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Home My WebLink About2015-10-06; Municipal Water District; 814; Set Public Hearing Wastewater and Water Rates14 CITY OF CARLSBAD AND CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL AB# 814 DATE 10-06-15 DEPT. PW-UTIL SET THE PUBLIC HEARING REGARDING A NEW WASTEWATER RATE STRUCTURE AND PROPOSED INCREASES IN WASTEWATER RATES AND PROPOSED INCREASES IN WATER RATES DEPT DIRECTOR CITY ATTY. '^X- CITYMGR. RECOMMENDED ACTION: Adopt Resolution No. 2015-255 of the City Council of the City of Carlsbad, California, setting a public hearing regarding a new wastewater rate structure and proposed increases in wastewater rates. Adopt Resolution No. 1531 of the Board of Directors of the Carlsbad Municipal Water District, California, setting a public hearing regarding proposed increases in water rates. ITEM EXPLANATION: The City of Carlsbad (city) provides wastewater service to an approximately 30 square mile service area within the city (refer to Exhibit 4). For Fiscal Year 2015-16, there are approximately 23,400 wastewater connections within the service area. Carlsbad Municipal Water District (CMWD) supplies potable water and recycled water to a 32.3 square mile service area within the city (refer to Exhibit 5). For Fiscal Year 2015-16, there are approximately 29,200 potable and recycled water connections within the service area with an annual demand projected at 16,400 acre-feet (AF) for potable water and 4,200 AF for recycled water. Schedule for Adoption of Rate Structure and Implementation of 2016 Rates The following schedule will allow CMWD and the city to implement a new wastewater rate structure, and adopt changes to wastewater and potable water rates in a timely manner. Set the Public Hearing for Dec. 1, 2015 Hold the Public Hearing and set calendar year 2016 rates • Jan. 1, 2016 Implement calendar year 2016 rates • Oct. 6, 2015 • Dec. 1, 2015 DEPARTMENT CONTACT: Ligeia Heagy 760-438-2722 x7110 Ligeia.Heagy@carlsbadca.gov FOR CLERK USE COUNCIL ACTION: APPROVED V0^ CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER - SEE MINUTES • AMENDED • REPORT RECEIVED • Set Public Hearing - Rates October 6, 2015 Page 2 of 7 Existing Wastewater Rate Structure On June 23, 2009, the city adopted a new rate structure for its wastewater service. The wastewater rate structure is currently calculated as follows: Single-family residential - Flat monthly charge Multi-family - Based on 90 percent of water usage Commercial - Based on 100 percent of water usage Schools - Based on number of students Large Volume - Based on 100 percent of water usage Proposed Wastewater Rate Structure and Rates A Wastewater Cost of Service Study was completed in September 2015 by Carollo Engineers (Carollo). At the Dec. 1, 2015 public hearing, staff will recommend the adoption of a new wastewater rate structure and a one year rate increase beginning Jan. 1, 2016. The proposed wastewater rate structure will be calculated as follows: • Single-family residential - Flat monthly charge o Second Dwelling Units - 50 percent of single-family residential flat monthly charge • Multi-family - Based on 90 percent of water usage • Commercial - Based on 95 percent of water usage • Schools - Based on number of students • Large Volume - Based on 95 percent of water usage The allocation of costs by user category has changed based on the recent cost of service study. The wastewater rate structure is fundamentally sound and creates an equitable basis for recovering costs from system customers. For Fiscal Year 2015-16 the proposed rate structure does not create an increase in revenues. Rather, it rebalances the rates based on the current reduction in water and wastewater discharges associated with the state mandated water reductions. It also accounts for minor shifts between customer classes due to changes in usage patterns and the resultant impact on the wastewater system. In future fiscal years, the cost of service study anticipates approximately three percent rate increases to fund operational needs and capital reinvestments. These anticipated increases in future years are driven primarily by inflationary estimates. See the Fiscal Impact section for more information. California law recently declared second dwelling units are a valuable form of housing in California because the units provide housing for family members, students, elderly, and others at below-market rates within existing neighborhoods. As such, there has been an increase in the construction of second dwelling units. To comply with legislative guidance on rate setting, it is appropriate to review, among other things, the current usage patterns and development matrices and incorporate any changing patterns into the cost of service. This helps ensure the enterprise's rates reflect the true cost of providing the service. As of Dec. 31, 2014 there are 349 second dwelling units within the City of Carlsbad. Based on the Wastewater Cost of Service Study, Carollo determined that, on average, single family residences with second dwelling units Set Public Hearing - Rates October 6, 2015 Page Sof 7 discharged approximately 50 percent more than the average single family residences without a second dwelling unit. This information was based on the estimated incremental wastewater demand placed on the system by studying the water usage data and wastewater return factors for residential properties with second dwelling units. As such, Carollo recommends setting the rate for second dwelling units at 50 percent ofthe flat monthly single family residential rate. For example, a property which has a primary residence and a second dwelling unit would receive one bill totaling $41.72. This includes the flat residential charge of $27.81 and the second dwelling unit charge of $13.91. The $13.91 is 50 percent ofthe flat residential charge. Therefore, Carollo recommends setting the flat rate for second dwelling units at $13.91. An Industrial Discharge Blending Study was conducted by Encina Wastewater Authority (EWA) in March 2015 to determine the anticipated impact to the EWA plant influent and effluent resulting from the desalination plant industrial discharges to the wastewater system. This EWA study classified Poseidon Resources' desalination plant as an industrial pretreatment Class III customer. According to the Carlsbad Municipal Code an Industrial pretreatment Class 111 customer means "any user discharging waste otherthan domestic waste, having a reasonable potential to adversely affect the Encina Water Pollution Control Facility and requires annual inspections and permits every three years." Carollo incorporated the information contained in the EWA Blending Study into the Wastewater Cost of Service Study and concluded that an industrial pretreatment Class III rate of $4.53 per unit of water usage would appropriately recover the costs associated with this class of customer. As such, Carollo recommends setting the rate for industrial pretreatment Class III customers at $4.53. During the cost of service study it was determined that the Group VI - Large Volume rate category wasn't currently needed. The only customer in this rate category was Bio-Hydration Research Lab, Inc. dba Penta Water Company, Inc. Penta Water Company is currently located in Colton and no longer has a business presence within Carlsbad. Including this rate category within the cost of service study when there are no associated customers would result in a Group VI rate based solely on estimates, not data. Therefore, Carollo recommends removing the rate category as it is not currently needed. Should this rate category be needed in the future, a rate will be developed based on the underlying usage data. A summary ofthe recommended changes per customer class is shown in Exhibit 3. Existing Potable Water and Recycled Water Rate Structure On Nov. 5, 2013, CMWD adopted a new rate structure for its potable and recycled water services. The cost of service allocations in the study are based on the Base-Extra Capacity method endorsed by the American Water Works Association. Under the Base-Extra Capacity method, revenue requirements are allocated to the different user classes proportionate to their use of the potable water system. The structure also includes a three-tier rate structure for Single Family Residential (SFR) and Multi-Family Residential (MFR). Non-residential customer classes are based on the uniform volumetric rate structure, with adjustments to the rates based on customer peaking demand activity. The rate structure consists of a base monthly delivery charge and a volumetric usage charge. The base monthly delivery charge is paid regardless of water consumption and is imposed proportionate to water Set Public Hearing - Rates October 6, 2015 Page 4 of 7 meter size. This fixed delivery charge helps recovers costs such as utility billing, maintenance, operations, and replacement funding. The usage charge is imposed based on actual water consumption. Proposed Potable and Recycled Water Rates No changes are recommended to the potable and recycled water rate structure for 2016. While the cost of service study will be updated to determine what impacts, if any, second dwelling units also have on water cost of service, staff chose to delay a cost of service study for potable and recycled water until calendar year 2016 for two reasons. First, the impacts ofthe desalination plant on desalinated water and potable water rates will be solidified by the end of calendar year 2015. Second, Phase III ofthe recycled water program is now underway. Some changes to the previously proposed program may be recommended based on new usage needs information. Both ofthese changes should be studied in conjunction with the second dwelling units and incorporated into the cost of service as necessary for each enterprise. Studying these changes together instead of separately helps use rate payer funds efficiently. Council should expect to see this information presented during the fall of 2016 rate setting process. See Fiscal Impact section for more information. While no changes are currently recommended to the rate structure or cost of service, staff will recommend a one year increase to water fixed charge rates and potable water volumetric rates of approximately 5.25 percent, effective Jan. 1, 2016, at the public hearing on Dec. 1, 2015. This increase is driven by increases in the purchased water cost from SDCWA and the estimated desalination rate pursuant to the Uniform Member Agency Purchase Contract (UMAPC). A portion ofthe operating reserve is being used to help temper these increases. See the Fiscal Impact section for more information. Staff recommends no cost increases for recycled water volumetric rates. A summary ofthe recommended changes per customer class is shown in Exhibit 3. FISCAL IMPACT: At the Dec. 1, 2015 public hearing, the proposed rate structure and rate increases, if approved, will be effective Jan. 1, 2016 for one year, and will provide adequate funding to properly operate and maintain Carlsbad's wastewater and water systems and provide adequate funding reserves. Recommended Wastewater Rate Increase Staff recommends increasing wastewater rates effective for one year beginning Jan. 1, 2016. The recommended rate increases do not generate revenue beyond what is needed to fund the estimated operational expenditures for Fiscal Year 2015-16. Rather, the recommended increases rebalance the rates based on the current reduction in water and wastewater discharges associated with the state mandated water reductions. It also accounts for minor shifts between customer classes due to current operational expenditures. Carollo recommends increasing the single family rate by 6.84 percent to $27.81; an increase of $1.78. The recommended increase to multi-family is 9.67 percent or $0.29. The recommended Set Public Hearing - Rates October 6, 2015 Page 5 of 7 commercial rate increases average just under 11 percent or about $0.50. The proposed increases to schools are approximately 4 percent or about $0.08. As discussed in the Item Explanation section, Carollo is recommending several rate category changes. First, Carollo recommends the Group VI - Large Volume rate category be removed as it is not currently needed. Second, Carollo recommends adding an industrial pretreatment Class 111 category to account for the desalination plant discharge into the wastewater system. The industrial pretreatment Class III rate is recommended at $4.53 to recover costs associated with the impacts of desalination plant on the wastewater system. And lastly, Carollo recommends adding a second dwelling unit rate set at 50 percent of the single family rate, or $13.91. As such, single family properties with a second dwelling unit would receive a bill 1.5 times higher, or $41.72 in total, than single family properties without a second dwelling unit. The proposed revenue increase and corresponding rates shown in Exhibit 3 reflect the utility's cost of providing wastewater services and account for the current estimated decrease in water demand based on recent consumption patterns. Recommended Potable Water Rate Increase Staff recommends increasing potable water rates by approximately 5.25 percent effective for one year beginning Jan. 1, 2016. This increase is driven in part by a 5.4 percent increase in the San Diego County Water Authority's (SDCWA) all-in rate for treated water. The SDCWA added a new fixed charge for calendar year 2016; the supply reliability charge. This charge recovers a portion ofthe costs associated with the Carlsbad desalination plant and the Imperial Irrigation District (IID) transfer to recognize the supply reliability provided to the agencies who use those benefits while also recognizing that the agencies who develop their own local supply and roll off of Carlsbad desalination and IID shouldn't pay for those costs. For example, the City of San Diego's Pure Water program is being developed independently ofthe SDCWA. The more water the City of San Diego uses from their Pure Water program, the less they will be using from Carlsbad desalination and IID sources. As such, they will slowly roll off the SDCWA supply reliability charge. The new supply reliability charge, increases passed through from the Metropolitan Water District, and an estimate for depressed water sales due to water conservation are the primary drivers in the SDCWA's all-in rate. To temper the all-in rate increase, SDCWA used one time funds from debt service optimization and its rate stabilization fund. The recommended increase in the potable water rates is also driven in part by the current estimates for the desalination rate associated with purchasing 2,500 acre-feet of water underthe UMAPC. The current estimate ofthe UMAPC desalination rate is approximately $2,494 per acre-foot. Staff estimates the impact ofthe UMAPC desalination rate is approximately 5.25 percent to the average single family resident. The recommended potable water rate increase for CMWD includes the increased SDCWA rates, the estimated UMAPC desalination rate, and an estimate for depressed water sales (sales assumptions are Set Public Hearing - Rates October 6, 2015 Page Sof 7 modeled after 2013 sales figures). However, a target operating reserve of 40 percent of operations and maintenance, better than anticipated financial results, incorporating the estimated impacts ofthe UMAPC desalination rate into the potable water rate model in 2013, and rate smoothing have helped temper the recommended potable water rate increase by creating sufficient operating reserves. A portion ofthese operating reserves are being used to soften, or stabilize, the recommended potable water rate increase. Additionally, a separate Agenda Bill on entering into the UMAPC will be presented for the Board's Consideration in the near future. If the Board chooses not to adopt the UMAPC, the potable water rates presented with this Agenda Bill will more than likely be reduced at the Public Hearing on Dec. 1, 2015. Recommended Recycled Water Rate Staff recommends the usage charge for recycled water rates be held flat effective for one year beginning Jan. 1, 2016. As of calendar year 2015, the recycled water rate is less than the blended potable water commodity rate for the average single family resident who uses 13 units of water. Example Monthly Bill Ifthe above increases are adopted atthe Public Hearing on December 1, 2015, the following table provides an estimate ofthe impacts to a monthly bill for each enterprise: Current Bill Proposed Bill (1/1/2016) Potable Water^ $67.93 $71,532 Wastewater^ $26.03 $27.81 Total Single Family Residential $93.96 $99.34 Recycled Water^ $1,358.81 $1,365.28 1. Assumes an average single family house: a. Potable Water: 5/8" meter using 13 units per month. b. Wastewater: Pays a flat monthly charge. A property with a second dwelling unit pays 50 percent more, or $41.72 in total. 2. Price per gallon for average single family home is approximately $0,007. 3. Recycled Water: Industrial Park site with 2" meter using 350 units in July Multi-Year Rates While the cost of service study was updated this year for wastewater, it was not updated for potable water and recycled water for the reasons stated above. Once the cost of service studies have been updated for potable water and recycled water during calendar year 2016, staff will begin recommending multi-year rates again. Staff recommends keeping the enterprises on the same rate setting schedules to use rate payer funds efficiently. Having to notice the enterprises separately is costly; combining the noticing spreads the costs amongst all three enterprises increasing economies of scale. Council can expect to see multi-year rates again beginning Fall 2016 during the rate setting process for calendar year 2017. Set Public Hearing - Rates October 6, 2015 Page 7 of 7 ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require enyironmental review. PUBLIC NOTIFICATION: The California Constitution, Article XIIID, Section 6, states that local governments must hold a Majority- Protest Public Hearing, and notify property owners and customers 45 days in advance of public hearings related to proposed water, recycled water, and wastewater rates. The public hearing is to be held 45 days after noticing the rate payers. Atthe publichearlng, if it is determined that a majority of property owners have submitted a formal protest, the proposed fee change must be rejected. This is a requirement of Proposition 218, which was passed by California voters in 1996 to limit methods by which local governments can create or increase taxes, fees and charges without taxpayer consent. Any person interested in objecting to the increases may file a signed written protest with the City Clerk. The written protest must contain the address of service, the rate change being protested and be received priorto the close ofthe public hearing. While protestors may appear at the hearing and be heard on the matter, only written protests are considered as part of the majority protest. Staff will take the following actions at least 45 days prior to the Dec. 1, 2015 public hearing: • Notify affected utility customers and property owners by mail ofthe public hearing. • The Notice will provide information relating to the public hearing. • The Notice will provide information regarding the proposed rates. • In addition, information about the Majority-Protest Public Hearing and proposed rates will be posted on the city's website at www.carlsbadca.gov. Information regarding public notifications ofthis item such as mailings, public hearing notices posted in the newspaper and on the city website will be available in the office ofthe City Clerk. EXHIBITS: 1. Resolution No. 2015-255 ofthe City Council ofthe City of Carlsbad, California, setting a public hearing regarding a new wastewater rate structure and proposed increases in wastewater rates. 2. Resolution No. 1531 of the Board of Directors of the Carlsbad Municipal Water District, California, setting a public hearing regarding proposed increases in water rates. 3. Notice of Public Hearing. 4. City of Carlsbad Wastewater Boundary Map. 5. Carlsbad Municipal Water District Boundary Map. 1 RESOLUTION NO^ 2 3 5 6 7 8 9 10 18 19 20 21 24 25 26 27 28 EXHIBIT 1 2015-255 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, SETTING A PUBLIC HEARING REGARDING A NEW RATE 4 STRUCTURE AND PROPOSED INCREASES IN WASTEWATER RATES WHEREAS, the California Constitution Article Xlll D §6(A)(2) states that local governments must hold a public majority-protest hearing, and notify customers not less than 45 days in advance of increases in water rates; and WHEREAS, the City of Carlsbad is proposing a new wastewater rate structure and rate 11 increases in January 2016; and 12 WHEREAS, a public hearing must be held regarding the new wastewater rate structure 13 „ rate increases. 14 NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Carlsbad, California, j5 asfollows 17 1. That the above recitations are true and correct 2. That the City Council of the City of Carlsbad, California, sets a majority protest public hearing for Tuesday, Dec. 1, 2015, in accordance with applicable law. // 22 // 23 // // // // 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Carlsbad City Council and the Carlsbad Municipal Water District Board of Directors, held on the 6*^ day of October, 2015, by the following vote: AYES: NOES: ABSENT: Hall, Blackburn, Schumacher, Wood, Packard. None. None. i MATT HALL, Mayor ATTEST: BARBARA ENGLESON, ^JZity Clerk (SEAL) .vv»>""///. 1 RESOLUTION NO. 3 5 6 7 8 9 10 20 21 22 25 26 27 EXHIBIT 2 1531 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF CARLSBAD MUNICIPAL WATER DISTRICT (CMWD), CALIFORNIA, SETTING A PUBLIC HEARING REGARDING PROPOSED INCREASES IN WATER 4 RATES WHEREAS, the California Constitution Article Xlll D §6(A)(2) states that local governments must hold a public majority-protest hearing, and notify customers not less than 45 days in advance of increases in water rates; and WHEREAS, the Carlsbad Municipal Water District is proposing a water rate increase in 11 January 2016; and 12 WHEREAS, a public hearing must be held regarding the increase in water rates. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District, as follows: 1. That the above recitations are true and correct. 13 14 15 16 17 2. That the Board of Directors ofthe Carlsbad Municipal Water District sets a majority ^ ^ protest public hearing for Tuesday, Dec. 1, 2015, in accordance with applicable law. 19 // // // 23 // 24 // // // 28 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting ofthe Carlsbad Municipal Water District Board of Directors and the Carlsbad City Council, held on the 6*^ day of October, 2015, by the following vote: AYES: NOES: ABSENT: Hall, Blackburn, Schumacher, Wood, Packard. None. None. MATT HALL, President ATTEST: rsy^J-y BARBARA ENGLESOiC/Secretary (SEAL) ,sx»>""///,, I) I r to to 1? y o I ^ ^ •^3 a. !^ ^1 E • a vo •fc IT) O rM cu Q nj -a to ZS CD > Q Q3 OJ JD Ol 00 ^ ra o •a ro J3 ro U o ro ^ U 'G c :3 o u o rsi c c rser CO cha nd rser 01 cha ra 1^ OJ c (O c > o ra ^ ro 01 u t/1 "O ro ra - I T3 ra Q. 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X cn X 01 ra OJ tri tjD lrt ra 3 3 J3 tt 01 >s .E X 2 c = Q. ro 01 2 OJ iz I 8 C tjD i_ ro CTl CITY OF CARLSBAD WASTEWATER BOUNDARY PACIFIC OCEAN CITY OF CARLSBAD WASTEWATER BOUNDARY EXHIBIT 4 CARLSBAD MUNICIPAL WATER DISTRICT BOUNDARY LAGOON PACIFIC OCEAN CI\/IWD BOUNDARY 5 EXHIBIT 5 Set Public Hearing For December 1, 2015 Water and Wastewater Rate Increases City of Carlsbad/Carlsbad Municipal Water District October 6, 2015 Cost of Service Study:Wastewater •Consultant: Carollo Engineers, Inc. •Objectives: –Update data on current customer usage demands •Look at second dwelling units •Incorporate desalination plant –Ensure sufficient funding for operations –Comply with Proposition 218 Cost of Service Study: Wastewater Findings •Rebalanced rates to account for water reductions •Rate structure revisions to mirror usage patterns: –Reduced second dwelling unit rate –Added Industrial Pretreatment Class III rate –Eliminated Group VI –Large Volume rate •Reserve policy: maximum of 40% of operating budget 3 Cost of Service Study: Wastewater Bill Comparison 4 $90.91 $70.99 $63.92 $57.99 $56.31 $55.28 $54.25 $51.20 $44.00 $42.32 $39.32 $38.99 $36.91 $34.34 $31.54 $27.81 $26.05 $26.04 $- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Del Mar, City of Fallbrook Olivenhain (Rancho Cielo Service Area) Oceanside Ramona Padre Dam Vista, City of Valley Center MWD Pauma Valley CSD San Diego, City of La Mesa, City of Vallecitos Escondido Otay Poway Carlsbad (Proposed) Rainbow Leucadia Potable Water Rates •Rate increase of approximately 5.25% for calendar year 2016 •Rate increase primarily driven by: –San Diego County Water Authority all-in rate increase of 5.4% –Desalination rate impact of approximately 5.25% to average single family resident •Reserve policy: maximum of 40% of operating budget 5 Potable Water Bill Comparison 6 110.62 108.41 106.99 102.84 101.57 99.52 95.99 91.79 88.16 86.78 84.01 82.63 81.90 81.87 79.23 79.21 76.33 75.73 74.06 72.49 72.01 71.30 63.02 $- $20 $40 $60 $80 $100 $120 Padre Dam E Padre Dam W Rainbow Ramona Valley Center Del Mar Fallbrook Escondido Vista Rincon San Diego Yuima Oceanside Otay Helix Carlsbad Santa Fe Olivenhain Sweetwater Vallecitos San Dieguito Poway Lakeside Recycled Water Rates •Annual volumetric rate increase of 0% for calendar year 2016 •Reserve policy: maximum of 40% of operating reserves 7 Example of Monthly Bill Changes Current Proposed (1/1/2016) Potable Water1 $67.93 $71.532 Wastewater1 $26.03 $27.81 Total $93.96 $99.34 Recycled Water3 $1,358.81 $1,365.28 8 1.Average single-family house: •Potable Water: 5/8” meter using 13 units •Wastewater: Pays a flat monthly charge 2.Price per gallon for average single family home is approximately $0.007 3.Industrial Park site with 2” meter using 350 units in July Calendar •October 6, 2015: Set majority-protest public hearing for December 1, 2015 •October 17, 2015: Mail written public notice on or before this date to comply with Proposition 218 (45 day) noticing requirement •December 1, 2015:Hold majority-protest public hearing, set rates, and approve new rate design •January 1, 2016: Implement new rates 9 Water and Wastewater Rates Questions? 10 Water Agency Contact Information San Diego County Water Authority http://www.sdcwa.org 4677 Overland Avenue San Diego, CA 92123 858-522-6600 Metropolitan Water District http://www.mwdh2o.com Mailing address: P.O. Box 54153 Los Angeles, CA 90054-0153 Street address: 700 North Alameda Street Los Angeles, CA 90012-2944 213-217-6000 11 Water: Monthly Fixed “Delivery Charges” Meter Size Existing Service Charge Proposed Service Charge (1/1/2016) 5/8”$21.08 $22.19 3/4"$28.68 $29.87 1”$42.98 $45.24 1-1/2”$79.49 $83.66 2”$123.31 $129.78 2-1/2”$174.41 $183.57 3”$225.52 $237.36 4”$371.56 $391.07 6”$736.64 $775.31 8”$1,174.74 $1,236.41 10”$1,685.86 $1,774.37 12 Water: Monthly Variable “Usage Charges” Existing Variable Charge (per HCF) Proposed Variable Charge (1/1/2016) Single Family: Tier 1 (10 units)$3.35 $3.53 Tier 2 (11-18 units)$4.45 $4.68 Tier 3 (19+ units)$6.42 $6.76 Multi-family: Tier 1 (5 units)$3.35 $3.53 Tier 2 (6-10 units)$4.45 $4.68 Tier 3 (11+ units)$6.42 $6.76 Non-residential $4.05 $4.26 Agricultural $4.15 $4.37 Irrigation $4.44 $4.67 Recycled $3.53 $3.53 13 Wastewater Charges Monthly Wastewater Rates Current Proposed (1/1/2016) Residential Single family $26.03 $27.81 Single Family w/ SDU $52.06 $41.72 Multi-family $3.00 $3.29 Mobile home $3.00 $3.29 Commercial Group II $2.44 $2.70 Group II $3.70 $4.10 Group IV $6.87 $7.65 Group V –Schools Elementary school $0.53 $0.55 Junior high school $0.78 $0.82 High school $1.06 $1.10 Boarding school $5.53 $5.75 Group V –Other Other $2.44 $2.61 Group VI –Other Bio Hydration $2.11 $0.00 Industrial Pretreatment Class III Desalination Plant $0.00 $4.5314 Wastewater Where does the money go? 15 Potable Water Where does the money go? 16 Recycled Water Where does the money go? 17