HomeMy WebLinkAboutPACKET Town Board Study Session 2015-03-10
Tuesday, March 10, 2015
TOWN BOARD 4:30 p.m. – 6:30 p.m.
STUDY SESSION Rooms 202/203
4:30 p.m. Trustee Comments & Questions.
4:40 p.m. Future Study Session Agenda Items.
(Board Discussion)
4:50 p.m. Review Draft Policy on Public Forums.
(Board Discussion)
5:15 p.m. Dinner Served.
5:30p.m. Proposed Water Rates.
(Director Bergsten & Superintendent Boles)
6:30 p.m. Meeting Adjourn.
“Informal discussion among Trustees concerning agenda items or other Town matters may occur before this
meeting at approximately 4:15 p.m.”
AGENDA
March 18, 2015
Special Study Session – Presentation
of Draft Results from NEPA Screening
Process
March 24, 2015
Amending Policy Governance 1.4, 1.6
& Policy 101
Discussion of Community Service
Grants
ULI Report Discussion
Pride Awards
How to Add an Executive Session to
the Town Board Agenda
April 14, 2015
Possibility of Joining RTD
Discussion of 5 Year Plans for
Infrastructure Projects
April 28, 2015
Discussion of Town Owned Fish
Hatchery Property
Items Approved – Unscheduled:
(Items are not in order of priority)
International Property Maintenance
Code (Dangerous Buildings Code) and
Adoption of New International Building
Code Draft Reviews
Town of Estes Park Financial Policies
Downtown Development Authority
Discussion of How to Better Involve
and Reach Out to the Hispanic
Members of the Community
Study Sessions Items for Board
Consideration:
FEMA Community Rating System
(Request for Approval to Engage
Public in Discussions About Joining
CRS Program)
Local Preference Purchasing Policy
Future Town Board Study Session Agenda Items
March 10 2015
TOWN ADMINISTRATOR Memo
To: Honorable Mayor Pinkham
Board of Trustees
From: Steve McFarland, Acting Town Administrator
Date: March 10, 2015
RE: Review of draft policy on public forums
Objective:
To provide direction for holding public outreach through public meetings and/or forums
on public policy issues.
Present Situation:
Currently there are no guidelines or policies regarding when staff may hold a public
outreach forum to gather public opinion and input on public policy issues. At previous
study sessions on 3/25/14 and 5/27/14, the board requested that staff not hold any
forums to gather public opinion on a specific issue without prior approval of the Town
Board.
Proposal (including budget if applicable):
Staff has prepared a draft policy, Policy 106, to articulate the Town Board’s official
position on holding public forums. The draft policy is attached.
Advantages:
Insures that staff and the Board of Trustees are in agreement on the need for a
forum before it is held
Avoids staff having policy discussions with the public without Trustee awareness
and consent
Clarifies what constitutes a public forum necessitating Board approval.
Disadvantages:
May result in delays to gather public input on an issue
Requested Action:
For the Board to discuss the proposed policy and its merits and to give staff direction as
to whether the Board would like to adopt a policy regarding public forums or not. If the
Board does desire to proceed, then to direct staff to either modify the policy as directed
or to bring the policy as is to a future regular board meeting for consideration.
Level of Public Interest
low
Document Title Draft 1 3/6/15
Revisions: 0 Town of Estes Park, Town Board Policies Page 1 of 2
Effective Period: until supersceeded
Review Schedule: Annually - January
Effective Date: tpd
References: Policy Governance 1.1
ADMINISTRATION
106
PUBLIC FORUMS AND MEETINGS
1. PURPOSE –
To provide direction for holding public outreach through public meetings and/or forums
on public policy issues.
This policy is only applicable to forums sponsored by the Town of Estes Park.
2. POLICY
a. For the purposes of this policy, a public forum is any meeting, forum, charette or
open house that is designed for the purpose of soliciting input and public opinion
from citizens on proposed new or revised regulations, ordinance or program of
the Town. It does not include regularly scheduled meetings or meetings with
citizens associated with existing projects, such as land use applications or
approved infrastructure projects, or any meeting designed to disseminate
information to the public.
b. Approval of the Board of Trustees is required prior to the scheduling or
promotion of any public meeting or forum as defined above.
3. PROCEDURE
a. Any staff desiring of hosting a public meeting or forum as defined in this policy
must first contact the Town Administrator and request that he/she bring the
proposal for the meeting before the full Town Board.
b. Only after receiving approval from the Town Board shall staff proceed with a
public forum on any public policy issue as defined in 2a above.
Approved:
_____________________________
Bill Pinkham, Mayor
Document Title Draft 1 3/6/15
Revisions: 0 Town of Estes Park, Town Board Policies Page 2 of 2
_____________
Date
Water Rate Study:Levelized Rate Option and RecommendationsPresented by:Cil PierceSenior Project Manager/ Financial AnalystMarch 10, 2015Estes Park Water Department
2About HDR•HDR’s Utility Management Services Group is nationally recognized as experts in financial planning and utility rate-setting–Tom Gould, National Director of Financeand Rates; Estes Rate Study TechnicalAdvisor; co-instructor of AWWA FinancialManagement Seminar; Contributing authorto the AWWA rate-setting manual•Extensive rate and fee experienceacross the U.S. and Canada–Industry utility trends and experience–HDR has completed the Town’s last two waterand electric rate studies–Numerous other small towns throughout U.S.•Dillon, Breckenridge, Canon City
3Overview of the Presentation•Review of revenue requirement and cost of service results•Review proposed rate option – Levelized Rates•Board Q & A•Receive Board direction for final proposed rates3
4Highlights of the Financial Plan Results•Sales projected at a growth rate of 0.5% –Minimal development & increased conservation•O&M expenses escalated an average of 3%/year•Two new FTE positions in 2016 & one in 2017 –Required to support pipe replacement, maintenance and regulatory compliance•Difference between growth in sales and growth in expenses creates a shortage in cash flow–Rates must be increased to eliminate the shortfall•Current capital planning is fiscally constrained–Capital projects have been deferred annually until adequate funding is available –Funding capital projects at an average of $1 million per year 2015 through 2018
5Type of MainUseful Life (years)Average AgeInventory (installed)NotesGalvanized Steel 35‐40 70 ‐ 80 ~30 miles Largest LiabilityCast Iron (brittle) 125 50 ‐ 70 ~20 miles Frequent Breaks (snaps)Ductile Iron 125 40 ‐ 50 ~50 miles Best ROIOther Capital Needs of the Department•A 75-year useful life (fully depreciated) 1.3 miles per year should be replaced, at an average cost of $150/foot = $1.0 million/year (2014$) •A 100-year life for water mains = $800,000 / year•This rate proposal moves toward funding the 100-year life main replacement schedule–Treatment projects are deferred (the 10-year Master Plan identifies approximately $11 millionin future projects to be bonded)–Supporting capital projects is necessary to maintain current levels of service
65‐Year Water Capital Improvement Plan•Projects have been prioritized through the Master Planning process•The backlog of historically deferred capital projects will require additional funding in the future
7Water Revenue Requirement Results ($000’s) 7•Rate revenue above shows revenues at existing rates–Without any rate adjustments applied; rates are inadequateto fully fund operating and capital expenses as projected$0$1,000$2,000$3,000$4,000$5,000$6,0002015 2016 2017 2018Water Revenue Requirement by CategoryChange in Working Capital(+/‐)CIP Funded Through RatesNet Debt ServiceTotal Taxes and TransfersTotal Operations &MaintenanceRate Revenue ‐ With NoIncrease$0$1,000$2,000$3,000$4,000$5,000$6,0002015 2016 2017 2018Water Revenue Requirement by CategoryChange in Working Capital(+/‐)CIP Funded Through RatesNet Debt ServiceTotal Taxes and TransfersTotal Operations &MaintenanceRate Revenue ‐ With NoIncrease
82015 2016 2017 2018Total Revenue $3,538 $3,554 $3,571 $3,588Total Expenses $3,862 $4,238 $4,654 $5,029Balance/(Deficiency) of Funds ($324) ($684) ($1,083) ($1,441) Addt'l Taxes/Franchise Fees ($20) ($42) ($66) ($88)‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐Total Balance/(Deficiency) ($344) ($725) ($1,149) ($1,529)Balance as % of Rev from Rates 9.9% 20.8% 32.7% 43.4%Proposed Rate Adjustment9.9% 9.9% 9.9% 8.0%Summary of Water Revenue Requirement ($000’s) 81•Historically, deficiencies have been met by reserves and by deferring capital projects •Prudent financial management dictates that current revenue should support current operational and capital needs, as in any business enterprise
9Reserve Balances•Recommended Capital Reserve level is Average Annual capital expenditures – or approximately $1 million/year•O&M contingency allows for unanticipated expenses, and cash flow fluctuations•Operating Reserve (90 days of O&M) is required and restricted–Not included in the above reserves$0$500$1,000$1,500$2,000$2,500$3,0002015 2016 2017 2018Water Utility Reserves ($000s)GASB 62 Reserve FundO&M Contingency FundCapital Reserve Fund$0$500$1,000$1,500$2,000$2,500$3,0002015 2016 2017 2018Water Utility Reserves ($000s)GASB 62 Reserve FundO&M Contingency FundCapital Reserve Fund
10Summary of the Water Financial PlanRevenue adjustments are necessary to fully fund projected operating and capital costs through 2018Preliminary and revised levelized results: Preferred OptionFunding of capital needs (renewal & replacement) should be increased whenever possibleTo catch up with historically deferred projectsProvides funding for improvements (redundancy, resiliency, and operational efficiency) from those customers benefitting from the systemImproves debt service coverage ratio Can begin to fund 50 miles of fully depreciated mainsMaintains prudent reserve fund balances2015 2016 2017 201811.0% 10.8% 8.0% 8.0%2015 2016 2017 20189.9% 9.9% 9.9% 8.0%
11Cost of Service ResultsEquitable allocation of costsAverage unit costsCost‐based and Equitable rates11
12Summary of Cost of Service Studies•Cost of service results reflect a snap shot in time –Trends in results provide confirmation of results•Cost of service divides expenses (costs)between the customer (service)classes. –The objective is to establish equitable rates for each service class (i.e. Residential, Commercial, Pumped Flow, Bulk Water)•The amount of bill increase is different for each customer. The bill increase depends on:–Which customer class you are in–The size of the service meter–The amount of water used12
13$0$500$1,000$1,500$2,000Residential Commercial Pumped Flow Bulk WaterProjected 2015 Revenue and Allocated ExpensesProjected Rate RevenuesAllocated Costs$0$500$1,000$1,500$2,000Residential Commercial Pumped Flow Bulk WaterProjected 2015 Revenue and Allocated ExpensesProjected Rate RevenuesAllocated CostsCost of Service Results (000’s)13•Illustrates that the commercial customer class is farthest from meeting the cost to serve it–The commercial class rate adjustment will behigher than the 9.9% overall adjustment
14Summary of Cost of Service Results•Cost differences between classes of service exist•Results are similar to the 2010 rate study’s cost of service results•Results show that adjustments are required to improve equity between classes–Pumped Flow and Bulk Water customer classes are in-line with costs and should have the overall rate adjustment applied (9.9%)–The commercial class needs to generate more revenue to be in-line with costs to provide service14
15Rate Design15
16Typical Rate Setting Goals and Objectives•Revenue sufficiency•Revenue stability•Easy to understand (customer)•Easy to administer (City)•Affordability •Economic development•Encourage efficient use of the resource•Equitable & non-discriminating (cost-based)•Legally defendableThere are always trade-offs between goals and objectives16
17Rate Design Goals and Options•Rate designs should strive to:–Increase revenue stability–Develop cost-based and equitable rates–Any change in rates should be gradual •Three rate options were developed –Option 1 – Implement AWWA meter equivalencies over a 3 year period–Option 2 – Maintain existing rate structure and apply the necessary rate adjustments–Option 3 – Option 1 but levelized across the yearsPreferred Option
18Development of Proposed Water Rates •Preferred Rate Option 3 reflects:–A transition toward cost of service results over the 3-year rate-setting period – 2015 through 2017–Levelized revenue adjustments each year•Recommend rate Option 3 - to use AWWA* meter equivalencies for the meter charges–Meter equivalency gradually increases over 3 years –Adding rate schedule for future large meters (6” & larger meters)–Increases meter (fixed) charge revenue from commercial large meter customers•Paying the equitable share of their impact on the system–Increases revenue stability•Bulk Water: Volumetric charge is increased by the overall needed rate adjustment•Maintain 60% rate differential for rural customer classes* American Water Works Association is a Nationally recognized group setting standards, best practices, performs R&D for the water industry18
19Benefits of Proposed Monthly Fixed Charges –Option 3•It is more equitable between customers–Larger meters require larger treatment plants and pipes. The monthly base charge reflects the costs of the larger infrastructure capacity required to serve them. A six inch (6”) meter customer requires 33 times greater capacity than a residential customer, therefore it is more equitable for their base charge to be 33 times higher.Meter AWWA Size Ratios5/8" 1.003/4" 1.001" 1.671-1/2" 3.332" 5.333" 10.004" 16.676" 33.338" 53.3310" 76.6719Time it take to fill an Olympic sized pool6-inch meter –11 hoursResidential3/4-inch meter –15 DAYS and 6 hours
20Benefits of Proposed Monthly Fixed Charges –Option 3•Reflects cost of service results–Provides a phased-in transition to cost of service results to facilitate customer budgeting•Improves revenue stability:–Total rate revenue shifts from 43% fixed charges in 2014 to 52% by 2018 –Residential class moves from 54% fixed revenue in 2014 to 62% fixed revenue by 2018–Improves ability to pay fixed costs with fixed revenue, whether or not customers are in Town using water20
21Residential – Monthly Bill Comparison, Option 32014 2015 2016 2017Meter Charge $21.08 $23.82 $26.92 $30.15Volumetric Charge $22.20 $22.97 $23.66 $24.37Total $43.28 $46.79 $50.58 $54.52Change N/A $3.52 $3.79 $3.94Cumulative Change N/A $3.52 $7.30 $11.24Average Residential 3/4” meter, 5,000 gallons of use/month, Option 3 0 5 10 30 50Option 3 ‐ Levelized Rates$23.82 $46.79 $69.77 $161.67 $253.56Option 2$23.17 $47.56 $71.96 $169.54 $267.12$0.00$50.00$100.00$150.00$200.00$250.00$300.00Residential (Urban) 2015 Bill Comparison ‐3/4" meter 0 5 10 30 50Option 3 ‐ Levelized Rates$23.82 $46.79 $69.77 $161.67 $253.56Option 2$23.17 $47.56 $71.96 $169.54 $267.12$0.00$50.00$100.00$150.00$200.00$250.00$300.00Residential (Urban) 2015 Bill Comparison ‐3/4" meter Average monthly bill change is $3.75 each year
22Commercial Monthly Bill Comparison, Option 32014 2015 2016 2017Meter Charge $21.08 $23.82 $26.92 $30.15Volumetric Charge $64.83 $69.75 $72.75 $75.00Total $85.90 $93.57 $99.67 $19.25Change N/A $7.66 $6.10 $5.48Cumulative Change N/A $7.66 $13.76 $19.24Average Commercial 3/4” meter, 15,000 gal of use/month, Option 30 5 15 50 75 150Option 3 ‐ Levelized Rates$23.82 $47.07 $93.57 $256.32 $372.57 $721.32Option 2$23.17 $46.91 $94.41 $260.65 $379.39 $735.61$0$100$200$300$400$500$600$700$800Commercial (Urban) 2015 Bill Comparison ‐3/4" meter0 5 15 50 75 150Option 3 ‐ Levelized Rates$23.82 $47.07 $93.57 $256.32 $372.57 $721.32Option 2$23.17 $46.91 $94.41 $260.65 $379.39 $735.61$0$100$200$300$400$500$600$700$800Commercial (Urban) 2015 Bill Comparison ‐3/4" meterAverage monthly bill change of $6.40 per year
23Pumped Flow Monthly Bill Comparison, Option 32014 2015 2016 2017Meter Charge $21.08 $23.82 $26.92 $30.15Volumetric Charge $31.09 $32.16 $33.13 $34.12Total $52.17 $55.98 $60.04 $64.27Change N/A $3.82 $4.06 $4.22Cumulative Change N/A $3.82 $7.88 $12.10Average Pumped Flow ¾” meter, 5,000 gal of use/month, Option 30 5 10 30 50 100Option 3 ‐ Levelized Rates$23.82 $55.98 $88.15 $216.80 $345.46 $667.10Option 2$23.17 $57.33 $91.50 $228.16 $364.83 $706.49$0.00$100.00$200.00$300.00$400.00$500.00$600.00$700.00$800.00Pumped Flow (Urban) 2015 Bill Comparison ‐3/4" meter 0 5 10 30 50 100Option 3 ‐ Levelized Rates$23.82 $55.98 $88.15 $216.80 $345.46 $667.10Option 2$23.17 $57.33 $91.50 $228.16 $364.83 $706.49$0.00$100.00$200.00$300.00$400.00$500.00$600.00$700.00$800.00Pumped Flow (Urban) 2015 Bill Comparison ‐3/4" meter Average monthly bill change is $4.05 per year
24Bulk Water Monthly Bill Comparison, Option 32014 2015 2016 2017Meter Charge $21.08 $23.82 $26.92 $30.15Volumetric Charge $1,242 $1,287 $1,325 $1,365Total $1,274 $1,354 $1,440 $1,526Change N/A $80.48 $85.10 $86.04Cumulative Change N/A $80.48 $165.58 $251.62Average Bulk Water 1” meter, 450,000 gal of use/month, Option 310 30 50 100 150Option 3 ‐ Levelized Rates$119.35 $222.27 $325.20 $582.51 $839.83Option 2$89.36 $198.59 $307.82 $580.89 $853.96$0.00$100.00$200.00$300.00$400.00$500.00$600.00$700.00$800.00$900.00Bulk Water (Urban) 2015 Bill Comparison ‐2" meter 10 30 50 100 150Option 3 ‐ Levelized Rates$119.35 $222.27 $325.20 $582.51 $839.83Option 2$89.36 $198.59 $307.82 $580.89 $853.96$0.00$100.00$200.00$300.00$400.00$500.00$600.00$700.00$800.00$900.00Bulk Water (Urban) 2015 Bill Comparison ‐2" meter Average monthly bill change is $83.90 per year
25Low‐income Residential Monthly Bill ComparisonEstes Park Housing Authority, 2” meter –16 Units, Option 3 at 45,000 gallons per month 2014 2015 2016 2017Meter Charge $31.62 $67.88 $114.39 $160.67Volumetric Charge $199.78 $206.77 $212.97 $219.36Total $231.40 $274.65 $327.36 $380.04Cost Per Unit $14.46 $17.17 $20.46 $23.75Change/unit N/A $2.70 $3.29 $3.29Cumulative Change/unitN/A $2.70 $5.99 $9.28Fixed revenue increasesVolumetric revenue decreasesAverage change on the monthly bill per unit is $3.10 per year
26•Each utility has unique operating characteristics and regulatory requirements•Comparisons are sometimes like apples to oranges•Similar small mountain communities, and larger nearby utilities * Pinewood Springs limits use to 6,000 gallons/month/EQR, due to their Augmentation Plan Rate Comparison –Average Residential RatesEstes Park DillonSteamboatSpringsBreckenridge Fort CollinsEagle RiverWater &SanitationDist.PinewoodSpringsWaterDistrict*@ 5,000 gallons$43.28 $50.80 $34.61 $46.81 $28.98 $42.88 $103.002015 Option 3 Rates$46.79$0.00$15.00$30.00$45.00$60.00$75.00$90.00$105.00Comparison of Local/Similar Utilities, 2014 Rates Estes Park DillonSteamboatSpringsBreckenridge Fort CollinsEagle RiverWater &SanitationDist.PinewoodSpringsWaterDistrict*@ 5,000 gallons$43.28 $50.80 $34.61 $46.81 $28.98 $42.88 $103.002015 Option 3 Rates$46.79$0.00$15.00$30.00$45.00$60.00$75.00$90.00$105.00Comparison of Local/Similar Utilities, 2014 Rates
27Recommendations•Option 3 rates are the preferred recommended rate option:–Option 3 promotes:•Revenue stability•Rate equity•System resiliency and reliability•Easier to understand and administer•Option 3 meter equivalencies are gradually implemented over a 3-year period•Option 3 rates result in lower overall residential bills–Increases some commercial bills higher than the overall annual rate adjustment•This reflects the cost of service results•Recommended rates fund the operating and capital needs, as projected–A prudent step toward funding infrastructure replacement and renewal / maintenance of current level of service and system reliability
28Next Steps28•Trustees determine if levelized rate adjustments are selected–If so, timing of rate implementation:June 1st•Present final study results atformal Board meeting 3/24/15as Public Hearing•Possible adoption of rates at 4/28/14 Board meeting•Finalize rate study report
29APPENDIX
30Option 3 Rate Schedule – Levelized RatesPresent 2015 2016 2017Proposed Rate Adj. 9.9% 9.9% 9.9%Meter ChargeAll Classes5/8" $21.08 $23.82 $26.92 $30.153/4" 21.08 23.82 26.92 30.151" 23.16 28.58 37.68 50.341-1/2" 28.14 41.68 67.29 100.382" 31.62 67.88 114.39 160.673" 72.53 119.09 201.87 301.454" 101.65 214.37 336.44 502.526" N/A 357.28 672.89 1,004.748" N/A 1,270.27 1,435.40 1,607.6510" N/A 1,826.20 2,063.61 2,311.24Volumetric Charge $/1,000 galResidentialAll consumption $4.44 $4.59 $4.73 $4.87Commercial All consumption $4.32 $4.65 $4.85 $5.00Pumped FlowAll consumption $6.22 $6.43 $6.63 $6.82Bulk WaterAll consumption $4.97 $5.15 $5.30 $5.46Option 3 - Meter Equivalencies Levelized over 3 years* Rural rates have a 60% differential *Rate Schedule
31Rate Schedule - Option 1 - Meter Equivalencies in 3 yearsPresent 2015 2016 2017Proposed Rate Adj. 11.0% 10.8% 8.0%Meter ChargeAll Classes5/8" $21.08 $23.40 $26.16 $28.643/4" 21.08 23.40 26.16 28.641" 23.16 28.08 36.62 47.831-1/2" 28.14 40.95 65.40 95.382" 31.62 66.68 111.17 152.673" 72.53 116.99 196.19 286.434" 101.65 210.58 326.98 477.486" N/A 350.96 653.96 954.688" N/A 1,247.78 1,395.02 1,527.5510" N/A 1,793.88 2,005.56 2,196.09Volumetric Charge $/1,000 galResidentialAll consumption $4.44 $4.79 $5.08 $5.21Commercial All consumption $4.32 $4.75 $5.13 $5.23Pumped FlowAll consumption $6.22 $6.71 $7.12 $7.29Bulk WaterAll consumption $4.97 $5.37 $5.69 $5.83* Rural rates have a 60% differential *Option 1 & 2 Rate SchedulesRate Schedule - Option 2 - Existing Rate Schedule AdjustedPresent 2015 2016 2017Proposed Rate Adj. 11.0% 10.8% 8.0%Meter ChargeAll Classes5/8" $21.08 $23.40 $25.92 $28.003/4" 21.08 23.40 25.92 28.001" 23.16 25.71 28.49 30.771-1/2" 28.14 31.24 34.61 37.382" 31.62 35.10 38.89 42.003" 72.53 80.51 89.20 96.344" 101.65 112.83 125.02 135.026" N/A 350.96 388.86 419.978" N/A 1,247.78 1,382.54 1,493.1510" N/A 1,793.88 1,987.62 2,146.63Volumetric Charge - $/1,000 galResidentialAll consumption $4.44 $4.93 $5.46 $5.90Commercial All consumption $4.32 $4.80 $5.32 $5.74Pumped FlowAll consumption $6.22 $6.90 $7.65 $8.26Bulk WaterAll consumption $4.97 $5.52 $6.11 $6.60* Rural rates have a 60% differential *
32Meter Volume Present ProposedSize (1,000 gal) Rates Rates $3/4"0 $23.82 $26.92 $3.101 28.41 31.65 3.233 37.60 41.11 3.515 46.79 50.58 3.797 55.98 60.04 4.0610 69.77 74.24 4.4730 161.67 168.90 7.2350 253.56 263.55 9.9960 299.51 310.88 11.3680 391.41 405.53 14.12Base ChargeMonthlyBase ChargeMonthly5/8" $23.82 5/8" $26.923/4" 23.82 3/4" 26.921" 28.58 1" 37.681-1/2" 41.68 1-1/2" 67.29Volumetric$/1,000Volumetric$/1,000All Consumption $4.59 All Consumption $4.73PROPOSED RATESPRESENT RATESDifferenceResidential (Urban) - Option 3 - Levelized RatesYear 2 (2016)Meter Volume Present ProposedSize (1,000 gal) Rates Rates $3/4"0 $21.08 $23.82 $2.741 25.52 28.41 2.903 34.40 37.60 3.215 43.28 46.79 3.527 52.16 55.98 3.8310 65.47 69.77 4.2930 154.26 161.67 7.4050 243.05 253.56 10.5160 287.45 299.51 12.0680 376.24 391.41 15.17Base ChargeMonthlyBase ChargeMonthly5/8" $21.08 5/8" $23.823/4" 21.08 3/4" 23.821" 23.16 1" 28.581-1/2" 28.14 1-1/2" 41.68Volumetric$/1,000Volumetric$/1,000All Consumption $4.44 All Consumption $4.59PROPOSED RATESPRESENT RATESYear 1 (2015)Residential (Urban) - Option 3 - Levelized RatesDifferenceResidential (Urban) 2015 & 2016 –Option 3* The overall rate adjustment in 2015 is 9.9%; overall rate change is 8% in 2017** Rural rates maintain existing 60% rate differential *Average residential usage = 5,000 gallons/month
33Meter Volume Present ProposedSize (1,000 gal) Rates Rates $3/4"0 $26.92 $30.15 $3.231 31.65 35.02 3.373 41.11 44.77 3.665 50.58 54.52 3.947 60.04 64.27 4.2210 74.24 78.89 4.6530 168.90 176.39 7.4950 263.55 273.88 10.3360 310.88 322.63 11.7580 405.53 420.12 14.59Base ChargeMonthlyBase ChargeMonthly5/8" $26.92 5/8" $30.153/4" 26.92 3/4" 30.151" 37.68 1" 50.341-1/2" 67.29 1-1/2" 100.38Volumetric$/1,000Volumetric$/1,000All Consumption $4.73 All Consumption $4.87PRESENT RATES PROPOSED RATESResidential (Urban) - Option 3 - Levelized RatesYear 3 (2017)DifferenceResidential (Urban) 2017 –Option 3* Rural rates maintain existing 60% rate differential *
340 5 10 30 50Option 3 ‐ Levelized Rates$23.82 $46.79 $69.77 $161.67 $253.56Option 2$23.17 $47.56 $71.96 $169.54 $267.12$0.00$50.00$100.00$150.00$200.00$250.00$300.00Residential (Urban) 2015 Bill Comparison ‐3/4" meter 2015 Bill Comparison – Residential (Urban) –Option 3 1,000 galAverage monthly usage
35Commercial (Urban) 2015 & 2016– Option 3•88% of commercial customers have a 3/4“ to 1” meters; 116 commercial customers have meters larger than 1-inch metersMeter Volume Present ProposedSize (1,000 gal) Rates Rates $3/4"0 $23.82 $26.92 $3.105 47.07 51.17 4.1010 70.32 75.42 5.1015 93.57 99.67 6.1020 116.82 123.92 7.1050 256.32 269.42 13.1075 372.57 390.67 18.10100 488.82 511.92 23.10125 605.07 633.17 28.10150 721.32 754.42 33.101"0 $28.58 $37.68 $9.105 51.83 61.93 10.1010 75.08 86.18 11.1015 98.33 110.43 12.1050 261.08 280.18 19.1075 377.33 401.43 24.10100 493.58 522.68 29.10150 726.08 765.18 39.10200 958.58 1,007.68 49.10250 1,191.08 1,250.18 59.10Base ChargeMonthlyBase ChargeMonthly5/8" $23.82 5/8" $26.923/4" 23.82 3/4" 26.921" 28.58 1" 37.681-1/2" 41.68 1-1/2" 67.292" 67.88 2" 114.393" 119.09 3" 201.87Volumetric$/1,000 galVolumetric$/1,000 galAll consumption $4.65 All consumption $4.85PROPOSED RATESPRESENT RATESCommercial (Urban) - Option 3 - Levelized RatesYear 2 (2016)DifferenceMeter Volume Present ProposedSize (1,000 gal) Rates Rates $3/4"0 $21.08 $23.82 $2.745 42.69 47.07 4.3810 64.30 70.32 6.0215 85.90 93.57 7.6620 107.51 116.82 9.3150 237.16 256.32 19.1675 345.21 372.57 27.36100 453.25 488.82 35.57125 561.29 605.07 43.78150 669.33 721.32 51.991"0 $23.16 $28.58 $5.425 44.77 51.83 7.0610 66.38 75.08 8.7015 87.99 98.33 10.3450 239.25 261.08 21.8375 347.29 377.33 30.04100 455.33 493.58 38.25150 671.42 726.08 54.66200 887.50 958.58 71.08250 1,103.59 1,191.08 87.49Base ChargeMonthlyBase ChargeMonthly5/8" $21.08 5/8" $23.823/4" 21.08 3/4" 23.821" 23.16 1" 28.581-1/2" 28.14 1-1/2" 41.682" 31.62 2" 67.883" 72.53 3" 119.09Volumetric$/1,000 galVolumetric$/1,000 galAll consumption $4.32 All consumption $4.65PRESENT RATES PROPOSED RATESCommercial (Urban) - Option 3 - Levelized RatesYear 1 (2015)Difference
36Commercial (Urban) 2017 –Option 3* Rural rates have a 60% differential *Meter Volume Present ProposedSize (1,000 gal) Rates Rates $3/4"0 $26.92 $30.15 $3.235 51.17 55.15 3.9810 75.42 80.15 4.7315 99.67 105.15 5.4820 123.92 130.15 6.2350 269.42 280.15 10.7375 390.67 405.15 14.48100 511.92 530.15 18.23125 633.17 655.15 21.98150 754.42 780.15 25.731"0 $37.68 $50.34 $12.665 61.93 75.34 13.4110 86.18 100.34 14.1615 110.43 125.34 14.9150 280.18 300.34 20.1675 401.43 425.34 23.91100 522.68 550.34 27.66150 765.18 800.34 35.16200 1,007.68 1,050.34 42.66250 1,250.18 1,300.34 50.16Base ChargeMonthlyBase ChargeMonthly5/8" $26.92 5/8" $30.153/4" 26.92 3/4" 30.151" 37.68 1" 50.341-1/2" 67.29 1-1/2" 100.382" 114.39 2" 160.673" 201.87 3" 301.45Volumetric$/1,000 galVolumetric$/1,000 galAll consumption $4.85 All consumption $5.00PROPOSED RATESPRESENT RATESCommercial (Urban) - Option 3 - Levelized RatesYear 3 (2017)Difference
370 5 15 50 75 150Option 3 ‐ Levelized Rates$23.82 $47.07 $93.57 $256.32 $372.57 $721.32Option 2$23.17 $46.91 $94.41 $260.65 $379.39 $735.61$0$100$200$300$400$500$600$700$800Commercial (Urban) 2015 Bill Comparison ‐3/4" meter2015 Bill Comparison ‐Commercial (Urban) –Option 31,000 gallons
38Pumped Flow (Urban) 2015 & 2016 –Option 3* Rural rates maintain existing 60% differential *Meter Volume Present ProposedSize (1,000 gal) Rates Rates $3/4"0 $21.08 $23.82 $2.741 27.30 30.25 2.963 39.73 43.12 3.395 52.17 55.98 3.827 64.60 68.85 4.2510 83.25 88.15 4.8920 145.43 152.47 7.0430 207.61 216.80 9.2050 331.96 345.46 13.5075 487.40 506.28 18.88100 642.84 667.10 24.26Base ChargeMonthlyBase ChargeMonthly3/4" $21.08 3/4" $23.821" 23.16 1" 28.581-1/2" 28.14 1-1/2" 41.68Volumetric$/1,000Volumetric$/1,000All Consumption $6.22 All Consumption $6.43PROPOSED RATESPRESENT RATESPumped Flow (Urban) - Option 3 - Levelized RatesYear 1 (2015)DifferenceMeter Volume Present ProposedSize (1,000 gal) Rates Rates $3/4"0 $23.82 $26.92 $3.101 30.25 33.54 3.293 43.12 46.79 3.685 55.98 60.04 4.067 68.85 73.30 4.4510 88.15 93.17 5.0320 152.47 159.43 6.9630 216.80 225.69 8.8950 345.46 358.21 12.7575 506.28 523.85 17.57100 667.10 689.50 22.40Base ChargeMonthlyBase ChargeMonthly3/4" $23.82 3/4" $26.921" 28.58 1" 37.681-1/2" 41.68 1-1/2" 67.29Volumetric$/1,000Volumetric$/1,000All Consumption $6.43 All Consumption $6.63PRESENT RATES PROPOSED RATESPumped Flow (Urban) - Option 3 - Levelized RatesYear 2 (2016)Difference
39Pumped Flow (Urban) 2017 –Option 3* Rural rates maintain existing 60% differential *Meter Volume Present ProposedSize (1,000 gal) Rates Rates $3/4"0 $26.92 $30.15 $3.231 33.54 36.97 3.433 46.79 50.62 3.835 60.04 64.27 4.227 73.30 77.92 4.6210 93.17 98.39 5.2220 159.43 166.64 7.2130 225.69 234.88 9.1950 358.21 371.38 13.1775 523.85 541.99 18.14100 689.50 712.61 23.11Base ChargeMonthlyBase ChargeMonthly3/4" $26.92 3/4" $30.151" 37.68 1" 50.341-1/2" 67.29 1-1/2" 100.38Volumetric$/1,000Volumetric$/1,000All Consumption $6.63 All Consumption $6.82Pumped Flow (Urban) - Option 3 - Levelized RatesYear 3 (2017)DifferencePRESENT RATES PROPOSED RATES
400 5 10 30 50 100Option 3 ‐ LevelizedRates$23.82 $55.98 $88.15 $216.80 $345.46 $667.10Option 2$23.17 $57.33 $91.50 $228.16 $364.83 $706.49$0.00$100.00$200.00$300.00$400.00$500.00$600.00$700.00$800.00Pumped Flow (Urban) 2015 Bill Comparison ‐3/4" meter 2015 Bill Comparison ‐Pumped Flow (Urban) –Option 3•Only 9 customers, or 3.5% have meters larger than 3/4- inch1,000 gallons
41Bulk Water (Urban) 2015 & 2016 –Option 3* Rural rates maintain existing 60% differential *MeterVolume Present ProposedSize (1,000 gal) Rates Rates $2"10 $81.31 $119.35 $38.0320 131.01 170.81 39.8030 180.70 222.27 41.5740 230.39 273.74 43.3450 280.09 325.20 45.1175 404.32 453.86 49.53100 528.56 582.51 53.96125 652.79 711.17 58.38150 777.03 839.83 62.80250 1,273.97 1,354.46 80.49Base ChargeMonthlyBase ChargeMonthly2" $31.62 2" $67.883" 72.53 3" 119.094" 101.65 4" 214.37Volumetric$/1,000Volumetric$/1,000All Consumption $4.97 All Consumption $5.15DifferencePRESENT RATES PROPOSED RATESBulk Water (Urban) - Option 3 - Levelized RatesYear 1 (2015)Meter Volume Present ProposedSize (1,000 gal) Rates Rates $2"10 $119.35 $167.40 48.0520 170.81 220.40 49.5930 222.27 273.41 51.1440 273.74 326.41 52.6850 325.20 379.42 54.2275 453.86 511.94 58.08100 582.51 644.45 61.94125 711.17 776.97 65.79150 839.83 909.48 69.65250 1,354.46 1,439.54 85.08Base ChargeMonthlyBase ChargeMonthly2" $67.88 2" $114.393" 119.09 3" 201.874" 214.37 4" 336.44Volumetric$/1,000Volumetric$/1,000All Consumption $5.15 All Consumption $5.30DifferencePRESENT RATES PROPOSED RATESBulk Water (Urban) - Option 3 - Levelized RatesYear 2 (2016)
42Bulk Water (Urban) 2017 –Option 3* Rural rates maintain the existing 60% rate differential *Meter Volume Present ProposedSize (1,000 gal) Rates Rates $2"10 $167.40 $215.27 $47.8720 220.40 269.87 49.4730 273.41 324.47 51.0640 326.41 379.06 52.6550 379.42 433.66 54.2475 511.94 570.15 58.22100 644.45 706.64 62.19125 776.97 843.14 66.17150 909.48 979.63 70.15250 1,439.54 1,525.60 86.06Base ChargeMonthlyBase ChargeMonthly2" $114.39 2" $160.673" 201.87 3" 301.454" 336.44 4" 502.52Volumetric$/1,000Volumetric$/1,000All Consumption $5.30 All Consumption $5.46PROPOSED RATESDifferencePRESENT RATESBulk Water (Urban) - Option 3 - Levelized RatesYear 3 (2017)
4310 30 50 100 150Option 3 ‐ LevelizedRates$119.35 $222.27 $325.20 $582.51 $839.83Option 2$89.36 $198.59 $307.82 $580.89 $853.96$0.00$100.00$200.00$300.00$400.00$500.00$600.00$700.00$800.00$900.00Bulk Water (Urban) 2015 Bill Comparison ‐2" meter 2015 Bill Comparison –Bulk Water (Urban) –Option 31,000 gallons