HomeMy WebLinkAbout97.2018-03-28 PPP Item 4 - Rate Structure Public Hearing.pdfOrange County Sanitation District
Proposed Rate Structure
Jim Herberg
General Manager
March 28, 2018
We are clean water stewards
“To protect public health and the environment by
providing effective wastewater collection,
treatment, and recycling.”
Two treatment plants, 396 miles of sewer lines, and 15 pump stations. All operate around the clock
They have to be kept in good condition to prevent breakdowns,
permit violations and sewage spills.
185 million gallons of wastewater collected
by OCSD every day
100 million gallons recycled and 85
million gallons released to the ocean
every day
Produce over 60% of the power
needed by converting biogas to
electricity
500 million pounds of biosolids per year
CompletedInfrastructure Highlights
New Solids
Handling
Technologies
Digesters
Rehabilitation
Odor Control
Improvements
Power Plant
Emissions
Reductions
Sludge
Thickening
Upgrades
40 Miles of Sewer
&
2 Pump Stations
Repaired/Replaced
24 Miles of
Sewer Rehab or
Replaced
4 Primary Clarifier
Demolition &
Replacement
Effluent Pumping
Upgrades &
Refurbishment
$1 billion in capital investment over
the next 5 years
Electrical
Distribution &
Safety
Improvements
2 Pump Stations
Repaired/Replaced
How we set our rates?
•Proactive forecasting &
planning
•Facilities Master Plan
•Biosolids Master Plan
•Independent Rate Study
•Strong Financial Plan
•No new debt
•Cost Efficiencies
•AAA Bond Rating
•Revenues from user fees and
capital facility capacity
charge
•Maintain Low Rates with
Moderate Increases
Operational Efficiency
•Pension Reform will generate a savings of $37 million over 20 years
•OCSD has no Unfunded Actuarial Accrued Liability resulting in 72% decrease in OCSD’s contribution rate
•By refinancing debt, we will save
approximately $67 million
•Through chemical optimization & new contracts, we are saving about $5 million annually
•Staffing has decreased from 2009 levels
Where the Money Comes FromWhere the Money Goes
Comparison of Single Family Residential Rates(July 2017)
$163
$331
$937
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
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$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
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OCSD Outstanding Debt
OCSD has a strategic Debt program that includes no
new debt and will be paid off by 2042
Proposed Rate Schedule
1% Annual Increase = About $4 per year
Year 2017 2018 2019 2020 2021 2022
Rate $331 $335 $339 $343 $347 $351
Incr. per yr.$4 $4 $4 $4 $4
The proposed rate increase is to cover the cost of inflation on items
needed to inspect, repair, operate and maintain our $10 billion
dollars in aging infrastructure.
Industrial Users and Capital Facilities Capacity
Charges and Supplemental Charges
Industrial Users
Annual increases of 1%-4% over a five year period
Supplemental Capital Facilities Capacity Charge
Staff recommends annual increases of 1-4% over a five
year period to minimize impacts to the users
Capital Facilities Capacity Charge
The current State average for this charge is over $6,000.
OCSD recommends increasing its fee to $5,788 over a
five-year period
OCSD’s Commitment
•Fiscally Responsible
•Proposed increases less than inflation
•No Unfunded Pension Liability
•No New Debt –AAA Bond Rating
•Maximize Resource Recovery
•Rehabilitation and Replacement of our
Regional Wastewater Infrastructure