HomeMy WebLinkAbout06.a. Cost of Service Pricing Objectives and Staffing Needs Assessment Update6•a.
Central Contra Costa Sanitary District
DATE: August 8, 2014
TO: HONORABLE MEMBERS OF THE BOARD /
FROM: ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RAFTELIS POWERPOINT FOR AUGUST 14, 2014 BOARD MEETING
The attached PowerPoint is a draft meant to give you an idea of the intended direction for
the Cost of Service workshop that will take place at the August 14, 2014 Board meeting on
the following topic: Cost of Service Pricing Objectives and Staffing Needs Assessment
Update.
A final PowerPoint is expected to be available on the day of the meeting.
Attached Supporting Documents:
1. Draft Raftelis PowerPoint - Pricing Objectives and Staffing Update
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ro a -.A - i
Equitability (Cost of The rate structure should ensure that each customer class is contributing
Service Based
equitably towards revenue requirements based upon the costs of providing
Allocations)
service to each customer class.
Minimization of
The rate structure should be developed such that adverse rate impacts on each
Customer Impacts
customer class are minimized.
Rate Stability The rate structure should minimize dramatic rate increases or decreases over the
planning period.
Affordability The rate structure should not overly burden low volume customers.
Simple to The rate structure should be easy for District customers to understand, utilizing a
Understand and moderate level of educational tools. In addition, the rate structure should be
Explain able to be effectively maintained by District staff in future years.
Ease of The rate structure should be compatible with District's billing system. In addition,
Implementation the rate structure should allow for the continuation of existing management and
system reports.
Revenue Stability The rate structure should provide for a steady and predictable stream of
revenues to the utility under varying conditions.
Conservation The rate structure should encourage water conservation.
DRAFT
Weight
— Most Important = 4 1
— Very Important = 3
— Important = 2 � � - 211
— Least Important = 1 49 6
e Rating Rate Structures
— A+ has 4.3 point value 4 C- has 1.7 point value
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DRAFT
e Alternative Sewer Rate Structure
Residential
Fixed Only (Current Structure)
Fixed by Residential Type
Non- Residential
• Fixed Only
• Variable Only (Current Structure *)
• Fixed and Variable
*Current non - residential rates have minimum annual charge
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,- What are Capacity Fees?
- One -time capital charges assessed against new
development as a way to provide or cover a proportional
share of the costs of capital facilities constructed or to be
constructed for its use
New users should pay their proportionate
share to buy into the existing wastewater
system
• Government Code Secti
capacity fees must:
Reflect the link between
received by new custom,
Not exceed the proporti,
providing service
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New customers only pay an amount equal to the net
investment already made by existing users, based on
replacement cost less depreciation
This approach is suited for agencies that have
capacity in their system and are essentially close to
build -out
JCurr
Demand
(EC U)
Vuy;lnost
U)
13
New customers pay for additional capacity
requirements, irrespective of the value of past
investments made by existing customers
This approach is best suited for growing communities
where additional facilities are needed to
accommodate growth
Incremental
Increase in
Capacity
(EDU)
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Fi
DRAFT
Combination of Buy -In and Incremental Cost
approaches based on capacity in current
system and additional capacity needed
7Buy-ln Cost Incremental
EDU) Cost
($ / EDU)
is
Original Cost
Original Cost less Depreciation (OCLD)
Replacement Cost
Replacement Cost less Depreciation (RCLD)
-- Commonly used method
— More defensible since replacement cost recovers
the cost of replacing the capacity in current dollars
and also accounts for depreciation of the system
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Capacity fees are typically calculated based on
$ /Equivalent Dwelling Unit (EDU)
- Residential customers typically equal 1 EDU
Can differentiate between different types of residences,
e.g. SFR, MFR, Mobile Home, Condos, etc.
Non- residential customers loadings are compared
to residential customers loadings to convert to an
EDU basis
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• Project Kick -off • Staffing needs
• Recycled Water
• Benchmarking
• Project Introduction assessment
Policy Discussion
Workshop
to Board Interviews
• Staffing needs
• Validation of
• Employee Survey
assessment
Interview Findings
•COSStudy — Pricing
Interviews
Reports
Objectives Workshop
• Present COS Study
• Present
• Present
• Discuss SNA Findings
• Submit Final Study
Benchmarking Plan
Benchmarking
• Finalize COS Study
Reports
• Offsite Financial
Results
• Prepare Draft
• Rate Model Training
Planning Workshop
• COS Study Workshop
Reports
and Manual
• Present COS Study
Results
Your input is essential so
that we can understand
the challenges and help
Central San be an
innovative industry leader
and a desirable and
rewarding place to work.
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A. Employee Driven 10
B. Board driven
C. Management driven
D. Other
• Strengthen and optimize:
— Organization -wide processes,
resource allocation and
structure (governance and
administration)
— Engineering and operations
department processes,
resource allocation and
structure
• Provide the means to meet
emerging workforce support and
succession management needs
Q\0,¢
OF ��
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Do the Organizational Structure and Primary
Workflows Provide -- ?
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Profetting Puhbc Health and the Environment
1. What three words would you use to describe Central San's work culture? Please use single words for each response.
it
C _
2. Since you've been at Central San, what accomplishmendtasklaward are you most proud of?
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-There are always areas of opportunity to improve.
We do not look at individual performance and no one is "at
fault."
W This is neither a time and motion study, nor a compensation
study.
This is all about looking for improvement opportunities to
support organizational performance and make it easier to do
work and /or reduce risk to the District and staff.
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