Loading...
HomeMy WebLinkAboutItem 11 PPP Ops Committee 12-06-17_Rate Program Rate Program Summary 2018 - 2023 SA N I rq Troy 2 � C LNG THE ENv\Q Preparation and Analysis 1 Rate increase assumptions of 1 %-2% were included in each of the last five budgets 2) Cashflow estimates are updated annually looking forward for a ten year period 3) Facilities Master Plan has been completed 4) Staff engaged an engineering consultant to develop an Independent Rate Study to validate financial assumptions Majority of OCSD Revenue comes from the Single Family User Fee 1) General User Fees $ 300 M 63% 2) Property Taxes $ 100 M 21% 3) Interest/Assessments $ 50 M 11% 4) Other Fees/Charges $ 25M 5% Total Fees & Charges $475 M 100% 4 � N 9 n h THE ENv\Po� Comparison of Single Family Residential Rates (July 2017) $900 93 $800 $700 L $600 L a $500 i o $400 $331 $300 log $200 $163 • $100 $0 General User Fees (63% of total revenue) Staff recommends 1 % annual increases Half of Anticipated Inflation Year 2013 2017 Proposed 2017 $339 $331 $331 2018 $347 $337 $335 2019 $355 $344 $339 2020 $364 $351 $343 2021 $372 $358 $347 2022 $382 $365 $351 9 n h cr/' TMF ENv\Po Industrial User O&M Fee High Strength Dischargers Represents $ 13M million (3% of total Revenue) Increase Rationale 1 ) Full Secondary Treatment component costs were not incorporated after the 2013 Rate Study 2) Rates increases were tied to the Single Family Rate and were not adjusted for these individual cost changes 3) Staff recommends annual increases of 1 %-4% over a five year period to minimize impacts to the users aV S MI i> 4 � N 9 n h cr/' TMF ENv\Po Capital Facilities Capacity Charge One-Time Connection Charge Represents $8M (2% of total revenue) OCSD uses a "Buy In" Methodology During expansion , OCSD used "Growth pays for Growth" However, there is much less expansion today Returning to a Buy In Methodology is now appropriate aV S MI i> 4 � N 9 n h cr/' hE ENv\Po Capital Facilities Capacity Charge Increase Rationale OCSD's Current Single Family Charge is $3855 The Current State Average is $6000 The OCSD charge will move to $5719 using a five-year phase-in approach , minimizing the impacts to the users: 2017 2018 2019 2020 2021 2022 $3855 $4228 $4601 $4973 $5346 $5719 The OCSD charge in five years will be lower than the current State Average 4 � N 9 n h cr/' THE ENv\Po Supplemental Capital Facilities Capacity Charge (SCFCC) Annual charge for exceeding established baselines Represents $2M (1 % of total revenue) Currently, there are 36 users Users would see increases of approximately 1 %-3% aV S MI i> 4 � N 9 n h cr/' THE ENv\Po Rebates and Refunds OCSD receives and processes 4000 requests annually Staff is reviewing other agencies' procedures and will make recommendations for changes to ours next month As an example, LA County Sanitation uses a flow only approach and tiers Average Flow divided Customer by Assumed Discharge Reduction 90% or Greater 0% 70% - 89% 20% 50% - 69% 30% aV S MI i> 4 � N 30% - 49% 60% r h 29% or less 80% hE EN Rebates and Refunds OCSD staff recommends using the Flow approach only Examples with a 10% flow reduction Current Methodolgy 10,000 Flow 1,000 BOD 100 TSS 1 000 100 10 9,000 Flow 900 BOD 9 TSS Proposed Methodology 10,000 Flow 1,000 BOD 100 TSS 1 000) 0) 9,000 Flow 1,000 BOD 10 TSS 4 � N 9 n Customers can request sampling if they believe the calculation 9a,cr Po � ' hE ENV is not representative of their system impact Schedule 1 ) November Steering Committee — Rate Plan Overview 2) December Operations Committee: Facilities Master Plan and Rate Plan Overview 3) December Administration Committee: Facilities Master Plan and Rate Plan Overview 4) December Board : Facilities Master Plan , Rate Study, Prop. 218 Notices 5) February 2018 — Mail Prop. 218 Notices 6) February Board — First Reading of the Ordinance ON SANI iAT/O 7) March Board — Second Reading and Adoption r p o 8 Jul 1 2018 — New Rates o into effect 9°"°rN THE EN`POr Y � g QUESTIONS 4 � N 9 n h