HomeMy WebLinkAbout06.a. PowerPoint Presentation - Sewer Service Charge Rate Public Hearing
R, 2017 20 PRIL A EETING M OARD B RESENTATION P EARING H
FY Embrace technology, innovation and environmental sustainability 6 OAL G Maintain a reliable infrastructure 5 OAL G workforceand innovative retain a highly trained Develop and 4 OAL
G effective water sector utilityBe a fiscally sound and 3 OAL G to meet regulatory requirements 2 OAL G Provide exceptional customer service 1 OAL G LAN P TRATEGIC S18 -2016
G Comprehensive financial assessment•Comprehensive infrastructure assessment•development programan employee Implementation of •Implementation of a public outreach program•operational
sectorindicators and metrics for measuring outcomes in every of key performance implementation Development and •XECUTION E TRATEGIC S OALS
I plantin the treatment 90.5M $invested and 156.0M $pipe for : Replaced 54 miles Ten Yeartreatment plant improvementsreplacement and $42.7M in pipe Invested $58.7M : Five Yearprojectstreatment
plant replacement and 6 miles of pipe 5 completed : Last fiscal year One YearCCOMPLISHMENTS A NFRASTRUCTURE
I M $23.3M $27.7M6.8$39.6M $35.9M $41.5M $29.1M $28M $24.8M $26.8M $2 Treatment Plant–Collection
System / TP –General Improvements / CS –Recycled Water / GI –Fiscal yearDollars15-1614-1513-1412-1311-1210-1109-1008-0907-0806-07$45.M$40.M$35.M$30.M$25.M$20.M$15.M$10.M$5.M$0.M$303.5
Million NVESTMENTS I NFRASTRUCTURE
CIP I 17-38.6M projected for FY 2016** $* In FY 12/13, bids for a large project were rejected due to high bids over project opinion of probable cost w/o FY 12/13*.yrs. 6 94.2% avgyrs.7
92.6% Projected **ISTORY H MPLEMENTATION
O environmental compliance inspectors and treatment plant maintenance staff collection system : Deployed tablets Mobile Devices•Maintenance Management System (CMMS)™, our new Computerized
CityWorkssuch as and hardware that will improve operational efficiency, software : Implementation of ManagementAsset •40 in 2016to 2002 in from a high of Reduced Overflows:Sanitary
Sewer •CCOMPLISHMENTS A PERATIONAL
F budget for four consecutive fiscal yearsMaintained a relatively flat Operation and Maintenance •Establishment of formal Reserve Policy•Completion of Cost of Service Study•Established
a new Section 115 Pension Trust •of July 2016 $78M in July 2012 to $55.8M as Decreased from –UAAL Employment Benefits (OPEB) -Other PostReduction of •December 2012 valuation to $88M
as of December 2015 in the $142.5M Decreased from –Liability (UAAL) Actuarial Accrued Pension Unfunded of Reduction •CCOMPLISHMENTS A INANCIAL
A Transparency Certificate of ExcellenceCalifornia Special Districts Association (CSDA) •Safety Program of the Plant of the Year, Public Outreach Program of the Year and Collection System
of the Year, Chapter: Francisco California Water Environment Association (CWEA) Awards •consecutive year)th(16Award Comprehensive Annual Financial Report (CAFR) •consecutive year)th
Achievement of Excellence in Procurement Award (6•Pollutant Discharge Elimination System (NPDES) Permit100% compliance with National -Platinum Award th 19National Association of Clean
Water Agencies (NACWA) •WARDS A-CCOMPLISHMENTS
I Ten Year CIPFive Year CIPTwo Year CIPOne Year CIPImprovement ProgramFuture Capital Recycled Water o Energy Recovery o Resource RecoveryHorizonRegulatory Treatment PlantSystemCollection
Comprehensive Wastewater Master Plan•PlanningTerm -Long SSESSMENT A NFRASTRUCTURE
P$107,980 $101,048 $99,201 $95,374 $99,580 $96,691 $96,325 $92,920 $40,839 $42,774 Total CIP $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $1,500 $1,500 CIP Program Contingency$2,570
$1,798 $2,798 $1,798 $4,173 $3,298 $1,943 $3,456 $2,912 $4,277 General Improvements$125 $125 $9,099 $1,647 $125 $5,771 $5,771 $1,210 $540 $460 Recycled Water$45,703 $41,985 $41,739
$38,293 $36,759 $39,440 $38,000 $35,752 $17,180 $18,492 Collection System$20,190 $20,190 $20,190 $0 $0 $0 $0 $0 $0 $0 (Digesters + FBI)Phases 2 & 3Solids Improvements $37,392 $34,950
$23,375 $51,636 $56,523 $46,182 $48,611 $50,502 $18,707 $18,045 Treatment PlantFY 26/27FY 25/26FY 24/25FY 23/24FY 22/23FY 21/22FY 20/21FY 19/20FY 18/19FY 17/18Shown in 2016 Dollars)(In
‘000 IDENTIFIEDIMPROVEMENTSOF$873M Y-10 ROPOSED
F with Cost of Service PrinciplesCompliance Review for •Funding Options•Revenue SourcesExisting •Total Revenue Requirements•CIP Costs•CostsLabor, Chemical, Electricity and Contract Waste
ServiceHousehold Hazardous o Water ServiceRecycled o Wastewater Treatment Service o ServiceCollection o CostsProgram CostsAssessment of Operational and Maintenance •Trustpayments towards
Additional o yrs-Reduction of amortization schedule to 18 o Section 115 Pension Trust Establishment of o paymentsAdditional o Pension Unfunded Liability Costs and Mitigation Measures•SSESSMENT
A INANCIAL
C 10%$12,479,356 $143,837,837 $137,287,306 $131,358,481 Total Budget 10%$97,170 $1,045,170 $980,500 $948,000 Insurance-Self 35%$1,327,512 $5,118,319 $3,819,099 $3,790,807 Debt Service
14%$5,255,633 $42,064,389 $42,774,120 $36,808,756 ConstructionSewer $5,799,041 $95,609,959 $89,713,587 $89,810,918 Maintenanceand Operations (5) = (4)/(1)Variance% (1)-(4) = (3) 17
-2016FY overIncrease(3)19 -2018FY Proposed(2)Budget 18 -FY 2017Proposed (1)Budget17 -FY 2016 REQUIREMENTSREVENUEYEAR-2 URRENT
P 95,609,960 $$89,713,587 $89,810,918 TOTAL O&M EXPENSES$1,031,330 $1,318,642 $1,801,719 Recycled Water$3,637,857 $2,919,795 $3,001,836 Pumping Stations$31,220,694 $27,022,734 $26,807,177
DepartmentPlant Operations $16,123,023 $14,156,213 $14,472,053 OperationsCollection System $17,072,212 $17,034,337 $15,899,140 Engineering$26,524,844 $27,261,866 $27,828,993 Administration
18/19 FY Proposed17/18FY ProposedBudgetAdopted FY 16/17Accounts 19-FY 2018-FY 2017 UDGET O&M B ROPOSED
P$39,893,642BudgetAmended Total $3,084,886FY’sCarry forward from past $40,839,000$42,774,000$36,808,756Totals$1,500,000$1,500,000$1,450,000CIB Contingency$540,000$460,000$500,000Recycled
Water $2,912,000$4,277,000$3,808,651General Improvements$18,707,000$18,045,000$13,125,000Treatment Plant $17,180,000$18,492,000$17,925,105Collection System 18/19 FY Proposed17/18FY
ProposedBudgetAdopted FY 16/17Program 19-FY 2018-FY 2017 UDGET B MPROVEMENTS I APITAL C ROPOSED
R CENARIOS S SSUMPTIONS A
R debt policyDevelop a •financingto address bond Fiscal Reserves –BP 017 Revise Board Policy No. •FinancingBond 115 Pension Trustfavorable variance of $3.3M to create a new Section 16
-Use FY •10 yearsin the budget $2.5M annually towards OPEB liability for next Include •be consistent with the amortization schedule for CCCERAyrs to -yrs to 18-Change the amortization
schedule of OPEB from 30•Trust existing OPEB budgeted for UAAL towards Utilize the entire $2.5M •OPEB EETING M OARD 26, 2017 B ANUARY J FROMIVEN G IRECTIONS D OFECAP
F No rate volatility over next ten years•double digit rate increasesNo •:Strategies Interest Rate: 4.5% first five years, 5% thereafter•YR term-Bonds assume 30•:Debt Service Coverage
Included for Bonds)revised for working capital(BP 017 Use targets in Financial Reserves per •CIP: $873M YR -10•% CPI3•:Capital Budget liability in new Trust Fundunfunded used 3.3M net
favorable variance of $16 -One time payment from FY •in the next ten yearsUAAL payment of $2.5M for Additional annual •Retirement (CCCERA data)•Staffing Needs Assessment Number of employees
per •provisions per individual bargaining unit MOUsBased on current •:Updated O&M Budget(RFC) May Raftelis-: Cost of Service Study Basis of Model SSUMPTIONS A ODEL MR INANCIAL
U$237K Expenses: Other •$158K Services: Professional •$47K Hauling/Disposal: •$112K Utilities: •$500K salaries: COLA (3.4% vs. 3% assumed); overall •: than AnticipatedHigher Materials
& Supplies: $104K •Self Insurance Expenses: $330K •Outside Services: $647K •Repairs & Maintenance: $80K •Chemicals: $534K •Healthcare costs; overall benefits; and capitalized salaries:
$2.1 million•: Lower than Anticipated million projected). $92.5 updated vsmillion 89.8 ($financial model previously in than assumed less 2.7 million Spending is $: 18-Updated O&M Budget
for FY 2017 OTICE 218 N ROPOSITION P INCE S INANCIALS F TOPDATES
R$480 $205 $125 $100 $50 Debt Issue (millions)85.9%6.0%6.0%6.0%6.0%6.0%6.0%7.0%7.0%7.0%7.0%Percentage Increase$873 $935 $38 $35 Partial Debt Funding (4 bonds)$2.5M pension payments,
$873 CWMP, add Updated Budget dataB-BudgetUpdated $513 $228 $125 $100 $60 Debt Issue (millions)82.5%6.0%6.0%6.0%6.0%6.0%6.0%6.5%6.5%6.5%6.5%Percentage Increase$873 $918 $35 $33 Partial
Debt Funding (4 bonds)$2.5M pension payments, $873 CWMP, add Updated Budget dataA-BudgetUpdated $513 $228 $125 $100 $60 Debt Issue (millions)85.9%6.0%6.0%6.0%6.0%6.0%6.0%7.0%7.0%7.0%7.0%Percentage
Increase$873 $935 $38 $35 Partial Debt Funding (4 bonds)add $2.5M pension paymentsJan 26, 2017 forecast data, $873 CWMP, Prop 21848.5%3.5%3.5%3.5%3.5%3.5%3.5%3.5%4.97%5.35%5.57%Percentage
Increase$413 $747 $28 $28 for Rate Setting (June 2015)16 Scenario used-Prior Year 2015ServiceCost of % increaseTotal Rate andEnding Year-10 27-202626-202525-202424-202323-202222-202121-202020-20191
9-201818-2017 dollars)(2016 (millions)10 Year CIP DescriptionIDScenario 10987654321 Annual Rate Increases D UDGET B PDATED U WITHECAP R CENARIOS S
T ROCESS P UBLIC P HE
H Ramon Valley Timespublished in Contra Costa Times and San Notices Legal -April 6 and 13, 2017•mailed to ratepayers218 Notices Proposition -March 6, 2017•Notice and approve Proposition
218 review Meeting to Board -16, 2017February •increases of 7% each direction given for two annual rate Board Meeting with -February 2, 2017•review rate scenariosto Workshop Board -26,
2017January•review revenues and expensesWorkshop to Board -November 10, 2016 •on Collection SystemBoard Workshop CWMP -October 6, 2016•on Treatment PlantBoard Workshop CWMP -June 16,
2016•Service StudyBoard approved Cost of -June 4, •ROCESS PR OFISTORY
Business 28 Orinda Way, Orinda400 Hartz Avenue, DanvilleOrinda Community CenterBuildingDanville Veteran's Memorial 6:30pm to 8:30pm6:30pm to 8:30pmWednesday, February 15, 2017Wednesday,
February 8, 2017Lamorinda AreaAreaValley -TriResidential Customer ORKSHOPS W UTREACH O UBLIC P 320 Civic Drive, Pleasant HillHill Community CenterPleasantto 10:00am8:30am , 201616Wednesday,
NovemberPleasant Hillin Stakeholders Customers
P YEARSINCREASESRATENNUAL 7% A 6, 2017 ARCH M AILED M OTICE 218 N ROPOSITION
R Residential Rates shown in dollars per residential unitAttachment 1As shown in the Proposition 218 Notice mailed to property owners and Non Residential$558 $37 $521 $34 Family Residences-Multi$576
$38 $538 $35 Single Family ResidencesAnnual SSCIncreaseAnnual SSCIncrease-FY 2108-FY 2017 majority protestnot a There was •Environmental Quality Act (CEQA)California The proposed charges
are exempt from •uncodified ordinance, which includes the following findings:proposed Upon conclusion of the public hearing, adopt the •increases for each of the next two years:consistent
with the chart below, representing 7% rate residential customers -annual SSC for residential and nonadopting a proposed uncodified ordinance increasing the and consider comment Conduct
a public hearing to receive •CTION A OARD B ECOMMENDED
Q UESTIONS
H 31%33%36%Five Years Increases85%73%68%Ten Years Increases7.1%7.0%6.8%7.3%8.4%9.2%8.8%9.6%0.0%0.0%3.7%3.8%Annual Percent Increases$ 576.00 $ 538.00 $ 503.00 $ 471.00 $ 439.00 $
405.00 $ 371.00 $ 341.00 $ 311.00 $ 311.00 $ 311.00 $ 300.00 Single Family RUE201920182017201620152014201320122011201020092008201820172016201520142013201220112010200920082007FYProposedHistori
cal NCREASES IR OFISTORY
S GENCIES AA AY 27 B ATES R HARGE C ERVICE S EWER
2016-17
AVR per SSC plus
1
SSC RankConnectionAVR
Santa Rosa$1,23927$1,239
Petaluma$1,11926$1,119
Rodeo Sanitary District$96225$66$1,028
Berkeley (EBMUD for treatment)$82024$820
Crockett Community Services District$74323$212$955
Richmond$72222$722
Oakland (EBMUD for treatment)$71721$717
Benicia$67820$678
Brentwood$66319$663
Ironhouse Sanitary District$65818$13$671
2016-17 Mean Rate of Survey$608$608
Central San Proposed FY 2018-19 Rate Increase (7%)$576$73$649
Novato Sanitary District$57317$64$637
Napa Sanitation District$55516$555
Mountain View Sanitary District$54415$27$571
Livermore$54014$540
Central San Proposed FY 2017-18 Rate Increase (7%)$538$73$611
Pittsburg (DDSD for treatment)$53013$22$552
Stege SD (EBMUD for treatment)$52112$24$545
Vallejo$52011$520
Central San$50310$73$576
Concord (CCCSD for treatment)$5029$502
Pleasanton $4648$464
Antioch (DDSD for treatment)$4827$28$510
Bay Point (DDSD for treatment)$4736$67$540
West County Wastewater District$4685$24$492
Fairfield Suisun Sanitary District$4364$436
Dublin San Ramon Services District$3823$18$400
Union Sanitary District$3802$380
Oro Loma Sanitary District$221lowest$221
(1) Annual Sewer Service Charge per Single Family Residence, or SFR.
R 6.6%$8,664,163 $140,022,644 $131,358,481 Total Budget5.0%47,400 995,400 948,000 Insurance-Self0.0%(467)3,790,340 3,790,807 Debt Service16.2%5,965,364 42,774,120 36,808,756 ConstructionSewer
3.0%$2,651,866 $92,462,784 $89,810,918 MaintenanceOperations and Variance% Budget 17 -FY 2016fromVariance Model) (Financial Projections 18 -FY 2017Budget 17 -FY 2016 ORKSHOP 26,
2017 W ANUARY J ATRESENTED P EQUIREMENTS R EVENUE