HomeMy WebLinkAbout03-18-13 Board Packet 1
OTAY WATER DISTRICT AND
OTAY SERVICE CORPORATION
SPECIAL MEETING OF THE BOARD OF DIRECTORS
DISTRICT BOARDROOM
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
MONDAY
March 18, 2013
3:30 P.M.
AGENDA
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF AGENDA
4. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
WORKSHOP
5. DISCUSSION OF RATE STUDY FINDINGS AND A REQUEST TO DIRECT STAFF
TO INCORPORATE THE FINDINGS OF THE STUDY INTO THE FISCAL YEAR
2014 RATE MODEL AND BUDGET (BEACHEM/BELL)
6. ADJOURNMENT
2
All items appearing on this agenda, whether or not expressly listed for action, may be
deliberated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the
District’s website at www.otaywater.gov. Written changes to any items to be considered at
the open meeting, or to any attachments, will be posted on the District’s website. Copies
of the Agenda and all attachments are also available through the District Secretary by
contacting her at (619) 670-2280.
If you have any disability which would require accommodation in order to enable you to
participate in this meeting, please call the District Secretary at 670-2280 at least 24 hours
prior to the meeting.
Certification of Posting
I certify that on March 15, 2013, I posted a copy of the foregoing agenda near the
regular meeting place of the Board of Directors of Otay Water District, said time being at
least 24 hours in advance of the special meeting of the Board of Directors (Government
Code Section §54954.2).
Executed at Spring Valley, California on March 15, 2013.
/s/ Susan Cruz, District Secretary
STAFF REPORT
TYPE MEETING: Special Board Meeting MEETING DATE: March 18, 2013
SUBMITTED BY: Rita Bell, Finance Manager PROJECT: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Water and Sewer Rate Study Workshop
GENERAL MANAGER’S RECOMMENDATION:
This is a presentation of the rate study findings and a request to
direct staff to incorporate the findings of this study into the
FY 2014 rate model and budget.
PURPOSE:
To present to the Board the findings of the water and sewer rate
study and request the Board to direct staff to incorporate the
recommended changes into the FY 2014 rate model and budget.
BACKGROUND:
On January 8, 2013, staff discussed the current cost of service study
being performed. Then on February 6, 2013, the Board was informed of
the changes being considered in this study. Now the findings and
recommendations of this study are being brought forward for the
Board’s consideration for incorporation into the FY 2014 rate model
and budget.
Typically, rate studies are performed every three to five years
depending on changes in economic factors; price increases; water use
patterns; regulations; infrastructure; and other cost driver changes.
It has been four years since the District’s last water and sewer rate
study. The cost of service study is an important tool when setting
retail rates because as water use and cost drivers change over time,
imbalances may occur in the equity of how various customer classes
pay for water. With the significant amount of change in water usage
over the past four years, the study was taken up prior to the five
year threshold often used.
Another factor to consider is the requirements of Proposition 218,
whereby changes to the rate structure require a public hearing and
procedures must be followed. Due to the requirement of going through
AGENDA ITEM 5
the 218 process, numerous smaller changes that have been identified
are held over for the next 218 process. The cost of service study is
the opportunity to revisit the various issues identified and to
perform a fresh look at the customer equity.
Staff is requesting that the Board direct them to include the
proposed rate structure changes so that they can be included in the
FY 2014 rate model and proposed budget. After these changes are
incorporated into the FY 2014 rate model and budget, staff will bring
forward the proposed budget for adoption. With the proposed budget
there will be proposed rates and “phase-in” options to be included in
the Proposition 218 notices. Only after the Proposition 218 hearing
may the Board approve the new rates.
For the water cost of service study the following changes are being
presented for Board direction:
1. Change water meter equivalencies to use the current AWWA
hydraulic capacity factors for water customers. In 2010, the
District updated its Capacity and Annexation Fees using the
AWWA hydraulic capacity factors. Many agencies also use
these industry standard capacity factors. This study
recommends the use of these same factors in the application
of system fees and MWD/CWA Fixed Fees. The use of consistent
factors ensures that the fixed costs are allocated to
customers based on this same factor.
2. Reset the break points for the tiers for customer types by
meter size to adjust for current consumption patterns. This
will ensure that all customer classes have consistent usage
quantities in each tier. Due to changes in consumption by
customers, the study findings conclude that the break point
for Commercial/Public 10” meters and
Landscape/Agriculture/Construction ¾” to 1” meters be
increased to match the correct percentage of units flowing
through each tier. At the same time, the study finds that
the break point for Landscape/Agriculture/Construction 3” to
6” meters be lowered to match these same percentages.
For recycled customers, the proposal is to decrease the break
points for the ¾” to 1”, 1 ½” to 2” and 6” and greater, while
the break point for the 3” to 4” need to be increased
slightly to match consumption percentages in the tiers.
3. The finding in the areas for the classes of residential
attached, mixed use master meter/irrigation and
commercial/irrigation customers warranted no change to the
existing rate structure.
4. The energy charge methodology was examined and it was
determined that no change is recommended to the current
method of charging customers for energy.
5. Propose the creation of a Recycled Commercial Rate for future
customers. Today the District has approximately 700 recycled
irrigation customers. The District anticipates up to four
new recycled water customers that would be for commercial
purposes. This rate is proposed to be set at 85% of the
potable commercial rate, in accordance with the agreement
with CWA for recycled credits. Implementing this change now
will avoid a costly 218 notice and hearing at the time a new
customer begins recycled water usage.
6. Updated the fire service fee to ensure equity among
customers. Today the District charges a monthly fire service
fee of $34.57 regardless of connection size. The cost
associated with the maintenance, repair and replacement of
this infrastructure was determined to be $21.14 for the 3”
service size or less, and $28.41 for the 4” or larger service
size.
For the sewer cost of service study the following changes are being
considered:
1. Eliminate the Assigned Service Unit (ASU) calculation for
commercial accounts. This would include the creation of a
system fee by water meter size and using the annual average
water consumption for the usage charge.
2. Adjust commercial sewer strengths to current industry
standards.
3. Ensure water meter equivalencies used for sewer base fees are
consistent with AWWA water meter equivalencies. (See No. 1
above.)
4. For multi-residential, charge the system fee on meter size
instead of the current ¾” system fee per dwelling unit.
5. Make the monthly base fee for Single-Family Residential (SFR)
the same for both ¾” and 1" meters).
6. Eliminate the special formulas for schools and churches and
move to an industry standard charge similar to commercial
accounts.
In addition to the changes being proposed in the water and sewer cost
of service study, staff will be requesting the Board to consider an
additional change. Since this change requires a Proposition 218
hearing it will be presented with the study findings. The change is
to detach and attach Improvement Districts (ID) ID 25 to ID 20 and ID
19 to ID 22. The fees are identical for customers in the IDs being
combined and would allow the District to eliminate two IDs that are
no longer needed. This change would improve the efficiency of the
accounting and administration currently required for these IDs.
Staff is bringing forward findings of the rate study and requesting
the Board to incorporate these changes into the FY 2014 rate model.
In May of 2013, staff will request the Board to approve the budget
and to move forward with the Proposition 218 process. Only after the
Proposition 218 hearing is completed can the Board approve the rates
and rate structure changes.
FISCAL IMPACT:
The recommendations in this study may change the water and sewer
charges for individual customer types, but the overall change is
financially neutral.
STRATEGIC GOAL:
The District ensures its continued financial health through sound
policies and procedures.
LEGAL IMPACT:
None.
Attachments:
A) Presentation
Attachment A
1
2
Reexamine the rate structure every 3 to 5 years
›Economic Factors, Price Increases (elasticity),
Environmental Changes and Regulatory Changes
Purpose
›Maintain equity between customer classes based on Cost
of Service
›Financial stability (fixed vs. variable charges)
›Encourage conservation
Tiered rate structure for water
Strength and flow rate structure for sewer
3
Revenue Requirement Analysis
Compares the sources of funds (revenue)
to the expenses of the utility to
determine the overall rate adjustment
required
Cost of Service Analysis
Allocates the revenue requirements to
the various customer classes of service
in a "fair and equitable manner
Rate Design Analysis
Considers both the level and structure of
the rate design to collect the target level
of service
4
+ Operations and Maintenance
+ Transfer Payments
+ Capital Projects Based on Rates
= Total Revenue Requirement
- Miscellaneous Revenues
= Net Revenue Requirement from
Rates
5
FUNCTIONALIZATION CLASSIFICATION ALLOCATION
Total Revenue Req’ts.
-Source of Supply
-Treatment
-Transmission
-Distribution
-General Admin.
Capacity
Related $
Commodity
Related $
Customer
Related $
Residential
Multi-Family
Comm./Gov’t.
Residential
Multi-Family
Comm./Gov’t.
Residential
Multi-Family
Comm./Gov’t.
Residential
Rate
Multi-Family
Commercial/
Gov’t
Customer Related Costs – Billing, collections, meter maintenance, any costs that exists due to adding a customer Commodity Related Costs – Purchased water, power, and employee costs to provide potable water to customers
Capacity Related Costs – Fixed costs such as debt service, MWD fixed
charges, and actuarial pension obligations
Less Non-Operating
6
7
Customer Type 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10" Total
Single-Family Residential 43,701 794 15 4 44,514
Multi-Residential
(18,523 Dwelling Units)
43
186
245
223
34
62
6
3
802
Commercial/Publically Owned
326
364
289
387
31
27
9
5
1,438
Landscaping & Agricultural
104
260
384
466
5
7
2
1
1,229
Temporary Construction
7
10
6
2
82
107
Total
44,181
1,614
939
1,082
70
178
17
3
6
48,090
8
Residential Attached
›Continue to bill under Single-Family
Residential rate structure
Mixed Use Multi-Residential and
Commercial
›Continue to bill under current structure
Energy Charges
9
Findings:
›Energy charges are allocated to pressure
zones based on 100 feet of lift
›Assignment of zones and rate per lift are
accurately assigned
10
Meter Equivalencies
Adjust Tiers and Break Points
Create Recycled Commercial Rate
Update Fire Service Fee
11
Ensures Compliance with:
›AWWA hydraulic capacity factors (industry standards)
›Current capacity fee hydraulic factors
›Equitable payment for maintenance of system capacity
Meter Size
Current
Meter
Equivalency
AWWA Meter
Equivalency
Current
System Fee
Recommended
System Fee Change
Current
MWD/CWA
Fee
Recommended
MWD/CWA Fee Change
5/8" 1.0 1.0 $16.74 $16.19 -$0.55 $13.28 $12.84 -$0.44
3/4" 1.0 1.5 $16.74 $16.19 -$0.55 $13.28 $12.84 -$0.44
1" 1.3 2.5 $21.26 $22.87 $1.61 $22.12 $23.80 $1.68
1 1/2" 1.9 5.0 $32.57 $39.58 $7.01 $44.31 $53.84 $9.53
2" 2.8 8.0 $46.13 $59.62 $13.49 $70.85 $91.57 $20.72
3" 4.9 16.0 $82.29 $113.08 $30.79 $141.71 $194.74 $53.03
4" 7.3 25.0 $122.99 $173.22 $50.23 $221.43 $311.87 $90.44
6" 14.1 50.0 $236.02 $340.29 $104.27 $442.80 $638.41 $195.61
8" 22.2 80.0 $371.64 $540.76 $169.12 $708.53 $1,030.95 $322.42
10" 31.7 115.0 $529.88 $774.64 $244.76 $1,015.06 $1,483.94 $468.88
12
Current
Bill
Proposed
Bill
13
Ensure they match current consumption
levels
Ensure consistency among customer
classes
Retain tiers for commercial classes
›This allows the District to easily implement
drought rates if necessary
14
Current Break Points Recommended Break Points
Commercial and Publically Owned (<10" Meter) Commercial and Publically Owned (<10" Meter)
Consumption Block Consumption (HCF) % of Consumption Consumption Block Consumption (HCF) % of Consumption
0 173 863,600 57% 0 185 855,678 56%
174 831 322,900 21% 186 1,400 408,952 27%
832+ 336,600 22% 1,401+ 258,740 17%
Total 1,523,100 100% Total 1,523,100 100%
Landscaping, Agricultural and Construction 3/4" to 1" Landscaping, Agricultural and Construction 3/4" to 1"
Consumption Block Consumption (HCF) % of Consumption Consumption Block Consumption (HCF) % of Consumption
0 49 108,300 52% 0 54 119,170 57%
50 132 51,700 25% 55 199 57,564 27%
133+ 49,400 24% 200+ 32,666 16%
Total 209,400 100% Total 209,400 100%
Landscaping, Agricultural and Construction 3 to 6" Landscaping, Agricultural and Construction 3 to 6"
Consumption Block Consumption (HCF) % of Consumption Consumption Block Consumption (HCF) % of Consumption
0 1044 56,100 66% 0 550 50,949 57%
1045 8067 29,400 34% 551 1,200 21,204 27%
8068+ - 0% 1,201+ 13,355 16%
Total 85,500 100% Total 85,500 100%
15
Current Break Point Recommended Break Point
Recycled 3/4" to 1" Recycled 3/4" to 1"
Consumption Block Consumption (HCF) % of Consumption Consumption Block Consumption (HCF) % of Consumption
0 42 32,600 64% 0 32 28,877 56%
43 97 13,600 26% 33 75 13,801 27%
98+ 5,200 10% 76+ 8,723 17%
Total 51,400 100% Total 51,400 100%
Recycled 1 1/2" to 2" Recycled 1 1/2" to 2"
Consumption Block Consumption (HCF) % of Consumption Consumption Block Consumption (HCF) % of Consumption
0 168 675,300 55% 0 130 703,920 57%
169 402 335,200 27% 131 325 340,024 27%
403+ 226,400 18% 326+ 192,956 16%
Total 1,236,900 100% Total 1,236,900 100%
Recycled 3" to 4" Recycled 3" to 4"
Consumption Block Consumption (HCF) % of Consumption Consumption Block Consumption (HCF) % of Consumption
0 403 41,500 43% 0 440 54,606 57%
404 820 23,300 24% 441 1,050 25,866 27%
821+ 31,000 32% 1,051+ 15,328 16%
Total 95,800 100% Total 95,800 100%
Recycled > 6" Recycled > 6"
Consumption Block Consumption (HCF) % of Consumption Consumption Block Consumption (HCF) % of Consumption
0 7,916 205,800 64% 0 4,000 182,172 57%
7,917 16,357 85,000 27% 4,001 10,000 86,292 27%
16,358+ 28,800 9% 10,001+ 51,136 16%
Total 319,600 100% Total 319,600 100%
16
Anticipation of new commercial customers
›Power plant – 6” meter
›East Mesa Detention facility – 2” meter
conversion of irrigation, laundry, and toilet flushing
›Quarry operators - in planning stage, meter size unknown
›CCA, a private prison – 4” meter
Ensures compliance with CWA Recycled Credits
Agreement
Encourages use of recycled water
Ensures equity between user classes
›Peaking factor for indoor use is much lower than peaking factor for
irrigation
17
Commercial Recycled Rates (<10" Meter)
Consumption Block Consumption (HCF)
Percent of
Consumption
Cum. Rate
Differential
Recommended Rate
@ 85%
0 173 863,600 57% 0.0% $ 2.38
174 831 322,900 21% 3.0% $ 2.45
832+ 336,600 22% 4.0% $ 2.47
Total 1,523,100 100.0%
Commercial Recycled Rates (>10" meter)
Consumption Block Consumption (HCF)
Percent of
Consumption
Cum. Rate
Differential
Recommended
Rate @ 85%
0 7,426 179,900 57% 0.0% $ 2.38
7,427 14,616 86,400 27% 3.0% $ 2.45
14,617+ 51,500 16% 4.0% $ 2.47
Total 317,800 100.0%
Established rates at 85% of commercial rates per contract with CWA.
No history on break points, therefore, using commercial breakpoints
until they can be established with consumption history. 18
Fire demands incorporated into the entire water
system capacity serving all customers
Will govern pipe size, sometimes storage capacity
19
Fire demands normally govern pipe size
›Single-Family Residential fire demand 1,500 gallons per
minute (gpm)
›Multi-Family 2,500 gpm
›Schools/Hospitals/Mixed Used 5,000 gpm
19
Wa
t
e
r
M
a
i
n
Water Service
Lateral and Meter
Private Fire
Protection Lateral
Ensures individual
customers
benefiting from
the private fire
protection pays for
the maintenance,
repair, and
replacement of
the system.
21
M
B
M = Meter Customer Owned
B = Backflow device District Owned
Up to 3" 4“ or More Total
Admin Cost $669.31 $22,692.97 $23,362.28
Depreciation $2,911.18 $156,989.63 $159,900.81
Valve Exercise $4,510.27 $4,510.27
Service Lateral Repairs $1,499.85 $50,851.95 $52,351.80
Service Lateral Maintenance $247.03 $8,375.58 $8,622.61
Total Cost of Fire Service $5,327.37 $243,420.40 $248,747.77
Number of Customers 21 712 733
Month Cost per Fire Service $21.14 $28.49
Proposed Annual Revenue $5,327.28 $243,418.56 $248,745.84
Current Annual Revenue $34.57 $34.57 $304,077.72
Change in Revenue -$55,331.88
22
23
$1,893,456
$358,656
$144,408
$52,416
$58,212
$149,280 $22,620
Current Sewer Revenue by Customer Type
Single-Family Residential
Multi-Family Residential
Low Strength Commerical
Medium Strength Commercial
High Strength Commerical
Schools
Churches
24
All customer types - adjust monthly fixed fees
based on meter equivalency to match AWWA
Single-Family Residential - make both ¾” and 1”
monthly fixed fee the same
Multi-Residential – charge system fee based on
meter size
Commercial – eliminate ASU calculation
Commercial – update strength factors to State
Water Resources Control Board (SWRCB) standard
Churches and Schools – change methodology to
match commercial customers
25
$2,099,880
$236,628
$98,604
$39,732
$34,656 $99,624 $13,848
Proposed Sewer Revenue by Customer Type
Single-Family Residential
Multi-Family Residential
Low Strength Commerical
Medium Strength Commercial
High Strength Commerical
Schools
Churches
26
Residential 3/4" 1" 1 1/2" 2" 3" 4" 6" 10" Total
Single-Family 4,511 4,511
Multi-Family (1,360
dwelling units) 39 5 6 50
Commercial
Schools 4 1 1 6
Churches 1 1 2 4
Low Strength 16 4 12 11 1 44
Medium Strength 4 4 5 0 13
High Strength 1 4 2 7
Total 4,511 22 5 20 63 6 6 1 1 4,636
27
Based on Cost of Service for this set of customers
›Maintain the “low” strength per SWRCB
›Maintain 85% of winter average for flow (January through April)
›Maintain cap of 30 units
›Make monthly base fee for ¾” and 1” single-family accounts the same
Typical monthly bill increase of $4.20 or 11.6% due mainly to a more equitable allocation between customer classes
Option of a “phase-in” of the increase in the system fee, so first year the increase in the monthly bill would be $2.97 or 8.2%
28
Current
Bill
Proposed
Bill
29
Note: The actual average monthly bill increase is $3.81 or 10.9% because this chart does not reflect the reduction due to 1”
meter system fee being combined with the ¾” system fee.
FY2013 Current FY2013 Based on Updated COS Difference
Average
Winter
Consumption
after 85%
(HCF)
# of
Customers
Base
Charge
Consumption
Charge Total Charge Base Charge
Consumption
Charge Total Charge Dollars %
1 38 $ 13.30 $ 1.92 $ 15.22 $ 14.53 $ 2.17 $ 16.69 $ 1.47 9.7%
2 89 $ 13.30 $ 3.84 $ 17.14 $ 14.53 $ 4.33 $ 18.86 $ 1.72 10.0%
3 148 $ 13.30 $ 5.76 $ 19.06 $ 14.53 $ 6.50 $ 21.02 $ 1.96 10.3%
4 168 $ 13.30 $ 7.68 $ 20.98 $ 14.53 $ 8.66 $ 23.19 $ 2.21 10.5%
5 201 $ 13.30 $ 9.60 $ 22.90 $ 14.53 $ 10.83 $ 25.36 $ 2.46 10.7%
6 239 $ 13.30 $ 11.52 $ 24.82 $ 14.53 $ 12.99 $ 27.52 $ 2.70 10.9%
7 280 $ 13.30 $ 13.44 $ 26.74 $ 14.53 $ 15.16 $ 29.69 $ 2.95 11.0%
8 278 $ 13.30 $ 15.36 $ 28.66 $ 14.53 $ 17.33 $ 31.85 $ 3.19 11.1%
9 288 $ 13.30 $ 17.28 $ 30.58 $ 14.53 $ 19.49 $ 34.02 $ 3.44 11.2%
10 255 $ 13.30 $ 19.20 $ 32.50 $ 14.53 $ 21.66 $ 36.18 $ 3.68 11.3%
11 230 $ 13.30 $ 21.12 $ 34.42 $ 14.53 $ 23.82 $ 38.35 $ 3.93 11.4%
12 249 $ 13.30 $ 23.04 $ 36.34 $ 14.53 $ 25.99 $ 40.52 $ 4.18 11.5%
13 190 $ 13.30 $ 24.96 $ 38.26 $ 14.53 $ 28.15 $ 42.68 $ 4.42 11.6%
14 180 $ 13.30 $ 26.88 $ 40.18 $ 14.53 $ 30.32 $ 44.85 $ 4.67 11.6%
15 205 $ 13.30 $ 28.80 $ 42.10 $ 14.53 $ 32.49 $ 47.01 $ 4.91 11.7%
16 166 $ 13.30 $ 30.72 $ 44.02 $ 14.53 $ 34.65 $ 49.18 $ 5.16 11.7%
17 120 $ 13.30 $ 32.64 $ 45.94 $ 14.53 $ 36.82 $ 51.35 $ 5.41 11.8%
18 135 $ 13.30 $ 34.56 $ 47.86 $ 14.53 $ 38.98 $ 53.51 $ 5.65 11.8%
19 130 $ 13.30 $ 36.48 $ 49.78 $ 14.53 $ 41.15 $ 55.68 $ 5.90 11.8%
20 103 $ 13.30 $ 38.40 $ 51.70 $ 14.53 $ 43.32 $ 57.84 $ 6.14 11.9%
21 86 $ 13.30 $ 40.32 $ 53.62 $ 14.53 $ 45.48 $ 60.01 $ 6.39 11.9%
22 80 $ 13.30 $ 42.24 $ 55.54 $ 14.53 $ 47.65 $ 62.17 $ 6.63 11.9%
23 66 $ 13.30 $ 44.16 $ 57.46 $ 14.53 $ 49.81 $ 64.34 $ 6.88 12.0%
24 53 $ 13.30 $ 46.08 $ 59.38 $ 14.53 $ 51.98 $ 66.51 $ 7.13 12.0%
25 54 $ 13.30 $ 48.00 $ 61.30 $ 14.53 $ 54.14 $ 68.67 $ 7.37 12.0%
26 42 $ 13.30 $ 49.92 $ 63.22 $ 14.53 $ 56.31 $ 70.84 $ 7.62 12.0%
27 37 $ 13.30 $ 51.84 $ 65.14 $ 14.53 $ 58.48 $ 73.00 $ 7.86 12.1%
28 43 $ 13.30 $ 53.76 $ 67.06 $ 14.53 $ 60.64 $ 75.17 $ 8.11 12.1%
29 26 $ 13.30 $ 55.68 $ 68.98 $ 14.53 $ 62.81 $ 77.33 $ 8.35 12.1%
Cap 30 293 $ 13.30 $ 57.60 $ 70.90 $ 14.53 $ 64.97 $ 79.50 $ 8.60 12.1%
0 39 $ - $ -
Total 4511
30
Based on Cost of Service for this set of
customers
›Maintain the “low” strength per SWRCB
›Maintain 85% of winter average for flow
(January through April)
›Charge system fee based on meter size
instead of number of dwelling units
31
C U R R E N T P R O P O S E D D I F F E R E N C E
Count
Units
Meter
Size Monthly Water
Average @85%
Fixed
Charge per
DU
Fixed
Charge
Commodity
Rate
Monthly
Bill
Fixed
Charge
Commodity
Rate
Monthly
Bill Dollar %
39
20 2 84.7 $13.30 $270.09 $1.92 $432.79 $97.24 $2.17 $280.76 -$152.03 -32.9%
5
78 3 357.6 $13.30 $1,037.40 $1.92 $1,724.04 $176.23 $2.17 $950.76 -$773.28 -46.2%
6
30 4 175.5 $13.30 $394.57 $1.92 $731.58 $289.07 $2.17 $669.22 -$62.36 -9.9%
50
1,360 6,146.1 $29,888.44 $19,718.91 $ (10,169.53) -34.02%
32
Update the commercial account
methodology to current industry standards
›Eliminate the ASU calculation for commercial
accounts (removing the floor for low water
users)
›Create a system fee based on water meter size
›Maintain 85% of annual average water
consumption for the usage charge
›Update sewer strength to State Water Resources
Control Board factors
33
Current
Industry
Standard
Low Strength 1.0 1.0
Medium Strength 1.3 2.0
High Strength 3.2 4.0
-
0.500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
Low Strength Medium
Strength
High Strength
Current
Industry Standard
34
C U R R E N T P R O P O S E D D I F F E R EN C E
Customer Name Meter Size
Ave Annual
Cons @ 85% ASU ASU Rate
Monthly
Bill Fixed Charge
Commodity
Rate Monthly Bill Dollar %
1 New Alternatives, Inc. 6.00 684.96 68.31 45.30 3,094.44 571.17 2.17 2,057.53 (1,036.91) -33.5%
2 Premiere Golf Properties 1.00 289.77 34.00 45.30 1,540.20 35.18 2.17 663.99 (876.21) -56.9%
3 Kaiser Foundation 2.00 167.17 20.64 45.30 934.99 97.24 2.17 459.99 (475.00) -50.8%
4 24 Hour Fitness 2.00 211.72 21.12 45.30 956.74 97.24 2.17 556.67 (400.07) -41.8%
5 State of California 2.00 186.58 18.61 45.30 843.03 97.24 2.17 502.11 (340.92) -40.4%
6 Tesoro Refining & Marketing 1.50 109.15 13.48 45.30 610.64 63.39 2.17 300.25 (310.39) -50.8%
7 Kindercare Learning 1.50 79.62 7.94 45.30 359.68 63.39 2.17 236.16 (123.52) -34.3%
8 San Diego CA PM Group 2.00 88.83 8.86 45.30 401.36 97.24 2.17 289.99 (111.37) -27.7%
9 Rancho SD Shopping Ctr 1.50 45.26 5.59 45.30 253.23 63.39 2.17 161.61 (91.62) -36.2%
10 Children's World 1.50 59.85 5.97 45.30 270.44 63.39 2.17 193.27 (77.17) -28.5%
11 Ram Centers LLC 1.00 42.71 4.26 45.30 192.98 35.18 2.17 127.87 (65.11) -33.7%
12 Premiere Golf Properties 0.75 37.61 3.75 45.30 169.88 23.89 2.17 105.51 (64.37) -37.9%
13 Singing Hills Animal Hospital 0.75 30.10 3.00 45.30 135.90 23.89 2.17 89.22 (46.68) -34.3%
14 Southland Corp Store #13664 0.75 15.58 1.92 45.30 86.98 23.89 2.17 57.71 (29.27) -33.6%
15 El Cajon Center, Inc. 1.50 25.93 3.20 45.30 144.96 63.39 2.17 119.65 (25.31) -17.5%
16 Steele Canyon Golf Club 0.75 - 1.00 45.30 45.30 23.89 2.17 23.89 (21.41) -47.3%
17 North Island Financial Credit Union 0.75 0.07 1.00 45.30 45.30 23.89 2.17 24.04 (21.26) -46.9%
18 West FSB Citibank 1.00 23.80 2.37 45.30 107.36 35.18 2.17 86.83 (20.53) -19.1%
19 Ella Davis 0.75 2.34 1.00 45.30 45.30 23.89 2.17 28.96 (16.34) -36.1%
20 Poole Family Trust 0.75 3.33 1.00 45.30 45.30 23.89 2.17 31.11 (14.19) -31.3%
21 Ranch HOA Hillsdale 0.75 16.29 1.62 45.30 73.39 23.89 2.17 59.24 (14.15) -19.3%
22 Steele Canyon Golf 0.75 4.25 1.00 45.30 45.30 23.89 2.17 33.11 (12.19) -26.9%
23 Ella Davis 0.75 5.03 1.00 45.30 45.30 23.89 2.17 34.80 (10.50) -23.2%
24 Ranch HOA Hillsdale 0.75 6.45 1.00 45.30 45.30 23.89 2.17 37.88 (7.42) -16.4%
25 San Diego County 1.50 29.54 2.95 45.30 133.64 63.39 2.17 127.49 (6.15) -4.6%
26 Partners Data System 0.75 7.30 1.00 45.30 45.30 23.89 2.17 39.72 (5.58) -12.3%
27 County of San Diego (Park) 1.50 28.48 2.84 45.30 128.65 63.39 2.17 125.18 (3.47) -2.7%
28 RSD Hilton Head 1.50 28.40 2.83 45.30 128.20 63.39 2.17 125.03 (3.17) -2.5%
29 Scripps Clinic 2.00 42.71 4.26 45.30 192.98 97.24 2.17 189.93 (3.05) -1.6%
30 W. Village Singing Hills 0.75 8.57 1.00 45.30 45.30 23.89 2.17 42.49 (2.81) -6.2%
31 7-eleven 1.00 11.05 1.36 45.30 61.61 35.18 2.17 59.16 (2.45) -4.0%
32 Monarch Ridge 0.75 9.28 1.00 45.30 45.30 23.89 2.17 44.03 (1.27) -2.8%
33 California Bank & Trust 0.75 10.77 1.07 45.30 48.47 23.89 2.17 47.25 (1.22) -2.5%
34 Garden Water Conservation 1.00 6.23 1.00 45.30 45.30 35.18 2.17 48.71 3.41 7.5%
35 Rancho SD Shopping Ctr 2.00 37.47 3.74 45.30 169.42 97.24 2.17 178.55 9.13 5.4%
36 CA Truck School 1.50 3.12 1.00 45.30 45.30 63.39 2.17 70.15 24.85 54.9%
37 Blockbuster 1.50 6.80 1.00 45.30 45.30 63.39 2.17 78.15 32.85 72.5%
38 El Cajon Center, Inc. 1.50 8.43 1.04 45.30 47.11 63.39 2.17 81.68 34.57 73.4%
39 Probuild Holdings 1.50 8.71 1.00 45.30 45.30 63.39 2.17 82.30 37.00 81.7%
40 Ram Centers LLC 2.00 19.69 1.96 45.30 88.79 97.24 2.17 139.97 51.18 57.6%
41 Longs Drugs 2.00 19.41 1.94 45.30 87.88 97.24 2.17 139.36 51.48 58.6%
42 Avalon II Califonia IV LP 2.00 0.28 1.00 45.30 45.30 97.24 2.17 97.85 52.55 116.0%
43 Avalon II Califonia IV LP 2.00 0.92 1.00 45.30 45.30 97.24 2.17 99.24 53.94 119.1%
44 Ram Centers LLC 2.00 10.27 1.02 45.30 46.21 97.24 2.17 119.53 73.32 158.7%
2,433.83 265.65 12,033.95 2,935.74 8,217.16 (3,816.79) -31.7%
C U R R E N T P R O P O S E D D I F F E R E N C E
Customer Name
Meter
Size
Avg Annual
Cons @ 85% ASU
ASU
Rate
Monthly
Bill
Fixed
Charge
Commodity
Rate
Monthly
Bill Dollar %
1 Sycuan Resort 1.50 426.14 50.00
45.30 2,265.00 63.39 3.12 1,392.94 (872.06) -38.5%
2 Tesoro Refining & Marketing 2.00 57.38 7.08
45.30 320.72 97.24 3.12 276.25 (44.47) -13.9%
3 El Cajon Center, Inc. 1.50 41.72 5.15
45.30 233.30 63.39 3.12 193.56 (39.74) -17.0%
4 Robert L. Payne 2.00 55.18 6.81
45.30 308.49 97.24 3.12 269.40 (39.09) -12.7%
5 Aspen Gold LP 2.00 55.11 6.80
45.30 308.04 97.24 3.12 269.18 (38.86) -12.6%
6 Gold Coast Holdings SD 0.75 0.28 1.00
45.30 45.30 23.89 3.12 24.77 (20.53) -45.3%
7 Kelly Auto Works Inc 0.75 0.35 1.00
45.30 45.30 23.89 3.12 25.00 (20.30) -44.8%
8 Kelly Auto Works Inc 0.75 0.35 1.00
45.30 45.30 23.89 3.12 25.00 (20.30) -44.8%
9 Jamacha Junction, Inc 0.75 1.20 1.00
45.30 45.30 23.89 3.12 27.65 (17.65) -39.0%
10 Kroeger Family Prop. 1.50 29.11 3.59
45.30 162.63 63.39 3.12 154.22 (8.41) -5.2%
11 Rancho SD Shopping Ctr 2.00 60.56 6.04
45.30 273.61 97.24 3.12 286.20 12.59 4.6%
12 Aspen Gold LP 1.50 15.58 1.92
45.30 86.98 63.39 3.12 112.01 25.03 28.8%
13 Rancho SD Shopping Ctr 2.00 50.58 5.04
45.30 228.31 97.24 3.12 255.03 26.72 11.7%
793.55 96.43 4,368.28 835.32 40.56 3,311.21 (1,057.07) -24.2%
36
C U R R E N T P R O P O S E D D I F F E R E N C E
Customer Name Meter Size
Avg
Annual
Cons @
85% ASU
ASU
Rate
Monthly
Bill
Fixed
Charge
Commodity
Rate
Monthly
Bill Dollar %
1 Vons 2.00 198.33 43.58
45.30
1,974.17 97.24 4.97 1,082.96
(891.21) -45.1%
2 Savanna Grill 1.50 73.31 16.11
45.30
729.78 63.39 4.97 427.75
(302.03) -41.4%
3 Hot Cakes, Inc (IHOP) 1.50 60.85 13.37
45.30
605.66 63.39 4.97 365.79
(239.87) -39.6%
4 Worldwide LLC 1.50 59.71 13.12
45.30
594.34 63.39 4.97 360.16
(234.18) -39.4%
5 QSC Foods 1.50 48.52 10.66
45.30
482.90 63.39 4.97 304.54
(178.36) -36.9%
6 Steele Canyon Golf Clubhouse 2.00 42.08 9.24
45.30
418.57 97.24 4.97 306.35
(112.22) -26.8%
7 Michael Poole 0.75 3.33 1.00
45.30
45.30 23.89 4.97 40.44
(4.86) -10.7%
Total - Commercial High 486.13
4,850.72 471.93 2,887.99
(1,962.73) -40.5%
37
Eliminate the special formulas for schools
and churches based on attendance
Use Industry Standard Method
›Uses commercial low strength as the formula
System fee based on meter size
85% of average annual water usage times the
usage rate
Brings structure into current industry
standard
38
C U R R E N T P R O P O S E D D I F F E R E N C E
Customer Name Meter Size
Avg Annual
Cons @ 85% ASU
ASU
Rate
Monthly
Bill
Fixed
Charge
Commodity
Rate
Monthly
Bill Dollar %
1 Valhalla High School 3.00 355.30 88.00
45.30
3,986.40
176.23 2.17
947.23
(3,039.17) -76.2%
2 Cuyamaca College 10.00 2,176.00 147.35
45.30
6,674.96
1,304.64 2.17
6,026.56
(648.39) -9.7%
3 Grossmont Union HS District 2.00 88.40 11.76
45.30
532.73
97.24 2.17
289.07
(243.66) -45.7%
4 Grossmont Union HS District 2.00 79.90 10.70
45.30
484.71
97.24 2.17
270.62
(214.09) -44.2%
5 Cajon Valley School District 2.00 82.45 7.98
45.30
361.49
97.24 2.17
276.16
(85.33) -23.6%
6 Cajon Valley School District 2.00 181.90 8.82
45.30
399.36
97.24 2.17
491.96
92.60 23.2%
Total - Schools 2,963.95 274.61
12,439.65
1,869.83 8,301.60
(4,138.05) -33.3%
39
C U R R E N T P R O P O S E D D I F F E R E N C E
Customer Name
Meter
Size
Avg
Annual
Cons @
85% ASU ASU Rate Monthly Bill
Fixed
Charge
Commodity
Rate Monthly Bill Dollar %
1 St. Peters Chaldean Church 1.00 198.9 19.87 45.30 900.11 35.18 2.17 466.79 -433.32 -48.1%
2 Sisters Chaldean 2.00 186.15 18.56 45.30 840.77 97.24 2.17 501.19 -339.58 -40.4%
3 Foothills Methodist Church 0.75 22.1 2.19 45.30 99.21 23.89 2.17 71.85 -27.36 -27.6%
4 Church of St. Luke 2.00 7.65 1.00 45.30 45.30 97.24 2.17 113.84 68.54 151.3%
Total - Churches
414.80 41.62 1,885.39 253.55 1,153.67 (731.72) -38.81%
40
User Group No. of
Accounts
Current
Monthly Bill
Proposed
Monthly Bill
Monthly
Difference
Annual
Difference Percent
Single-Family 4,511 $157,788 $174,990 $17,202 $206,424 10.9%
Multi-Family (1,360 dwelling units) 50 $29,888 $19,719 -$10,169 -$122,028 -34.0%
Commercial
Schools 6 $12,440 $8,302 -$4,138 -$49,656 -33.3%
Churches 4 $1,885 $1,154 -$731 -$8,772 -38.8%
Low Strength 44 $12,034 $8,217 -$3,817 -$45,804 -31.7%
Medium Strength 13 $4,368 $3,311 -$1,057 -$12,684 -24.2%
High Strength 7 $4,851 $2,888 -$1,963 -$23,556 -40.5%
41
Implement immediately or phase-in
increase in fixed charge over 2 years
›Rate increase would be $2.97 or 8.2% instead
of $4.20 or 11.6%
›The Proposition 218 notice would be more
complex with a phase-in
42
Current
Bill
Phase-in
Bill
43
44
Detach and attach Improvement District
(ID) 25 to ID 20 and ID 19 to ID 22
›No purpose to retain these IDs
›The fees are identical for these customers
›This allows the District to eliminate two IDs
›Proposition 218 required to make this change
45
46
47
48