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HomeMy WebLinkAbout97.REVISED Item 4 PPP 03-28-2018 Board Meeting_Rate Structure_PublicOrange 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 LA C S D OR A L o m a IR W D Fr e s n o OC S D Ea s t B a y M U D Un i o n S a n i t a r y Du b l i n S a n R a m o n Sa c r a m e n t o Ci t y o f L A Ce n t r a l C o n t r a C o s t a Va l l e j o Sa n D i e g o Sa n F r a n c i s c o Do l l a r s p e r Y e a r Ha y w a r d $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 19 9 4 19 9 6 19 9 8 20 0 0 20 0 2 20 0 4 20 0 6 20 0 8 20 1 0 20 1 2 20 1 4 20 1 6 20 1 8 20 2 0 20 2 2 20 2 4 20 2 6 20 2 8 20 3 0 20 3 2 20 3 4 20 3 6 20 3 8 20 4 0 20 4 2 20 4 4 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 Current 2018 2019 2020 2021 2022 Local $0.05 $0.06 $0.07 $0.08 $0.09 $0.09 Outside $0.12 $0.14 $0.16 $0.18 $0.20 $0.22 Waste Hauler and Other Misc. Fees Comparable Agencies: •Los Angeles City –$0.06 •LA County: Carson & Pomona-$0.06/Lancaster & Santa Clarita- $0.13 •East Bay Municipal -$0.07 –Additional Charge for FOG •San Diego -$0.08 •Central Costa Sanitary District -$0.15 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