Evaluation of Nonresidential Wastewater Discharge presentation of Findings and Recommendations

Transcription

1 AGENDA ITEM 7.B Presentation by Municipal Financial Services Distributed 8/12/16 Evaluation of Nonresidential Wastewater Discharge presentation of Findings and Recommendations August 18, 2016 Town of Los Altos Hills I 1

2 Presentation Overview May 2015 Sewer Service Charges Study Site Inspection Findings Current Units of Service Recommended Units of Service Town of Los Altos Hills I 2

3 May 2015 Sewer Service Charges Study Rate-Making Objectives Revenue sufficiency. Generate sufficient revenue to fund operating costs, capital costs and bonded debt, and maintain adequate reserves. Revenue stability. Recover revenue from charges that will cover all costs regardless of fluctuations in the volume of discharges to the sanitary sewer or the timing or receipt of charges for service. Legal. Provide for each customer class to pay its proportionate share of the required revenue in compliance with legal rate-making requirements. Administrative efficiency. Enable efficient implementation and ongoing administration, including monitoring and updating. Customer acceptance. Be as simple as possible to facilitate customer understanding and acceptance. Affordability. Be as affordable as possible while maintaining the sound financial position and credit rating of the enterprise. Conservation signal. Reward customers for efficient indoor water use and discourage its waste. Town of Los Altos Hills I 3

4 May 2015 Sewer Service Charges Study Evaluation of Nonresidential Units of Service (page ES-2) The Town intends to conduct an evaluation of nonresidential units of service assignments. The evaluation process will include site visits at each nonresidential location in order to help determine the wastewater discharge characteristics for each account. The wastewater discharge characteristics for each nonresidential account will be compared to the wastewater discharge characteristics for a typical single-family residence in terms of Flow (in gallons per day), BOD (in pounds per day) and TSS (in pounds per day) to determine the units of service for each nonresidential account. Town of Los Altos Hills I 4

5 Current vs Recommended Units of Service Residence (1 to 60 fixture units) Church Country club Office Fire station Elementary or JH without gym and/or cafeteria Junior High with gym and/or cafeteria High School Junior High Boarding School or Convent * ADA - average daily attendance Current Units of Service 1.00 unit 1.00 unit 2.68 units 1.84 units 3.00 units 1.00 unit for each 26 students in ADA* 1.00 unit for each 20 students in ADA* 1.00 unit for each 15 students in ADA* 1.00 unit for each 10 students in ADA* 1.00 unit for each 3.5 residents in ADA* plus $12 for each 10 nonresident students Residence (1 to 60 fixture units) Nonresidential (except schools) Schools * ADA - average daily attendance Recommended Units of Service 1.00 unit 1 unit per 300 gallons per day of wastewater discharge or 28 plumbing fixture units 1.00 unit for each 68 students+faculty+staff in ADA* Town of Los Altos Hills I 5

6 Methodology and Concepts Water Meter Read Data as a Proxy for Wastewater Discharge Volume. All recommended units of service except for 3 accounts with insufficient water use data are based on water meter read data. Plumbing Fixture Units as a Proxy for Wastewater Discharge Volume. Plumbing fixture units were used as a basis for recommended units of service if there was insufficient water use data. Units of Service Based on Flow Only. Strength characteristics of wastewater (Biochemical Oxygen Demand BOD and Total Suspended Solids TSS) are not used to develop units of service since all nonresidential accounts are assumed to have strengths similar to those for residential users. Units of Service are Based on Residential Flow Characteristics. One Unit of Service is defined as 300 gallons per day or 28 plumbing fixture units. Units of Service Less Than One. All six Town accounts and one other office have recommended units of service less than one residential unit so that units of service may be implemented without a new cost of service rate study and Proposition 218 hearing. Units of Service for Schools. Units of service for schools are based on average wastewater discharge per ADA + faculty + staff for all schools. Town of Los Altos Hills I 6

7 Inspection and Water Use Findings Winter Water Use is a Proxy for Wastewater Discharge column > [1] [2] [3] [4] [5] [6] [7] [2] [3] [5] [6] Estimated Wastewater Plumbing Customer HCF/yr gpd Fixture Units Church/Offices/Kitchen Church/Offices/Boarding/Kitchen 1,167 2, Recreation/Offices/Kitchen/Pool insufficient water data 226 Office Grades K-8 and Nursery 654 1, Grades K-12, Nursery and Extended Care 596 1, Grades K-8 and Extended Care Grades , Los Altos Hills Town Hall (Town) Heritage House / EOC (Town) insufficient water data 9 Parks & Recreation Bldg (Town) Purissima Park (Town) Corporation Yard (Town) Westwind Community Barn (Town) insufficient water data 9 Total Nonresidential Town of Los Altos Hills I 7

8 Inspection and Water Use Findings All Units of Service are in Equivalent Residential Units column > [1] [2] [3] [4] [5] [6] [7] [2] [3] [5] [6] Estimated Wastewater Residential Plumbing Residential Customer HCF/yr gpd gpd Fixture Units Plumbing FU Church/Offices/Kitchen Church/Offices/Boarding/Kitchen 1,167 2, Recreation/Offices/Kitchen/Pool insufficient water data Office Grades K-8 and Nursery 654 1, Grades K-12, Nursery and Extended Care 596 1, Grades K-8 and Extended Care Grades , Los Altos Hills Town Hall (Town) Heritage House / EOC (Town) insufficient water data Parks & Recreation Bldg (Town) Purissima Park (Town) Corporation Yard (Town) Westwind Community Barn (Town) insufficient water data Total Nonresidential Town of Los Altos Hills I 8

9 Inspection and Water Use Findings Nonresidential UOS are in proportion to Residential Units column > [1] [2] [3] [4] [5] [6] [7] [2] [3] [5] [6] Estimated Wastewater Residential Equivalent Plumbing Residential Equivalent Customer HCF/yr gpd gpd UOS* Fixture Units Plumbing FU UOS Church/Offices/Kitchen Church/Offices/Boarding/Kitchen 1,167 2, Recreation/Offices/Kitchen/Pool insufficient water data Office Grades K-8 and Nursery 654 1, Grades K-12, Nursery and Extended Care 596 1, Grades K-8 and Extended Care Grades , Los Altos Hills Town Hall (Town) Heritage House / EOC (Town) insufficient water data Parks & Recreation Bldg (Town) Purissima Park (Town) Corporation Yard (Town) Westwind Community Barn (Town) insufficient water data Total Nonresidential * Schools Equivalent UOS using estimated wastewater flow are based on the average wastewater discharge characteristics for all schools Estimated wastewater flow, Average Daily Attendance of Students, Faculty and Staff, and the Unit of Service for Schools are developed in Table 3-2. Town of Los Altos Hills I 9

10 Schools Inspection and Water Use Findings Winter Water Use is a Proxy for Wastewater Discharge Water Read Data and Inspections Calculated column > [1] [2] [3] [4] [5] [6] [7] [8] [2]+[3] [1] [4] [6] [5] [4] [7] Water Meter Read Faculty/ ADA+Other gpd/ gpd / UOS/ Calculated School Period gpd ADA Staff Total ADA+Other UOS ADA+Other UOS 1 December , January , January Average January 2013, 2014 & , Totals/Averages All Schools 5,113 1, , Town of Los Altos Hills I 10

11 FY17 Revenue from Sewer Service Charges Current vs Recommended Units of Service Current Units of Service Recommended Units of Service Percent Service Percent Percent Service Percent Units of of Charge Annual of Units of of Charge Annual of Customer Class Service Total per UOS Revenue Total Service Total per UOS Revenue Total Difference Nonresidential Churches % $1,420 $13, % % $1,420 $14, % $880 Country Club % $1,420 $5, % % $1,420 $11, % $6,234 Office % $1,420 $2, % % $1,420 $ % ($2,471) Schools % $1,420 $67, % % $1,420 $24, % ($42,906) Town % $1,420 $0 0.0% % $1,420 $2, % $2,655 Total Nonresidential % $1,420 $88, % % $1,420 $53, % ($35,607) Residential 1,870 97% $1,420 $2,655,400 97% 1,870 98% $1,420 $2,655,400 98% $0 Total All Customers 1, % $2,744, % 1, % $2,708, % ($35,607) ($35,607) -1.3% Town of Los Altos Hills I 11

12 Presentation of Findings: Evaluation of Nonresidential Wastewater Discharge QUESTIONS? Town of Los Altos Hills I 12

13 FY17 Revenue from Sewer Service Charges Current vs Recommended Units of Service Estimated Wastewater Equivalent Plumbing Equivalent Units of Service Customer Class HCF/yr gpd UOS FU UOS Current Recomm Church Office included in other line item 1.84 Church 1,167 2, Office included in other line item 1.84 Country Club insufficient water data Office Town Hall (Town) Heritage House / EOC (Town) insufficient water data Parks & Recreation Bldg (Town) Purissima Park (Town) Corporation Yard (Town) Westwind Community Barn (Town) insufficient water data UOS per ADA//Fac/Staff = ADA/Fac/Staff Factor UOS Grades K-8 and Nursery Grades K-8 and Extended Care Grades K-12, Nursery and Extended Care Grades 7-8 included in other line item 4.35 Grades Summary Town Schools Others All Town of Los Altos Hills I 13