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Home My WebLink AboutUAC Agenda Packet 11/10/2020 fffffffft "'��f/IIIIJr��re«��i ��pp �� pu��.. CNN u��,. ��ll { H��"� j �� t �� --- ��VI��IIV��@II@III��@I ��VIIIVI�II�VII�V@�@III @II@III III�� VIII�@I V�@IIIVI�u�l ��I��I��II@III �VIIIVIIIVIIIIIVIIIVIIIVIII�VIIIIIVIIIVIIIVIII�IIVIIIVIIIVIIIVIIIVIII�IIVIIIVI�� AGENDA 1 . Call to Order and Roll Call 2 . Approve Minutes 3 . Public Comment 4. ` Hot' Items 5 . Contracts and Budgets • Cost of Service alysis (COSA) Water & Wastewater 6 . Le ' 've sues 7. lendar of Actions & Meet gs, Next Meeting January 12, 2021 9. Adjourn -- �IIVII@I��VIIIVIIIV�VIIIVIII��VIII��II@IVuuiu� IIIVI��I@II IIIVIIIVIIIV V�IVVIIIVII@II@IVl��uuiui� �I@II@III III@III I@I�VII@I��III VIIIVIIIVIII�VIII I@I VII@IIIV�@II@I��II@III III�nVIIIVIIIVI �� IIIVI��VIII�IIVII@III �IIVI �IIVII@I�VIIIVIhVIII��@III II@�@III �VII@III VIII VI��II@I VII@III lu�� (iN��I�VIIIVIII � ��VlliumVIIIVIIIVIIIumuuium� Jl� d APPROVAL OF MINUTES Approval of Minutes : September 8 , 2020 ff(((((( GIIIIIII%1 1.... .. 1I��++rr««<,,.�1/ i -- �IIVII@I��VIIIVIIIV�VIIIVIII��VIII��II@IVuuiu� IIIVI��I@II IIIVIIIVIIIV V�IVVIIIVII@II@IVl��uuiui� �I@II@III III@III I@I�VII@I��III VIIIVIIIVIII�VIII I@I VII@IIIV�@II@I��II@III III�nVIIIVIIIVI �� IIIVI��VIII�IIVII@III �IIVI �IIVII@I�VIIIVIhVIII��@III II@�@III �VII@III VIII VI��II@I VII@III lu�� (iN��I�VIIIVIII � ��VlliumVIIIVIIIVIIIumuuium� NU�UJI� d UTILITY ADVISORY COMMITTEE MEETING Virtual Meeting Port Angeles, WA 98362 September 8, 2020 / 3:00p.m 1. A. Call to Order l 1 Mayor and Chair Kate Dexter called the meeting to order at 3:00 pm. i ` B. Roll Call II 1 UAC Assigned Councilmembers Present: Mayor and Chair Kate Dexter, Councilmember Brendan Meyer, Councilmember Lindsey Schromen-Wawrin t1AC Members Present: Vice Chair William Atkinson, Mattias Jarvegren, Paul Collins 11AC Members Absent: Raj Jethwa, and Laura Dodd Staff Present: Thomas Hunter, Gregg King, Jonathan Boehme, Shailesh Shere, Marian Bodart, Sarina Carrizosa, MarySue French, Diana Bagwell, Michelle Hale, Yvette Nichols Others Present: 0 Citizens H. Approval of Minutes t Mattias J�arvegren moved to approve the July 14, 2020 minutes. William Atkinson seconded the motion. Chair Kate Dexter asked for unanimous consent, hearing no opposition, the motion carried 6-0. ill. Public Comment: None - The public is invited to provide written comments via e-mail prior to the meeting. p � v,g Members expressed concern that public comment is by email only. Kate Dexter st Bing looked at as staffing and staff training is a concern. IV. `Hot' Items: j Thomas Hunter, Director of Public Works & Utilities reported the City has issued a declaration for Stage II water shortage due to the Elwha river stream flows. It was noted that the dry weather has resulted in a historic fire hazard window. Staff will continue to monitor the water situation and impacts to the City's water supply. i ` V. Contracts and Budgets: A. Cost of Service Analysis (COSA) Water & Wastewater J Sarina Carrizosa, Finance Director, introduced MarySue French, Cost and Capital Accountant who provided an overview of the methodology and process for the 2021 and 2022 Cost Of Service Analysis (COSA) for water and wastewater rates. The methodologies approved by the UAC and City Council in 2019 have been used to calculate the preliminary rate proposals. Best practices and benchmarks are used for utility rates. The rates are set to cover the cost of the utility and compared to other utilities to make sure they are competitive. Only residential and commercial rates were reviewed. A combination of base rates are going down and variable rates going up equals minimal or no change projected rate increases. This COSA review is informational only. The schedule of rate and wastewater rates are as follows: The final model will be sent to members in mid-October for the November 10th UAC meeting presentation and t recommendations. The first reading of the ordinances will be held at the November 17 City Council meeting, followed by an Open Public Hearing. The second public reading, continuation of the Open Public Meeting and adoption of the ordinance is planned for the December 1, 2020 City Council meeting. VI. Informational Only Items: None VII. Legislative Issues: None ft y �v Ili r. Vll►. Calendar of Actions & Meetings Thomas Hunter, Director of Public Works & Utilities stated the Calendar of Actions is to f provide members notice of topics so questions could be addressed prior to the meeting. Thomas asked members to contact him via email or call with questions. 1 I.X. Next Meeting date: November 10, 2020 X. Adjournment: 4:21 pm Chair Kate Dexter Yvette Nichols, Administrative Specialist II t 1 l r, Ili r. PUBLIC COMMENT Public Comment: Comments to be submitted via e-mail during COVID Phase 2 restrictions -- �IIVII@I��VIIIVIIIV�VIIIVIII��VIII��II@IVuuiu� IIIVI��I@II IIIVIIIVIIIV V�IVVIIIVII@II@IVl��uuiui� �I@II@III III@III I@I�VII@I��III VIIIVIIIVIII�VIII I@I VII@IIIV�@II@I��II@III III�nVIIIVIIIVI �� IIIVI��VIII�IIVII@III �IIVI �IIVII@I�VIIIVIhVIII��@III II@�@III �VII@III VIII VI��II@I VII@III lu�� (iN��I�VIIIVIII � ��VlliumVIIIVIIIVIIIumuuium� �UJI� d ' HOT ' ITEMS No Hot Items «It �llalii„ljjj,��+r�r««,,,.�/� �IIVII@I��VIIIVIIIV�VIIIVIII��VIII�VIIIVIIIQIIIQI IIIVI��IIVII IIIVIIIVIIIV V�IVVIIIVII@II@IVl��uuiui� �I@II@III III@III I@I�VII@I��III VIII�VIII�VIII I@I VIIIVIIIV�IVIIIVI��IIIVIII�I�nVIIIVIIIVI �� IIIVI��IVIII�IIVIIIVIII� �IIVI �IIVIIIVI�VIIIVIhVIII��IVI�II IIIV�IVIII �VIIIVIII VIII VI��IIIVI �IIIVIII�lu�� (i��I�VIIIVIII � ��VIIIumVIIIVIIIVIIIuiiiuiiium I� UJ d CONTRACTS AND BUDGETS • Cost of Service Analysis (COSA) Water & Wastewater Presentation `v II II �b �lu �IIVII@I��VII@IIIV�VIIIVIII��VIII�VIIIVIIIQIIIQI IIIVI��I@II IIIVIIIVIIIV V�IVVIIIVII@II@IVl��uuiul� �I@II@III III@III I@I�VII@I��III VIII�VIII�VIII I@I VII@IIIV�@IIIVI��IIIVIII�III�nVIIIVIIIVI �� IIIVI��IVIII�IIVII@III �IIVI �I@IIIVI�VIIIVIhVIII��@III IIIV�@III �VIIIVIII VIII VI��IIIVI III@III lulu �(iN��I�VIIIVIII � ��VlliumVIIIVIIIVIIIumuuium I� �UJI� d Y, r I' 1D� UtilityAdvisory Com m i rvc� / ?/�i!U�+la�/�ii�!/rrtayiapiiii��i��%/(�ii�l�GinrmolW�lAall4'�'UllPilJflf�lull✓�� j UUIUGuumiuiw�ua„�r�w.. ar�`//�� `°'�IIIIIIIIII�iriion„,.,. V'b��lullulullulullulullulullulullulullulullulullulullulu1111111111111�� Nove"' I" 9 OUTLINE • Review of deliverables from September 8, 2020 • Staff reviewed the Water &Wastewater COSA's and finalized with 2021 Budget numbers and 2022 estimates • COSA Proposals and updates were sent to UAC on October 28, 2020 • Review of Changes since September 8, 2020 UAC meeting • Water &Wastewater Utility details • Revenue & Expense Trends 2018-2022 • Comparison to 2021 as previously presented • 2022 Assumptions • 2020 to 2022 rates and 2-year average Rate Recommendation for 2021 -2022 rates 10 Changes Since September 8, 2020 • Budgets for both Water & Wastewater utilities were updated • All models were updated to the preliminary 2021 budget figures published on October 9, 2020 • 2022 models have been created & reviewed • A 2-year average by utility/class has been calculated Water Rates Revenue & Expense comparison 2018-2022 2018-2022 in $000's 9/8/2020 as of as of CITY OF PORT ANGELES PREVIOUS 10/05/2020 10/05/2020 2020 Water Rates 2018 2019 Forecast 2021 COSA 2021 COSA 2022 COSA Rate Revenue Metered Water Sales - Residential 3,807.4 3,962.3 4,234.5 4,106.2 4,100.6 4,268.9 Metered Water Sales -Commercial 1,646.9 1,664.4 1,509.1 1,605.2 1,582.6 1,666.7 Metered Water Sales - Industrial - - - - - - Metered Water Sales -City Depts. 76.3 78.5 71.3 79.7 79.3 82.5 Water Sales For Resale- PIJID 294.6 384.,2 250.0 264.,9 265.4 273.,9 Water Sales/Federal/Non Taxable - - 114.0 100.0 115.0 100.0 Residential Irrigation 2.8 2.7 1.5 1.8 1.8 1.8 Commercial Irrigation 139.7 146.0 115.9 168.9 143.7 141.0 Municipal Irrigation 65.7 66.6 29.1 40.0 30.0 40.0 Irrigation non taxable (fed non tax) - - 8.8 7.5 7.5 7.5 WATER UTILITY TOTAL 6,033.5 6,304.8 6,334.2 6,374.2 6,325.9 6,582.3 Total NON Rate Revenue 422.4 915.0 532.2 546.0 546.0 546.0 Total Revenue 6,455.9 7,219.,8 6,866.4 6,920.,2 6,871.9 7,128.,3 Comments ■ Federal Non-Taxable rates started as a separate class in 2020 (previously lumped in commercial class) 12 Water Rates Revenue & Expense comparison 2018-2022 2018-2022 in $000°s 9/8/2020 as of as of CITY OF PORT ANGELES PREVIOUS 10/05/2020 10/05/2020 2020 Water Rates 2018 2019 (Forecast 2021 COSA 2021 COSA 2022 COSA Total Revenue 6,455.9 7,219.8 6,866.4 6,920.2 6,871.9 7,128.3 General Fund Utility Taxes 641.4 715.4 682.9 671.8 683.4 708.8 Costs without Taxes 5,190.5 5,823.6 5,991.3 5,954.8 5,909.8 6,129.2 taxes 641.4 715.4 682.9 671.8 683.4 708.8 266.3 302.0 280.4 277.5 279.4 291.4 less Non rate revenue (422.4) (915.0) (532.2) (546.0) (546.0) (546.0) 5,675.8 5,926.0 6,422.4 6,358.1 6,326.6 6,583.4 Rate Revenue less Costs 357.7 378.7 (88.2) 16.1 (0.7) (1.1) Rate Revenue Less Costs, No Rate Change in 2021/22 357.7 378.7 (88.2) 16.1 7.6 (249.2) Comments ■ Revenue Bond Principal payments started in 2019 - $464K ■ Repair & Maintenance costs increased in 2019 by $1 13K and in 2020 by $165K • Transfers for future capital averaged $575K 2018-2022,and will be $650K in 2021 and $725K in 2022 13 Water Rates by Expense Category • Cost allocations by major area of spending 2020 to 2022 • Treatment is aVariable expense, all the rest are in Base rates • Relatively little change in overall % between the categories Fire Customer,Distribution Treatment Protection Total Base Variable 2020 COSA 8.0% 59.4% 29.8% 2.9% 100.0% 70.2% 29.8% 2021 COSA 6.9% 60.4% 29.7% 3.0% 100.0% 70.3% 29.7% 2022 COSA 6.8% 60.8% 29.4% 3.0% 100.0% 70.6% 29.4% 14 Water Rate comparison 2021 UAC Preliminary (09/08/2020) to 2021 Current ■ The next slides Compare the 2021 Previous rates (9/8/2020) by class with the 2021 current rates ( I 0/5/2020) by class ■ Base Rates (Fixed costs) went down ■ Usage Rates (Variable costs) went up Slightly 15 WATER UTILITY One Residential Ratew disc Residential 221 Prev 2021 Rate Diffference Percent Billing Volumes Base 5/811 61252 38.35 38.27 (0.08) -0.220o 25% discount 125 28.77 28.70 (0.07) -0.23 35% Discount 350 24.93 24.87 (0.06) -0.24°l Usage Block 1 (0-1,000 cf) 3%6411971 0.01992 0.01995 0.00003 0.17% Black 2 (1,001-1,500 cf) 11939,373 0.02517 0.02522 0.00005 0.18% Block 3 (11501+) 11192,049 0.03035 0.03041 0.00006 0.19% 25/a Discount 809,121 0.01533 0.01536 0.00003 0.17% 35% Discount 21265,540 0.01329 0.01331 0.00002 0.15 ....................................................................................................................................................................................................................... .................................................. PUD 2021 Prey 2021 Rate Difference Percent Gales 71614,875 0.02701 0.02706 0.000051 0.19/ Baker Street 71272,465 0.02580 0.02585 0.000048 0.19% 16 WATER UTILITY Commercial 2021 Prev 2021 Rate DifferencePercent Base 5/811 550 41-96 41-89 (0-06) -0-15% 3/411 101 41.96 41.89 (0.06) -0.15% V1 147 73.69 73.21 (0.47) -0.64% 1.511 85 126.57 125.42 (1.15) -0.91% 211 90 190.05 188-07 (1.97) -1.04% T1 26 359.29 355.12 (4.16) -1.16% 411 11 549.69 543.07 (6.62) -1.20% 611 8 1,078.58 1,065.15 (13.44) -1.25% 81l 2 1,713.25 1,691.62 (21.63) -1.26% Usage All 28,470,734 0.02050 0.025400 0.00490 23.88% 17 WATER UTILITY Municipal 2021 Prev 2021 Rate Difference Percent Base 5/811 16 40.05 39.99 (0,05) -0.13% 3/411 3 40.05 39.99 (0,05) -0.13% ill 9 70.35 691.89 (0.45) -0.64% 1.5" 1 120.83 1191.73 (1.10) -0.91% 211 91 181.42 179.54 (1,87) -1.03% 311 2 342.99 339.02 (3,96) -1.16% 411 1 524.75 518.44 (6.31) -1.20% Usage All 1,3918,9173 0,019,574 0,019610 0,00004 0.19 Federal Noin Taxable 2021 Prev 2021 Rate Difference Percent Base 5/811 38.99 38.911 (0.08) -0.21% 3/411 38.99 38.91 (0.08) -0.21% ill 68.48 68.01 (0,48) -0.70% 1.511 117.64 116-50 (1.14) -0.97% 211 176.62 174.69 (1.93) -1.09% 311 333.92 3291.87 (4.04) -1.21% 411 510.87 504.45 (6.42) -1.26% Usage All 0.019054 0.019080 0.00003 0.14% 18 WATER UTILITY Irrigation 2021 Prey 2021 Date I Difference Percent Base 5/811 31 35.0�5 34.96 (0.08) -0.24% 3/411 7 35.05 34.96 (0.08) -0.24% 1" 20 65.34 64.87 (0.47) -0.73% 1.5" 8 11.5.84 114.70 (1.13) -0.98% 2" 1.8 176.42 174.51 (1.90) -1.08% 3" 3 337.98 334.00 (3.99) -1.18% 4" 2 51,9.75 513.41 (6.34) -1.22% Usage All 51757,331 0.019570F 0.019610 0.000040 0.20% 19 Wastewater Rates Revenue & Expense comparison 2018-2022 2018-2022 in $000's 9/8/2020 as of as of CITY OF PORT ANGELES PREVIOUS 10/05/2020 10/05/2020 2020 Wastewater rates 2018 2019 Forecast 2021 COSA 2021 COSA 2022 COSA Rate Revenue Inc) CSO Metered Sewer Services - Residential 4,806.8 4,835.6 4,637.7 4,455.8 4,427.5 4,561.3 Metered Sewer Services -Commercial 1,768.9 1,760.4 1,674.9 1,882.6 1,845.1 1,925.9 Metered Sewer Services - City Depts. 32.3 31.5 45.8 50.2 49.6 51.1 Federal non taxable - - 155.7 135.0 155.0 135.0 WASTEWATER UTILITY TOTAL 6,608.0 6,627.6 6,514.1 6,523.6 6,477.2 6,673.3 CSO 2,335.7 2,336.8 2,301.9 2,301.9 2,301.9 2,301.9 Grand Total Revenue 8,943.7 8,964.3 8,816.0 _8,825.5 8,779.1 8,975.2 Total NON Rate Revenue 688.7 861.3 801.1 713.7 713.7 713.7 Total Revenue 9,669.6 9,896.0 9,647.1 9,599.5 9,553.1 9,749.2 Comments • Federal Non Taxable rates started as a separate class in 2020 (previously lumped in commercial class) 20 Wastewater Rates Revenue & Expense comparison 2018-2022 2018-2022 in $000's 9/8/2020 as of as of CITY OF PORT ANGELES PREVIOUS 10/05/2020 10/05/2020 2020 Wastewater rates 2018 2019 Forecast 2021 COSH 2021 COSA 2022 COSA Total Revenue 9,669.6 9,896.0 9,647.1 9,599.5 9,553.1 9,749.2 General Fund Utility Taxes 967.0 919.2 970.2 947.3 957.8 977.4 Costs without Taxes WW 4,980.2 5,922.7 5,990.5 6,031.6 6,022.8 6,194.6 Costs without Taxes CSO 2,320.0 2,294.7 2,484.3 2,480.5 2,480.5 2,480.5 taxes GF 967.0 919.2 970.2 947.3 957.8 977.4 B&O 200.3 205.4 209.2 205.0 210.3 215.0 less Non rate revenue (688.7) (861.3) (801.1) (713.7) (713.7) (713.7) 7,778.7 8,480.7 8,853.1 8,950.7 8,957.7 9,153.8 Rate Revenue less Costs 1,165.1 483.6 (37.1) (125.2) (178.6) (178.6) ----------------------------------------------- Rate Revenue Less Costs, No Rate Change in 2021/22 1,165.1 483.6 (37.1) (125.2) (141.7) (337.8) Comments • Revenue Bond Principal payments started in 2019 - $500K • Repair & Maintenance costs increased in 2020 by $90K • Transfers for future capital averaged $784K 2018-2022, and will be $900K in 2021 and $950K in 2022 21 Wastewater Rates by Expense Category • Cost allocations by major area of spending 2020 to 2022 • Treatment is aVariable expense, all the rest are in Base rates • Base was 54.5% but is now closer to 50%. This lowers the Costs allocated to Base rates when compared to Variable (Usage) rates Customer Treatment Collection Total Base Variable 2020 COSA 7.3°% 45.5% 47.2% 100.0% 54.5% 45.5°% 2021 COSA 6.4% 50.1% 43.5% 100.0% 49 9% 50.1% 2022 COSA 6.3% 50.0% 43.6% 100.0% 50.0% 50.0% 22 Wastewater Rate comparison 2021 UAC Preliminary (09/08/2020) to 2021 Current ■ The next slides Compare the 2021 Prev (9/8/2020) rates by class with the 2021 current rates ( I 0/5/2020) by class ■ Base Rates (Fixed costs) went down slightly ■ Usage Rates (Variable costs) went down Slightly 23 WASTEWATER UTILITY One Base rate All Classes have Usage rates Residential 2021. Prev 2021 Rate Difference Percent BillingVolumes Average rate for ALL Pipe Sizes Base BASE 6245 31.34 31.16 (0.19) -0.59% CSO 6245 13.92 13.92 - 0.00% Subtotal 45.26 45.08 (0.19) -0.41% 25% Discount 72 23.11 22.97 (0.13) -0.58% 25% Discount CSO 72 10.26 10.26 - 0.00% 35% Discount 264 20.03 19.91 (0.12) -0.58% 35% Discount CSO 264 8.89 8.89 - 0.00% Usage Regular 41,278,552 0.04730 0.04697 (0.0003) -0.69% 25% Discount 4721791 0.03547 0.03523 (0.0002) -0.69% 35% Discount 1.17431717 0.03074 0.03053 (0.0002) -0.69% CSO - 0.01543 0.01543 - 0.00% 25% Discount 4721791 0.01137 0.01137 - 0.00% 3516 Discount 1.17431717 0.00985 0.00985 - 0.00% Total (w/o Discount) 0.06273 0.06240 (0.0003) -0.52% 24 WASTEWATER UTILITY Commercial 2021 Prev 2021, , Rate Difference I Percent � Billing Volumes Average rate, for ALL Pipe, Sizes Base BASE 969 68.83 68.05 (0.78) -1.14% �CSO 9691 13.68 1 13.68 0.00% Total 82.51 86.89 F (0.78)1 5.31% Usage Commercial 25,729,678 0.04730 0.04697 (0-0003) -0-69% CSC) 25,729,678 0.01516 1 0.01516 0.00% Total 0.06246 " 0.06214 (0.0003) -0.,52% Municipal 2021 Prev 2021, , Rate Difference I Percent Billing Volumes Base Municipal 23 81.01 79.71 (1.30) -1.60% CSO 231 13.68 1 13.68 (0.00) -0.01% Total 94.6897207 99.45 (1.30)1 5.03% Usage Municipal 610,659 0.04593 0.04544 (0.000 1.07% CSC? 610,659 0.01516 1 0.01516 0.00% Total 0.06109r 0.06060 (0.0005)1 -0.,81% 25 WASTEWATER UTILITY Base Rate Calculation 2021 Prev 2021 Rate Billing Volumes Residential Commercial Municipal Residential Commercial Municipal ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 5/811 6446 33.34 33.34 32.46 30.63 30.63 29.63 25% Discount 72 25.00 - - 22.97 - - 35% Discount 264 21.67 - - 19.91 - - 3/410 386 41.76 41.76 40.65 38.44 38.44 37.18 ill 184 58.60 58.61 57.05 54.04 54.05 52.28 1.511 86 100.71 100.72 98.05 93.06 93.07 90.02 211 91 - 151.25 147.24 - 139.89 135.31 311 26 - 286.01 278.43 - 264.75 256.09 411 11 - 437.61 426.02 - 405.22 391.97 611 8 - 858.72 - - 795.42 - 811 2 - 1,364.06 - - 1,263.65 - Total/Average 33.90 73.72 86.85 31.16 68.05 79.7 26 2022 COSA Parameters • Labor & Benefits, except medical 3.5% • Medical Benefits 10% • Everything else except below 2% • Administration/Professional Service Allocations 1 .5% • Debt Principal/Interest at current schedule • Capital funding from Utilities per approved CFP • Total change overall increase 2022 vs 2021 • Water 3.7% • Wastewater 5.4 27 Water Rates 2020 - 2022 • Comparison of Actual 2020 Rates with 2021 , 2022 COSA's and a 2-year average • Difference is Average vs Current Rate One Residential Rate-w disc Residential 2020 Rate 2021 2022 2021/22 Avg Difference7 (Percent Billing Volumes Base 5/811 6,608 38.50 38.27 39.94 39.10 MO 1.6% 25% Discount 125 28.88 28.70 29.95 29.33 0.45 1.6% 35% Discount 350 25.03 24.87 25.96 25.42 0.39 1.6% Usage Black 1 (0-1,000 cf) 39,641,971 0,01976 0.01995 0,02060 0.02028 0.00052 2.6% Black 2 (1,001-1,500 1,939,373 0.02498 0.02522 0.02603 0.02563 0.00065 2.6% Black 3 (1,501+) 1,192,049 0.03012 0.03041 0.03139 0.03090 0.00078 2.6% 25% Discount 809,121 0.01522 0.01536 0.01586 0.01561 0.00039 2.6% 35% Discount 2,265,540 0.01319 0.01331 0.01374 0.01353 0.00034 2.6% I UD 2020 Rate 2021 2022 2021/22 Avg Difference Percent Gales 7,614,875 0.02681 0.02706 0.02794 0.027500 0.00069 2.6% Baker Street 7,272,465 0,02560 0.02585 0,02668 0.026260 0.00066 2.6% 28 Water Rates 2020 - 2022 • Comparison of Actual 2020 Rates with 2021 , 2022 COSA's and a 2-year average • Difference is Average vs Current Rate commercial 2020 Rat,e----T-2021 2022 2021/22 Avg Difference Percent Base 5/811 550, 41.91 41.89 43.68 42.78 0.87 2.1% 3/411 101 41.91 41.89 43.68 42.78 0.87 2.1% lit 147 72.84 73.21 76.49 74.85 2.01 2.8% 1.5" 85 124.40 125.42 131.17 128.29 3.89 3.1% 211 90, 186.27 188.07 196.78 192.42 6.15 3.3% 311 26, 351.26 355.12 371.76 363.44 12.18 3.5% 411 11 536-88 543.07 568-60 555.84 18.96 3.5% 611 8 1,052.47 1,065.15 1,115.40 1,090.27 37.80 3.6% 811 2 1,6�71.18 1,6�91.62 1,771.56 1,731.59 60.41 3.6% Usage All 28,470,734 0.020350 0.025400 0.021200 0.020870 0.00052 2.6% 29 Water Rates 2020 - 2022 • Comparison of Actual 2020 Rates with 2021 , 2022 COSA's and a 2-year average • Difference is Average vs Current Rate Municipal 2Q2C1 Rate 2021 2022 2021/22 Avg Difference LLPercent Base 5/811 16 40�.01 39,99 41,70 40�,84 0.83 2.1% 3/411 3 40.01 39.99 4130 40�.84 0.83 2.1% ill 9 69.53 69M 7101 71.45 1.92 2.8% 1.5" 1 118,76 119,73 125,21 122,47 3.71 3.1% 211 9 177.82 179,54 187,84 183,69 5.87 3.3% 311 2 335.33 339.02 354.87 346.95 11.62 3.5% 411 1 512.53 518.44 1 542.78 1 5301.61 18.08 3.5% Usage AH 1,398,973 0D19423 0.0196101 0.0120240 0.019930 0.00051 2.6% Federal Non Taxable 2020 Rate 2021 2022 2021/22 Avg Difference Percent Base 5/811 38,95 38,91 40,58 39,75 0.80 2.1% 3/411 38,95 38,91 40,58 39,75 0.80 2.1% ill 6730 6&01 71.017 69.54 1.84 2.7% 1.5" 115.62 11650, 12L88 119.19 3.57 3.1% 211 173,12 174,69 182,85 178,77 5.65 3.3% 311 326,46 329,87 345,44 337,66 11.20 3.4% 411 498.97 5014.45 528.35 516.40 17.43 3.5% Usage All 0.0101891 01.019080, 0.01011970 01.019390 0.01750 925.4% 30 Water Rates 2020 - 2022 • Comparison of Actual 2020 Rates with 2021 , 2022 COSA's and a 2-year average • Difference is Average vs Current Rate Irrigation 2020 Rate 2021 2022 2021/22 Avg Difference Percent Base 5/811 31 35.26 34.96 36.50 35.73 0.47 1.3% 3/411 7 35.26 34.96 36.50 35.73 0.47 1.3% ill 20 64.80 64.87 67.81 66.34 1.54 2.4% 1.5" 8 114.02 114.70 120.01 117.36 3.34 2.9% 211 18 173.09 174.51 182.65 178.58 5.49 3.2% 311 3 330.59 334.00 349.68 341.84 11.25 3.4% 411 2 507.78 513.41 537.58 525.50 17.72 3.5% Usage ....................................................................... All 5,757,331 1.................................................................0.019423 ----------0.01 10 .............0.020240.... .. .. .. .. .. .-1---------0.019930 0M051 M% 31 Wastewater Rates 2020 - 2022 • Comparison of Actual 2020 Rates with 2021 , 2022 COSA's and a 2-year average • Difference is Average vs Current Rate ------------------------------------------------------------------------------------------------------- One Residential Rate-w disc Residential 2020 Rate 2021 2022 2021/22 Avg Difference Percent Billing Volumes Base Regular(avg) 6,245 33.90 31.16 32.15 31.66 (2.24) -6.6% 5/8't 5,914 33.34 30.63 31.59 31.11 (2.23) -6.7% 3/4tf 288 41.76 38.44 39.65 39.04 (2.72) -6.5% 1t[ 39 58.60 54.04 55.78 54.91 (3.69) -6.3% 1.5" 4 100.71 93.06 96.10 94.58 (6.13) -6.1% CSO All pipe sizes 13.92 13.92 13.92 13.92 0.0% 25% Discount 72 25.00 22.97 23.69 23.33 (1.67) -6.7% CSO 10.26 10.26 10.26 10.26 0.0% 35% Discount 264 21.67 19.91 20.53 20.22 (1.45) -6.7% CSO 8.89 8.89 8.89 1 8.89 - 0.0% Usage Regular 41,278,552 0,04243 0,04697 0,04834 0,04766 0.00523 12.3% CSO 0,01543 0.01543 0.01543 0.01543 - 0.0% 25% Discount 472,791 0,03183 0.03523 0.03625 0.03574 0.00391 12.3% CSO 0.01137 0.01137 0.01137 0.01137 - 0.0% 35% Discount 1,743,717 0,02759 0,03053 0,03142 0,03098 0.00339 12.3% CSO 0,00985 0.00985 0.00985 0.00985 - 0.0% 32 Wastewater Rates 2020 - 2022 • Comparison of Actual 2020 Rates with 2021 , 2022 COSA's and a 2-year average • Difference is Average vs Current Rate Commercial 2020 Rate -7 2021 -1- 2022 ] 2 1/22 Avg I Differen4-F Percent Base Avg 73.72 68.05 70.25 69.15 (4.57) -62% 5/811 33.34 30.63 31.59 31.11 (2.23) -6.7% 3/411 41.76 38.44 39.65 39.05 (2.71) -6.5% ill 5,8.61 54.05 55.78 5,4.91 (3.70) -6.3% 1,511 100.72 93.07 96.11 94.59 (6.13) -6.1% 211 151.25 139.89 144.50 142.19 (9.06) -6.0% 311 286.01 264.75 273.54 269.15 (16.86) -5.9% 411 437.61 40�5.22 418.71 411.97 (25.64) -5.9% 611 858.72 795.42 821.96 808.69 (50.03) -5 S% 811 1,364.06 1,263.65 1,305.86 1,284.76 (79.30) -5 3% CSO 13.68 13.68 13.68 13.68 ............................................................................................................................. ................................................................................... ............. Usage All 0.04243 O'.04697 O'.04834 0.04766 0.00523 12.3% CSO 0.01516 O'.01516 O'.015,16 0.01516 - 0.0% 33 Wastewater Rates 2020 - 2022 • Comparison of Actual 2020 Rates with 2021 , 2022 COSA's and a 2-year average • Difference is Average vs Current Rate Municipal 2020 Rate 2021 ]77402 2021/22 A7 Difference Percent Base Avg 86.85 79.71 82.33 81.02 (5.83) -6.7% 5/811 32.46 29.63 30.56 30.10 (2.36) -7.3% 3/411 40.65 37.18 38.37 37.77 (2.88) -7.1% VI 57.05 52.28 53.97 53.13 (3.92) -6.9% 1-511 98.05 90.02 92.99 91.50 (6.55) -6.7% 2TI 147.24 135.31 139.81 137.56 (9.68) -6.6% TI 278.43 256.09 264.66 260.37 (18.06) -6.5% 4T' 426.02 391.97 405.12 398.54 (27.48) -6.5% CSO 13.68 13.68 13.68 13.68 0.0% Usage All 0.04131 0.04544 0.04677 0.04610 o.00479 11.6% CSO 0.01516 0.01516 0.01516 0.01516 a.®% 34 Wastewater Rates 2020 - 2022 • Comparison of Actual 2020 Rates with 2021 , 2022 COSA's and a 2-year average • Difference is Average vs Current Rate Federal Non Taxable 2020 Rate 2021 2022 2021/22 Avg Difference Percent Base 5/811 29.94 27.61 28.53 28.07 (1.87) -6.2% 3/411 37.50 34.65 35.82 35.24 (2.26) -6.0% 111 52.63 48.72 50.38 49-55 (3.08) -5,.9% 1.5" 90.44 83.89 86.81 85.35 (5.09) -5.6% 211 135.82 126.10 130.51 128.31 (7.5,1) -5,.5% 311 256.82 238.65 247.07 242-86 (13.96) -5.4% 411 392.96 365.27 378.19 371.73 (21.23) -5�.4% CSO 13.00 13.00 13.00 13.00 - 0.0% Usage All 0.03810 0.04234 0.04366 0.04300 0.00490 12.9% CSO 0.01398 0.01410 0.01420 0.01420 0.00022 1.6% 35 Impact of COSA's on rates - Residential 5/8 inch line Water Residential 5/8 Line 2020 2021/22 Change % 500 cf $ 48.38 $ 49.24 $ 0.,86 1.8% 1000 cf $ 58.26 $ 59.38 $ 1.12 1.9% 1500 cf $ 70.75 $ 72.20 $ 1.45 2.0% Wastewater Residential 5/8 Line 2020 2021/22 Change % 500 cf $ 76.19 $ 76.58 $ 0.39 0.5% 1000 cf $ 105.12 $ 108.12 $ 3.00 2.9% 1500 cf $ 134.05 $ 139.67 $ 5.62 4.2% 36 Rate Recommendation • Staff recommends maintaining rates for 2021 - 2022 at the 2020 rate structure • Currently the refinancing of the Debt related to these utilities is in the process of being approved by City Council • Future year savings will result, if approved • These savings are currently unknown at this time, but should be known by the second reading of the Ordinance and approval of 2021-2022 rates 37 CLOSING REMARKS Staff will forward UAC 2021 -2022 rate recommendation to City Council for adoption NEXT STEPS Forward UAC Recommendation to City Council for NOV 10 2021 -2022 Water & Wastewater rates by class COSA Conduct the I st Reading of the Ordinances NOV Open the Public Hearing, Continue the Public 17 Hearing to December, 1 2020 COSA Conduct the 2nd Reading of Ordinances DEC Continue the Public Hearing, Consider the UAC recommendation, Adopt the Ordinances 39 QUESTIONS DISCUSSION J i/ I J art � ��1111�� 11111 llrl __ 1 1111 11 l 1 / / tr ✓.; f ,.,, � %/%% ri/////... ,,,,,i, ;, rii r /riric ter,,,,✓ 0111��1�1�11�111��1111�11111�11�1��1�� ,,/ date f Ater �iluum�,�,..._ �mminminminminminminminminmim Milli QUESTIONS Please Contact MarySue French msfrench@cityofpa.us 360-417-4615 With any question you have 42 Reference Materials from September 8 , 2020 Meeting COSA — Cost of Service Analysis Rate Setting provides for maintenance of infrastructure and delivery of service What is Cost of Service? ➢ The total annual revenue requirements to be derived from a utility to cover their total annual costs. ➢ The cost of providing service to the utility's customers must be recovered from those customers by customer class. ➢ Cost of service analysis allows the matching of rates charged to each customer group to the cost of serving them. ➢ Recovers costs from users in proportion to their use of the system, and by recognizing the impact of each class on the system facilities and operations. Why Cost of Service? ➢ Best practices encourage cost of service as the fundamental benchmark used for establishing utility rates. 44 The ➢ The methodologies approved by the UAC and City Council in 2019 have been used to calculate the preliminary rate proposals in this presentation ➢ Water Utility rates change from 2019 to 2020 ➢ New discount rates for residential customers ➢ Combined rates for all line sizes for residential customers ➢ No change in commercial structure ➢ Addition of Non-Taxable Federal rates to municipal code as a separate section ➢ Wastewater Utility rates change from 2019 to 2020 ➢ New discount rates for residential customers ➢ Eliminated Tiers (0-430cf, > 430cf) for residential customers ➢ Implemented base rates by line size for all classes ➢ Addition of Non-Taxable Federal rates to municipal code as a separate section ➢ Froze entry into Fixture rate to existing customers (16) 45 LEGISLATIVE ISSUES • None �IIVIIIVI�VIIIVIIIVIIIV�VIIIVIII��VIII�VIIINIIIQIIIQI IIIVI��IIVII IIIVIIIVIIIV VIIVVIIIVII@II@IVl��uuiui� �I@II@III VIIIVIII I@I�VII@I��III VIII�VIII�VIII I@I VIIIVIIIV�IVIIIVI�VIIIVIII�I�nNIIIVIIIVI �� IIIVIN�IVIII�IIVIIIVIII� �IIVI �IIVIIIVI�VIIIVIhVIII��IVI�II IIIVNIVIII �VIIIVIII VIII VI��IIIVI VIIIVIII�lu�� NNN�N��I�VIIIVIII � � iuid�N��muuiui� II��VJI d CALENDAR OF ACTIONS & MEETINGS 1 /12/21 - Beach Nourishment 1 /12/21 - Pavement Index 1 /12/21 - King County Franchise Case - Precedent 3/9/21 - Per- and Polyfluoroalkyl Substances (PEAS) TBD - Corp Yard Update �IIVIIIVI�VIIIVIIIVIIIV�VIIIVIII��VIII�VIIIVIIIQIIIQI IIIVI��IIVII IIIVIIIVIIIV VIIVVIIIVII@II@IVl��uuiui� �I@II@III VIIIVIII I@I�VII@I��III VIII�VIII�VIII I@I VIIIVIIIV�IVIIIVI�VIIIVIII�I�nVIIIVIIIVI �� IIIVIN�IVIII�IIVIIIVIII� �IIVI �IIVIIIVI�VIIIVIhVIII��IVI�II IIIV�IVIII �VIIIVIII VIII VI��IIIVI VIIIVIII�lu�� (i��I�VIIIVIII �I Iiu�N�f' iuuium � � 'I((�� d NEXT UAC MEETING Next UAC Meeting : January 12 , 2020 3 : 00-5 : 00 PM City Council Cha r City Hall Or virtu I as a stuati perm '�� ua-- �IIVIIIVI�VIII�IIVIIIV�VIIIVIII��VIII�VIIIVIIiuuiu� IIIVI��IIVII IIIVIIIVIIIV�IIVVIIIVII@II@IVl��uuiui� �I@II@III VIIIVIII I@I��II@I��III�IIIVIIIVIII�VIII I@I�IIVIIIV�IVIIIVI�VIIIVIII�I�nVIIIVIIIV� �� IIIVIN�IVIII�IIVIIIVIII� �IIVI �IIVIIIVI�VIII�hVIII��IVI�II IIIV�IVIII �VIIIVIII VIII ��IIIVI VIIIVIII�lu�� N��I�VIIIVIII �I Iiu�N�f' iuuium � � 'I(��C�U d h,. rtJ ioui �� N Nab�� IIIIIII�IIIIII IIIIIIII�I�I ��i�iui p�� «�fffffft "�lllll�il,�,��+r�r,�,«,,.��i �� a„,- �aN ,u„,. �.,� ��.,� � ,sqo �� N,.,,,�