HomeMy WebLinkAboutItem No. 2 PPP 11-16-2022 Steering Committee - Rate Program Summary11/15/2022
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• Rate assumptions are included annually with each
adopted budget
• Each budget includes a ten-year cashflow estimate
• Capital Improvement Program (CIP) Master Plan was
last completed in 2017
11/15/2022
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• Staff engaged a qualified independent consulting firm,
HDR Engineering, to conduct a comprehensive cost of
service rate study to validate financial assumptions.
• HDR performed the revenue analysis to develop cost
based Regional Sewer Service Fees, Capacity
Charges and ancillary charges as well as cost
allocation amongst customer classes.
• HDR also evaluated the current rebate program and
recommended changes for better efficiency and to
simplify the process for both the customer and OC San.
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Majority of OC San Revenue comes from the
General User Fees
1)
General User Fees
$ 356.5 M
69.2%
2)
Property Taxes
$ 109.8 M
21.3%
3)
Interest/Assessments
$ 18.0 M
3.5%
4)
Other Fees/Charges
$ 31.1 M
6.0%
Total Fees & Charges $ 515.4 M 100.0%
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11/15/2022
Los Angeles County
$226
Fresno
$309
Oro Loma
$342
OC San
$347
IRWD
$357
Sacramento
$444
Hayward
$463
East Bay MUD
$475
Dublin San Ramon
$496
Union Sanitary
$530
City of Los Angeles
$636
City of San Diego
$687
Central Contra Costa
$690
Vallejo
$769
San Francixo
$1,270
200 400 600 800 1,000 1,200 1,400
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General User Fees
9', of total revenue)
Staff recommends on average
3.5% annual increases
2022 (Current)
$351
$347
$347
2023
$359
$358
$358
2024
$367
$370
$371
2025
$373
$382
$384
2026
$379
$395
$397
2027
$385
$408
$411
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11/15/2022
Industrial User O&M Fee
High Strength Dischargers
Represents $12.5M (2.4% of total revenue)
• Staff recommends annual increases of 4.7%-5.6%
over a five-year period for high strength dischargers.
CFCC
One -Time Connection Charge
Represents $12.9M (2.5% of total revenue)
Residential Capacity Charges will remain flat for
2023-24 and increase annually by the Engineering
News Record (ENR) Construction Cost Index.
Non-residential Capacity Charges will decrease by
approximately 33% in 2023-24 and then increase
annually by the ENR Construction Cost Index.
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11/15/2022
SCFCC
Annual charge for exceeding established baselines
Represents $4.3M (.8% of total revenue)
• The SCFCC is charged to high strength industrial users
who exceed standard discharge amounts.
• Currently, there are 45 industrial dischargers who are
charged the SCFCC for one or more constituents.
• These users would see increases on average of 6.3%.
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• OC San processes over 2000 rebate/refund requests annually
with an additional 1200 customers locked into a reduced charge.
• Staff and our consultant evaluated our current rebate program
• Staff recommends redesigning the program and modeling it
after LA County Sanitation Districts tiered rebate program and
moving from a 3-year lock -in to a 5-year lock -in to better serve
our customers:
Average Flow divided Customer
by Assumed Discharge Reduction
90% or Greater 0%
70% - 89% 20%
50% - 69% 30%
30% - 49% 60%
29% or less 80%
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11/15/2022
1) November Steering Committee — Rate Plan Overview
2) December Operations Committee — Rate Plan Overview
3) December Admin Committee — Rate Study and Prop. 218 Notices
4) December Board — Rate Study and Prop. 218 Notices
5) February 2023 — Mail Prop. 218 Notices
6) February Board — First Reading of the Ordinances
7) March Board — Public Hearing, Second Reading and Adoption
8) July 1, 2023 — New rate schedules go into effect
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