HomeMy WebLinkAbout17 - Recycled Water Rate Establishment - PowerPoint (Staff)Agenda No. 17
June 10, 2014
Proposed Recycled Water
Rates
City of Newport Beach
Municipal Operations Department
Recycled Water In Our Citv
Recycled water is non - potable treated wastewater for the
purposes of irrigation.
City uses approximately 150 millions gallons per year.
Current customers include: Big Canyon and Newport Beach
Country Clubs, Our Lady Queen of Angels and Eastbluff schools,
and the City.
Water is purchased from the Orange County Water District
(OCWD) as part of the Green Acres Project.
City owns and operates two recycled water pump stations.
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Current Rates
Agreements with customers in 1996 set the Commodity Rate
(water usage fee) at 80% of the potable water rate.
City's cost to purchase potable water increases as a result of import and
groundwater costs.
City's recycled water costs increase approximately 2% per year as set by
the OCWD Board.
Staff and Customers recognize the need to study the rates. After
a competitive RFP process, City hired HF &H Consulting to
conduct recycled water rate study.
Study analyzed historical revenues, expenditures, and estimated future
costs for water purchases, maintenance and operations.
Study recommends reduction in the commodity rate and change the
structure.
Study recommends a five year rate establishment in compliance with
Prop 218.
Rate Structure
The current rates for recycled water are divided into two
components:
Fixed charge - a monthly service charge based on size of connection.
Commodity charge - a monthly (usage) charge for all customers based
on 80% of the potable water rates.
Under the proposed rate structure the recycled commodity
costs will not be linked to potable water rates. The proposed
rate structure has three components:
Fixed charge - a monthly service charge based on size of connection.
Commodity charge - a monthly (usage) charge for all customers based
on the City's cost to purchase water from OCWD.
Pump Station charge — a monthly variable (per HCF) charge for users of
recycled water pump stations based on the cost to operate, maintain,
and replace the stations.
Monthly Service Charge
Commodity Charge
I Per HCF 1 $2.46 1 $0.855 1 $0.872 1 $0.890 1 $0.907 1 $0.926 I
Pump Station Charge
Per HCF I none 1 $0.361 1 $0.368 1 $0.375 1 $0.383 1 $0391
Current
Year 1
Year 2
Year 3
Year 4
Year 5
5/8" or 3/4"
$13.82
$18.91
$19.29
$19.68
$20.07
$20.47
1"
$23.03
$31.53
$32.16
$32.80
$33.46
$34.13
1 ' /z"
$46.06
$63.05
$64.32
$65.60
$66.91
$68.25
2"
$73.70
$100.88
$102.90
$104.95
$107.05
$109.19
3"
$138.18
$189.15
$192.94
$196.80
$200.73
$204.75
4"
$230.30
$315.25
$321.56
$327.99
$334.55
$341.24
6"
$460.61
$630.50
$643.11
$655.98
$669.10
$682.48
8"
$736.98
$1,008.81
$1,028.99
$1,049.57
$1,070.56
$1,091.97
Commodity Charge
I Per HCF 1 $2.46 1 $0.855 1 $0.872 1 $0.890 1 $0.907 1 $0.926 I
Pump Station Charge
Per HCF I none 1 $0.361 1 $0.368 1 $0.375 1 $0.383 1 $0391
CITY OF NEWPORT BEACH
MUNICIPAL OPERATIONS DEPARTMENT
Proposed Recycled Water Rate Change
Notice of Public Hearing and Protest Procedure
NOTICE IS HEREBY GIVEN Me onMat 7:911 pm., s publichunngwlllbeconiLdetlinee
City Coundl Chambers at 100 Civic Center Dove, Newport Beactl. CA Ideal.
This roll We public banrybetare Me Newport Beets City Coundl to allow topic unbreony
and discessonpffepraposedrecycled water rate edjdbeenN des" Wed elfin MIS mount,
The Cty Cour el wllltakeernan and onl comments Mat will They will also cahe.dm.11
wntlen protests against Me proposed charges, determine if a majority protest lebts, and
resider resolutions to adopt Me metered water rate charge,
Ibwe FMe W.YM RaBI
Written protests mustbefiled with Me City of Newport Beam City Clark. Written pratents may
be hand delivered or malted to Me City Clark at 100 Civic Center Drove Newport Buts,
GliMmn 93983 To bevelld,.n on....I.ehapp.s nto Me proposed wales rote
maeese.Idand"llpocet law ..or. parcel number arsbeat addrdsj. and includefe
anginal signature ofthewater service customer or properly owner. Written protests may Ire
submitted up to Me conclusion of Me public tes➢m., at Me pudic learn, on %lIX
Abel POpoin 3M
In November 19% LatilomuvotersapprwedPropdAan318. AS a rdulf. Celifomb •gentle-
must comply MM Its hpuirements when afth, W14 rates. One provision reaulru tha! i
noticN public hearing on daily rates be held and that metes not to inueased its myonty al
Heeded properly owners protest Me Mchnsed rates in wndng.
Flq�Mdy AIXW Ou:9db
O. Man doom My recytled water bell pry fwR
A. Yaor Newpad Beech recycled wat"II In vers Me following alegorias costs Intl services
• The annual a in Man an it was neemorce of Me repcled water system. induding meter
reading endreptamment. overseas and administrative costs, and other agency fed.
• The mat Me City Incurs to purchase rec,cled water ham Me Orange County Water
ount"d tOCwOI.
• The pump station costs . Including: Inspections, maintenance rMWfletlan and
nplacdnen s.
O. Why do Her may reed to be adjusted?
A. Recycled water is treated wastewater provided by OCWC under Me Green Acres Pril
IGApl. GAP is a water conservation ertorl priests recypldeveter for lendsups irrigation at
pains, schools, came medians, and golf Camel
Questions?