2018/01/30 Water/Wastewater Issues Committee Agenda Packet CITY OF ROHNERT PARK
WATER/WASTEWATER ISSUES COMMITTEE
MEETING AGENDA
Tuesday, January 30, 2018
10:30 a.m. – 11:30 a.m.
MEETING LOCATION: City Hall- Council Chamber
130 Avram Avenue, Rohnert Park, CA 94928
PUBLIC COMMENTS: For public comment on items listed or not listed on the agenda, or on agenda items if
unable to speak at the scheduled time.
If you wish to speak regarding a scheduled agenda item, you may do so upon recognition from the
Chairperson. After receiving recognition from the Chairperson, please walk to the rostrum located in the
front and center of the room and state your name and address for the record before making your presentation.
ANNOUNCEMENT: Please turn off all pagers, cellular telephones and all other communication devices
upon entering the meeting room. Thank you for your cooperation.
1. Call to Order
Committee Members: Gina Belforte, Councilmember
Jake Mackenzie, Councilmember
Staff Members: Darrin Jenkins, City Manager
Betsy Howze, Director of Finance
Mary Grace Pawson, Director of Development Services
John McArthur, Director of Public Works & Community Services
2. Public Comments
Persons wishing to address the Committee on any item or on City business not listed on the
Agenda may do so at this time upon recognition from the Chairperson.
3. Sewer Fund Financial Plan
4. Staff Updates
5. Schedule Next Meeting
6. Adjournment
DISABLED ACCOMMODATIONS: If you have a disability which requires an interpreter or other person to assist you while
attending this meeting, please contact the City Offices at (707) 588-2227 at least 72 hours prior to the meeting to insure
arrangements for accommodation by the City. Please make sure City Administration staff is notified as soon as possible if you
have a visual impairment that requires the meeting materials be produced in another format (Braille, audio -tape, etc.).
CERTIFICATION OF POSTING OF AGENDA
I, Caitlin Saldanha, Deputy City Clerk of the City of Rohnert Park, declare that the foregoing agenda for the January 30, 2018,
meeting of the Water/Wastewater Committee was posted and available for review on January 25, 2018, at Rohnert Park City
Hall, Community Center, Public Safety Main Building, and Public Library. The agenda is also available o n the City web site at
www.rpcity.org.
Executed this 25th of January, 2018, in Rohnert Park, California.
/s/ Caitlin Saldanha, Deputy City Clerk
1
RRRRRR 1
City of Rohnert Park
Water/Wastewater Issues Standing Committee
Sewer Rate Study
January 30, 2018
The Reed Group, Inc.
RRRRRR 2
Study Setting
Ø First sewer rate study update since 2011
l Sewer rates last adjusted in January 2015
Ø Financial condition of sewer utility:
l Sewer rate revenues have been affected by
recent drought
l Subregional costs represent about 75% of City’s
O&M expenses
•Uncertainty regarding future subregional costs
l Healthy balance in sewer operation fund
l Increased rate-based funding needed for capital
improvement program
2
RRRRRR 3
Current
Sewer
Rates
Current (1)
Single Family Residential (2)
Monthly Base Charge 9.40$
Flow Charge ($/gal.) (3)0.01094$
Multi-Family and Non-Residential Customers
Monthly Base Charge
Up to 3/4" meter 25.30$
1" meter 38.71$
1 1/2" meter 71.96$
2" meter 112.01$
3" meter 205.54$
4" meter 339.12$
6" meter 672.77$
8" meter 1,073.32$
Flow Charge ($/gal.) (3)
Multi-Family Residential 0.01094$
Non-Residential
Low Strength 0.01142$
Medium Strength 0.01533$
High Strength 0.02308$
Notes:
(1) Effective January 1, 2015 per Ordinance 837.
(2) Individual dwelling units with individual city-owned meters shall be categorized
as single family residential customers. Multi-family units with master meters
shall be charged as multi-family residential.
(3) Flow charges are determined based on gallons of flow. For residential customers,
sewer flow is based on the lower of actual monthly water use or the average water
use during the prior December-February period. Non-residential sewer flow is
estimated to be equal to monthly water usage.
RRRRRR 4
Financial Plan Model
SEWER DEBT
SERVICE FUND
(233)
Debt.
Service
Sewer Rates
SEWER
OPERATING
FUND (510)
O & M
Expenses
Other
Operating
Revenue
Subregional
Expenses
Oper. Reserve
& Rate Stab.
Rsrv.
Captial
Preservation
Charge (1)
SEWER
CAPITAL FUND
(540)
Preservation
Projects
Notes:
(1) Proposed new charge.
3
RRRRRR 5
Reserve Policy Recommendations
Ø Establish and maintain on operating reserve
in the sewer operating fund with a minimum
balance of 50% of annual O&M expenses,
including debt service
Ø Establish and maintain a rate stabilization
reserve, as permitted by bond documents,
with a target balance of $1.5 million
Ø Maintain a sewer capital fund balance
sufficient to adequately fund the capital
improvement program
RRRRRR 6
FY 17-18 Revenues and Expenses
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Revenues Expenses
Sewer Rate Revenues Other Oper. Revenue Subregional Costs
Other O&M Costs Debt Service Preservation Projects
Unfunded Preserv. Proj.
4
RRRRRR 7
Capital Preservation Projects
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
FY 17-
18
FY 18-
19
FY 19-
20
FY 20-
21
FY 21-
22
FY 22-
23
FY 23-
24
FY 24-
25
FY 25-
26
FY 26-
27
RRRRRR 8
Recommended Financial Strategy
Ø Annually adjustment general sewer rates
by 3 percent per year
Ø Adopt and gradually implement a monthly
capital preservation charge
l Similar to charge adopted for water utility in
2017
Ø Adopt reserve policy recommendations
5
RRRRRR 9
Operating Fund Summary
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
FY
1
6
-
1
7
FY
1
7
-
1
8
FY
1
8
-
1
9
FY
1
9
-
2
0
FY
2
0
-
2
1
FY
2
1
-
2
2
FY
2
2
-
2
3
FY
2
3
-
2
4
FY
2
4
-
2
5
FY
2
5
-
2
6
FY
2
6
-
2
7
Subregional Expenses Collect. Syst. O&M
Debt Service Capital Program Transfers
Operating Revenues Rate Stabilization Reserve
Min. Target Oper. Reserve Year-End Oper. Fund Bal.
RRRRRR 10
Capital Fund Summary
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
FY
1
6
-
1
7
FY
1
7
-
1
8
FY
1
8
-
1
9
FY
1
9
-
2
0
FY
2
0
-
2
1
FY
2
1
-
2
2
FY
2
2
-
2
3
FY
2
3
-
2
4
FY
2
4
-
2
5
FY
2
5
-
2
6
FY
2
6
-
2
7
Preservation Projects
Capital Preservation Charges
Operating Fund Trans. to CIP
Year-End Capital Fund Bal.
6
RRRRRR 11
Rate-Setting Objectives
Ø Meet revenue needs of the utility
Ø Comply with legal requirements for cost of
service and proportionality
Ø Maintain simple structure that is easy to
understand, and is fair to customers
Ø Improve financial stability
RRRRRR 12
Proposed Sewer Rates
Current (1)July 2018 July 2019 July 2020 July 2021 July 2022
Single Family Residential (2)
Monthly Base Charge 9.40$ 9.72$ 10.01$ 10.31$ 10.62$ 10.94$
Flow Charge ($/gal.) (3)0.01094$ 0.01110$ 0.01143$ 0.01177$ 0.01212$ 0.01248$
Sewer Only Flat Rate ($/mo.)52.31$ 53.88$ 55.50$ 57.17$ 58.89$
Multi-Family and Non-Residential Customers
Monthly Base Charge
Up to 3/4" meter 25.30$ 29.45$ 30.33$ 31.24$ 32.18$ 33.15$
1" meter 38.71$ 44.89$ 46.24$ 47.63$ 49.06$ 50.53$
1 1/2" meter 71.96$ 83.14$ 85.63$ 88.20$ 90.85$ 93.58$
2" meter 112.01$ 129.22$ 133.10$ 137.09$ 141.20$ 145.44$
3" meter 205.54$ 236.83$ 243.93$ 251.25$ 258.79$ 266.55$
4" meter 339.12$ 390.52$ 402.24$ 414.31$ 426.74$ 439.54$
6" meter 672.77$ 774.39$ 797.62$ 821.55$ 846.20$ 871.59$
8" meter 1,073.32$ 1,235.23$ 1,272.29$ 1,310.46$ 1,349.77$ 1,390.26$
Flow Charge ($/gal.) (3)
Multi-Family Residential 0.01094$ 0.01110$ 0.01143$ 0.01177$ 0.01212$ 0.01248$
Non-Residential
Low Strength 0.01142$ 0.01162$ 0.01197$ 0.01233$ 0.01270$ 0.01308$
Medium Strength 0.01533$ 0.01579$ 0.01626$ 0.01675$ 0.01725$ 0.01777$
High Strength 0.02308$ 0.02408$ 0.02480$ 0.02554$ 0.02631$ 0.02710$
Notes:
(1) Effective January 1, 2015 per Ordinance 837.
(2) Individual dwelling units with individual city-owned meters shall be categorized as single family residential
customers. Multi-family units with master meters shall be charged as multi-family residential.
(3) Flow charges will be determined based on gallons of flow, rather than rounded to 1,000 gallon increments.
7
RRRRRR 13
Capital Preservation Charge
Ø Create a new monthly charge to provide
revenue for capital preservation projects
l Gradually implement the charge over 5-years
l Direct revenue to sewer capital fund for preservation
projects, debt service, and repair/maintenance needs
July 2018 July 2019 July 2020 July 2021 July 2022
Single Family Residential (2)
Monthly Capital Preserv. Charge ($/DU)2.00$ 4.00$ 6.00$ 8.00$ 10.00$
Multi-Family and Non-Residential Customers
Monthly Capital Preservation Charge
Up to 3/4" meter 5.00$ 10.00$ 15.00$ 20.00$ 25.00$
1" meter 8.30$ 16.70$ 25.00$ 33.30$ 41.70$
1 1/2" meter 16.70$ 33.30$ 50.00$ 66.70$ 83.30$
2" meter 26.70$ 53.30$ 80.00$ 106.70$ 133.30$
3" meter 50.00$ 100.00$ 150.00$ 200.00$ 250.00$
4" meter 83.30$ 166.70$ 250.00$ 333.30$ 416.70$
6" meter 166.70$ 333.30$ 500.00$ 666.70$ 833.30$
8" meter 266.70$ 533.30$ 800.00$ 1,066.70$ 1,333.30$
RRRRRR 14
Typical Single Family Sewer Bills
(Based on 4,000 gal/mo)
Ø Monthly sewer bill amounts, including
capital preservation charges
l Current rates $53.16
l July 2018 $56.12
l July 2019 $59.73
l July 2020 $63.39
l July 2021 $67.10
l July 2022 $70.86
8
RRRRRR 15
Comparison with Neighboring Cities
(Single family home and 4,000 gal/mo)
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
No
v
a
t
o
S
a
n
i
t
a
r
y
D
i
s
t
r
i
c
t
(
N
o
v
a
t
o
)
Cit
y
o
f
R
o
h
n
e
r
t
P
a
r
k
-
C
U
R
R
E
N
T
Cit
y
o
f
R
o
h
n
e
r
t
P
a
r
k
-
P
R
O
P
O
S
E
D
(
2
)
Cit
y
o
f
S
e
b
a
s
t
o
p
o
l
Cit
y
o
f
C
o
t
a
t
i
To
w
n
o
f
W
i
n
d
s
o
r
Cit
y
o
f
P
e
t
a
l
u
m
a
Cit
y
o
f
S
a
n
t
a
R
o
s
a
Cit
y
o
f
H
e
a
l
d
s
b
u
r
g
Mo
n
t
h
l
y
S
e
w
r
B
i
l
l
RRRRRR 16
Recommended Sewer Rate Actions
Ø Adopt 5-year sewer rate plan
l Adjust rate schedule in July 2018 to reflect
updated cost of service analysis
l Adjust general sewer rates by 3 percent per
year each July through 2022
l Implement monthly capital preservation
charges
•Gradually phase-in over a 5-year period