Notice of Public Hearing

Transcription

1 Rancho Division Notice of Public Hearing Proposed Rate Changes for District Water, Recycled Water, and Wastewater Service Charges WHEN: WHERE: Thursday, June 14, 2018, 8:30 a.m. Rancho California Water District Board Room, Winchester Road, Temecula, CA IMPORTANT INFORMATION ABOUT YOUR WATER, RECYCLED WATER, AND WASTEWATER RATES The Rancho California Water District (RCWD/District) Board of Directors invites you to attend a public hearing where it will consider the adoption of proposed rate increases for water, recycled water, and wastewater service charges over the next two years. Information about the proposed changes is available in this document and online at ranchowater.com/rates. All members of the public are invited to attend the hearing. Additionally, all property owners and any tenants directly responsible for the payment of water, recycled water, or wastewater service charges may submit a written protest to the proposed rate changes. Please see the back panel of this notice for more information on how to participate. Rancho California Water District Winchester Road, Temecula, CA Phone: ranchowater.com Office Hours: Mon. Thurs. 7:30 a.m. 5 p.m. Fri. 8 a.m. 5 p.m. Sat. Sun. Closed

2 Serving the Community with PRIDE! Rancho California Water District manages a complex water supply and delivery system to provide reliable service to our customers. RCWD At-A-Glance WE PROVIDE DRINKING WATER AND RECYCLED WATER SERVICES TO: Residential, multi-family, and landscape customers Commercial, industrial, and institutional customers (CII) Agricultural (AG) customers 970 MILES OF WATER MAINS 45,000 SERVICE CONNECTIONS 48 GROUNDWATER WELLS Why Are You Receiving This Notice? In compliance with Proposition 218, we are notifying all customers about proposed changes to rates for RCWD s drinking water, recycled water, and wastewater service charges and the public hearing where their adoption will be considered by the District s Board of Directors. Please see the back panel of this notice for information on how to participate. Did You Know? As a public agency, the District may only charge customers what it costs to provide water services, and may not earn a profit. 2

3 Why Are Water Rate Changes Necessary? The proposed changes are based on an independent cost-of-service study that takes into account RCWD s water system assets and expenses for operations and maintenance. The proposed water rates are necessary to ensure the District fully recovers the costs to provide water, while encouraging water use efficiency and maintaining fiscal stability. The study determined that the cost of meeting customers essential service needs is going up due to a variety of factors, including: AGING WATER SYSTEM DROUGHT RECOVERY RISING OPERATING COSTS RCWD maintains a water system with 970 miles of pipeline and facilities to deliver high-quality water safely and reliably to about 150,000 people. Expenses have increased for purchased water and energy, which make up roughly percent of the District s total water costs. Because some of the water mains, reservoirs, and equipment are over 50 years old, they require more preventive maintenance and upgrades to keep the system functioning efficiently and avoid expensive breaks and repairs. The price of water from our wholesaler, Metropolitan Water District of Southern California (MWD), is going up and that cost is passed on to customers. Costs are also rising for materials, labor, and water treatment. Levels in RCWD s local groundwater basin, our least expensive water source, are still low due to historic drought, as is Vail Lake, a reservoir we own, manage, and use to replenish our groundwater supply. Because of this, we have to purchase more water from MWD. This imported water is about five times more expensive than local groundwater. What Is RCWD Doing To Control Costs? Installed solar projects that save on electricity Using technology and efficiency measures to minimize costs for personnel and materials Strategic use of existing staff to minimize hiring; new positions are limited to addressing deferred maintenance Note: Without our local groundwater supply, water rates would be approximately double. 3

4 Proposed Water Rates What is included in your bill? Your bill is made up of three parts: WATER COMMODITY RATE recovers water delivery costs such as purchased water, water treatment, and infrastructure, and a portion of RCWD s fixed costs such as maintenance, billing, collections, and meter reading. Customers are billed for the commodity charge based on their monthly water usage in hundred cubic feet (HCF); 1 HCF = 748 gallons. What are the proposed maximum rates for the monthly water service charges? The proposed rates for the monthly water service charges are the same for all customer types. The charge is established as a fixed charge based on the size of the meter (in inches) serving water to a property. MAXIMUM MONTHLY SERVICE CHARGE recovers a portion of RCWD s fixed water costs such as billing, collections, and meter reading, that do not vary based upon the amount of water delivered. ENERGY RATE recovers the costs of energy RCWD pays to pump water to properties in identified pressure zones. MAXIMUM MONTHLY SERVICE CHARGES ($/Meter Size) All Customer Classes Meter Charges Proposed Charges Proposed Charges 3/4" $21.22 $22.11 $ " $30.97 $32.34 $ /2" $53.30 $55.54 $ " $80.75 $84.21 $ T" * $ $ $ " $ $ $ " $ $ $ " $ $ $ " and larger $1, $1, $1, *Note: T=Turbine 4 Reminder: Sign in to MyWaterTracker at ranchowater.com to monitor your water budget as well as your usage on a daily, or even hourly, basis. Energy Rates RCWD delivers water to homes and businesses at a variety of elevations, or pressure zones. Electricity and pumping equipment are needed to supply our service area, which includes Temecula, parts of Murrieta, and unincorporated southwestern Riverside County. The proposed energy rates vary based on the amount of electricity required to pump water within identified pressure zones. (Please refer to your water bill for your identified pressure zone.) Energy charges are variable based on monthly water usage (per HCF). MAXIMUM ENERGY RATES ($/HCF) All Customer Classes Pressure Zone Rates 1305 $ - $ - $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

5 Residential, Multi-family, & Landscape Customers Understanding Your Rate Structure Under the proposed rate structure for the commodity charge, residential and multi-family residential customers are allocated a certain amount of water during each billing period to efficiently meet their particular indoor and outdoor water needs. Landscape customers are allocated a certain amount of water for their outdoor needs. We refer to these allocations as water budgets. Water budgets include daily calculations that add up to a total water budget for each customer during each billing period. For residential and multi-family residential customers we use several factors to calculate each customer s total water budget: Indoor Water Budget Factors Tier 1 Efficient indoor water use is based on State guidelines of 55 gallons per person, per day Number of people in the household Number of days in the billing cycle Outdoor Water Budget Factors Tier 2 Amount of irrigated area in square feet per parcel Actual daily plant water loss (evapotranspiration) An evapotranspiration adjustment factor (ETAF) to reflect the water needs of specific types of plant mixes and irrigation efficiency Inefficient Water Use Tier 3 Anything over Tier 2 up to 150% of your budget Wasteful Water Use Tier 4 Anything over Tier 3 Why Use Water Budgets? How Does Water Budget Billing Work? Residential, multi-family, and landscape monthly water budgets consist of four tiers. Each hundred-cubic feet (HCF) of water used is grouped into a tier based on the customer s individualized water budget, with higher rates assessed for usage in excess of a customer s individualized water budget. All water used by a residential or multifamily customer within his or her indoor water budget is billed at the Tier 1 rate and within the outdoor water budget is billed at the Tier 2 rate. Landscape customers who remain within their total water budget are billed at the Tier 1 and Tier 2 rates. MAXIMUM MONTHLY WATER COMMODITY RATES ($/HCF) Residential, multi-family, & landscape customers Water budgets encourage efficient use of water and appropriately allocate the costs of providing water service on a per-parcel basis. 5 Tier Rates Tier 1 $0.700 $0.710 $0.738 Tier 2 $1.480 $1.550 $1.611 Tier 3 $2.660 $3.000 $3.118 Tier 4 $6.730 $7.070 $7.347 All annexed customers: Tier 1 will be $2.471 and Tier 2 will be $2.471 effective. Tier 1 will be $2.548 and Tier 2 will be $2.548 beginning. How Would These Changes Affect My Water Bill? How these changes might affect your individual bill will vary based on the size of your meter, household size, landscaped area, and your inbudget water usage. Below is a sample of the bill impact for a residential customer using 12 units of water in pump zone 1485 with a 3/4-inch water meter, assuming 9 units of usage in Tier 1 and 3 units in Tier 2. PROPOSED Monthly Bill Impacts Residential customers Charge Bill Estimated Bill Estimated Bill Variable $11.78 $12.01 $12.48 Fixed $21.22 $22.11 $22.98 Total $33.00 $34.12 $35.46 Average Impact 3.4% 3.9%

6 Agricultural, Commercial, Industrial, and Institutional Customers We calculate agricultural (Ag) customers water budgets using three components: What are the proposed maximum rates for the commodity charge for agricultural, commercial, industrial and institutional customers? The rate structure for the commodity charge imposed on Ag and CII customers consists of three tiers. Each HCF of water used is grouped into a tier based on the customer s individualized water budget, with higher rates assessed for usage in excess of a customer s individualized water budget. All water usage within the total water budget assigned to Ag or CII customers in a calendar year is charged at Tier 1. Usage between % of the water budget at Tier 2, and everything above that Tier 3. MAXIMUM MONTHLY WATER COMMODITY RATES ($/HCF) CII/AG Customers Tier Water needs for the property s crop(s) To calculate this portion, we multiply the irrigated acreage of each crop type by the amount of water required to meet its needs. Indoor water needs If there is a home on the property, we calculate the indoor portion of the water budget based on 55 gallons per person, per day, just like a residential account. If applicable, we add a variance of 12 gallons per day for large animals/livestock. Outdoor landscape water needs We use a budget factor of 1,398 HCF per year for each irrigated acre based on the same standards as a residential customer. This includes irrigation for grass, turf, ground cover, and shrubs. The number of irrigated landscape acres for which an agricultural account will receive a water budget is limited to 10 percent of the account s irrigated agricultural acreage up to a maximum of 75,000 square feet. Rates Tier 1 $1.260 $1.300 $1.351 Tier 2 $3.020 $3.000 $3.118 Tier 3 $6.880 $7.070 $7.347 All annexed customers: effective, Tier 1 will be $2.471; beginning July 1, 2019, Tier 1 will be $ Commercial, industrial, and institutional (CII) customers include businesses, restaurants, office buildings, convenience stores, auto repair shops, etc. We base your water budget on your meter size and, in some cases, average annual historical water use data. How Would These Changes Affect My Water Bill? How these changes might affect your individual bill will vary based on the size of your meter, your customer type, and your in-budget water usage. Below is a sample of the bill impact for an agricultural customer with a 2-inch water meter and a total water usage of 2 acre-feet per month within their Tier 1 water budget, whose property is located in pump zone PROPOSED Monthly Bill Impacts AG Customers Charge Bill Estimated Bill Estimated Bill Variable $1, $1, $1, Fixed $80.75 $84.21 $87.51 Total $1, $1, $1, Average Impact 2.3% 3.9% 6

7 How Will Recycled Water And Wastewater Rates Change? Recycled Water The rates for recycled water are comprised of three components: a variable per acre-foot (AF) commodity rate, a fixed service charge, and a variable energy rate. Recycled water customers are billed for the commodity rate based on their monthly recycled water usage in AF and for the energy rate based on their monthly water usage in HCF. They are billed for the service charge based on the size of the recycled water meter (in inches) serving their property. The proposed increase is due to the rising costs to purchase recycled water from outside sources, to meet inflationary cost increases for operations, and to repair aging infrastructure for the recycled water we treat. In addition, a long-time grant that helped offset recycled water costs has ended, which will require customers to assume a greater share of the operating expenses that are no longer covered by the grant. Please see the maximum energy rates chart on page 4 of this notice by customer pump zone for the applicable proposed rate changes. In our cost of service study, it was determined that recycled water users would be charged proportional monthly service charges based on meter size, consistent with potable water customers. Wastewater MAXIMUM RECYCLED WATER COMMODITY RATES ($/AF) Service Rate Recycled Water $ $ $ MAXIMUM RECYCLED WATER SERVICE CHARGES ($/Meter Size) Meter Size Inches Charges Proposed Charges Proposed Charges 3/4" $20.00 $8.44 $9.14 1" $20.00 $9.10 $ /2" $20.00 $10.43 $ " $20.00 $11.76 $ T" * $20.00 $12.02 $ " $20.00 $14.41 $ " $20.00 $17.06 $ " $20.00 $22.37 $ " and larger $20.00 $27.68 $29.97 *Note: T=Turbine We structure monthly wastewater service fees to recover the cost to collect, treat and dispose of wastewater. We determine this charge on an equivalent dwelling unit (EDU) basis. One EDU equates to the quantity of wastewater an average single-family residential customer contributes to the wastewater system. We assign one EDU to each residential home. We base commercial customer EDUs on their expected peak wastewater flows relative to an average single-family residential customer. This rate change is for RCWD wastewater customers only. Your bill will indicate if you receive wastewater service from Eastern Municipal Water District (EMWD). EMWD establishes its wastewater service fees independent of RCWD, even though the EMWD wastewater service fees are collected on a customer s RCWD bill. MAXIMUM MONTHLY WASTEWATER SERVICE FEE All Customer Classes Service Fee Proposed Fee Proposed Fee Wastewater $40.75 $42.50 $

8 Rancho California Water District Winchester Road, Temecula, CA How To Participate In The Rate Setting Process XXX XXX PRESORT Standard U.S. Postage Paid Mailed from XXX Zip Code Permit #146 We welcome members of the public to attend the public hearing about the proposed rate increases. The hearing will be held at 8:30 a.m. on June 14, 2018, in RCWD s Board Room, Winchester Road, Temecula. Any record owner of a parcel upon which the water, recycled water, or wastewater fees are proposed for imposition, or any tenant who is directly responsible for the payment of water, recycled water, or wastewater service fees (i.e., a customer of record who is not a property owner), may submit a written protest to the proposed rate increases; provided, however, only one protest will be counted per identified parcel. Each protest must: (1) be in writing; (2) state whether the protest is submitted in opposition to the rate increases to the water, recycled water, or wastewater service fees; (3) provide the location of the identified parcel (by street address, assessor s parcel number, or service account number); and (4) include the name and signature of the person submitting the written protest. Written protests may be submitted by mail to or in person at Winchester Road, Temecula, CA Written protests may also be submitted at the public hearing (see date, time, and location above). All written protests must be received by RCWD prior to the conclusion of the public input portion of the public hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in person, that the enclosed protest is for the public hearing on Proposed Rate Increases. Any protest submitted via or other electronic means will not be accepted as a formal written protest. The Board will accept and consider all written protests timely submitted and oral comments to the proposed rates. Although there will be an opportunity to speak at the public hearing, verbal comments alone do not qualify as formal protests. Upon the conclusion of the public hearing, the Board will consider adoption of the proposed rate increases as described in this notice. If written protests against the proposed rates are not presented by a majority of the property owners or tenants of the identified parcels subject to the proposed rate increases, the Board will be authorized to adopt the rate increases. If adopted, the proposed first year rates will become effective, and the proposed second year rates will become effective. Mail or deliver your protest to: Rancho California Water District Attention: District Secretary Winchester Road, Temecula, CA Please contact us for more information: (951) ranchowater.com