HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 12/10/2014Table of Contents
Water Budget Rate Update
December 10, 2014 1
Goals
CONSERVATION MEASURE
1.Encourage Conservation
2.Establish Equitable Allocation to Customer
Classes
3.Cost Recovery / Revenue Reliability
2
Outdoor
Water
Budget
Tier 2 Tier 3
P1
P2
P3
Quantity
Tier 1
Indoor
Water
Budget
Inefficient
Use
Rates
Tiered Budget Allocations
3
Collaborative Effort
•Rate Consultant
•Legal Counsel
•Tom Ash & Assoc
•Public Relations
•Board of Directors
•CEO & Administration
•Finance
•Public Affairs
•Engineering
•Water Conservation
•IT
•Customer Service
4
Proposed Calendar
•January 21st –Board Workshop
•January 28th – Schedule Public Hearing
•February 6th – Mail Prop 218 Notices
•March 25th – Public Hearing
•June 1st –Water Budget Rates Effective Date
5
Questions & Comments
1. Provide a safe and reliable water supply.
E. Transparent & Efficient Financial Management
4. District Community Involvement
B. Develop Conservation Program & Customer
Service Initiatives
3. District Resource Enhancement Efforts.
D. Enhance System Redundancy
E. System Maintenance & Modernization
6
Table of Contents
Water and Sewer Capacity Fees
December 10, 2014
1
Presentation Overview
1.Purpose of Capacity Fees
2.EVWD Capacity Fee History
3.Fee Calculation Methodologies
4.Approach and Current Calculation
5.Consultant Recommendations
6.Comparison to Surrounding Agencies
2
Purpose
•Equitable allocation of capacity expanding
upgrades to new growth
•Capacity fees pay for the cost of water and
wastewater facilities directly needed to create
capacity to serve new development
3
EVWD Capacity Fee History
•Adopted April 2001
–Water System Fee ‐$3,273
–Sewer Collection System Fee ‐$645
•Adopted April 2014
–Water system fee ‐$4,623
–Sewer collection system fee ‐$5,361
4
Fee Calculation Methodologies
Two Methodologies:
Marginal Cost /Plan‐Based Methodology – Allocates
future costs related to the District’s Capital
Improvement Plan (CIP) based on capacity provided
by improvements
Buy‐In Methodology –New development pays fair
share of existing components that have excess
capacity available
This study used a Marginal Cost / Plan Based approach
for both water and wastewater capacity fees
5
Water CIP Cost Allocation
6
Water Fee Schedules
Meter Size Harmony Other Develop.
3/4" $ 5,200 $ 4,607
1" 8,684 7,694
1 1/2" 17,316 15,343
2" 27,714 24,556
3" 51,997 46,072
4" 86,741 76,858
6" 173,165 153,434
8" 311,983 276,434
Proposed Maximum Marginal Water
Capacity Fees
7
Wastewater Cost Allocation
8
Comparison to Other Agencies
Water Fees (3/4”) Sewer Fees
West Valley WD 7,539 N/A
Cucamonga Valley WD 7,009 6,005
City of Colton 2,008
East Valley WD (Existing) 5,250/4,623 5,515/5,361
East Valley (Proposed) 5,200/4,607 5,905
Beaumont (WD/City) 10,122 3,141
Yucaipa Valley WD 13,478 8.221
City of Redlands 5,133 3,130
9
Questions & Comments
10
Table of Contents
Account Holder Policy & System Charges
December 10, 2014
11
Delinquency Rate Analysis
Owner Accounts Tenant Accounts
Total Accounts 17,909 3,351
Delinquent Accounts (1 mo.) 5,636 1,372
Disconnected Accounts (1 mo.) 22 227
Returned Checks (12 mo.) 201 215
Fraudulent Credit Cards (12 mo.) 14 12
Liens Processed 55 33
12
Account Holder Policy Change
•Transfer account into owner’s name if tenant
is disconnected for non‐payment
•Benefits
–Reduced staff time required for collection of
delinquent accounts, particularly disconnects
–Increased owner awareness of status of tenant
accounts
•Implementation
–As disconnections occur
13
System Charges – Idle Accounts
•System charge used maintain distribution and
collection systems in readiness state
•EVWD does not have fixed charge revenue
streams utilized by other purveyors
–Property taxes
–Assessments on Tax Rolls
–Readiness To Serve Charge
•Approximately 300 to 400 idle accounts at any
given time
14
Ordinance Change
Section 14.13 Water System Charge – The
system charge is the monthly availability charge
applicable to all metered services, and shall
apply whether of not premises served by the
meter are occupied
15
System Charge Policy Change
•Assess Water System and Sewer Collection
System Charges When Premises Not Occupied
•Benefits
–Equitable distribution of maintenance costs to all
properties connected to District systems
•Implementation –February 2015
–Send letters to owners potentially affected
16
Recommendation
•Adopt Water Rules and Regulations Ordinance
390
•Adopt Water Rate Resolution 2014‐32
•Adopt Sewer Regulations Ordinance 389
•Adopt Sewer Rate Ordinance 391
17