf Charge/ma. Chargdmo.
Single-Family Flat Charge of $13.70 $15.00
Multi-Family Flat Charge of $13.70 $1.85 $11.00 $36.35
Mobile Home Flat Charge of $13.70 $1.85 $11.00 $36.35
WATER & WASTEWATER RATESTUDY
Waste wa ter Charges:
Establish an additional wastewater charge for second
dwelling units (“granny flats”) equal to 40 percent of
single family residential wastewater fee.
City of Carlsbad
Single Family Residence
l Summary of Recommendations
4 Switch multi-family dwellings to a charge based on water
usage
o Charge an additional fee for “granny flats” equal to 40
percent of the single family fee
l Summary of Recommendations
Delivery Charge (effective VW,)
4 Adjust the delivery charge for larger meters to be
consistent with size and demands they place on the
system
4 Incorporate a portion of Metropolitan’s “Ready-to-
Serve” charge
Commodity Charge (effective I/97)
4 Include conservation rate for all customer
classif ications by meter size
4 Incorporate the remaining portion of MWD’s #Ready-t*
Serve” charge and the $5 per acre foot commodity
charge increase into the rate structure
Summary of Recommendations
Connection Fee
b Connection fee is recommended to be based on meter
size rather than present EDU method
& Connection fee is recommended to include the New
Demand Charge (NDC) from Metropolitan
New Demand Charge:
i recovers MWD’s capital costs for meeting new
demand
4 current four-year average must exceed base period
average
4 $l,OOO/af of water used over base period
4 charges expected to begin FY 2000-2001
Summary of Recommendations
Backflow Connection Program
4 Backflow Connection fee is recommended to be
increased by Sol to $3.00
l Summary of Recommendations
4 Implement five percent discount (commmodity rate =
$1.62/unit)
opfjon: continue charge parity with potable water
(commodity rate = $1.70/unit)
4 Implement new reclaimed water connection fees equal to
potable water connection fees
l Summary of Recommendations
4 Switch multi-family dwellings to a charge based on water
usage
4 Charge an additional fee for “granny flats” equal to 40
percent of the single family fee