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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 01/15/2014    SPECIAL BOARD MEETING JANUARY 15, 2014 – 7:00 PM HIGHLAND CITY COUNCIL CHAMBERS 27215 BASELINE ROAD HIGHLAND, CA 92346 AMENDED AGENDA CALL TO ORDER PLEDGE OF ALLEGIANCE PUBLIC COMMENTS - At this time, members of the public may address the Board of Directors regarding any items within the subject matter jurisdiction of the East Valley Water District. The Board of Directors may BRIEFLY respond to statements made or questions posed. Comments are limited to three minutes per speaker. 1. Presentation from the City of San Bernardino Water Department regarding possible sewer treatment charge rate increase a. Public Comments 2. Oral comments from Board of Directors 3. General Manager/Staff Comments 4. Legal Counsel Report CLOSED SESSION 5. PUBLIC EMPLOYEE PERFORMANCE EVALUATION [Government Code Section 54957] Title: General Manager/CEO ADJOURN Pursuant to Government Code Section 54954.2(a), any request for a disability-related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District’s Administrative Manager at (909) 885-4900. East Valley Water District Board of Directors Meeting Sewer Treatment Rate Study: San Bernardino Municipal Water Department January 15, 2014 2 Tonight’s Presentation 1.Review of San Bernardino’s Wastewater Treatment Facilities 2.Current Rates 3.Rate Study Schedule 4.Preliminary Results 5.Question/Answer 3 33 million gallon per day Water Reclamation Facility 4 Unit 1 Primary Clarifier (within dome) and Activated Sludge System 5 RIX: 40 million gallon per day Rapid Infiltration and Extraction Facility 6 RIX: Percolation Basins, Dyna Sand Filter 7 Rate Study Schedule •Start of rate study: Fall 2013 •San Bernardino Municipal Water Department Board presentation: January 22, 2014 •City Council presentation and Proposition 218 process: Spring 2014 •Potential effective date: July 1, 2014 8 Current Sewer Treatment Rates Customer Type Rate Single-Family Residential $18.50/month Other Customers (examples)Monthly Fee + $ per hcf water use Multi-Family $2.40/unit/month + $1.25 per hcf Offices $2.40/month + $1.50 per hcf Restaurants $2.40/month + $2.70 per hcf Industrial $900/MG + $300/lb BOD + $640/lb TSS hcf = hundred cubic feet; MG = million gallons; BOD = biochemical oxygen demand TSS = total suspended solids Rates became effective January 1, 2012 9 Sewer Treatment Utility Revenues (FY 13/14 Budget) San Bernardino Rate Revenue East Valley Rate Revenue Loma Linda Rate Revenue Other Revenue Total ~ $29.3 Million 10 Sewer Treatment Utility Expenses (FY 13/14 Budget) Operation and MaintenanceCapital Projects Debt Service Total ~ $41.6 Million Expenses exceed revenues because the Department is using reserves to pay for capital 11 Changing Conditions that Affect Sewer Treatment Rates •Operation and Maintenance •Inflation; future PERS costs •Centrifuge installation reduces solids handling costs 12 Sewer Treatment Capital Needs •$82 million of proposed capital in next five years •Majority of capital is for: •Unit 1 Primary Clarifier/Aeration System Upgrade •Primary Influent Flow Equalization •Internal Combustion Engine Modifications •Completion of Phases 1 – 3 of Clean Water Factory (Phase 4, full scale construction, not included in rate study) •Rate projections: approximately 50 percent of capital is debt financed. 13 Proposed Sewer Treatment Rates •A five-year rate projection was developed •Rate proposal covers the first three years •Rate projections for years 4 and 5 are informational only •Rates fund O&M and capital, maintain reserves, and maintain Debt Service Coverage Ratio of over 1.75 14 Proposed Sewer Treatment Rates •Rates for other customers increase proportionally Effective Date Single-Family Rate, $/month Current $18.50 July 1, 2014 $20.54 July 1, 2015 $22.79 July 1, 2016 $24.16 2017 – 2018 $24.16 Information Only 15 Discussion/Questions