HomeMy WebLinkAboutAgenda Packet - January 28, 2008 - UBAGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL
l
AZUSA LIGHT & WATER
729 N. AZUSA AVENUE
AZUSA, CA 91702
AZUSA UTILITY BOARD
KEITH HANKS
CHAIRPERSON
CHAIRPERSON
URIEL E. MACIAS
BOARD MEMBER
JANUARY 28, 2008
6:30 P.M.
IOSEPH R. ROCHA
BOARD MEMBER
ROBERT GONZALES
BOARD MEMBER
P.M. Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council
• Call to Order
• Pledge to the Flag
• Roll Call
PUBLIC PARTICIPATION
(Person/Group shall be allowed to speak without interruption up to five (5) minutes maximum
time, subject to compliance with applicable meeting rules. Questions to the speaker or
responses to the speaker's questions or comments shall be handled after the speaker has
completed hls/her comments. Public Participation will be limited to sixty (60) minutes time.)
001
The Consent Calendar maybe adopted with one vote, and if so adopted the printed recommended action
will be enacted. lfStaff or Councilmembers wish to address any item on the Consent Calendar individual/y,
it will be considered as a SPECIAL CALL ITEM.
B. CONSENT CALENDAR
Minutes. Recommendation: Approve minutes of regular meeting on December 17, 2007 as written.
&1. Dec 17
Minutes.doc
2. Approval of Purchase of Water Utility Storage Containers. Recommendation: Approve purchase
of two secure storage containers to complete the recent upgrade to the Gladstone Water Yard in
Amount of $12,741.02.
&2. Purch Storage
Dns.DOc
3. Approval of Contract Extension and Additional Compensation for Civiltec Entdneering.
Recommendation: Approve (a) the addition of $22,000 to the Civiltec Engineering contract for
inspection services on Project W-238, Replacement Pipeline Installation on Cypress and Sunset, et. al.
in West Covina; and (b) three-month extension of contract to March 31, 2008.
.®
ml I
&3. CruRec.doc
Approval of Bid to Retrofit Electric Division Trucks. Recommendation: Approve bid by Ironman
Emissions Group in amount of $76,585.14 to retrofit five Electric Division diesel trucks with the
Particular Matter (PM) Traps to comply with California Air Resources Board Requirements.
B -a.
PurchPMTraps.doc
Approval of Purchase of Two Electric Meter Shop Vehicles. Recommendation: Waive formal
bidding procedures in accordance with the Municipal Code Section
of two Chevrolet 3/4 -ton 2WD extended cab work trucks to Coalinga
of $28,850.88 each, plus a State Procurement Fee of 1.98%.
&5. Veh Purch.DOC
2-523(e) and award the purchase
Motors, Incorporated in amount
402
i
i
iI
6. Approval to Award Contracts for Bill Print and Mail. Electronic Bill Presentment and Payment, and
Pay -By -Phone and Web Payment Options. Recommendation: Approve the award of contracts to:
(a) Infosend Incorporated to provide bill print and mail processing in amount of $54,600 per year for
three years, excluding postage, and electronic bill presentment in amount of $22,000 with a one-time
implementation charge of $3,250; (b) BankSery in an estimated annual amount of $5,600 per year for
three years to act as bank merchant processor for electronic automated clearing house (ACH)
payment transactions related to electronic billing; (c) Paymentus to collect and process pay -by -phone
k and web payments; and (d) Global Payments to act as bank merchant processor for one-time
1 customer credit and debit card payments at transaction cost to customers per $500 increment of
$3.25 for residential and $3.75 for businesses.
In
B-6. Bill Pyrrnt Svc
Agrmts.DOC
Approval of Resolution for the Designation of Los Angeles County Solid Waste Management
Program as Local Enforcement Agency. Recommendation: Approve the following resolution:
A RESOLUTION OF THE CITY.COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING THE LOS
ANGELES COUNTY SOLID WASTE MANAGEMENT PROGRAM (SWMP) AS THE LOCAL ENFORCEMENT
AGENCY (LEA) RESPONSIBLE FOR ENFORCING ALL LAWS AND REGULATIONS PERTAINING TO THE
MANAGEMENT OF SOLID WASTE WITHIN THE CITY OF AZUSA.
B-7. SWMP-LEA.doc
SCHEDULED ITEMS
Approval to Increase Replacement Water Cost Adjustment Factor. Recommendation: Authorize
staff to increase the Replacement Water Cost Adjustment Factor by $0.2340 per hundred cubic feet of
water effective February 1, 2008 to recover the increased cost of purchasing water from Metropolitan
Water District for November and December.
C-1.
Water-RWCAF.doc
Z. Approval of Budget Amendment for Purchased Water Costs. Recommendation: Approve the
following resolution:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, AMENDING THE
FISCAL YEAR 2007-2008 OPERATING BUDGET FOR THE WATER UTILITY.TO PAY FOR PURCHASED
WATER.
Lai
C-2. Wtr Budget
Arrend.doc
003
S
I . Monthly Update on Water Shortage Declaration
D-1. Moly Rpt Wtr
Shrtage.doc
2. Monthly Update on Water Treatment Plant
D-2. wrr Moly
Rpt. pdf
3. Monthly Power Resources Update
D-3.
PwrResMolyRpt.ppt
4. Department of Energy kWh Rate Survey
DA DOE
Survey.doc
5. 2008 Utility Board Meeting Schedule
D-5. Offske
Meetings.doc
6. California Municipal Utilities Association (CMUA) March Conference
66. CMUA MAR
CONF.doc
7. Report by Director of Utilities on CMUA Capitol Day Activities (Verbal)
4 004
j
I,.
E. DIRECTOR'S COMMENTS
'I. Request for Certificates of Appreciation to outgoing Miss Azusa, Jamie Pezold, outgoing Miss
Outstanding Teen Jamie Alvarez, and Princess Crystal Munoz, to be presented on February 2, 2008,
Miss Azusa and Miss Outstanding Teen Pageant.
RECESS REGULAR UTILITY BOARD MEETING AND CONDUCT WORKSHOP ON SOLID WASTE ISSUES
WORKSHOP
Workshop On Solid Waste Issues
ma —Ifl
F -I.
SW_Workshop.doc
Adjournment
In compliance with the Americans with Disabilities Act, ifyou need special assistance to participate in
a city meeting, please contact the City Clerk at 626-812-5229. Notification three (3) working days prior
to the meeting or time when special services are needed will assist staff in assuring that reasonable
I
rrangements can be made to provide access to the meeting "
I
005
CITY OF AZUSA
MINUTES OF THE REGULAR
MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
MONDAY, DECEMBER 17, 2007 — 9:51 P.M.
The Utility Board Members of the City of Azusa met in regular session, at the above date and
jtime, at Azusa Auditorium, located at 213 E. Foothill Boulevard, Azusa, California.
Chairman Hanks called the meeting to order.
ROLL CALL
PRESENT: BOARD MEMBERS: GONZALES, CARRILO, MACIAS, HANKS, ROCHA
ABSENT: BOARD MEMBERS: NONE
ALSO PRESENT:
Call to Order
Roll Call
Also Present
(City Attorney Carvalho, City Manager Delach, Director of Utilities Hsu, City Clerk Mendoza,
4Deputy City Clerk Toscano.
Public Participation Pub Part
CMike Lee addressed the Board Member regarding Water Conservation stating that the fines for
not conserving water during the drought are causing too much stress and there should be less
punishment and more education.
:The CONSENT CALENDAR consisting of Items B-1 and B-2, was approved by motion of Board
IMember Carrillo, seconded by Board Member Rocha and unanimously carried.
M. Lee
Consent Cal
Approved
1. The Minutes of the regular meeting of November 26, 2007, were approved as written. Min Appvd
2. The Minutes of the Workshop held on November 26, 2007, were approved as written. Min Appvd
1
Staff Reports/Communications
Staff Rpts
Director of Utilities Hsu presented the Quarterly Fuel Cost Adjustment (FCA) for San Juan Resource
Quarterly
and noted that although the FCA credits exceed $150,000 amount which would be credited back
Fuel Cost
to customers; due to the anticipated large San Juan replacement power costs in the first quarter
Adjustment
of 2008 due to its unit 3 major maintenance outage, staff is recommending the FCA credits be
San Juan
carried over to offset the foreseeable charges which will come due in the second quarter of 2008.
Resource
Director of Utilities Hsu presented the Monthly Power Resources highlighting the finalized
replacement power planning for San Juan maintenance outage in the first quarter of 2008. He
stated that the cost of replacement power is expected to be less than the budget by $450,000
due to declining spot market prices. He talked about the continuing active participation in SCPPA
and the municipal utility community's regulatory efforts on greenhouse gas issue and responded
to question posed that it would be about six months before anything definitive comes of this.
Director of Utilities Hsu provided a presentation on the Water Shortage Declaration, stating that
they are purchasing water from MWD, buying more during November. He stating that Azusa and
Glendora are taking from the same spreading ground; Azusa does have excess water going into
the water basin, but it is still 60 feet below level compared to last year. He responded to
questions posed stating that most public outreach campaign has gone to large commercial users
who have reduced consumption by 23% since last year.
Directors Comments
None
Monthly Pwr
Res. Update
Water
Shortage
Update
Dir Cmts
None
Moved by Board Member Carrillo seconded by Board Member Rocha and unanimously carried to Adjourn
adjourn.
TIME OF ADJOURNMENT: 10:06 P.M.
SECRETARY
lZI *A 111111 #111] 111 Y it COWNLIi:•111K:K"
007
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JANUARY 28, 2008
SUBJECT: PURCHASE OF TWO SECURE STORAGE CONTAINERS FOR GLADSTONE YARD
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the purchase of two secure
storage containers in the amount of $12,741.02, to complete the recent upgrade to the
Gladstone Water Yard.
BACKGROUND
Due to increased theft of our water meters and other brass products, the Gladstone yard has
had to store the water meters indoors where space is limited. The Gladstone yard has just
finished a recent upgrade which is allowing space for these secure storage facilities to be
located. The storage units are 401 x 8'W x 87 steel shipping containers modified with 4
rollup doors along their length. These will be used to store the water meters, supplies, and
other equipment to prevent theft and to free up limited indoor space. There are no planning
issues or building permits required.
The Mobile Storage Group - $12,741.02
J Stall Storage - $13,110.12
Aztec Technology Corp.- $14,050.84
The storage units will be purchased from The Mobile Storage Group, the lowest qualified
bidder, for the amount of $12,741.05 including tax and delivery charges.
FISCAL IMPACT
Funds are available in the Water Division's O&M Budget account 32-40-723-752-6563 for
Purchase of the storage facilities.
Prepared by: Chet Anderson
mm
8-3
AzusTI
A R SA
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JANUARY 28, 2008
SUBJECT: REQUEST FOR CONTRACT EXTENSION AND ADDITIONAL COMPENSATION FOR
CIVILTEC ENGINEERS FOR INSPECTION ON PROJECT W-238, REPLACEMENT
PIPELINE INSTALLATION ON CYPRESS &SUNSET ET AL.
RECOMMENDATION
It is recommended that the Utility Board/City Council approve: (a) the addition of $22,000 to
the Civiltec Engineering Contract for Inspection Services on Project W-238, replacement
pipeline installation on Cypress and Sunset et al. in West Covina; and (b) three-month
contract extension for Civiltec to March 31, 2008.
BACKGROUND
At its April 23, 2007 regular meeting, the Utility Board approved a $58,208 Professional
Services Contract with Civiltec Engineers to perform inspection of water pipeline installation
for project W-238, located in Cypress and Sunset Streets. The Contract was set to expire
December 31, 2007. Due to the project running over the date of completion and additional
time on the site required to observe the contractor, an additional $22,000 is estimated to be
necessary to compensate Civiltec for the extra hours the inspector will likely have to spend on
the project. Because the contractor has not yet completed the project within allowable days
of contract completion date of November 7, 2007, liquidated damages for non -justified days
will be assessed against the contractor. At a meeting held January 16, the contractor, J.
DeSigio Construction, estimated that the project will require'approximately four additional
weeks to complete, which would put the project completion at February 13, 2008, ninety-
eight calendar days behind schedule. Liquidated damages for non -justified additional days
are $500 per day, and if the 98 days of delay are all non -justified, this would equate to
$49,000 in liquidated damages.
FISCAL IMPACT
This action authorizes an addition of up to $22,000 for inspection services. It is likely this
amount will be offset by liquidated damages; however, non -justified days warranting
liquidated damages have not yet been determined. Payment of the addition to Civiltec will be
made from the Capital Improvement Budget Account 32-80-000-721-7145/72106E-7145.
Prepared by: Chet Anderson, Assistant Director- Water Operations
009
w _ a
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES�1��
DATE: JANUARY 28, 2008
SUBJECT: RETROFIT OF ELECTRIC DIVISION DIESEL TRUCKS WITH PARTICULATE MATTER
TRAPS TO COMPLY WITH CALIFORNIA AIR RESOURCES BOARD REQUIREMENTS
RECOMMENDATION
It is recommended that the Utility Board/City Council approve bid by Ironman Emissions Group
in amount of $76,585.14 to retrofit five (5) Electric Division diesel trucks with the Particular
Matter (PM) Traps.
BACKGROUND
In 2005, the California Air Resources Board (CARB) approved a regulation pursuant to title 13,
California Code of Regulations (CCR), sections 2020, 2022, and 2022. 1, the Fleet rule for
Public Agencies and Utilities. This rule requires a municipality or utility that owns, leases, or
operates an on -road diesel -fueled heavy-duty vehicle greater than 14,000 pounds gross
vehicle weight rating (GVWR) with a 1960 to 2006 model year medium or heavy duty engine
to install best available control technology (BACT) to reduce particulate emissions. The
regulation requires that 20 percent of the fleet be retrofitted with BACT by 2008, and then 50
percent by 2009. The installed BACT should reduce toxic diesel Particulate Matter (PM)
emissions to 0.01 gram per brake horsepower hour (g/bhp-hr) or to lowest emission level
possible for a specific engine without jeopardizing the original engine warranty.
The Electric Division has identified five (5) diesel trucks weighing over 14,000 pounds that fall
under this regulation and has sought quotes to install the required equipment. Two quotes
were received, one from Diesel Emission Group in amount of $83,392.20, and the other from
Ironman Emissions Groups in amount of $76,585.14, including sales taxes.
FISCAL IMPACT
Award of $76,585.14 is included in fiscal year 2007-2008 operating budget as capital outlay in
account 33-40-733-920-7135.
Prepared by: Dan Kjar, Electric Distribution Supervisor
CARB_Ltr.pdf
010
unda S. Adams
St=a'ary for
Eire* omgfal
.ay 17. __iX7
Air Resources Board
Robert F. Sawyer, Ph.D., Chair
1OD1 I Sheg • P;O. Box 2815
Saaamwtio, Caiirorrta 85812 • vvA-zrh_ca-gm,
Dear City and County Officials:
In 2005, the California Air Resources Board (ARB or Board) approved a regulation to
reduce toxic diesel particulate matter (diesel PM) emissions from diesel -fueled public
agency and utility fleet vehicles beginning in 2007. Diesel PM, the tiny soot particles
from diesel engines, was identified as a toxic air contaminant in 1998, Exposure to
diesel PM is a significant health hazard, particularly to children whose lungs are still
developing, and the elderly who may have other serious health problems. Each year in
California, diesel PM contributes to 3,700 premature deaths, 2,200 hospital admissions.
100,000 asthma attacks and respiratory symptoms, 8,500 cases of chronic bronchitis,
620,000 lost workdays and 3.6 million minor restricted activity days. Reducing
exposure to diesel PM is one of ARB's highest priorities -
The Fleet Rule for Public Agencies and Utilities regulation is particularly effective
because if reduces diesel PM concentrations in the heart of residential communities
where municipal and utility vehicles frequently conduct business. But while the
regulation brings significant clean -air benefits, it also brings cost increases to municipal
fleet administrators, who already may be on very tight fiscal budgets. Depending on the
age and type of vehicle, implementing the regulation can average from $3,000 to more
than $40,000 per vehicle. During the development of the regulation, one of the major
issues of concern was how a municipal fleet administrator would pay for the cost of the
regulation. The Board shared this concern, and approved modifications to the
regulation with this in mind, including extending the initial compliance deadline for most
fleets, and allowing low -population counties additional time to budget and plan for the
cost of compliance.
The first implementation deadline of the regulation is December 31, 2007, when twenty
percent of a municipality's vehicles between the model years 1960 through 2002 must
be in compliance with the regulation. As both elected county officials and Board
members, we understand compliance by many municipal fleet administrators will be
challenging_ Because of this, we encourage county and city governments to support the
efforts of their municipal fleet administrator in complying with this regulation.
rHa energy Chariange (sting Cah`hmre is reef. Every C;aAlwman neods to take immediam aGfan to reduce energy rnnsumpeon,
For a W of simple ivgys you can reduce demand and cut your ene+gy costs, see aurwebacehod 7Fmm.arb ca.aay.
California Environmental Protection Agency
Primed an Rocycw Gaper
011
Dear City and County Officials
t-* v, n7
Page 2
For Californians to realize the health benefits from this regulation, municipal and utility
fleets must meet the challenge and reduce diesel PM in accordance with this regulation.
The Board is counting on your support of your municipal and utility fleet administrators,
which will aid in successful implementation of this regulation.
Sincerely,
Ron Roberts, Supervisor
San Diego County .
Board Member
Mayor Ronald O. Loveridge
City of Riverside
Board Member
Barbara Riordan, Former Supervisor
San Bernardino County
Board Member
Jerry Hill, Supervisor
San Mateo County
Board Member
012
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13
NI •
AZUSA
1:111 % WLTri
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES<
DATE: JANUARY 26, 2008
SUBJECT: WATER RATE STUDY PROPOSAL
RECOMMENDATION
It is recommended that the Utility Board/City Council approve proposal by HDR Engineering for
not-to-exceed amount of $31,767 and authorize the City Manager to execute Professional
Services Agreement.
BACKGROUND
In November 2008, the Utility Board authorized staff to release a request for proposals (RFP) to
conduct a third party review of the Utility's water rates to determine if they are adequate given
reduced revenues resulting from aggressive promotion of water conservation and other changes
to water rates this last year. Two proposals were received in response to the City's RFP, one
from HDR Engineering in amount of $31,767, and one from HFH Consultants in amount of
$51,110.
Both firms had highly qualified managers overseeing their proposed project plans, and both
presented excellent work plans in response to the RFP. One difference with the work plans was
with respect to looking at how to manage the loss of revenues associated with drought
declarations and imposition of the drought charge or emergency rate structure. HDR
Engineering included this work with their proposed scope, whereas HFH Consultants
recommended this work, however, stated that this work was not included in their cost proposal,
implying that this would cost extra.
dOA/ / )
All things being roughly equal--with exception of total not-to-exceed cost and minor technical
differences in the scopes of work, it is staff recommendation to have HDR Engineering perform
the study at the lower proposed cost and save $19,343. Following approval by the Utility Board,
staff will prepare agreement for execution by City Manager. Once the notice to proceed is
issued, the study is expected to be completed within 10 weeks.
Currently, there is an approved rate adjustment of 6% set to go into effect July 1, 2009. The
study will evaluate the adequacy of the approved rate adjustment to satisfy our bond debt service
obligations. If any adjustment in rates beyond the 6% is necessary, such adjustment would have
to be approved at a duly noticed public hearing.
FISCAL IMPACT
The study will cost $31,767, including one on-site meeting. Funding for this study is available
from the approved water operating budget.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Bob Tang, Assistant Director of Resources Management
Attachment
POF
CostOfServProposa I-
HDR.pdf
019
ONE COMPANY 1111auy Solutions •'
January 12,2009.
Mr. Cary Kalscheuer
Assistant to the Director of Utilities
Azusa Light&Water
729 North Azusa Avenue
Azusa,CA 91702
RE: Proposal for Cost of Service Study for Municipal Water Utility
Dear Mr.Kalscheuer;
We are pleased to submit our proposal summarizing our team's qualifications,scope of
work,and cost estimate.We believe HDR's team provides the expertise and experience
needed to successfully re-evaluate the Azusa Light&Water's(AL&W's)water rates and
revenue projections, and evaluate other cost-of-service issues. Someof the attributes of our
team include:
• HDR is nationally recognized for its expertise in municipal utility financial planning
and rate analysis.Our proposed team.has successfully performed hundreds of similar
studies throughout California and the U.S.
• HDR's staff is'exceptionally.strong.Our project manger,Greg Clumpner,prepared
AL&W's last rate study and is thoroughly familiar with issues addressed in this study.
Our Principal-in-Charge,Tom Gould,is nationally recognized as one of the top rate
experts in this type of cost-of-service study, arid will be in charge of ensuring this study
meets the most stringent quality standards.
Our approach to this study will be to essentially update the assumptions and current
conditions affecting AL&W's water rate structure and revenues.We agree with AL&W•
staff that the rates do not need to be restructured or radically changed;however, the
financial forecast and associated rate adjustments will need to be re-evaluated.
•
We believe the three primary components involved in this study are:
•_ A five-year financial plan that more accurately projects the budgets, capital
improvement program(CIP)costs,expected revenues, and other operating conditions
affecting AL&W's water system.
HDR Engineering,Inc. 2365 iron Point Road,Suite 300 Phone(916)817-4700 O
Folsom,CA 95530 Fax(916)817-4747
www.hdrinc.com
Mr. Cary Kalscheuer '
January 12,2009
Page 2
• Adjustments to rates that reflect a re-evaluation of the number of accounts and
consumption, as well as AL&W's conservation concerns, to more accurately project
future rates.
• Rate and financial models that can test the adequacy and sufficiency of the water rate
revenues, and that AL&W staff can use to perform sensitivity analysis and then make
future adjustments as needed.
We look forward to discussing our proposal with you further and making any
modifications you deem necessary.Should you have any questions about our proposal, all
communications should be directed to Greg Clumpner at(916)817-4873 or by e-mail to
greg.clumpner@hdrinc.com.Thank you again for the opportunity to submit our proposal
for your consideration.
Sincerely, R
Ot-
Timothy R Fleming,P.E. Gregory C.Clumpner
Senior Vice President Project Manager
GCC:pk/09003
021
dS to ffQualifications
E. Company an
CONTACT INFORMATION environmental and civil engineering,and
engineering design services.This diversity
About 110 R adds breadth to our knowledge and
expertise on all projects.
Formed in 1917,HDR is one of the top 500
engineering firms in the U.S.,and is Principal Place of Business
particularly strong in water and wastewater
engineering and financial services.HDR HDR Engineering,Inc.
employs over 7,500 employees in 165 offices 2365 Iron Point Road,Suite 300
nationwide.Our firm has been part of the Folsom, California,95630-8709
California business landscape since 1960. (916) 817-4700 Phone
Today, it employs more than 700 people in (916)817-4747 Fax
15 California offices,offering a full range of
engineering, architectural,environmental, Project Team Locations
community planning, and management
consulting services to public and private The majority of the work(over 70 percent)
sector clients. will be performed by team members located
in HDR's Folsom office,where our project
manager and financial analyst are located.
, .i' - HDR Engineering,Inc.
2365 Iron Point Road,Suite 300
0 Lf %
p,, '. rte " iCalifornia,
Folsom, 95630-8709
(916) Phone
(916)817-4747 Fax
1: x A'lklAdditional support services will be
provided from the following HDR offices:
F'-
,. '440.0 0'-1 -4 4- 0-�,' HDR Engineering, Inc. (6 percent)
. 8690 Balboa Avenue,Suite 200
San Diego,California,92123-1502
By virtue of being a multi-disciplinary engineering (858) 712-8400 Phone
and consulting firm,HDR has a number of (858)712-8333 Fax
individuals with highly specialized expertise in
financial planning and rates. While these HDR Engineering,Inc. (20 percent)
individuals are highly specialized,they and HDR 500 108th Avenue NE,Suite 1200
do not lose sight of the overall need for good Bellevue, Washington,98004-5549
utility management and engineering practices. (425)450-6200 Phone
(425)453-7107 Fax •
When necessary, HDR can draw on other
expertise in the firm,such as asset
management, water resource planning,
09003 1-1
022
•
to
I . Company and Staff Qualifications _____... .....,_ ,,,p41,4.i.:4,
10
41
S u b c o n s u I t a n t s specific objectives,can help clients modify
their financing strategies to better meet a°
All of the services required for Azusa Light changing system demands, aging
&Water's project will be performed in- infrastructure, or technology upgrades. ,
house, without the use of subconsultants.
As shown in Figure 1-1,HDR has prepared
H D R'S FIRM QUALIFICATIONS water utility cost of service and rate studies
for over 150 clients throughout the U.S. Our 4;
Ie!DR's Overall Experience in rate study experience includes preparing
Water Utility Cost of Service revenue requirements,rate structure design,
Studies and Rate Designs conservation-based rates,cost allocations,
multi-year financial plans,funding analysis, $'
HDR is nationally recognized for its bond feasibility studies, and Proposition 218
So
excellence in financial planning and rate requirements for water utilities.Table 1-1
setting for public utilities. Our illustrates the wide variety of water and
understanding of financing options and rate wastewater clients in California for which
designs,tailored to accomplish client- HDR has completed similar studies. `
03
City of Winters •A ;`
Town of Yountville n r _ .
Dublin San Ramon SD - �' ' �°
til
City of Pleasanton :
East Bay MUD :;, 3 ' ; _ r
-
City of Stockton t
City of Santa Cruz ,
City of San Luis Obispo - !b
Grp
City of Azusa :-:,� City of Norfolk
Mesa Consolidated W[3 _> p
City of Pomona a�%± •
110
City of Imperial Beach _ r 1,4
$g is .San Antonio
Water System
Sweetwater Authority
to
110
Figure 1-1. The HDR Team's Experience in Water Utility i+
Cost of Service and Rate Studies
0
6
6
1-2 09003. O23
I. Company and Staff Qualifications
Table 1-1. Examples of HOR's Recent Project Experience in California
�
Waf rfSevrrer lbw Rate_ Frrraneial Rate Connection Special
v Service Conser
Utility Structure Plan Mode! Fees-:_ Concerns
Rafes •
City of Santa Water ✓ ✓ ✓ ✓ ✓ ': '. Desalination Plant
Cruz
•
Water/ Re-Design
City of Folsom Sewer ✓ ✓ ✓ ✓ ✓ Water/Sewer Rates,
• and Conservation
City of Water! Conservation,Re-Use
Pleasanton Sewer ✓ Rates,and Rate
Design
City of Stockton Water ✓ ✓ ✓ ✓ ✓ Rate Structure Design
•
City of SanLuis Water/ Automatic Meter
✓ ✓ ✓ ✓ Reading(AMR)
Obispo Sewer System Review
City of Fresno Water ✓ ✓ ✓ Zonal Energy Charge
Alternatives
•
Dublin-San Water!
Ramon Services Sewer ✓ ✓ ✓ ✓ ✓ Rate Structure Design
District
City of Galt Water! ✓ �/ ✓ Meter Implementation
Sewer
DESCRIPTIONS O F PAST town's water and sewer rates to meet
PROJECTS AND REFERENCES multiple town objectives, including a
restructuring of the water and sewer rates,
The following projects are recent studies Proposition 218 rate equity requirements,
similar in scope and technical nature to the increasing water conservation,and
Azusa Light Sr Water rate study that were potentially eliminating an annual contract
completed by our project manager and team for backup supplies from the North Bay
within the last three Aqueduct.Rate alternatives included:
years: •
a Across-the-board increases to the
Water & Sewercurrent rate structures.
Rate Analysis - were s Sewer Rate S,udy ViiRestructured cost of service rates.
Town of T
of Younle
Yountville, CA a New more conservation-oriented
water rates.
In 2006,Mr.Clumpner r
completed an "
evaluation of the
09003 - _ _ 1-3
024
r •
I. Company and Staff Qualifications
Ten-year financial plans were also
developed for each utility,including new
reserve fund policies. ` LNO
A EPORT
' SPRING
VALLEY
"Mr. Clumpner demonstrated considerable xGRo P r<RAu>SE
VALIEr
knowledge of water and sewer rates, rate
structures, and overall enterprise financial SWA
operations. He professionally and �'`..-•s
respectfully considered the policy issues
raised by Council,and staff. Finally, he >,
clearly conveyed,•explained, and clarified the
technical recommendations"of the study to.
our Council... (this)will move us towards a
BONAN
multi-year approach to.rate adjustments and „ "r"" " SP GS
greater financial stability.
Mr. Richard Stranzl, Finance Director.,
• Town of Montville q
STA "'
6550 Yount Street
Montville, California,94599
(707) 944-8851 The complexity of developing rates and
connection fees for 16 Lake County municipal
operations demonstrate Mr. Clumpner's
capabilities to manage and successfully complete
Multi-Agency Sewer & Water studies for multiple agencies.
Rates and Connection Fees =
Lake County Special Services '6Throu hoot all these efforts,
District, Lakeport, CA g . .. Mr. Clumpner
was professionai,t.friendly,;and hel ful: e
p H .
In October 2007,Mr.Clumpner began answered highly techrncal.questions in a
straight forward manner that;was:easily
evaluating the water and sewer rates andry' '
understood by nearly.everyone His k
connection fees for the 10 water districts and communication skills are,impressive,"
six sewer districts under the control of the J �' a
' , Mr Mark Dellinger,
county's Office of Special Districts.The ° '` t lake County Special Distnds Administrator,
primary objectives of this study was to ? =23UA MainStreet
evaluate and update the customer classes Lakeport,California, 95453.
and rate structures,develop equitable rates (T07)263-0119
and fees,and lay the ground work to fund
the necessary capital improvements for the Azusa Municipal Water Rates -
individual districts. This study, which was Azusa Light & Water, Azusa,
completed in October 2008, included a CA
thorough review of the county's policies and
procedures, administrative practices, and _ ;,, �77 7 7 C Az
As usa Light
L v `� ' &Water is well
financial system operations. LIGHT & W A T E r3F'
aware,prior to
Foresight's acquisition by HDR,Greg
1-4 09003
025
I. Company and Staff Qualifications
Clumpner evaluated Azusa Light&Water's factors,which had previously not been
water rate structure to ensure rate equity, considered.
compliance with Proposition 218,and the
adequate funding of planned capital Reference:
improvements. Mr.Clumpner developed Ms.Amy Montgomery, General Manager
water rate structure alternatives that Santa Nella County Water District
adjusted the tier breakpoints,tier rate 12931 South Highway 33
differentials, and assumed minimum Santa Nella, California, 95322
consumption levels for each customer class. (209) 826-0920
Follow-up work included evaluating MiIIer
Brewery's water rates and agreement. Water & Sewer Rate a n d
Capacity Fees a City of
Water & Sewer Rates and Pomona, CA
Connection Fees - Santa Nelle
County Water District, Santa Ci oo , on
a Y ,
Shelia, CA '�; �._. r`�w.. ...
In 2006,Mr. Clumpner prepared a complete
The district was preparing to fund the
construction of entirely new water and evaluation of the city's water and sewer
sewer treatment plants in anticipation of rates to meet several city objectives,
new subdivisions that would add more than including water conservation. Rate
7,000 new homes,plus related commercial alternatives included: across-the-board
development to the district's service area increases to the current rate structures;strict
cost of service rates;and a new rate structure
within the next 10 years.Mr.Clumpner
provided financial planning services that that better addressed the city's overall rate
included developing new rate structures for objectives.Among the key tasks,Mr.
both utilities, and structuring voluntary Clumpner restructured water rates,
developer contributions to operating funds including revising the tier breakpoints and
that bridge the gap between new facilities cost allocations to fixed and variable
construction and the time when new charges.Connection fees were also updated,
along with the preparation of 10-year
customers would start paying service
charges. financial plans,new reserve fund policies,
and a rate model for each utility.
In June of 2007,the consortium of
developers decided to put these plans on Reference:
hold due to market conditions.However,the Ms. Meg McWade,
district still needed to develop a new set of Utility Business Services Manager
rates to fund current operations.Therefore, City of Pomona
Mr. Clumpner restructured the new rates to 505 Garey Avenue
conform to existing conditions. New rates Pomona, California, 91766
included a full cost of service analysis and (909) 620-2392
incorporated wastewater effluent strength
09003
026
V
I. Company and Staff Qualifications
V
Comprehensive Water and
Reference:
Sewer Rate Study & System Mr. Todd Eising, Senior Utility Engineer
Development Charge Study - City of Folsom V
City of Folsom, CA 50 Natoma Street aip
In 2007,HDR provided a comprehensive Folsom, California, 95630
(916)355-3502 -
water and sewer rate study and connection V •
fee analysis.The major focus of the study IP
was on the water utility,establishing Water and Sewer Rate ,?
metered rates for a previously un-metered Structure, AMR, and Billing
residential area of the city (Ashland).At the System Enhancements a City of
same time, the city did not have financial San Luis Obispo, CA
rate setting policies in place and,as a result,
the water rates were under-funding the In 2006,HDR *
renewal and replacement capital projects. s.,tois«bkro conducted a
; ="M'--- comprehensive
The study also created an improved policy -.7_777 study of the city's
concerning the use of system development � -3` `,77'!-C. ',,,,,.. -:- rifutility billing *
fees and their application against debt -�` I� =� •ri
PP $ S „ system and rate 0
service.While the city's historical approach =1Z structure for water
minimizes rates in the short-term, the city is 47/1. ""'"'".
and sewer services,
nearing build-out and expects the fees to ,-.<= ,--..- and recommended
decrease significantly in the future. Given Wit ) enhancements to *
that,HDR developed a financial plan to meet the city's rate structure goals.This
transition the rates to more cost-based levels. project also involved a comprehensive $
review of AMR systems that would support
A significant element of the study was the 01
public outreach element of the study as it the city's goals of customer satisfaction, F
related to the implementation of the rates increased operational efficiency, and cost
and the requirements under Proposition 218.
recovery.
HDR assisted with a number of community HDR project team members included Tom
•
meetings and city council meetings. As a Gould.
part of the study,HDR developed cost-based 0
impact fees for the city for the water and Reference: 0
sewer utility. Mr. John Moss, Utilities Director •
City of San Luis Obispo •
HDR project team members included Tom 879 Morro Street ®',
Gould. San Luis Obispo,.California, 93401 0
(805) 781-7205
•• 0
4
4
4
027 4
1-6 09003
I. Company and Staff Qualifications
Comprehensive Water Rate Water Conservation Pricing
and Supply Capacity Charges - Rancho Murieta Community
City of Stockton, CA Services District, CA
In 2008,HDR developed a financial model to HDR is currently developing conservation
calculate the connection fees for a new water based rates for the city and district water
source developed to meet the demands of customers. A "Rates 101"presentation was
growth.The emphasis of this study was to provided to the council and board to get
ensure that the various project cost elements everyone familiar with the issues associated
were allocated equitably among future with rate design, particularly conservation
customers versus the existing customers. rates,and to gain policy direction from the
council to help form rates to meet their
i' r
e 1 I goals.
HDR project team members included Sunny
tA
Yoshitomi.
1,74:1104 4
14,110, t Reference:
Mr. Ed Crouse,General Manager
— Rancho Murieta Community Services District
saki !" � r -'' 15160 Jackson Road
,,.‘ 1 Rancho Murrieta, California, 95683
(916) 354-3700
�_. PROJECT TEAM
Water Service Areas � Organization Chart
HDR developed a financial model to calculate the Our proposed project team,shown in Figure
connection fees for a new water source. 1-2,consists of HDR personnel with
specialized experience who are exceptionally
HDR project team members included Tom well-suited for the policy development,
Gould and Alex Palmatier. financial planning, rate design, and cost of
service issues addressed in this study.
Reference: Resumes are included in the appendix.
Ms. Melissa Price, Project Manager
Municipal Utilities Department
72500 Navy Drive Estimated Man-Hours
Stockton, California, 95206
(209) 937-8782 Table 1-2 shows the estimated man-hours to
be expended on the study.
09003 1-7 Ogg
}
i, Company and Staff Qualifications
•
•
AZUSA
LIGHT L WATER
I For Quality of Life
Principal-inCharge and
Quality Assurance/Quality;
Control (QAIQC)
Torn Gould
Project Manager
• Greg Clumpner
Meetings
&Reports, Financial Projections Rate Analysis
• -and Models!: and Model
Greg Clumpner
Alex Palmatier Alex Palmatier Greg Clumpner
Sunny Yoshitomi Alex Palmatier
•
Figure 1-2. Project Team Organization
Table 1-2. Estimated Man-Hours
Task Principal/ Project Senior Financia Adminl Total `•
• QA/QC Manager H.Financial I Analyst Clerical.'.'. Man-
(Gould) :(Clumpner) Analyst..
; (Yoshitorrii) , Hours;;
(Palmatier)
6
F1 1'ro�ect�lMAanage{nent and 2, 2; k 2
Mf f j S
•2Fnancial Analysis 1 4' t ++ } 30 2°�
x 37
3'Cost of Service Analysis 648 32 d C
4Final Report" ` • 1 16 2 4 23
5 2
.5 t ' ti y 3
Tota)(without optional a 10 „ 70 32 34 " 6 1 2
meetings)
. •
•
Total (w/options! 10 76 32 34 6
meetings) 5
1-g 09003 029
,
V
I. Company and Staff Qualifications
,fit. -
/ years as a senior economist and rate consultant
t Qualifications and Experience of
e�,.TeaMemberswith an multi-national engineering firm, six
1 years as the managing principal of Foresight
9 The HDR project team members, their Consulting,and completion of more than 100
P qualifications, and their related experience are water and sewer rate studies,primarily for
provided below. California dients.He has more than 24 years of
1 professional experience preparing rate
/ Greg l rn p ri e r - Project analyses for local water and sewer
1Manager municipalities.More than 90 percent of his
b work is rate analyses, with the remainder
Mr.Greg Clumpner will covering various aspects of infrastructure
r r5- ? provide the day-to-day planning and project financing.
Q� oversight of this study, and
1w will attend meetings and "I have worked with Greg for over five years
) - workshops,provide rate on special studies, rate studies for water and
1 analyses and models,and sewer in California and in Colorado. He is
1 prepare the study report.He is one of the easiest consultants to work with."
a senior financial manager and rate economist Mr. Greg Baird
/ Deputy Director/Chief Financial Officer _
with national and international experience in
1 water and sewer projects.His academic Aurora Water
/ background includes a Master's degree in
1 Managerial Economics from the University of Table 1-3 summarizes Mr.Clumpner's most
1 California at Davis.His experience include 13 recent experience.
1
1 Table 14. Recent Water & Wastewater Rate Experience for HDR's Project Manager
1 Recent Municipal Utility Clients
1 Water/Sewer Cost of water
Utili New Rate ;, - Financial; Rate Connection
-, Service Conser- Special Concerns
1 Structure Plan Model Fees
Rates' nation -
1Azusa Light& Water ` J J fl . ,% �/ r Rate Design and
1 Water r ,, Proposition 218 Concerns
Water! J Conservation,Re-Use
•1 City of Pomona i `J J ' ./ J
Sewer ,. Rates,and Rate Design =•
City of Winters Water! J J J ° 1 Rate Design,Metering,and
1 Sewer , :. Water Conservation
1Lake County Water/ J J J J - .`J ; Re-Design Water/Sewer
1 (Special Districts) Sewer • ;. Rate Structures,Funding
1 Santa Nella Co. Water/ J J J J 'J Formation of New 7,000-
Water District Sewer Unit Subdivision •
9'
i City of Modesto Water J J J 1 i Major Improvements and
Rate Design
1
09 003 ---- --.. _ .. ._ 1-9
1.
030
0
I. Company and Staff Qualifications
_ ;j _ 0
0
0
Table 1-3. Recent Water & Wastewater Rate Experience for HDR's Project Manager
Recent Municipal Utility Clients
IP
Water/Sewer cast of - Water t-
UtilityNew Rate Financial Rate Connection a
Serwce_ Conser- Special Concerns
Structure, Plan ��Model Fees a
Rates nation
o + '. * ,'� Non-Potable Water P
''.,-,>••••` " SourcesCapital of Ripon t , Water 5 v ✓ xf ;' t ✓ 0 Improvement Program
',,, (CIP)Funding p
•Town of x ' Water/
Youn40
tville -. Sewer ✓ '� '� ' '�
Restructuring Rates
M1 t
CiOP
ty of Davis Sewer ✓ ' ✓ i/=' ` ✓ ✓`; Major Wastewater
' Treatment Plant Upgrade '41
b
T o m Gould - Principal-in- this section of the proposal. 61
Charge and QA/QC ir
Alex Patmatier - Senior
(13
Mr.Tom Gould is a Vice financial Analyst
President and the National
,`, way Mr.Alex Palmatier is an
� -3 Technical Director of Finance
�� and Rates at HDR.He is his experienced financial analyst Sp
nationally recognized for s . t with more than 10 years of
4 financial planningexperience
expertise in utility financial � ..:..:><;; tfa
planning and rate setting.He P for water and wastewater 43is the current instructor for the American facilities.His diverse
Water Works Association(AWWA)financial i experience includes extensive *
management seminar.In addition,he is a management and operational *
contributing author to the AWWA Ml Manual, assessments in customer service,billing and 4
Principles of Water Rates,Fees and Charges, and collection,accounting,business unit
the M34 Manual, Water Rate Structures and development, and project/transition '
Pricing. management. His management consulting 6
experience includes cost of service analysis,
Mr. Gould has . _w cost-of-capital determination, and financial
participated in over 100 modeling.He is well suited for the rate and
cost of service studies, = 11,financial analysis tasks included in this study.
including those for the .. --'-;;..L.:7,_., Ae _!
City of San Luis . ,i,-:-...T.1. He has conducted cost of service studies for 0
Obispo, City of :; . `, �- the City of Big Bear Lake,City of Stockton, /„
Folsom, and City of A Victor Valley Wastewater Reclamation, and -
gi
Stockton projects.., City of San Diego.
presented earlier in
l
1-1 0 09003
031
2. Work Plan
?...„.-----
1°-.:,,/_:',,
PURPOSE OF THE STUDY E Rate and financial models that can test
the revenue sufficiency of the water
Although Azusa Light&Water(AL&W) rates and that AL&W staff can use to
recently updated their water rates, several perform sensitivity analysis,making
factors have reduced water-related future adjustments as needed.
revenues and prompted the need for
additional rate adjustments: HAR's project manager
Greg Clumpner authored
® Drought conditions,combined with �„T AL&W's 2007 cost of
AL&W's conservation efforts,have Fn°"°°'� " -..i Nu wre•� service study, which
FA Swsl c°•
reduced consumption. ""°'�' needs to be updated to
,,,wu reflect current
I3 The economic downturn has constricted '�°' conditions affecting the
the housing market and also affected water rate structure.
water use. -----tf..='
The study will
Ai The adjustment to the master-meter require a consultant
billing practices was modified, also
that has top-notch credentials in
reducing revenues.
financial planning and rate analysis,and
1 This rate study is essentially an update of who also understands AL&W's utility
the assumptions and current conditions systems. Communication between the
affecting AL&W's water rate structure. We consultant and AL&W staff regarding the
agree with AL&W staff that the rates do not staff's priorities and study objectives will be
E need to be restructured or radically an important part of this study,along with a
I changed.But the financial forecast and good understanding of AL&W's policies.
I associated rate adjustments do need to be tK
re-evaluated. 40Aso
I The three primary components involved in AO"'
�J
1 this study are: `0j s w`czp
AT/ go ill
1m A five-year financial plan that more o ;�� 13
4 f Study .e
accurately projects the budgets, OP .l to
o costs,expected revenues, and other ', - Goals 131 p i, 0
` operating conditions affecting the r` a
utility's water system. --1 f, • i
,..,-„,-,,,,,,,
1 ® Adjustments to rates that reflect a re- 5
d evaluation of the number of accounts, �9e
consumption, and AL&W's went
conservation concerns to more
accurately project future rates. HDR's Goal:Effective communication between
AL&W'staff, consultants,and ultimately the
project stakeholders,
0
) 09003 2-1 0 3 2
•
tg
to
2. Work Plan * N_ . _ �_ x_
a- :
,s V
iit
STUDY APPROACH Subtask 1.1 - Project Management
and QA/QC I'
Our overall approach to this study, and our tle
ability to meet AL&W's two-month study This subtask includes the management
schedule, are enhanced by our recent work activities required to ensure the project is
40
with AL&W staff on their last water rate completed on time and within budget.HDR
study.We already have the rate model and will prepare invoices and progress reports V
understand the changes that have occurred on a monthly basis.The monthly progress V
since that study was completed. reports will summarize budget and
schedule status in measurable terms.Other
Overall,we will hold a kick-off meeting to activities include the scheduling of staff and
review those changes, clarify the issues 0
coordinating the quality assurance effort.
needing to be addressed, and collect the 0
updated customer account,water Regarding the QA/QC,we would note the
consumption,and financial data needed to significance of having Tom Gould perform
re-evaluate the rates and financial this role. Mr.Gould will review the cost of
projections.Following this kick-off meeting, service analysis, cost allocations,and rate
we will begin updating the rate model and adjustments to ensure they meet not only 0
discussing the modifications with AL&W Proposition 218 and cost of service 4
staff. principles,but also best meet AL&W's
objectives for this study.
Our intent is to maintain close 0
communications with staff to ensure we are Subtask 1.2 — Meetings (Optional) 0
addressing all the issues of concern and are
developing new rate and financial models Although these meetings are optional, and
that meet your objectives and enhance would be used as determined by AL&W
future management of the rates and staff, we have proposed an approach to Q
financial planning efforts. meetings that we believe will facilitate a *
smooth study process, sufficient AL&W fil
Task 1 - Prosect Management, review, and efficient completion of the
Meetings, and QA/QC study.
Kick-off Meeting:The purpose of the initial fit
Task Objective: A kick-off meeting followed project meeting, attended by our project •
by regular Contact with City staff Will ensure manager,is to make sure that the HDR team
we have a mutual understanding`of the and AL&W's staff are "on the same page." 6
objectives,direchand on� outcome of the
study. This meeting allows both parties to discuss
the overall goals and objectives for this e
study, as well as data concerns and specific 4
difficulties addressed in the study.
second. twjeeiing.This meeting, attended by
our project manager,will be used to review ti
e
4
2-2 09003
2. Work Plan
ii
the initial results of the study, particularly develop a model for forecasting the water
the financial planning and rate adjustments. revenues,including the projected CIP costs,
We will forward a meeting agenda and the source of supply increases,updated
initial results for staff's review. depreciation costs, repair and replacement
reserves, and other expenditures.
)1.`•. ..1;1;.1,l I hiU Meeting (-ai'ilr/i -r�^>s.; .>>`:=. '.":;
`.{ i�,r * i; ry+ :ii itis -s'`'v`t i i� - F . .
;>��r+Y,.�:We will explain the financial and _ yye1alre Ci ha4e the rate(node) ,14 5 ;
rate modeling process as theyare r if x b �.� '7
un�erstanc�t a chc�n es�h�t ave-accurred ,
developed duringthe study.However,this T, =xN ,�. to -
ps ce atr dy wassompteted --�
optional meeting will provide up to four .... -._-Y:�ul• _.- `"` 3
hours of detailed training to AL&W staff to This task will include a detailed breakdown
ensure they know how to use the financial of trial balance items,various revenues,and
and rate models.This meeting could be fees,and the development of the five-year
attended by our project manager and our forecast on this basis.
senior financial analyst,Alex Palmatier.
We also propose to review the sensitivity of
E :.) ;r: >C d A t_ W S u p'p o r t for Task 1 : the financial projections by developing a
table that provides both the baseline and the
51 Have key AL&W staff coordinate times plus and minus a sensitivity factor(e.g., 15
and dates for, and ensure the attendance
percent) that can be applied to variables
0 of,meetings. such as annual water consumption,
inflation, capital costs, and similar financial
0 Task 2 .. Financial Analysis components affecting the projections.These
0 variables will be evaluated to determine
Task Objective: This task builds a financial whether the sensitivity of the rate increases
model that projects revenues,expenditures, to changes in these variables.We will
1 and net revenue requirements (revenue to be
q develop a rational and reasonable approach
recovered from water and sewer rates). to the forecasts by reviewing these results
with AL&W staff.
1
This task lays the groundwork for the The primary work product from this
1 financial projections and development of subtask will be a financial forecasting model
I' revenue requirements, and is reflected in that will be used to test the appropriateness ,
the rate analysis. of current and scheduled water rates.
Subtask 2.1 - Revenue and Subtask 2.2 - Develop Net Revenue
s Expenditure Forecasting Model Requirements
0
The first aspect of this task will be to collect Using the forecasting model from Subtask
and review the detailed budget information 2.1,we will develop the net revenue
for the water and sewer utilities.Based on requirements, which are total revenue
discussions with AL&W staff, we will requirements less non-rate revenues.
----_ _ -- -- - --
09003 034
tat
2. Work Plan t
.. to
,, ,::
to
W
However,we will also consider the use of Subtask 3.1 - Evaluate Water V'
reserves in determining these net revenue Consumption and Billing Data
requirements.
Accurate data on the consumption and
The primary purpose of this subtask will be number of customers within each tier V
to develop the revenue requirements to be allows for accurate adjustments to fixed 40
used to determine recommended rates.The meter service charges and commodity rates. V
revenue requirement analysis will be part of Additionally,this kind of analysis is IP
the financial forecastingmodel,but will
important for revenue stability because it
identify the revenue to be collected from improves accuracy when predicting the
water rates. total amount of rate revenue generated by V
tiered,volumetric-based rates. V'
Expected AiIOdti' Support for Task 2:
We will re-evaluate AL&W's water
is Provide the financial data requested. consumption data to develop a realistic and
® Review initial alternatives and provide more conservative basis for the cost of
comments and direction as needed. service analysis("conservative" means Qe
projections that consider current economic
conditions and trends of reductions in
Task 3 - Cost of Service
Analysis
water use).This includes:
ir
® Typical consumption by meter size.
Task Objective:.Developa cost of service ® The number of meters and accounts by
analysis that updates critical billing and
water system data, meets Proposition 218 consumption level(i.e., the distribution VP
mandates,and provides verification of the ' ' curve of consumption identifying the
revenue projections based on proposed number of residential customers by
rates. .. r consumption level).
*
This task will provide the technical cost of We will use various graphs and tables to
service analysis of water rates,including help illustrate the results of this analysis to 0
cost allocations and proposed changes to AL&W staff,Council members, and the
projected revenues and rates by customer
public,similar to Figure 2-1. 0
class.
Subtask 3.2 - Evaluate Current Water
The rate model developed will consist of Rates
Microsoft Excel-based worksheets and will
provide a series of figures comparing: (1) AL&W's current water rate structure relies 0
the annual revenue as a total and by on meter sizes.Adjustments to the projected 0
customer class;and(2) the customer bills future rates will, to a large extent,reflect the
under current and projected rates.The number of accounts/meters and the fl
following subtasks provide details of the consumption data developed in Subtask 3.1.
4
cost of service analysis.
I
Ivii,,.i
2-4 09003 35
J
2. Work Plan
z
Figure 2-1. Examples of Water SUbtask 3.3 - Cost of
Consumption Data Analysis l Service Analysis
Monthly Consumption by Class ! The primary purpose of
City of Pomona this analysis will be to
700,000 follow industry standards
600,000 Single Family and AWWA
500,000 methodologies and to
Total 400,000 ensure Proposition 218
Monthly
Use(hct) 300,000 Multi-Family requirements are met.
200,000 :; .- However,we believe the
100,000: Commercial current rate structure is
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec sufficient with the
exception of revenue-
related adjustments to the
2006 Residential Consumption,Number of Customers, actual meter service
and Seasonal Averages charges and commodity
City of Aurora, CO rates.
6,000
5,000- To, Rasiden iaii=a..,:yr 5i)c.;:olcioz, . As a part of the cost of
= 4 service update to the
No.of 4'000 ''rifitr�'.-uv,it:fi r?�afa•;i6
� '� ts�� < rates,we will provide
Customers t . ge'-5,1:iU�a:tl. r,5(E L
3,000 r,cl: detailed tables showing
wt!rrine•r f:i:.;arter
2,000 JAViracy)1.,sage= lo..-1. the allocations to
;.,"oi-s 120 F3"Gil functional categories (e.g.,
1'000 customer costs, fixed
0 ,��� "' ' `�'�'a®°p g�a,- ' costs,distribution-related,
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28
etc.).
Average Monthly Use
(1,000 gallons/month) The cost of service
analysis will then re-
To focus on revenue sufficiency and cost of evaluate fixed charges, which largely reflect
service principles, some adjustments to the capacity, and commodity charges,which
current rates to be evaluated include: address water conservation objectives.
e Cost allocations between fixed meter a Fixed Service Charges: We will rely on
charges and commodity charges. AWWA's methodology of using
® Adjustments to meter service charges equivalent meters(hydraulic capacity)
and commodity rates. in setting the meter service charges.
is Commodity Charges:Include all costs
not allocated to fixed service charges.
Tier rates will be set so as to meet the
09003 _.._-----_ ---__.._._____._ 2-5 036
2. Work Ran _
__w, _ - �_. _. - a
90
revenue required for each customer The updated rates will then be compared to p
class, thereby fulfilling the cost of current rates to determine the impacts on V
service requirements of Proposition 218. customers at various consumption levels. V
An example of this comparison is shown in V
The commodity rates will consider: Figure 2-2. a
® Tier Break Points:Based on thele
updated consumption data,we will re- Subtask 3.4 - Other Rate
evaluate whether any adjustments to the Considerations M
tier breakpoints are needed. b
AL&W has experienced the impacts that
occur in times of water shortages,such as
® Tier Rates:Likewise,we will re- g
evaluate adjustments to the tier rates revenue shortfalls;when supplies are b
based on the updated consumption data reduced and consumption drops, AL&W b
and number of accounts. cannot proportionally reduce operating b
costs. Hence, the need for a plan that b
We will also prepare, as a part of this rate ensures revenue stability during shortage
6
analysis and rate model,a revenue periods.
adequacy test within the model to b
demonstrate that the forecasted sales data, 6
rates, and other data will indeed produce 1/4
sufficient revenues.
b
b
b
Monthly Commodity Charges for 518"-314" Meters by Consumption Level 6
City of Azusa b
ii
$165 L
0 Current 2-Tier Rates w/Rate Increases _ —. i r` -
New Rates are Higher o0
$150 : ® Recommended 2-Tier Rates than Previous
$135 w/Rate Increases a.
$120 . rn
$105 1 Average Month ^ csi rn ��
$/Month $90 New Rates are Consumption ^ M co ti �`R t j
i Lower than =27.7 ccf - co. Yom► .
$75 Previous N P a I p
$60 co co :1 .,,i
$45 M m vs -il sl f . y
x
$30 cq o cv o M 0
10 ccf 15 ccf 20 ccf 30 ccf 40 ccf 50 ccf 60 ccf 70 ccf 100 ccf
t
Figure 2-2. Example of Rate Comparisons q
1
i
2-6 09003 037
2. Work Plan
We propose using two primary means of Task 4 _ Final Reports a n d
meeting revenue sufficiency during supply Presentation
t shortages:
1 Task Objective: To communicate as clearly
m Establishing an Emergency Reserve: as possible the changes in the water
' This involves establishing a reserve consumption and account data affecting
0 fund that will cover temporary revenue rates, how financial and rate models were
) shortfalls during the initial period of developed, and the comparisons of
0 supply reductions or shortages.This projected rates.
reserve will need to be included in the
revenue requirements. Subtask 4.1 - Prepare Study Reports
9 and Presentation
p ® Developing an Emergency Rate
Structure:AL&W will need to increase We will provide a study report,including
the fixed and/or variable charges to two draft reports for AL&W's review and a
provide the revenue needed during final report,that address the following
4 reduced water sales.This involves topics:
0 identifying: (1) the level of supply
1 shortage;and(2)the rates needed to ® Executive Summary(an overview of
1
continue producing the necessary rate two pages or less).
revenue. ® Changes in accounts and consumption
b Used together, the reserve fund and the data,as well as financial projections that
emergency rate structure can be very have affected rate revenue.
effective in meeting AL&W's revenue ® Proposed water rates by meter size as
requirements during supply shortages with compared to current rates.
0 rates that still comply with Proposition 218
1 and cost of service principles. ® Figures similar to those shown
1 previously in this proposal illustrating
In addition,HDR will consider the fiscal bills under current and recommended
1 impacts of compliance with bond debt
rates and various consumption levels.
1 coverage requirements when formulating
1 cost and revenue forecasts. We will emphasize the need for a clear,
1 concise, and understandable report using
lfxr, c ,=.-r. MAW Skiff Support for Task tables,graphs, and charts as appropriate.
1 After reviewing the first and second draft
® Provide the data requested. reports with AL&W staff and receiving their
1
1 Review preliminary results and confer comments,we will prepare the final report
f
with the HDR team as needed. incorporating those comments.
1 Based on the final report,we will prepare _
the Powerpoint presentation.We will work
t
f
t 09003 - _ - -- 2-7
038
ter►
V
2. Work Plan
Lw yy
.41 IP
with staff to determine the appropriate E Cell comments would be used to Vi'
number and types of slides to be included indicate the sources of data and
in this presentation. explanations relevant to the updating V
process. ®p
We will plan to provide AL&W with 10
copies of the final report,including a =.e r, t;v; y ,A n c ;y.i s:
reproducible original and the electronic V
copies (Microsoft Word and Excel),and an We will also make special note of variables fiF
electronic file of the Powerpoint that can be modified when evaluating the
presentation. sensitivity of the projected rates to changes
w u ty in those variables. For example, total net
op
ou rdro ne orts`�ve also' •h revenue requirements,the number of
::7.-.9u9.09/19, •dire• 1=,- --,-....„-dha 9 s Q, .., accounts, annual water consumption, ill
'a , * , / ,r " inflation rates,and CIP costs are key
t :.:46;',.4,4,-A-,, 40,1;"'*,..', i! v sc .euer�Pg- � variables that AL&W staff may want to use
t �, ski ' I e o 14hes to test the sensitivity of the models.
'• usa g a er
r..�- :.,,,'-- -S-:•--- ;-. .i_�i ' :_,;,s iy'� .. rYice._.4. 4
Ex ,ectea AL&W Support for Tosk 4: ffi
Subtask 4.2 - Prepare Financial and ® Review preliminary results and confer
Rate Model
with the HDR team as needed.
The basic approach to documenting the ® Review first and second draft reports,
financial and rate models is to make the 4"
model and calculations as"transparent" as and provide comments to HDR. 0
possible, in contrast to a "black-box" 0
approach where it's not apparent how
calculations are made.
The financial and rate models will indude: sli
® An index of the tables (table names and 0
functions). 0
El Explanations of how each table in the
model works. 0
0
® Color-coding and highlighting those 0
cells that need updating, such as budget
data,number of accounts,water 0
consumption, in contrast to other, static 0
parts of the model,like calculations and . 0
rate results. e
e
e
2-8 09003 45
•
039
9 '
Data Request
Table 3-1 shows a summary of the data
requested from AL&W and the options if
data is not available. •
Table 3-1. Summary of Data Request
' Options if Not
Data Requested
Available-
-
vailable .-
Financial Data • •
Most Recent 12 Months of Monthly/Bi-Monthly Revenues(by
` 1 Customer Class)for Azusa City Azusa Valley,and the Replacement Historical Records
Water Cost Adjustment Factor(RWCAF)
P
2 Schedule of Long-Term Debt Service Payments -;:':Staff Estimates ..
3 Water Enterprise Fund Budgets/Revenue Requirements (Actual, Historical Records
Budgeted, and Projected)
4 Miller Brewery Revenues(Actual, Budgeted, and Projected) Historical Records
Year-End Water Fund Cash Reserves(Fiscal Year 07-08)and
5 Historical Records
Beginning-Year Cash Balance(Fiscal Year 08-09)
•
Assumptions for Projected Inflation Adjustments(Salaries, Franchise
6 Previous Rate Study
Fees, Operating Expenses, General and Admin.,etc.)
AL&W Financial Policies(e.g.,target coverage ratios and year-end
7 Previous Rate Study
fund balances)
€ustomer Billing Information
Number of Accounts and Units by Meter Size(Previous, Current, Protections Based on
8 and Projected) Historical Records
Water Consumptiorn Data
Most Recent 12 Months of.Monthly/Bi-Monthly Water Consumption ...
9 Historical Records
(by customer class)for Azusa City,Azusa Valley, and the RWCAF
10 Most Recent 12 Months-of Monthly Water Consumption(by meter Historical Records
size)
09003 d..- --- 3-1 0 4 0
4. Scope Exclusions/Addenda
en a
HDR has addressed the requirements of the
request for proposal (RFP)in scope of work
detailed in Section 2 of this proposal.The
scope of work included in Section 2 also
contains additional and optional tasks that
were not identified in the RFP scope of
work.These include:
Subtask 1.1 -Project Management and
QA/QC.
Subtask 3.1 —Evaluate Water
Consumption and Billing Data.
Subtask 3.4--Other Rate Considerations
(establishing emergency reserves and
rate structure).
•
!
1 .
1
09003 4-1
041
{
5. Deliverables
` Table 5-1 summarizes the deliverables
anticipated for each task.
i
•
•
' Table 5-1. Deliverables
L
' No Task Description Deliverables;
i
1 Project Management, .-! Monthly progress reports and invoices.
i Meetings(Optional), ®
and QA/QC 'Meetingagenda prior to meetings with AL&W.staff.
i
'I Meeting minutes following the meetings,with AL&W staff
I
i 2 Financial Analysis Summary of net revenuem
.requireents,as well'as detailed backup`
, ..-•,..:•,!)•! -,::..:udget rojections
i 3 Cost of Service » Summary of customer accounts and water consumpti•on data.
Analysis s 'Proposed adjustments to current meter service charges and ,
commodity rates:
1 :� Projected revenue requirements by customer class and worksheets
1 de•monstrating revenue sufficiency
I ® Projected customer bills by customer class and consumption level.
1 4 Final Reports and Four bound copies and one electronic copy •(Microsoft Word and
1 Presentation Excel)of the first draft report,which will include complete executive
I summary, background,methodology,analysis,findings and ,
' recommendations;and proposed rateschedule
I ® pour bound copies and ane electronic copy(MicrosoftWord and •
1 Excel)of the second draft repoii.end proposed`rate schedule,after
1
incorporation of AL&W s comments on the first:draft report
I Four bound copies and one electronic copy(Microsoft:Word and
1 Excel)of the final report'and.proposed,rate schedule, after
1 incorporation of AL&W s comments on the second draft report
,iid PowerPoint presentation summarizing the final report,"in an electronic;
1
1
file.(NlicrosoftPowerPoint)
1
1
1
1
1
1
1
1 .
1
1
1
09003 _--__------ _ __ 5-1 042
6 x .._.._.....:.... ._.,_.... ._ ... ._.......... .. ... Study Schedule
Figure 6-1 below presents the study
schedule that we believe is realistic and
meets AL&W's requested time Iine.
•
Figure 6-1. Project Schedule
Weeks from Notice-to-Proceed
-Fask
! Task 1 Protect ManagementQAInd'M
QC,_aeetings/Workshops
1.1 Project Management and QA/QC
1.2 Meetings(Optional) - �.®. ,
Task2 Financial Analysis - r
2.1 Revenue and Expenditure Forecasting Model
2.2 Develop Net Revenue Requirements 1111111111 ,: �.�.
7as€3 Dost of Service Analysis
3.1 Evaluate Water Consumption and Billing Data ®®®®mum
�
3.2 Evaluate Current Water Rates
1 3.3 Cost of Service Analysis ..
3.4 Other Rate Considerations 11/1
11111.
Km
Fask44 nal Reports
✓ a -r, e. vrr 9
I 4.1 Prepare Study Reports
Powerpoint Presentation
TO ALS: .
_
Planned Activity on Tasks.
19 Meeting,Report or Other Work Product
)
I
)
i .
I
)
1
09003 ---- b-, 04 3
1
• 1 Lump Sum Not-to-Exceed
1
1 Table 7-1 summarizes the total lump sum, classifications expected to be used on this
1 not-to-exceed cost estimate for this study, study.
1 including the hourly rates for all personnel
1
Table 7-1. Total Lump Sum Not-to-Exceed Fee
1 - Principal! Project Sr Financial Frnariciai Admin(' Total Total Total Total
) Task Description _ QAIQC` Manager Analyst Analyst Clerical Hours Labor(5) Expenses($ ) Cost-($}'
Task+s Tom Gould:, Greg '' .Palmatieri Sunny 1vLsc
Np ClUmpncr JI
_ Yashrtom
id QC s aTask1-Pro�ecttManagementMeetngs and r a , , � _
®Project Management and QA/OC -2 �: 2 2. 6 $1,130 $90 $1,220
/ 11111 Subtotal Task 1 2 2 0 0 2 c " 6 _'$1,130 . $90 .$1,220
) ask 2-Financial Analys•s -
Revenue and Expenditure Forecasting 1 2 26 2 31 ~ $4,692 $235 $4,927
DModel
1 ®Develop Net Revenue Requirements 2 4 6 $1,038 $87 ``$1,125
1111 Subtotal Task 2 1 4 30 2 0'; 37 $5,730 $322 .$6,052
Task 3 Cost at Service Anafyei � �'' ?`3 7
®Evaluate Water Consumption and 6 20 26 53,938 $197 $4135
Billing Data
( ®Evaluate Current Water Rates 111EM 4 5 $1,186 $119 ,•$1,305
3.3 Cost of Service Analysis Mill32 6 42 $9,234 $462 :$9,696
) D Other Rate ConsiderationsIMINHIENI 6 ® 13 $2,414 $241 $2,655
�SubtotalTask3 6 48 •'�:0 �:.•` 32 0.:':' 86 $16,772 $1,019 $17,791
) Ta 4 Final Reports and Presentation �y y 2 :,--:___, '^
Prepare Study Reports and PowerPoint 1 16 2 4` : 23 $4,580 $229 $4809
) Presentation
) 1111 Subtotal Task 4 t`' 1 16 FF •.'.,:2':,'.• `(( 0 is 4.,`:': 23 : '$4,580 ,_,,,,$.2,9___,,!..47,78'0,9_,
TOTALS, _ I`. 10 76. . f _.: 32 I 3d . -6.-> `152f 1 $26,212! = S1 660j$2987
) Optio .-- --s,,,,,-....c-,..„__
1.2 Meetings(Project Manager to Attend)' 6 , . 6 ,,'$1,398. $497 $1,895
'This is the per meeting cost,not including preparing additional presentations.
1
)
) .
)
)
)
1
1,
1,
1 09003 - — ------ - _. ._..... _, ---- 7-1
I -
8. Fee Schedule/Hourly Rates
HDR ENGINEERING, INC.
STANDARD RATE SCHEDULE
January to December 2009
City of Manhattan Beach
Water and Sewer Rate Analysis
Principal $254
Project Manager 233
Senior Financial Analyst 143
Financial Analyst 127
Senior Project Controller 110
Project Coordinator 72
Technical Editor 70
Clerical 65
Please Note:Rates include current overhead rate plus profit and are adjusted annually.
EXPENSES
In-House Expenses
Technology Charge per Direct Labor Hour $3.70
Vehicle Mileage(per mile) $0.55
Color Copy(per copy) $0.75 to$1.50
Photocopies(per copy) $0.10 to$0.20
Bond Plotting-Black&White(per square foot) $0.135
Bond Plotting-Color(per square foot) $0.50
!. Vellum-Black&White(per square foot) $0.50
Mylar-Black&White(per square foot) $0.90
Please Note:Technology charges include computer, CADD, network, software, and other related technology
services.Expenses are charged with a 10 percent markup.
09003 8-1
045
.
9. OtherCommttments
I
1
I
All members of our team have adequate lower-level staff and there will be no
1 time available to complete your project substitution of team members.Table 9-1
1 successfully within the time frame indicated summarizes the projected staff
1 in the schedule, and are fully committed to commitments to other clients over the study
) this project.Work will not be delegated to period.
Table 9-1. Project Team Availability and Commitments
) Project Team " Avaiilability`to
Member AL&W -- Other Client Commitments
I Greg Clumpne f r. .-.: 30%to 40% • City of Williams
I Project Manager ® City of Riverbank
) ® City of Hayward
i Humboldt Community Seivices District
) City of Shaffer
Tom Gould 5%to 10% 11 Saint John Water Utility
i
Principal-in-Charge and
® City of Spokane .
QA/QC..
® ,,City of Millon
City of Fresno
i ® City of Bentopvlile
t Ci of Mount Vernon
1 to Southside:Water.and Sewer District.
! - Soos Creek Water and Sewer Distract
I Alex Palmatier. ' 30%to 40% • .ACity of San Diego
Senior`Financia!Analyst a ` Moulton Niguel`Water District
'a:v .. s,..
i I Clark County Wastewater Reclamation District
f;' � acyof San Clemente
i
B .South Orange County Wastewater Authority
Sunny Yoshitomi 40%to 50% • . City of Sutter Creek
Financial Anal st .
y , City of Woodland
1 ® Sacramento Regional County Sanitation District
_
1
l
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•
1 09003 -- ---- -- -- _ •
9-1 046
Greg C. Clumpner
•Experience
Mr.Clumpner's 25-year professional career has focused on financial and
economic analyses, and management consulting assignments for municipal
water,wastewater, and solid waste agencies.His increasing levels of
responsibility cover technical and project management aspects of operating
and capital improvement projects for both domestic and international
Project Role projects. He is an expert in developing financialmodels and proforma
Project Manager analyses to evaluate the consequences of various infrastructure
development alternatives.
Meetings and Reports a Cost-of-Service Rate Studies:His cost-of-service experience includes
Rate Analysis and Model preparing revenue requirements,rate structure design, cost-of-service
Education studies,multi-year financial plans, conservation-oriented water rates,
funding analysis,and Proposition 218 requirements for water,sewer,
M.S.,Agricultural/ and solid waste utilities. He has prepared more than 100 cost-of-
Managerial Economics, service water and sewer rate studies throughout California and the U.S.
University of California, Multi-year financial plans address annual cashflows,reserve levels,
Davis, 1983
inter-fund transfers, and rate adjustments. In addition,he has evaluated
B.S., Environmental Planning new and existing development impact fees for water,wastewater,and
and Management,University other municipal improvements for the more than 60 municipal clients.
of California, Davis, 1977
a Utility System Valuations:His utility system valuations experience
Professional includes assessment of the field condition and likely market value of
Endeavors private water,storm drainage,and electric transmission/distribution
HDR Engineering, Inc., systems.
2008 to Present
a Management Consulting&Strategic Planning:His management
Foresight Consulting Services, consulting and strategic planning experience includes operational and
2003 to 2008 financial analyses related to system acquisitions,municipal versus
Hilton Farnkopf&Hobson, private operations, and funding strategies for municipal agencies.
LLC, 1998 to 2003 ■ Project Financing/Bond Feasibility Studies:His project financing/bond
Resource Management Int'l, feasibility study experience includes preparing bond feasibility reports
Inc., 1997 to 1998 resulting in the issuance of more than$450 million in revenue bonds
CH2M HILL, 1984 to 1997 to finance the acquisition or construction of municipal facilities.
• Waste Management Economics:His waste management economics
experience includes evaluating and comparing the operational
advantages, capital and operations and maintenance (O&M) costs,rate
impacts,and financing issues for waste management facilities and
system alternatives such as transfer station/long haul systems and
landfill expansions.
Representative project experience includes:
WATER AND SEWER SYSTEMS
Valuation of Production Wells-Arcade Water District,Sacramento,
California.Evaluated the production capacity and field condition of wells
and distribution network.
Azusa Municipal Water Rates-City of Azusa,California.Azusa Light &
Water needed to evaluate its water rate structure to ensure rate equity,
compliance with Proposition 218 requirements, and adequate funding of its
planned capital improvements. Water conservation and revenue stability
were additional concerns for the city. Developed several water rate
I
047
♦ `I
Greg C. Clumpner o
op
o
structure alternatives that adjusted the tier breakpoints,tier rate
differentials,and assume minimum consumption for residential customers.
The city serves over 20,000 residents and businesses, consuming 0
approximately 10 billion gallons of water per year. .
Professional Sewer Capacity Fee Study-City of Corning, California.Conducted a rate
Affiliations
study
00and prepared a financial plan for the city's sewer system (population
6,7American Water Works
Association (AWWA), Sewer Rate Analysis&Consumption Based Sewer Rates-City of Davis, 4
Member California_Evaluated the city's sewer rates primarily to develop a financial
strategy to fund$165 million of improvements to the city's wastewater
Planning Commission, treatment plant. Restructured the customer classes and developed new
Chairman, City of Davis cost-of-service rates.As a separate follow-on task, developed winter water
Budget &Finance consumption-based residential rates,which have now been adopted and
Commission, Planning implemented.
Commission Liaison, City of
Davis Water and Sewer Rate Study-City of Winters,California.Evaluated the W
city's revenue requirements,rate structure and customer classes,water
Former Board Member, consumption data, and billing records to provide the basis for developing
American Youth Soccer rate alternatives that fully fund operating and capital costs and provide a
Association
(AYSO),Davis high degree of revenue stability. Developed revenue requirements and 10- w
(Region218) year financial plans, Recommended rate structures that were compatible
Sacramento Economics with the city's billing system, are easy to understand, and easy to till
Roundtable (Past President) implement, and conducted a cost-of-service rate analysis. 1
Training Valuation of Privately Owned Utility Systems-Elk Grove Water Works and 10.
AWWA Cost-of-Service Elk Grove Community Services District,Elk Grove, California Conducted a
Analysis,Decision Analysis, valuation of water utility for possible acquisition by the Elk Grove
Project Management, Community Services District (now called the City of Elk Grove). Estimated tiO
Technical Writing. the fair market value of the Elk Grove Water Works and assisted with
Publications acquisition negotiations of this water utility.Four basic approaches were
evaluated,including rate.base book value,and replacement cost less 0
"The Drought's Here...Now depreciation under two depreciation methods.This study included detailed
What?A Look at Water 110
investigation of allowable asset valuations under California Public Utility
Budgets and Water
Consumption Data in Commission rules.Developer contributions were evaluated from a public 0
Designing Water utility perspective. Negotiation strategies and assistance were also
fr
Conservation Rate provided.
Structures," California- Sewer Capacity -Fee Study0
Nevada Section AWWA City o f Imperial Beach, California.Conducted a
Accepted for Presentation at
rate study and prepared a financial plan for the city's sewer system. 0
the 2008 Water Quality& Multi Agency Sewer&Water Rates and Connection Fees-Lake County - 0
Regulatory Conference, Special Districts,Lakeport,California.Evaluated the water and sewer rates
Ontario, CA, October 2008. and connection fees for the 10 water districts and six sewer districts.The
"Conservation Rates and the primary objectives of this study was to evaluate and update the customer 0
New Age of Supply Shortages classes and rate structures, develop equitable rates and fees,and lay the 0
- Using Water Conservation ground work for funding necessary capital improvements for the individual
Data to Design an Effective . districts.This study included a thorough review of the county's policies and 0
Water-Conservation Rate procedures, administrative practices, and system operations. w
Structure,"California-Nevada
Section AWWA,Source, Water Rate Study and Financial Plan-City of Lakeport,California. ti
Volume 22, Number 1,Spring Conducted a rate study and prepared a financial plan for the city's water
2008. system,which includes four wells,a surface water treatment facility,and
distribution system to the meter. 0
IA
FDZ . 048p
Greg C. Clumpner
, .
1
1 Evaluation of Water Main Replacement Program-City of Merced,
1 California.Conducted an engineering analyses and field inspection to
1 assess the condition of water mains and potential changes needed in
funding the water main replacement program.
1 Publications (continued)
Water Rate and Capacity Fee Analysis-City of Modesto,California.The city
1 "Conservation Rates and the did not prepare a full cost-of-service rate analysis of its water rates in more
New Age of Supply Shortages than 10 years and needed to fund over$150 million from rates within the
I -Using Water Conservation , next five to 10 years.This required significant rate increases and a well-
Data to Design an Effective constructed financial plan that combined annual rate increases,new
Water-Conservation Rate
I Structure,"Technical Paper connection fees, and issuance of new revenue bonds. Prepared a cost-of-
prepare for AWWA service rate model,which included projecting revenue requirements,
I Publication, November,2007. thoroughly analyzing rate structure alternatives, reviewing and updating
i "Conservation and the rate policies, analyzing water consumption by customer class, and
Consumption Conundrum: evaluating cost allocation methodologies. Prepared extensive analyses of
The Relationship Between
customer water use characteristics for flat and metered water utility
Water Consumption Patterns customers. By combining three zones, each with flat and metered
and Effective Multi-Tiered customers,into a single zone and a uniform rate structure; a new water
I Water Rates" Presentation at rate structure was developed. Once the water rate analysis,report, and
) the AWWA Fall Conference, Proposition 218 process were completed,the city successfully implemented
Sacramento, California, the new water rates and connection fees.The City operates and maintains
I October 25,2007(Co- over 70,000 water connections, 927 miles of water lines, 129 water wells,
) authored with Greg Baird, seven water storage tanks, one surface water treatment facility, and one
CFO/Assistant General terminal storage area.
I Manager,Aurora Water,
I Aurora,CO). Water&Sewer Rate Study-City of Morgan Hill,California.Conducted a
"Compliance Strategies for rate study and prepared a financial plan for the city's water and sewer
( Meeting AB939 Goals," systems (population 39,218).
) Presentation to the California Water&Sewer Rate Study-City of Mount Shasta,California.Conducted a
Debt Advisory Commission, rate study and prepared a financial plan for the city's water and sewer
I Long Beach, California, 1995. systems.
I `Estimated Property Value Water and Sewer Rate Studies-City of Paso Robles, California.The city
Impacts Related to the needed to start planning for major system improvements,including new
Proposed HELCO Generation
Project."Testimony prepared water supply alternatives,additional reservoir and above-ground storage
for the Hawaiian Electric tanks, and major sewer treatment upgrades. Developed the rate analysis
) Company (HELCO), Hawaii, and prepared the connection fee analysis.The city implemented all
) 1994. recommendations, and now operates and maintains 14 wells,five booster
"The Economics of Mandated stations,four reservoirs that hold a total of 12,150,000 gallons (two 4
Source Reduction and million-gallon [MG] tanks, one 4 MG reservoir,and a 150,000-gallon tank
I Recycling Programs in on Merryhill), and 148 miles of water pipe.The water system serves nearly
California,"Annual 8,000 residential,over 130 commercial, 700 irrigation, and approximately
) Conference, National Solid 370 construction meter customers.
) Waste Managers Association, spate.&Sewer Rate and Capacity Fees-City of Pomona, California.
Toronto, CN, 1994. Prepared a complete evaluation of the city's water and sewer rates to meet
several city objectives,including water conservation.Rate alternatives
) included: (1) across-the-board increases to the current rate structures; (2_
) strict cost-of-service rates; and'(2) a new rate structure that better
addresses the city's overall rate objectives. Restructured water rates,
) including revising the tier breakpoints and cost allocations to fixed and
) variable charges. Connection fees were also updated, along with
preparation of 10-year financial plans,new reserve fund policies,and a rate
model for each utility.
104 9
•
Greg C. Clumpner
Comprehensive Water Rate Study-City of Ripon, California.The city
needed to re-evaluate its water rate structure to ensure equity among its
customers, and ensure its planned capital improvements would be qrsi
adequately funded. Conducted a study that addressed pricing for the city's
non-potable water supply and rate alternatives that included more
conservation-oriented rates for residential and commercial customers.
Sewer Rate Study-City of Riverbank, California.Conducted a rate study
and prepared a financial plan for the city's sewer systems (population
21,750).
Wastewater Disposal Alternatives Net Economic Benefits Analysis—City of
Santa Rosa,California.As a part of an incremental recycled water �1
program,evaluated the net present value of cost and benefits for more than
a dozen water reclamation,reuse, and disposal alternatives,for the Santa
Rosa Regional Wastewater Treatment Facility.This covered a planning
period of 40 years and provided financial and economic results used to
screen and further develop these alternatives.
Water&Sewer Rates and Connection Fees-Santa Nella County Water
District,Santa Nella, California.The district was planning on funding
construction of new water and sewer treatment plants in anticipation of �A
new subdivisions that would add more than 7,000 new homes,plus related
commercial development to the district's service area within the next 10
years.Developed new rate structures for both utilities that included w
voluntary developer contributions to operating funds to bridge the gap
between new facilities construction and when new customers would start
paying service charges.Also restructured the new rates to fund current
operations after the consortium of developers decided to put the plans for
new water and sewer treatment plants on hold due to market condition.
These new rates included full cost-of-service analysis and incorporated 1g
wastewater effluent strength factors, which had previously not been
considered.
Water Rate Study-Valley of the Moon Water District,El Merano,California.
Conducted a rate study and prepared a financial plan for the district's P1
water system(population 23,000, 6,832 service connections).
Water System Feasibility and Capacity Fee Study-City of Visalia, California.
Conducted a financial analysis of developing a city-nm water system in
addition to existing California Water Service operations.Developed
projected system costs and connection fees for the new municipal
operations.
Water and Sewer Rate Study-City of Williams,California.Conducted a
cost-of-service rate study, prepared a financial plan, and re-structured the 0;
city's water and sewer rate schedules (population 4,800).Also assisted with01
developing a revenue program,as part of the Clean Water Service State
Revolving Fund (SRF)loan application process. M
Water&Sewer Rate Analysis-Town of Yountville,California.Completed
an evaluation of the town's water and sewer rates to meet multiple town
objectives,including a restructuring of the water and sewer rates,
Proposition 218 rate equity requirements,increasing water conservation,
and potentially eliminating an annual contract for backup supplies from
the North Bay Aqueduct. Rate alternatives included: (1) across-the-board
• e
HR 05011,
)
Greg C. Clumpner
)
increases to the current rate structures; (2)restructured cost-of-service
) rates; and (3) new more conservation-oriented water rates.Ten-year
financial plans were also developed for each utility,including new reserve
fund policies.
)
Water Rate Structure Review/Rate Analysis-Aurora Water,Aurora,
Colorado.Aurora Water was experiencing significant problems with their
) water rates and billing system due to their recent adoption of a water
budget-based rate structure.Reviewed and evaluated specific rate structure
and billing problems, and recommended changes. Primary concerns were
cost-of-service principles and rate structure design.As a result of the
analysis,the city decided to re-evaluate rates and revert to a more
traditional tiered water rate design.
Pricing of Water and Reclaimed Water-Cyrus.Prepared a financial
) evaluation of the costs of several new water and reclaimed water
alternatives,including the costs of transportation and distribution facilities,
operations and maintenance (O&M),financing costs, and the resulting
) costs of water to consumers. Pricing of potable and non-potable water for
agricultural and M&I customers was an important aspect of this study. No
in-country assignments were required in this project.
)
STORM DRAINAGE SYSTEMS
Storm Drainage Funding Alternatives—City of Alameda,California.
Developed multi-year financial plans to evaluate potential funding sources
.for operations and maintenance (O&M) and capital costs of storm
drainage programs.
)
Storm Drainage Funding Alternatives—City of Belmont, California.
Developed multi-year financial plans to evaluate potential funding sources
) for operations and maintenance (O&M) and capital costs of storm
drainage programs.
Storm Drainage Funding Alternatives—City of Petaluma,California.
Developed.multi-year financial plans to evaluate potential funding sources
for operations and maintenance (O&M) and capital costs of storm
drainage programs.
Storm Drainage Funding Alternatives—City of Redwood City,California.
Developed multi-year financial plans to evaluate potential funding sources
for operations and maintenance (O&M) and capital costs of storm •
drainage programs.
Storm Drainage System Valuation-City of Tracy, California.Prepared an
analysis of the storm water drainage system owned and operated by the
West Side Irrigation District.The city was negotiating the purchase of this
system,which serves the city.Analysis includes an evaluation of the
condition, capacity, annual operations and maintenance (O&M) costs,
projected capital improvement, and a valuation of the entire system using
book value less depreciation,replacement costs, replacement costs less
depreciation,and market value.Also performed an inventory and
inspection of canals, culverts, and pumping facilities, and assessed needed
capital improvements for the possible acquisition of the city from the Tracy
Irrigation District.
1 051
Thomas E. Gould
Experience
Mr. Gould has more than 34 years of experience providing financial
planning and rate studies for water,wastewater,and storm drainage
Project Role utilities. He is nationally renowned for his expertise in regards to financial
and rate planning. Cities or districts faced with rapid customer growth,
Principal-in-Charge and potential partnerships, or large capital projects have relied on his
Quality Assurance/Quality experience to formulate financial plans, or implement fair rate adjustments,
Control (QA/QC) via comprehensive studies and open communication.
Education A number of utilities have utilized Mr.Gould's negotiation services,
Master of Business Admin, primarily as they relate to developing contractual agreements for wholesale
Business Administration, electric,water,and wastewater services. His services have included the
Willamette University, 1976 areas of negotiation, mediation,facilitation, cost analysis, and drafting of
Bachelor of Arts, Business contract language.
Administration,Central Project experience includes:
Washington University, 1974
Water and Sewer Rate Structure and Billing System Enhancements-City of
San Luis Obispo,California. Project manager for a comprehensive study of
the city's utility billing system and rate structure for water and sewer
servicesand recommendation of enhancements to meet the city's rate
structure goals.This project also involved a comprehensive review of AMR
systems that would support the city's goals of customer satisfaction,
increased operational efficiency,and cost recovery.
Comprehensive Water and Sewer Rate Study and System Development
Charge Study-City of Folsom, California.Project manager for a
comprehensive water and sewer rate study and connection fee analysis.
The major focus of the study was on the water utility and establishing
• metered rates for a previously un-metered residential area of the city
(Ashland).At the same time,the city did not have financial rate setting
policies in place and,as a result,the water rates were under-funding the
renewal and replacement capital projects.The study also created an
improved policy concerning the use of system development fees and their
application against debt service.While the city's historical approach
minimizes rates in the short-term,the city was nearing build-out and
expected the fees to decrease significantly in the future. Developed a
financial plan to transition the rates to more cost-based levels.A significant
element of the study was the public outreach element of the study as it
related to the implementation of the rates and the requirements under
Proposition 218.Assisted with a number of community meetings and city
council meetings.Also developed cost-based impact fees for the city for the
water and sewer utility.
Comprehensive Water&Sewer Rate Study and Capacity Charges-Dublin
San Ramon Services District Dublin, California.Project manager for a
comprehensive water and sewer rate study and system development charge
analysis.The district had significant growth and capital facilities plans.
Given that,a major component of the study was developing financial •
policies to address these capital planning issues and the development of
cost-based system development charges for each utility. In developing the
system development charges,revised the district's methodology to be in
conformance with AB 1600 and create a clear nexus between new
development and capacity expansion. For the rate studies, developed water
1-01 052
Thomas E. Gould
and sewer rate models for the district that were designed based upon their it)
specific chart of accounts and flow of funds between replacement related
capital and growth-related capital projects.Worked extensively with the
district's board of directors to discuss the various policy issues and
recommendations of the study.
Comprehensive Water Rate Study and System Development Charge Study-
City of Santa Cruz,California. Principal-in-Charge for a comprehensive
water rate study and review of water connection charges that would
support large capital improvement projects associated with the expansion
of its source of supply.Thecity was facing large capital improvement
projects associated with the expansion of its source of supply (desalination
plant).This project involved developing a financial plan that established
rate policies and determined the appropriate rate differential for outside
city customers.An important part of the study was the development of
conservation-based water rates to extend the existing water supplies. As a
part of the cost-of-service study, determined the appropriate rate
differential for outside city customers.
Comprehensive Water Rate and Supply Capacity Charges-City of Stockton,
California.Provided quality assurance/quality control (QA/QC)for
development of a financial model to calculate the connection fees for a
new water source developed to meet the demands of growth,.The emphasis v�
of this study was to ensure that the various project cost elements were
allocated equitably to future versus existing customers.
qd
Sewer Rate Study-South Tahoe Public Utilities District,South Lake Tahoe,
California. Project manager for a comprehensive financial planning and
cost of service study for the district's wastewater utility and updated system
development charges.This project involved working with the district's
board to establish financial policies for rates. Other tasks included
developing a comprehensive financial plan and cost of service analysis. By
critical determination of reasonable assumptions concerning wastewater
flows; developed reasonable surrogate information that met the district's ®e
board and client approval.
Water Rate Study-Mesa Consolidated WaterDistrict Costa Mesa,
California Principal-in-Charge for a project that established written
financial policies to help determine the district's rates,including minimum
reserve levels,replacement funding levels,target debt service coverage
ratios,and the use of"generally accepted"analyses to establish rates. Other •
tasks included developing a financial plan that incorporated the master 111
plan and asset replacement plan into a 10-year forecast.A forecast of water 111
supply costs based upon the mix of water supply resources available to the
district was also prepared. �I
Sewer Rate Design-Squaw Valley Public Service District,Olympic Valley,
California.Project manager for review of the methodologies used by the fit
district to allocate its sewer costs. Squaw Valley has system usage
characteristics.Recommended allocating the capacity related costs
associated with the districts source of supply and distribution mains.
Chosen to update the district's cost of service model and a more equitable
411
allocation between customers, and the expansion of the model to consider
additional customer classes of service.
a53
►
Thomas E. Gould
Comprehensive Cost of Service Study-Nevada Irrigation District,Grass
Valley,Nevada..Project manager for a comprehensive water and
wastewater cost of service/rate study that required allocating costs
between potable and non-potable customers.The retail water costs were
also allocated between retail and wholesale customers.Also conducted an
analysis and update of the district's annexation/connection fees,and on
their non-potable irrigation rate structures.This study provided the basis
for cost-based connection fees for the district.
Comprehensive Water Rate Study-City of Reedley,California.Developing a
water rate study.
Water and Sewer Utility Rate Study-Tahoe City Public Utility District,
Tahoma,California.Conducted a rate study for the water and sewer
utilities.
Galt Meter Implementation Plan and Water/Wastewater Cost of Service
Studies-City of Galt,California. Provided quality assurance/quality control
(QA/QC)for development of a meter implementation plan(6,500
customers),water and wastewater cost of service studies to develop cost
based water and wastewater rates, and update of the city's current
wastewater treatment plant upgrade fee.
•
Sewer Fee Model,Analysis,and Recommendations-City of Pleasanton,
California. Project manager for a comprehensive local sewer rate study,
which included rate policy evaluation and technical evaluation.
Fresno Water Metering Implementation and Water Rate Study-City of
Fresno,California. Project manager for update of the city's residential
water meter program/system evaluation and rate study. Developed a water
meter implementation plan to identify meter and automated meter reading
(AMR) requirements and an installation timeline for the city to meet AB
514 and US Bureau of Reclamation schedule requirements. Developed
residential volumetric metered rates for the city's current flat rate
customers.The metered rate was "revenue neutral",meaning it was
designed to collect the same amount of revenue as the City's flat rates.
(2006 to 2008)
On-Call Financial Consulting Services-Sweetwater Authority, Chula Vista,
California. Principal-in-Charge for assisting Sweetwater's Board and
management in understanding approaches to pricing and buying water
from a wholesaler,the economic theory behind each approach,and the •
advantages and disadvantages of each.
Water,Sanitary Sewer,and Stoma Drainage Rate Study,System Development
Charges,and Financial Plan-City of Bonney Lake,Washington. Project
manager for a comprehensive water. sanitary sewer,and storm drainage
rate study. For the sewer utility,the rate structure for residential customers
was revised to a volumetric approach. Also conducted a comprehensive
water.sewer and storm drainage study to develop a financial plan to meet
the infrastructure funding requirements and provide equitable and cost-
based rates. Developed system development charges to fund capacity
related improvements.Also reviewed the storm drainage capital
improvement program.
054
49
Thomas E. Gould
Water,Sanitary Sewer,and Storm Drain Rate Study-City of Mountlake
49
Terrace, Washington. Project manager for a comprehensive rate study for
the water,sanitary sewer, and storm drainage utilities. Other tasks included
development of a storm water utility financial plan and rates,work session
on financial policies to aid in setting rates,review of the city's reserves to
determine target reserve balances for each system, and setting aside of
funds for the possible repercussions of the Endangered Species Act (ESA).
The rate structure proposed was based on the amount of impervious
surface area of a property.
Kalispell Water,Sanitary Sewer,and Storm Drainage Rate Studies and
System Development Charges-City of Kalispell,Montana Developed
financial plans for the water,sanitary sewer, and storm drainage utilities.
The plans looked at the adequacy of rate revenue to pay for operation and
maintenance, debt service,maintain minimum cash balances,and pay for
•
capital improvements.The storm drainage master plan was developed to
provide for incremental increases in the storm water rates over the five-
year period and at the same time provide increased funding for storm
water infrastructure improvements.
Water,Sewer,and Storm Drainage Rate Study-City of Bremerton,
Washington. Project manager for development of a comprehensive water,
sewer. and storm drainage rate study as a result of litigation against the
city. Other tasks included providing expert witness testimony on the city's
behalf. Prioritized rate issues,such as levels, structures,equity between
customers,and debt service needs. Previously established the storm
drainage utility and rates, and over time,implemented rates based on
impervious surface area. Lastly,this project involved assisting in contract
negotiations for water and sewer service rates used by a U.S. Navy facility.
Water and Sewer Rate Study and System Development Charges-City of �1
Water,Sanitary Sewer,and Storm Drainage Rate Study-City of Bremerton,
Washington.The city is undergoing a significant level of growth.
Conducted a study to establish cost-based rates and create a transition plan $I
to move the city's rates to adequate levels.Additional responsibilities
involved developing a cost-based system development charges (impact
fees)for water,sewer.and storm drainage utilities, and assisting in the
negotiation of new wholesale water and sewer rates with the U.S. Navy.
Rate Study Update for Water,Sanitary Sewer,and Storm Drainage Utilities-
City of Renton, Washington. Project manager for a comprehensive water, •
sanitary sewer,and storm drainage rate study focusing on the long-term
capital improvement program of the utilities and the optimal means of
financing projects with the least impact upon rates.
Rate Study for Pasco Water,Sanitary Sewer,Stormwater,and Irrigation
Utilities-City of Pasco, Washington. Project manager for a comprehensive
rate study for financing capital improvements projects for the water,
sanitary sewer.stormwater. and irrigation utilities.
Whitefish Water,Sanitary Sewer,and Storm Drainage System Master Plan-
City of Whitefish,.Montana.Provided financial planning assistance during
preparation of a comprehensive water. sanitary sewer, and storm drainage q
system master plan. Work included evaluating population growth,
modeling the existing and future systems, evaluating alternatives for 055
Thomas E. Gould
•
meeting existing and future demand, defining necessary improvements to
meet demand and regulatory requirements, estimating the cost impacts of
► the necessary improvements,prioritization of improvements, capital
improvement program development, and financial management evaluation.
Water and Sewer Rate Study and System Development Charge Analysis-
Woodinville Water District,Woodinville, Washington. Project manager for a,
► comprehensive water and sewer rate study and system development charge
(impact fee) analysis.
Bozeman Impact Fee Analysis-City of Bozeman,Montana.Assisted the city
with analyzing and implementing impact fee for water, sanitary sewer,
police, and fire services.
Marysville Water and Sewer Rate Study-City of Marysville, Washington.
Conducted a comprehensive water and sewer rate study as a resultof the
•
need to expand and upgrade both their water and sewer facilities.Analyzed
the financial/rate impacts of various financing scenarios and worked with
the city council to develop a plan to phase-in the rates over a two-year
time period.
Water and Sewer Rate Studies-City of PortAngeles, Washington. Project
manager for development of a financial model that provided the city with
water and sewer rates that were cost-based and easy to administer.
Water and Sewer Rate Study-City of Sandpoint,Idaho. Project manager for
a water and wastewater rate study and review of new user facility fees.
Developed a rate transition plan and cost-based impact fees to fund the
needed expansion to the water and sanitary sewer infrastructure.
Hanover Water and Wastewater Rate Study-Hanover County,Hanover,
Virginia. Project manager for a comprehensive water and wastewater rate
study for the county that focused on establishing financial policies for
establishing rates.The county had relied upon impact fees to fund debt
obligations,and as growth slowed, a new philosophy or approach was
required.This study developed financial policies to address these issues
and established adequate funding for debt service and capital improvement
funding.Additional tasks involved establishing a cost-based impact fees.
Walla Walla Wastewater Rate Study-City of Walla Walla, Washington.
Conducted a comprehensive rate study for the city's wastewater utility that
ij included revenue requirements, cost of service,and rate design. Developed
a seven-year financial plan that phased in rates over time to minimize
impacts, as well as identified several rate options that assisted the City
determine the most equitable option for implementation.
Cost of Service Study-Municipality of Anchorage,Anchorage Water and
Wastewater Utility,Anchorage,Alaska. Project manager for a
comprehensive water and wastewater rate study. Added data and reviewed
the operations of the utilities existing cost of service model. Other tasks
involved reviewing various classification and allocation costs and methods •
for reasonableness, specifically for the funding of public and private fire
protection.Reviewed rates of contractual customers to assure they were in
compliance with their contract. Developed expert witness testimony on the
•
results of the revenue requirements, cost of service, and rate design issues,
056a
1R
Thomas E. Gould
a
4,
Review of Water and Sewer Rates and Operational Study-City of
Fayetteville,Arkansas. Reviewed the city's water and sewer rate study,
conducted by another outside consultant, to assure that the study 4,
conformed to the wholesale contract requirements and generally accepted
rate making techniques. Other tasks included assisting in negotiating a new
wholesale sewer rate with one of the city's wholesale customers.Also 4,
provided an operations study,in conformance with the city's bond
covenants.
•
Comprehensive Sewer Rate Study-City of Logan, Utah. Project manager for
a comprehensive sewer cost of service study.Analyzed infiltration and 4
inflow based upon customer location and infrastructure age and type.
Reviewed equity of rates charged to customers. Developed wholesale-based
rate comparison of an allocation of treatment costs based upon i
contribution to the treatment plant. Determined retail rate using the same
•
methodology as well as an allocation of collection system costs based upon
location within the city's retail service area. 6
i
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•
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x}57
4
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIEST ni
DATE: JANUARY 28, 2008
SUBJECT: REQUEST TO AWARD CONTRACTS AND COMMIT FUNDS FOR BILL PRINT AND
MAIL, ELECTRONIC BILL PRESENTMENT AND PAYMENT, AND PAY -BY -PHONE
AND WEB PAYMENT OPTIONS
I RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council approve the award of contracts
to:
(1) Infosend, Inc. to provide (a) bill print and mail processing in the amount of $54,600 per
year for three years, excluding postage, and (b) electronic bill presentment in the amount
of $22,000 with a one-time implementation charge of $3,250,
(2) BankSery in the estimated annual amount of $5,600 per year for three years to act as bank
merchant processor for electronic automated clearing house (ACH) payment,transactions
related to electronic billing,
(3) Paymentus to collect and process pay -by -phone and web payments, and
(4) Global Payments to act as bank merchant processor for one-time customer credit and
debit card payments at transaction cost to customers per $500 increment of $3.25 for
residential and $3.75 for businesses.
BACKGROUND
Recently the contracts with InfoSend, Inc. for bill print and mail services and Western Union
Speedpay for taking credit and debit card payments over the phone and web expired. A
request for proposals was distributed for these services and also electronic bill presentment
and payment (EBPP). Of the eleven responses received, three stood out for being multiple -
service vendors. While no vendors provide all services directly, the three short-listed vendors
have existing banking merchant vendor relationships to seamlessly provide other services.
Vendor presentations were held with the short-listed vendors.
j Since all three provided essentially identical services we recommend next to the lowest cost
vendor, InfoSend, Inc.., our current vendor for bill print and mail services to continue providing
these services and add EBPP. We have had five years of excellent service and like their
progressive ideas for serving our customers and willingness and Flexibility to customize their
products to meet our needs.
014
The short-listed vendors as well as two others also offer pay -by -phone and over the web
payment options. One vendor stood out for lowest cost to customers and superior reports
for our business needs. The recommended vendor is Paymentus.
Here is how the process works: An electronic file is sent from Light & Water to the vendor
and they print and mail the utility bills the same day they receive the file. This same file is put
on Azusa Light & Water's secure web site. Once enrolled for EBPP, a customer can log in to
the secure portal anytime. Customers who enroll in electronic bill presentment will receive an
e-mail when their bills are ready for viewing. Customers can simply click on the link to get to
the Light & Water web site and view their bills exactly as they would see them as paper bills,
including any bill inserts or messages. From there they can then click to make an ACH
payment online from their checking or savings account at no cost to the customer. Behind
the scenes, we will contract via a merchant agreement with BankServ, who will process these
types of payments at no cost to customers. The small fee will be absorbed by Light & Water.
Enrolled customers will have their paper bills turned off after three months and Light & Water
will get a credit from Infosend equal to the cost of printing and mailing the bill. The savings
will easily cover Light & Water's cost for the customer payment.
Enrolled customers can also elect to set an automatic recurring payment with or without a
maximum payment threshold. With a maximum payment threshold, should an unusually high
bill occur, the enrolled customer would be notified before payment is automatically taken
from his/her account.
We are considering a modest drawing of two $50.00 dinner gift certificates to introduce
EBPP and encourage customers to participate in this easy and convenient billing and payment
model.
Non -enrolled customers, those who choose to continue receiving paper bills, will be able to
pay by credit card, debit card, or real-time a -check for a fee per $500 increment of $3.25 for
residential and $3.75 for business customers by calling our IVR to make a pay -by -phone
payment or make a payment through Paymentus via the Light & Water web site. This is less
than the current $3.95 cost per transaction. Non -enrolled customers can make one-time
payments only and must enter their card or check information every time a payment is made.
This is vendor -supported by Paymentus with Global Payments as the processing merchant.
Advantages of putting all bills and notices online include the ability for:
• both customers and Customer Service Representatives (CSR's) to view up to 24 months of
bills, notices, and payments;
• CSR's to see bills exactly as customers see them;
• CSR's to view notices (we don't have this capability now);
• CSR's to be able to e-mail, print, fax duplicate bills and notices for customers;
• customization of our web site to display graphs of any field on the bill; and
• special messages and bill inserts can be added for customer viewing.
Using Paymentus for the online payment and pay -by -phone portal:
• no set-up cost or monthly minimum,
• customers get a payment confirmation number,
• lower cost for customers than current online payment and pay -by -phone vendor,
• agent dashboard allows CSR's to see payments made by date and time of payment,
• agent dashboard is in real- time,
• star check network validates funds available and secured for payment to be accepted,
015
l • CSR can search for a payment by confirmation number, payment type, account number, or
payment amount, and
i • can upload unpaid late payers, send automated calls to remind them with an opportunity to
make a payment over the phone immediately, thus'removing the embarrassment factor.
All of these companies — InfoSend, Inc., BankServ, Paymentus and Global Payments have
been in business several years and are highly recommended.
Once approved and implemented, these services will be communicated to customers by bill
message, bill insert, Light & Water web site, message on phone, and Azusa Tomorrow article.
An option whereby Azusa Light & Water would pay the credit and debit card transaction
charges was considered, and even with the utility discount rate it would still cost Light &
Water over $19,000 annually. Costs could be higher if more customers pay by credit or debit
card in the future. This cost would be too much for the utility to absorb especially since we
are proposing a cost-free alternative to our customers.
All contracts have been reviewed by our City Attorney and are available for public review at
the counter on second floor of Azusa Light & Water office located at 729 N. Azusa Avenue,
Azusa, CA 91702.
FISCAL IMPACT
Current bill print and mail processing costs, excluding postage, are approximately $89,000
annually. Annual cost for all services described will be approximately $70,750 plus postage
for bill mailing and $3,250 for EBPP implementation. Postage was negotiated to be calculated
differently for an annual savings of $4,300. This represents savings of $19,300 the first year
and $22,550 the second year, or a total two-year savings of $41,850. Funds already
budgeted in account 31-40-711-903-6493 for bill print and mail will adequately cover the
cost for these contracts during the remainder of this fiscal year.
Prepared by: Karen Vanca, Assistant Director Customer Care & Solutions
016
C
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES /Vk
DATE: JANUARY 28, 2008 <-1k` "� `
SUBJECT: INCREASE IN REPLACEMENT WATER COST ADJUSTMENT FACTOR
RECOMMENDATION
It is recommended that the Utility Board/City Council authorize staff to increase the
Replacement Water Cost Adjustment Factor by $0.2340 per hundred cubic feet of water
effective February 1, 2008, to recover the increased cost of purchasing water from the
Metropolitan Water District for November and December.
BACKGROUND
i The existing water rates of the Azusa Water Utility include an annual adjustment factor called
the "Replacement Water Cost Adjustment Factor (RWCAF)" which is a charge applied to each
rI one hundred cubic feet (ccf) of water sold. The RWCAF is calculated based on both (1) a
fr forecast of anticipated replacement or purchased water costs, and (2) a cost recovery
mechanism for deficits related to water purchases made in the preceding years.
i
`. Each year the RWCAF is adjusted in June for the upcoming fiscal year. This fiscal year's RWCAF
I was initially set at $0.1306 per ccf and was intended to continue throughout fiscal year 2007-
2008, however, due to extraordinary drought conditions, replenishment water from local
I Idistricts has not been available for purchase and so the water utility has had to purchase
water supplied by the Metropolitan Water District or MWD at a much higher rate.
Rather than wait until fiscal year end to re -calculate the RWCAF for next fiscal year, staff has
been proposing adjustments to the RWCAF every two months since we started purchasing
water at the higher cost back in July. The recommended adjustments are intended to recover
only the incrementally higher amount we are paying for water, or $146.41 per acre foot (AF).
In November and December water purchases continued from MWD. Also, Covina Irrigating
Company started using more of their own well water during this time and Azusa sought to
replenish the Canyon Basin water levels which dropped to unsafe levels. See attached chart
depicting the drop in our water table in the Canyon Basin.
021
Based on above, the water purchases from MWD essentially doubled compared. to prior
period, from 1,521.6 acre feet in September — October to about 3,010 acre feet in November
- December. While the final billing has not been received for December water purchases, staff
estimates our "incrementally higher" purchased water costs during the November - December
period will be $440,679.46.
At the same time we are incurring higher costs, we have been promoting conservation, and in
December consumers reduced consumption by 21.9% compared to same month in 2006.
Although this reduction complied with the phase III water shortage declaration and
mandatory conservation, it also reduced revenues by 16.4% at a time when we are supposed
to be seeing our revenues increase to build up operating income to pay debt service
obligation that resulted -from issuance of the 2006 revenue bonds.
As of the end of January, the RWCAF stands at $0.2896 per ccf. Based on attached
calculation, the Water Utility needs to increase our current RWCAF by $0.2340 per ccf, from
$0.2896 per ccf to $0.5236 per ccf for the next two months to recover the higher increment
cost of purchased water incurred by the Utility in November and December. l
Given above referenced financial impacts and dynamics, staff will be assessing our reserve
levels, adequacy of our rate structure, and will report our findings and any necessary
recommendations on these topics in the next update on the RWCAF at the end of March.
FISCAL IMPACT
Since the RWCAF was increased in November to $0.2896 the net increase resulting from this
action will be $0.2340 per ccf, however, this brings the total of the RWCAF above the baseline
amount for the year to $0.3930 which will generate about $440,680 in next two months with
a conservative estimate of 10% reduction in water sales as compared to the same period last
year; if consumers continue to conserve 20%+ of water, the revenue will be less. The
estimated impact on the average residential water consumer of continuing the higher level
RWCAF adjustment is about $7.07 per month ($0.3930 X 18 ccfs). The effective period of
two months is appropriate for this incremental adjustment since residential customers outside
the City are billed every two months.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
RWCAF CalcAs Key Well
Elevatbns.pdf -
1Li
INCREMENTAL INCREASE IN WATER COST TO
287,716
373,744
661,460
Azusa Valley - ccf
AZUSA LIGHT & WATER - COST RECOVER FOR PURCHASED
WATER COST
584,350
Total
DUE TO 2007-2008 DROUGHT
658,774
1,245,810
I Conservation Discount of 10%
528,332
PURCHASES
,1,121,229
t
j Incremental Purchased Water Costs(')
$221,064.46
$219,615.00
Incremental $
_ Month
Acre Feet
Azusa's %
$0.39110
$146.41 /AF
Jul -07
1733.80
40%
$
101,538.26
Aug -07
1813.10
40%
$
106,182.39
Sep -07
1842.40
40%
$
107,898.31
Oct -07
1961.60
40%
$
114,879.14
Nov -07
2013.20
75%
$
221,064.46
Dec -07
2000.00
75%
$
219,615.00
COST RECOVERY
2008
2008
Extension (3)
City o'f Azusa - ccf
287,716
373,744
661,460
Azusa Valley - ccf
299.320
285.030
584,350
Total
587,036
658,774
1,245,810
I Conservation Discount of 10%
528,332
592,897
,1,121,229
t
j Incremental Purchased Water Costs(')
$221,064.46
$219,615.00
$440,679.46
RWCAF per ccf (2)
$0.4184
$0.3704
$0.39110
Total Required to Recover MWD Costs $0.5236
Current Amount Due to Prior Increases to Baseline $0.2896
Net Increase Required to Pay for Incremental Cost Increase $0.2340
(') These are incremental costs to purchase water from MWD above what we would normally
pay for water from local districts. $221,064.46 was incremental cost for Nov 2007, and
$219,615 was incremental cost for Dec 2007. Incremental costs are divided by total projected
sales in ccfs to determine RWCAF.
(3j RWCAF stands for Replacement Water Cost Adjustment Factor and is a rate for one per
hundred cubic feet (ccf) of water.
"' Additional RWCAF for Feb 2007 and Mar 2008 period.
023
6605 ---- --
UNLIMITED PRODUCTION
_______________________________________________________________________________
85
_______________________________
__
_------------------------ _______________________
AM
640
830 _________________________________
___--------------------------------------------------
---_
___________------------
----____------_--------------
25 __ __________________________
_______________________________________________ LIMITED T05 -V EAR
AVERAGE PRODUCTION -------------- -------------------------
x-815 ________________
J
1110
<605 _
_____________________
0_600 ---- ____-------------------------------
_____________________-------------------
__
____________________
111590 LIMITEDTOSAPE --- --- - -----------
______ _______
YIELD ALLOCATION __ __ __________
1565 __________________________________________________
____________________
580___________________________________________________
______________________________________
______ ____ _________.
675
570
______________
585
560
555_________________________________________________________
____________________________________________________
550
a a a$$ s' a 1-2
$ a a a a a a a a a$ o a
`aaait`a --a;3
a� E'
?bA�a��n� ac c 5 ��
STETSON ENGINEERS INC.
Covina Sen Rafael Mesa, Arizona
WATER RESOURCE ENGINEERS
Jabs\1205\1205-lMC8MOU%A=unIIng Records\CSMOU_WL_Data.xls
KEY WELL ELEVATIONS AT
GLENDORA WELL NO. 8E
12/5/07
C W
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES^
DATE: JANUARY 28, 2008
SUBJECT: BUDGET AMENDMENT FOR PURCHASED WATER COSTS
RECOMMENDATION
It is recommended that the Utility Board/City Council adopt attached resolution approving
budget amendment in the amount of $800,000 to account number 32-40-722-704-6563 to
pity for purchased water costs through March 2008..
BACKGROUND
The Utilities Department budgeted $2 million for purchased water costs for Fiscal Year 2007-
2008, and amended the budget in October 2007 by $800,000. The budget balance for
purchased water costs is currently about $1.4 million; however, we expect invoices of about
$1,055,000 near end of January for water purchases made in November and December.
Once payment is made our budget balance will be about $400,000 for purchasing water.
Because of substantially lower than normal Canyon Basin water levels, we anticipate water
purchases will continue to be necessary from the Metropolitan Water District in the coming
months, and so are recommending at this time another budget amendment in the amount of
$800,000 to ensure ongoing water purchasing capacity. If substantial rainfall is realized over
the coming months, actual purchased water costs could be reduced.
FISCAL IMPACT
Funding for his amendment will come from water fund balance or reserves. Given the
dynamic financial situation wherein we are seeing lower revenues from reduced water
consumption due to conservation, and higher costs due to the need to purchase water, staff
will be reviewing our reserves and rate schedule over the next two months and present our
findings and recommendations at the March Utility Board meeting.
Prepared by:. Cary Kalscheuer, Assistant to the Director of Utilities
IN
Budget
Resolution.doc
02'r.,
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF AZUSA, CALIFORNIA, AMENDING THE FISCAL
YEAR 2007-2008 OPERATING BUDGET FOR THE
WATER UTILITY TO PAY FOR PURCHASED WATER.
WHEREAS, the adopted and amended Fiscal Year 2007-2008 Operating Budget for the
Water Utility included $2.8 million to pay for purchased water; and
WHEREAS, Southern California is in the midst of one of the most severe droughts in
recorded history; and
WHEREAS, the current drought has made it necessary for the Water Utility to purchase
water from the Metropolitan Water District at costs higher than anticipated when the Fiscal Year
2007-2008 budget was prepared; and
WHEREAS, the budget balance at the end of January 2008 will be approximately
$400,000; and
WHEREAS, the continuing drought is making it necessary to continue water purchases to
replenish water in the Canyon Basin to safe levels in order to provide water service to our
customers; and
WHEREAS, it is estimated that an amendment in the amount of $800,000 to the Water
Utility Operating budget will be adequate to cover purchase water costs through March 2008.
WHEREAS, Azusa Municipal Code Section 2-450 requires that all budget amendments
between $100,000 and $1 million be approved by resolution; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. That the Water Utility Fiscal Year 2007-2008 Operating Budget is hereby
amended in the amount of $800,000 to pay for purchased water costs,
budget expense account number 32-40-722-704-6563.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED THIS 28th day of January, 2008.
Joseph Rocha, Mayor
ATTEST:
i
Vera Mendoza, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I 14EREBY CERTIFY that the foregoing Resolution was duly adopted by the Utility Board/City
Council of the City of Azusa at a,regular meeting of the Azusa Light & Water Utility Board on
the 28th day of January, 2008.
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
s
Vera Mendoza, City Clerk
027
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JANUARY 28, 2008
SUBJECT: PHASE 3 WATER SHORTAGE DECLARATION STATUS REPORT (VERBAL)
Supplemental information is attached regarding certain actions being considered by the
Metropolitan Water District (MWD) in response to the ongoing drought. Azusa Light & Water
has been making water purchases from MWD since July 2007 to replenish the Canyon Basin.
Of note in attached article, is MWD's consideration to limit water deliveries to cities and
member agencies, and possibly charge a penalty of $1,347 per acre-foot if an agency exceeds
its allotment.
More information will be provided verbally on the water shortage by Director of Utilities at the
Utility Board meeting.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Attachment:
MWD ArtL*. pdf
Los Angeles Times: MWD may cut water to area cities
Page 1 of 4
�A gyp! r Unlifnited Local +& Long Distance Calling Get 1 month FR
ILt� t It4LtCS itlte£€ only$24.99/month FREE phone adapre
http://www.latimes.com/news/local/la-me-water7janO7,1,7894190, story?coll=la-headlines-california
From the Los Angeles Times
MWD may cut water to area cities
Facing shortages, the agency is reviewing a new allocation formula, which some contend penalizes older areas.
By Deborah Schoch
Los Angeles Times Staff Writer
January 7, 2008
The Metropolitan Water District is considering a contingency plan to cut water deliveries to its member cities
using a new formula that critics contend favors faster -growing areas while penalizing older, poor communities.
The district's staff is recommending the plan in case the agency, which serves 18 million people in six counties,
is forced to slash water deliveries this spring in the event of continuing shortages.
This weekend's heavy rainfall will do little to ease those shortages because Southern California depends
heavily on imported water that has been reduced by prolonged drought and court-ordered cutbacks, water
officials said Sunday.
The current discussion signals growing worries that the region's water supplies cannot meet demand, due to last
year's record dry weather, an eight-year drought in the Colorado River Basin and a federal court order last
month that sharply reduces water deliveries from Northern California.
The MWD is also considering rate hikes of 10% to 20% for next year, in part to buy more water to shore up
supplies.
The new formula for water allocations will be publicly discussed this afternoon in Los Angeles by a panel of
the MWD board of directors. A final vote by the full board is not expected until February or March, MWD
officials said.
The plan could be activated as early as May, although that is unlikely, the officials said.
The formula recommended by the MWD staff would be the first adopted by the 80 -year-old district, which
manages the delivery of water to cities from Ventura County to the Mexican border. It acts as a water
wholesaler,'importing water from Northern California and the Colorado River and selling it to its 26 member
cities and water districts.
The agency did not use a formula during the droughts of the late 1970s and early 1990s, instead cutting
deliveries by a set percentage across the board.
The proposed formula would determine how much water is allotted to cities and water agencies. Most MWD
water is sold to cities at $508 per acre-foot. If a city or agency exceeds its allotment by up to 10%, it would be
charged a penalty fee of $1,347 per acre-foot. If it uses even more water, the penalty would be higher. An -acre-
foot is the amount of water that would cover an acre of land, one foot deep.
http://www.latimes.com/news/local/la-me-water7jan07,1,7696678,print.story 029 /2008
Los Angeles Times: MWD may cut water to area cities Page 2 of 4
The costs would ultimately be borne by ratepayers. All cities and districts would see supplies cut, although
details for individual cities were not available last week.
"INo one: is going to be shielded from this," said MWD spokesman Bob Muir.
Some critics are focusing on several parts of the plan, including its shift away from historic water rights, credits
for conservation efforts and the potential effect on low-income residents.
I
The formula has been debated privately since last summer by MWD staff and officials from water districts
throughout the region.
The staffs written recommendation takes into account retail customers and the economy, population growth,
losses in local water supplies, conservation efforts and other issues.
For instance, cities might receive more water if a large portion of their supply comes from MWD, if population
in their county is growing, or if a large number of low -flow toilets and other water -saving devices have been
installed..
i
MWD was founded in 1928 by a consortium of cities to finance the building of the Colorado River Aqueduct
that helped develop Southern California. In return, the act creating the agency granted preferential water rights
tb the early member cities that paid for the district's infrastructure.
Those cities include Los Angeles, Long Beach, Burbank, Compton, Pasadena and Santa Monica.
Preferential rights would be trumped by the new formula, critics say.
The proposal does not eliminate any preferential rights, MWD officials said in an e-mail Sunday night.
The purpose in developing this proposal was to determine if there was a more equitable manner to distribute
water under today's circumstances."
i
Los Angeles Deputy Mayor Nancy Sutley, an MWD board member, also said Friday that the formula does not
require cities to give up their rights.
".We're better off trying to figure this out cooperatively than going back to the way things were before we were
Bona," said Sutley, who is chairwoman of the board's Water Planning and Stewardship Committee.
I
"I think we all realize that life has changed since then," added the panel's vice chairman, James M. Barrett, San
Diego's water director.
I
But officials in other cities aren't convinced the proposal encourages cooperation or is an improvement. Long
Beach aa:id other southeastern L.A. County cities estimate that they would lose 20% more water under the
formula than if water was divvied up by preferential rights.
Some say the MWD plan would force lower-income communities to subsidize water use in growing areas.
"We're completely the losers in this current situation," said Joone Lopez, deputy general manager of the City of
Commerce -based Central Basin Municipal Water District, which buys water from MWD to serve 2 million
people in southern Los Angeles County. About 47% of residents in the Central Basin district are low income,
http://wwvr.latimes.com/news/local/la-me-water7j an07,1,7696678,print. story 1/7/2008
Q' � Q
Los Angeles Times: MWD may cut water to area cities Page 3 of 4
she said.
MWD spokesman Muir, in response to the criticism, said: "The foundation of this plan is equity, and not .
whether one area is growing and another is built out."
No conservation credits are granted for cities in which residents have heeded calls to use their sprinklers less
and added drought -resistant landscaping -- changes that water experts say can save far more water than low -
flow toilets and shower heads.
An estimated 40% to 70% of water in the region is used for landscape irrigation.
Long Beach, for instance, has adopted a mandatory plan that achieved 10 -year lows in water consumption. Los
Angeles residents, by contrast, used slightly more water after Mayor Antonio Villaraigosa's call for a voluntary
10% cut.
Cities with successful conservation records in recent dry years could actually lose out, because the MWD staff
plans to use the years 2004 to 2006 as the base for making cuts, said Art Aguilar, general manager at the
Central Basin district, which, he said, has invested heavily in conservation measures.
"The better water policy you practice, the worse you're going to be under the new allocation plan," Aguilar
said. "If we knew this was coming, we could have just used the water, not used any conservation, and been
better off."
MWD General Manager Jeff Kightlinger said that his staff sought to measure local conservation with "clear
measurable steps" such as low -flow toilets and other devices.
The effects of reduced lawn sprinkling and new drought -resistant landscapes are more difficult to gauge, he
said.
Some municipal officials in Los Angeles County say they feel steamrolled by the process.
They say that the formula would penalize low-income minority residents who could be hit twice, by penalty
charges and then by proposed 2009 rate increases.
The formula is designed in a way that those cities could be affected more severely than growing cities in the
Inland Empire or big cities such as Los Angeles and San Diego, and so would likely pay proportionately more
in penalties, they said.
The Southeast Water Coalition, a regional authority that includes Cerritos, Downey, Whittier and eight other
cities, has written MWD to ask for more time to review the plan.
The Long Beach Board of Water Commissioners will also send a letter, criticizing key points of the plan and
asking for more review.
Kightlinger said that MWD has not been able to confirm that the plan would disproportionately hurt lower
income, largely minority cities.
"We haven't been able to verify that that's necessarily correct. There are parts of Riverside County that are very
poor," Kightlinger said.
Much of southeastern Los Angeles County are not areas of high growth, meaning that cuts there would have
less effect on the economy, he added.
http://www.latimes.com/newsAocal/la-me-water7jan07,1,7696678,print.story 1/7/2008
031
Los Angeles Times: MWD may cut water to area cities " Page 4 of 4
"It's a very complicated social issue, and it's something that we're trying to work through."
E.A. Deputy Mayor Sutley said that she supports creating a plan now, before serious shortages occur.
I
As for lower-income cities, she said: "We really feel for them, and Los Angeles is in the same position. We
ave a lot of DWP customers that live below the poverty line."
The plan will be discussed today at 1:30 p.m. at MWD headquarters, Room 2-456, 700 N. Alameda St., Los
Angeles.
deborah. Schoch@latimes. coin
If you want other stories on this topic, search the Archives at latimes.com/archives.
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http://ww, ,.Iatimes.com/news/local/la-me-water7janO7,1,7696678,print.story 1/7/2008
032
NOVEMBER PROGRESS
MONTHLY REPORT
PAYMENT REOUEST:
JANUARY, 2008
PROJECT:
MEMBRANE TREATMENT UPGRADE OF THE CANYON FILTRATION PLANT
PROJECT NO.:
WVF-207
GENERAL CONTRACTOR:
SSC CONSTRUCTION INC.
DESIGN ENGINEER:
BLACK & VEATCH INC.
CONSTRUCTION MANAGER:
BLACK & VEATCH, INC.
PROJECT CONTRACT AMOUNT:
$35,905,500.00 $36,228,379.63
CHANGE ORDERS TO DATE:
$100,642.76 10 DAYS Approved July 23, 2007
$164,975.54 14 DAYS Approved Sept 24, 2007
$57,261.33 4 DAYS Approved Nov 26, 2007
MONTHLY ACTIVITIES
Construction progress meetings were held November 29, December 13, January 3, & January 17.
As of 10/26/2007
Pretreatment Building substructure backfilled - tube settlers and equipment installed
DYK onsite- installed foundation of the Finished Water Reservoir; setting reinforcing for reservoir floor
O&M Building exterior walls laid
Chemical Feed Building chemical tanks have been stored and substructure backfilled
Sludge Drying Beds graded and some floor and slope concrete has been poured
Equipment installed on Canal Diversion Structure - inlet and outlet channel concrete poured
Membrane Building foundations backfilled and exterior walls being laid.
NOVEMBER PROGRESS
PAYMENT REOUEST:
$1,623,234.87
DECEMBER PROGRESS
PAYMENTREOUEST:
$1,622,767.82
TOTAL PAID TO DATE
$16,704,819.55
AMOUNT TO ESCROW
$1,670,481.96
PROJECT PERCENT COMPLETE 46.11%
W
w
Power Resources Division Monthly Report
■ Power Resource Update
■ Power Consumption Comparison
■ Wholesale Market Trend
■ Power Resource Budget Update
ca
w
Power Resource Update
■ We are making final preparation for the start up of California Independent
System Operator's (CAISO) new markets in early spring 2008. We are
participating in the final market simulations and continuing the testing of
our internal systems and operating procedures.
■ We are working with Garnet Wind to certify the wind farm generation to
operate in the CAISO markets. Garnet Wind is completing the permitting
process with Riverside County and the electric interconnection process
with Edison. Construction of the wind generation facilities will commence
shortly.
■ We are participating in the Southern California Public Power Authority
(SCPPA) renewable resources RFP process for potentially additional
renewable resources.
■ We are coordinating with SCPPA and PNM on San Juan unit 3
scheduled outage issues. The scheduled outage has been delayed for
two weeks due to the need for additional outage planning.
■ We are participating in the Lodi #2 Project development process. A
request for electric interconnection to the CAISO system has been
submitted. Technical feasibility studies will soon be under way.
■ We receive a letter of interest from Municipal Energy Agency of Nebraska
regarding long term power sales of City's share of San Juan Project. Staff
is preparing a response to the letter.
0
W
U
li
CITY OF AZUSA ENERGY CONSUMPTION COMPARISON
ENERGY CONSUMPTION IN MWH
PERCENT
MONTH
FY 06-07
FY 07-08
CHANGE
JUL
29,287
26,164
-10.66%
AUG
25,912
28,014
8.11
SEP
24,379
-
23,760
-2.54%
OCT
21,700
21,890
0.88%
NOV
20,456
19,708
-3.65%,
DEC
20,510
20,029
-2.35%
JAN
20,984
-100.000/6
FEB
18,414
-100.00%
MAR
20,916
-100.00%
APR
19,719
-100.00%
MAY
21,064
....
-100.00%..,
JUN
21,949
-100.00%
TOTAL
265,291
139,565
-1.57%
CITY OF AZUSA
PEAK DEMAND COMPARISON
PERCENT
MONTH
FY06.07
FY 07-08
CHANGE
JUL
- 60.8
55.5
-8.65%
AUG
55.2
64.9
17.39
SEP
63.7
63.9
0.27%
OCT
_ 43.9.
46.76.34%
NOV
� 46.0
..............
41.1
.. .
-10.49
DEC
36.6
35.7
-2.68%
JAN
36.8
-100.00%
FEB
374
-100.00%
MAR
42.8
-100.00%
_.... .._..APR._ ..
407 ._...._...._
-�.._.._...
-100.00%
...._MAY _... .__..:._._..
._._...._483...._......___...__
._.
.... ..
10000%
JUN
47.5
_
;00.00%
PEAK DEMAND IN MW
-
li
WHOLESALE ELECTRICITY SPOT MARKET
PRICES IN CALIFORNIA
MONTH
NOV 06
DEC 06
JAN 07
FEB 07
MAR 07
APR 07
MAY 07
JUN 07
JUL 07
AUG 07
SEP 07
OCT 07
NOV 07
DEC 07
ALL PRICES IN $/MWH
Q
W
AVERAGE AVERAGE
PEAK PRICE OFF PEAK PRICE
$53.55
$41.34
$53.75
$44.63
$53.46
$44.36
$58.45
$47.79
$49.82
$36.44
$57.29
$43.12
$63.55
$41.24
$67.77
$42.39
$75.35
$41.26
$66.95
$36.94
$52.66
$36.40
$59.42
$44.90
$50.79
$40.43
$58.53
$49.88
Power Resource Cost Accounting
FY'07-08'
co
to
ONGTERM
__-1
SH6kfTffM
TRANS MISSIO-
-'
ANcILLMY SCHEDULING
TOTAL
-.._O
N-..
WHOLESALE T
CONTRACTS
PLAbHAS
. -..-N I
COSTS
_
'
SERVICE COSTS DISPATCHING COSTS
COSTS
-_NTH
t_'_REVrNLFSCORYSf
co
to
F A447
2.443277.75
M.479.n
26,31824
32,849.84
4.099,178.50
(1,964,700,19),
2,13447831
Sep 07
1,330,082.85
2,052,822.54
23Z911_22
12,313.75__
(1.778,037.45)
1.906.611A5
......
215, 4 78.68
8269.64 1"
u6-4,33-9-8-0 --------
(9611�&jq'
3,189A9
4.._.._..... �T
1,333,840.63
1.113,135. 5
239,401.66
20,000 :00
86242.56'�_.
_2'.*5'.62bN'_
Dec -07
1,Y3jASSA4
966,6l' 221
238,901.66
20;000:00
45,099.492587,971.70
•
(908,00OA1)�
1,679,971.29
i Jan -68
I
0.00
6.60
Feb -08
0
0:00
-6.60
.00
0.001.
pw--08-
0.00
i WY -08
00
6.00 I
Jun -08
0.00
o.6o
co
to
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JANUARY 28, 2008
SUBJECT: U.S. DEPARTMENT OF ENERGY ELECTRIC RATE SURVEY
Attached information shows how Azusa Light & Water electric rates per kWh compared to
various other utilities in 2006, based info gathered by the U.S. Department of Energy in
November 2007. Analysts doing cost -benefit analysis often look at cost data to quantify
benefits of certain public services. In this case, Azusa's rates compare as follows to Edison's
ra=:es:
The above benefits total about $6.4 million and are in the form of savings to consumers.
Other quantifiable public benefits would include Franchise Fees and In -Lieu Fees paid to the
City from gross sales of electricity. These are embedded in above rates and provide about $3
million in annual revenue to the City. This is equivalent to the sales tax revenue the City might
realize from about 6 Walmarts. The combine public benefit of having a public electric utility in
Azusa is about $9.4 million annually.
Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities
EIeiAveRev2006. pdf
039
Rates
per kWh by Customer Class
(in cents)
Residential
Commercial
Industrial
Southern California Edison
15.8
14.5
12.0
Azusa Light & Water
11.3
13.0
9_8
Dfference:
4.5
1.5
2.2
Annual MWh's (2005)
74,884
76,166
86,528
(MWh=1,000 kWh's)
Savings (Public Benefit)
$3,369,780
$1,142,490
$1,903,616
The above benefits total about $6.4 million and are in the form of savings to consumers.
Other quantifiable public benefits would include Franchise Fees and In -Lieu Fees paid to the
City from gross sales of electricity. These are embedded in above rates and provide about $3
million in annual revenue to the City. This is equivalent to the sales tax revenue the City might
realize from about 6 Walmarts. The combine public benefit of having a public electric utility in
Azusa is about $9.4 million annually.
Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities
EIeiAveRev2006. pdf
039
L�
Average Revenue per kWh, 2006
BENE® (in cents)
RE United States and California
DEC 16 2007
all&o, LIGHT & WATER
U.S. Utilities
Publicly Owned
Investor -Owned
Cooperative
California
Publicly Owned
Investor -Owned
Cooperative
California
Publicly Owned
Alameda City of
Anaheim City of
Azusa City of
Banning City -of
Biggs City of
Burbank City of
Colton City of
Corona DWP City of
Escondido City of
Glendale City of
Gridley City of
Healdsburg City of
Imperial Irrigation District
Lassen Municipal Utility District
Lodi City of
Lompoc City of
Los Angeles Dept of Water & Power
Merced Irrigation District
Modesto Irrigation District
Moreno Valley, City of
Needles City of
Palo Alto City of
Pasadena City of
Redding City of
Riverside City of
Roseville City of
Sacramento Municipal Util Dist
San Francisco City of (Hatch Hetchy W&P)
Residential
Commercial
Industrial
Total
Rev/kWh
Rev/kWh
Rev/kWh
Rev/kWh
11.3 _ a
13.0
9.2
8.5
6.0
8.1
10.5
9.3
5.9
8.9
9.5
8.7
5.8
8.5
10.9 10.1 8.8 10.0
15.3 14.2 11.1 14.2
11.5 11.1 7.3 10.0
12.1
12.5
-
12.4
9.9
9.8
8.6
9.3
11.3 _ a
13.0
9.8
11.4
12.9
11.9
12.5
12.4
13.2
13.0
7.2
8.8
13.1
13.1
12.2
12.6
13.0
15.8
9.5
. 12.2
17
14.6
12.8
13.8
6
-
-
5.6
14.5
14.4
12.1
13.6
13.2
12.3
10.1
12.5
12.9
12.0
10.6
11.9
11.9
12.6
14.3
12.3
13.4
13.8
18.1
13.7
15.2
13.7
7.3
12.9
9.6
11.5
9.2
9.8
10.2
9.5
8.8
9.7
13.8
11.8
8.2
10.4
12.4
10.0
6.6
9.8
18.8
16.2
-
17.7
12.4
14.1
7.6
13.1
9.5
9.0
8.3
8.8
12.5
11.2
11.5
9.4
9.4
9.5
9.4
12.2
11.8
8.7
10.6
9.9
9.0
6.8
8.7
10.6
11.3
9.4
10.0
-
8.5
5.2
7.9
Shasta Lake City of
Silicon Valley Power
Trinity Public Utilities Dist
Truckee Donner P U D
Tuolumne County Pub Power Agny
Turlock Irrigation District
Ukiah City of
Vernon City of
California
Investor -Owned
Pacific Gas & Electric Co
PacifiCorp
San Diego Gas & Electric Co
Sierra Pacific Power Co
L Southern California Edison Co
Southern California Water Co
California
Cooperative
Anza Electric Coop Inc
Plumas-Sierra Rural Elec Coop
Surprise Valley Electrification Corp.
Valley Electric Assn, Inc
Residential Commercial
Industrial
Total
Rev/kWh
Rev/kWh
Rev/kWh
Rev/kWh
13.2
14.0
6.3
8.2
8.4
11.9
8.0
8.1
7.7
7.9
4.9
7.5
13.7
13.1
-
13.4
-
6.0
-
6.0
11.7
8.5
8.3
9.6
11.9
14.6
12.4
5.8
8.8
7.8
8.1
14.6
13.8
10.4
13.7
8.3
8.1
6.4
7.9
16.9
14.5
11.1
15.1
12.2
11.8
9.4
11.5
15.8
14.5
12.0
14.7
20.9
22.1
14.0
20.4
15.6
16.7 14.6
15.8
11.6
10.3 7.8
10.0
7.0
7.3 6.2
6.7
12.3
- 8.9
9.0
Source: U.S. Department of Energy, Energy Information Administration, Farm EIA -861. 2006 data.
Prepared November 2007 by the American Public Power Association, Department of Statistical Analysis.
041
i..
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES ^ ,�
DATE: JANUARY 28, 2008 CVi
SUBJECT: OFFSITE UTILITY BOARD MEETINGS
Attached includes Utility Board meeting schedule for calendar year 2008. Staff suggests that
we resume offsite Utility Board meetings, if desired by the Board, for the March, June and
October meetings. Staff welcomes input from the Board as to what school sites are preferred
locations, and on any changes in the months proposed herein for offsite meetings.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
i
Attachment:
i
i
' 2008 UB Mtg
Schedule.doc
042
CITY OF AZUSA SCHEDULE OF UTILITY BOARD MEETINGS 2008
I" Floor Conference Room, Azusa Light & Water Building
729 N. Azusa Avenue, Azusa CA 91702
MONDAY
JANUARY 28, 2008
6:30 P.M.
MONDAY
FEBRUARY 25;
2008
6:30 P.M.
MONDAY
MARCH 24,
2008
6:30 P.M.
MONDAY
APRIL 28,
2008
6:30 P.M.
TUESDAY
MAY 27,
2008
6:30 P.M.
(DUE 0 MEMORIAL DAY HOLIDAY, 5/26/08)
MONDAY JUNE 23, 2008 6:30 P.M.
MONDAY
JULY 28,
2008
6:30 P.M.
MONDAY
AUGUST 25,
2008
6:30 P.M.
MONDAY
SEPTEMBER 22
6:30 P.M.
MONDAY
OCTOBER 27,
2008
6:30 P.M.
MONDAY
NOVEMBER 24,
2008
6:30 P.M.
MONDAY
DECEMBER 22, 2008
6:30 P.M.
043
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE�
DATE: JANUARY 28, 2008
SUBJECT: CALIFORNIA MUNICIPAL UTILITIES ASSOCIATION MARCH CONFERENCE
Attached information on California Municipal Utilities Association (CMUA) March 2008
Conference is provided for your review and consideration. This year's conference will be held
in Monterey, California, on Wednesday, March 12 — Friday, March 14. If you are interested in
attending this conference, please contact Liza Cawte, Administrative Technician at 812-5171.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Attachment:
CMUA Conf. pdf
� �'
CMUA Conference Registration - March 12-14, 2008
76th Annual Conference
Monterey Plaza Hotel
400 Cannery Row
Monterey CA 93940
(800) 334-3999 or (831) 646-1700
California Municipal Utilities Association
915 L Street, Suite 1460 • Sacramento, CA 95814
(916) 326-5800 • (916) 326-5810 Fax
We invite you to attend CMUA's 76th Annual Conference at the Monterey Plaza Hotel - March 12-14, 2008.
The goal of the California Municipal Utilities Association's annual conference is to provide the perfect forum for bringing
officials of publicly owned utilities together with government and industry policy makers, representatives of scientific,
environmental, technological and economic interests to share information and views.
CMUA's special sleeping room rates range from $215 to $345 based upon on your room choice. Please make
reservations by calling 800-334-3999. To insure that you get this special rate be sure to mention CMUA and make
reservations before CMUA's room block is released on February 9, 2007.
TO REG{STEP. FOR THE CONFERENCE, PLEASE COMPLETE AND RETURN THE FORM BELOW. Registration for your
companion/spouse is complimentary and they are welcome to participate in the conference events including the golf and
tennis tournaments. Cancellation Policy: Conference registration cancellations must be received by 5:00 pm, Friday,
March 7, 2008. Meal cancellations must be received 48 hours before the event. Payment: Please include payment or
billing instructions with registration. Sorry, we do not accept credit cards.
Detach and remit with your payment
Name Title Companion/Spouse
(For badge)
Utility/Firm Phone Fax Email
Mailing Address City
Zip Code
_$475 Member & Associate Member Registration / _ $675 Non -Member Registration
$
_S525 Member Registration Received After February 20, 2008 & onsite
Companion Registration is complimentary, companion is spouse, child, etc. and does not include co-worker
Registration fee does not include items listed below
Wednesday, March 12, 2008
Golf Tournament at Bayonet Black Horse Golf Courses: $75 (USGA Handicap or last 5 scores ) #
$
(Golf Committee will establish pairings. Fee includes cart & green fees, lunch, range balls & drink tickets.)
Please Note: You must be registered for the conference to participate in the golf tooroament.
Thursday, March 13, 2008
Water Utility Manager's Breakfast (utility personnel only) $35: #
$
Lunch: $55 #
$
Banquet: $85 Chicken: Piccata #
$
Fish: Halibut #
$
Friday, March 14, 2008
Energy Utility Manager's Breakfast (utility personnel only) $35 #
$
❑ Vegetarian Meals ❑ Check Enclosed ❑ Please bill me at the address above
Total S
❑ Check here if you have a disability that requires special accommodations
Please make checks payable to: California Municipal Utilities Association (Tax ID No. 94-1510887)
045
CMUA's 76TH ANNUAL CONFERENCE
Tentative Agenda
Wednesday, March 12`n
10:00
Bayonet Black Horse Golf Courses (Seaside, CA)
Putting Contest
12:00
Bayonet Black Horse Golf Courses (Seaside, CA)
Gol(Tournament
10:00-5:00
Customer Services Committee
5:30-7:00
Get Acquainted Reception
Thursday, March 131n
7:00-9:00
Attorney's Meeting
7:30-9:00
Continental Breakfast
7:30-9:00
Water Manager's Breakfast
(Utility Personnel Only)
9:00-11:45
Opening GeneialSession
President & Executive Director Reports
Federal & State Issues Update
11.45-1:30
Luncheon with Speaker
1:30-3:15
Session: "Water Supply Solutions"
• Managing Current Water Supplies
• Contributions from De-salination?
• Environmental Concerns
•Increased Storage
• Areas of Origin Concerns
3:15-5:00
Session; "Integrating California' Energy Challenges"
• Integrating Climate Change Concerns into Resource Adequacy
• Integrating Energy Policy in the Electric Grid
• Integrating Economics into Energy Police
6:00-7:00
Pre -Banquet Reception
7:00
Banquet with Entertainment
Friday, March 14`n
7:30-9:00
Continental Breakfast
7:30-9:00
Electric Manager's Breakfast '
(Utility Personnel Only)
9:00-10:00
Closing Business Session and Awards Presentations
Board of Governors - immediately following Closing Business Session
10:00 -Noon
FARECal Board Meeting
10:00 -Noon
Legislative Committee
he Delta is in crisis, and each day brings us
'L closer to a major disaster. What the nation
learned from New Orleans and Hurricane
Katrina is the terrible price of waiting. The Delta's
problems can wait no longer:
j The health of its ecosystem is not sustainable over
the long-term and. regional climate change of even one
meter above current sea level promises to inundate
j many Delta towns audits infrastructure of highways,
energy corridors, railroads, wildlife resources and its
economic base of agriculture and tourism. (See
Figure 2)
A two -in -three chance of a major earthquake
within the next few years in or near the Delta make its
levees vulnerable to sudden collapse. In addition,
increased urbanization poses an imminent threat to
the Delta by placing more residents and their property
in a floodplain.
The vision's recommendations are designed to be
implemented together as an integrated solution and
then work together in an interdependent fashion to
achieve success.
An integrated solution is vital as the Delta cannot
be "fixed" by any single action. Nor can California's
water needs be met by any single action. No matter
what policy choices are made, Californians must also
change their relationship toward the environment and
water. Conservation must become the next great cause
toward quality of life, following in the footsteps of
energy conservation. Delay in any of the important
areas discussed in this vision will only make
California's water problems and the Delta's ecosystem
woes worsen over the next decades. (See Figures 10
and 11)
For those who rush to discuss Delta water
conveyance as if no other issue is of importance, the
Task Force cautions that decisions about storage and
conveyance flow from all 12 recommendations in their
vision, and cannot be decided by themselves.
The Delta formed by the Sacramento and San
Joaquin Rivers is a critical habitat for more than 500
species, hub of the state's major water conveyance
system, and crossed by major transportation and
utility corridors.
Delta Vision's 12 Integrated
and Linked Recommendations
1. Delta ecosystem and a reliable water supply for
California are the primary, co -equal goals for
sustainable management of the Delta.
2. The California Delta is a unique and valued area,
warranting recognition and special legal status
from the State of California.
3. The Delta ecosystem must function as an integral
part of a healthy estuary.
4. California's water supply is limited and must be
managed with significantly more efficiency to be
adequate for its future population, growing
economy and vital environment. (See Figure 5)
5. The foundation for policy making about
California water resources must be the
longstanding constitutional principles of
"reasonable use" and "public trust;" these
principles are particularly important and applicable
to the Delta.
6. The goals of conservation, efficiency and
sustainable use must drive California water
policies.
12 Recommendations fcont.l
91
10.
A revitalized Delta ecosystem will require reduced
diversions, or changes in patterns and timing of
those diversions, upstream, within the Delta and
exported from the Delta at critical times. (See
Figures 7a, 7b and S)
New facilities for conveyance and storage, and
better linkage between the two, are needed to
better manage California's water resources the
estuary and exports. (See Figure 9)
Major investments in the California Delta and the
statewide water management system must be
consistent with, and integrate specific policies in
this vision. In particular, these strategic
investments must strengthen selected levees,
improve floodplain management and improve
water circulation and quality.
The current boundaries and governance system of
the Delta must be changed. It is essential to have
an independent body with authority to achieve the
co -equal goals of ecosystem revitalization and
adequate water supply for California while also
recognizing the importance of the Delta as a unique
and valued area. This body must have secure funding
and the ability to approve spending, planning and
water export levels.
11. Discouraging inappropriate urbanization of the Delta
is critical both to preserve the Delta's unique
character and to ensure adequate public safety.
12. Institutions and policies for the Delta should be
designed for resiliency and adaptation.
Near -Term Actions to Protect the Delta
The Task Force also identified Near -Term
Actions that must be taken in the very near future
because threats to the Delta and Suisun Marsh are so
serious. These focus on preparing for disasters in or
around the Delta, protecting its ecosystem and water
supply system from urban encroachment, and starting
work soon on short-term improvements to both the
ecosystem and the water supply system.
These proposed actions should be initiated quickly
with an attempt to build upon existing organizations
and authorities, but not be bound by existing
shortcomings. They are:
1.
2.
3.
State government should immediately begin
acquiring title or easements to floodplains,
establish flood by where feasible and
discourage residential building in flood -prone
areas. Land that could provide flood protection is
being threatened by urban development as this
report is being written.
The Governor should immediately, issue an
Executive Order that provides guidance consistent
with this vision on inappropriate land
development in the Delta.
State government should promptly set appropriate
standards for all levee improvements to protect
heavily populated areas and key parts of the water
delivery system and other infrastructure. The State
of California should also use available bond funds
to address strategic levee and floodplain
improvements.
4. State government should embark upon a
comprehensive series of emergency management
and preparation actions within a few months.
California cannot wait for a flood before planning
a response.
5. State government should promptly incorporate
expected sea level increases into decision-making
and improve knowledge of constructing more
secure and affordable levees.
6. High priority ecosystem revitalization projects
should be pursued aggressively by the responsible
agencies and departments, upon direction by the
Governor.
7. Improvements in the current water conveyance
and groundwater surface water, storage systems
should be pursued as rapidly as possible by the
responsible agencies and departments, upon
direction by the Governor.
The Task Force urges the Govemor and the
Legislature to incorporate these immediate steps in
executive actions, upcoming bond measures or related
legislation.
Figure S. COINO 10 Frecipiftifl n History
' ago 7's:K? 1-9117 14A 1"0 1940 "50 1960 ON) 1980 TOW) 2000
116 year average: 21.88 IfIchre3
Ovii:+11 30 Y AM (1908,W37'j: 21.28 irie1af £:
"VOIC:A1 :30 VOW -1 (1977-M- . 5: 24.88 iociat,4
Vearly precip"atien calculated From average of 95 stations spread ac.rcm.
California. Data collected by Jim Goodridge, State cli.notalogist Form. efly with DW P.
Source. California Depor men', of VAolel Resources
I
as
UnaarP4vrasion shmAng his HCai trend
40------
3v
J�
25
1
13
f
117
1 1
T --
' ago 7's:K? 1-9117 14A 1"0 1940 "50 1960 ON) 1980 TOW) 2000
116 year average: 21.88 IfIchre3
Ovii:+11 30 Y AM (1908,W37'j: 21.28 irie1af £:
"VOIC:A1 :30 VOW -1 (1977-M- . 5: 24.88 iociat,4
Vearly precip"atien calculated From average of 95 stations spread ac.rcm.
California. Data collected by Jim Goodridge, State cli.notalogist Form. efly with DW P.
Source. California Depor men', of VAolel Resources
I
California Water Plan Update, 2005, Volume 3
Table 1-1 California Water Summary Imafl
A
r
a a 9
AN
'a
Key components of the illustrated flow diagram are shown as characteristic elements of the hydrologic cycle. This volume has flow diagrams for
statewide water summary in this chapter and for regional water summaries in their respective chapters.
. � 1998 2000 2001
(171%oi normal)° (97% of normae° i p2%of normal)°
Total supply (precipitation &imports) - 336.9 194.7 145.5
Total uses, outflows, &evaporation 331.5 200.4 159.9
Net storage changes in state 5.5 -5.7 -14.3
Distribution of dedicated supply (includes reuse) to various applied water uses
Urban uses 7.8 (8%) 8.9 (11%) 8b (13%)
Agricultural uses 27.3 (29%) 34.2 (41%) 33.7 (52%)
Environmental watero 59.4 (63%) 39.4 (48%) 22,5 (3590)
Total dedicated supply 94.5 82.5 64,8
maf = million acre-feeta. Percent of normal precipitation. Water year 1998 represents a wet year; 2000, average water year; 2001, drier water year.
b. Environmental water incO
ludes instream Flows wild and scenic flows, required Delta outflow, and
managed wetlands water use.
Some environmental water is reused by agricultural and urban water users.
Figure 7a, Historic Diversions From within the Delta
la Dlky D:•101s0* MMOng Cordra cotta 1Va1or
OrMOCl ON U" larIh5&VAq"dwt
Stara %Voter Prola dt.%mtans from no %oL n Salta
! Cenlrl Valloy Project dtmrsbn ham tlra Data
7 Sunoco wal" dimrzionfor lmDdhom
'eW 1935 1949 1945 1950 1555 :999 1905 1970 1975 1990 INS 1980 1995 21109 2095
Source: measured, calculated and modeled from an orgy of data sources as
compiled by fully and Young, Inc.
Figure 7b. Historic Diversions before the Delta, in -Delta Uses and Exports
from the Delta, plus Outflows
® 1o01 Cons our9ow
eO Combhad central Vatlny Profatl and State 'Alator Profnnt dvarww,
r+nn eft onlla (rut iildud:np CaKm costs water oiMuld diomRlnnsj
�j QSnrrraia"tar dt,"Ion for In -Volts u-
E3Deka 4141emhcd oansumpiim um of eppk:l anter and dixr-.roe.
70 tar Pnar:xam Carat, MIMU01- MDkalumm Aqua&Y-r, and
St-PLK-f. NatctsWa Irp Aquadmt
a- 60
c
LL
U
d 50
L'.
rh
r 40
30
20
to
a
t
MiN
19M 1935 1940 1945 IM 1955 INC 1995 1970 1975 iP33 1995 IM 1995 2000 2085
Trends In Destinations and Uses
Pcrixl
Averepe Annual
WISI MlAr)
C1t<liow
-Deke
I m-De:a
8'xlaons
'Natcr>;t1ed
1Sao to194D
23.80
81%
5%
0%
14%
1950 to 195?
31 71
67`8,
4%
44y
24%
1970 to 1989
34.34
51%
6%.
15;5
29%
1940 to 20Q5
3255
4291,
4'%.
17N
311%
When the averages of 20-yeor periods are connpored. these dom show:
• Outflows to the oceon go down from 81% to 46% of total flows;
• In -Delta uses are essenflally constant of 4% to 54+ra of Iotal flows:.
• Exports of .Hater taken in the Delta but conveyed etsetwhere as up,
from none to 17% of total flows; and
• In -Delta watershed (before reaching Della) uses also go up, (torr
14% to 31 % of total Sows {same of these are exportedi trom the Delta
watershed).
Source: measured, calculated and mcdeled data from an array of sources as
comprled'by i ally & Young, Inc. with dam and assistance fre..,n D P, the Bay'
Institute and the State Water Contractors.
I
Figure 8. Upstream and Export Diversions from the Delta Watershed
YymPl Diwtlma F�gofPGPap 4wtI0YKa
Source: Greg Young, Tully and Young, Inc.
{.
Upstream and Export Diversion
from the Delta Watershed
ii
(Wa ter Yea, 7000)
M�`�
,�f
[j
r �
.t
f
4.^{�
'4'-- �
F
#
O buNaydtW wayaAd yaalo
Snamrb adSm Aap:b!¢brbplc
PgprsuJel'r {6yDWPl
� AnaolLey�b:bdM1pbnlDlwebn
(t lamrti.M1Mt1aCM PManlytl D/ID,l1
NrM1I��a�wrMfrM✓�Inin�
DbebibmfMM aCiiab�
AnrwalMPprlup dµyar pray,
rmm, wamwen .
t.
1,500
i
Cr
YymPl Diwtlma F�gofPGPap 4wtI0YKa
Source: Greg Young, Tully and Young, Inc.
1998 (Wet)
Figure 9. Delta Water Balance by Water Year Type
Sacramento River
28,964
Yolo Bypass
8,980+
Outflowto Bay
43,430
2000 (Average)
2001 (Dry)
Sacramento River
18,327
Yolo Bypass
2,956
Outflow to Bay,
1%144
Sacramento River
10,499 4%k
Yolo Bypass
366 i
,;/',Prrclprtation
—1,421
Other
4410 2,093
Exports San Joaquin River
4,620 6,441
j4 Precipitation
_ 954
Other
f 1,076
San Joaquin River
2,841
Exports
6,321
�i Ji Preci pitation
K 762
Other
1,076
Outflow to Bays
6,9631 - 7
Exports
5,076
Source: Status and Trends of Delta -Suisun Services, DWR 2007
San Joaquin River
1,729
Figure 10. Estimated Distribution of Water Sources used to Meet Daily Urban
Water Demand (Water Year 2000)
Using data from the 2005 California Water Plan Update, v.3, this graphic shows an estimated representation of
how various sources of water available to a region may have been used to meet a region's urban per -capita water
use. However, because data is not distinguished to separate the destination of source water, some of the water
available to a region may have gone exclusively to agricultural uses or urban uses, thus skewing what is
represented here.
R
0 Diverted from a Delta Tributary
350 — Directly Diverted from the Delta
[� Local Supply (surface and groundwater)
300 ® Imported Non -Delta Supply 1
N
31
44,
4
250
3 �
c n
104
D y
200
------
—
(34%)
0
10 (6%)
60 .
U
150
—
(3>%)
238
IL
d o
-
63
(81°h)
N m
(41%)71
71
S3
100
44
(3606)
154
Q
44
(28%)
(51%)
(29%)
50
_
in
31 pone)
0
San Francisco
Central
South
Delta
Tulare
Bay
Coast
Coast
Watershed
Lake
Figure 11. Strategies to Reduce Demand for or Increase Supply of Water
3.5
T�
i
1.0
0.5
0.0
Additional Annual Water
0 High Estimate
ID Low Estimate
0.5
�eRN
� ec
C.
J 5
QA
3.1
1.0
64"z QIOP
5�
�
,md` Jye
G map
J
This graph shows the potential range of more water demand reduction and supply
augmentation each year for eight resource management strategies. Low estimates
are shown in the lower (dark blue) section of each bar. The water supply benefits
of the resource management strategies are not additive. As presented here, urban
water use efficiency includes reduction in both consumptive and nonconsumptive
uses (or applied water), whereas agricultural water Jse efficiency only includes
reduction in consumptive uses (or net water).
Source: California Department of Water Resources, California Water Plan Update,
2005, v.3.
Figure 2. Area of Potential Inundation from a One Meter Rise in Sea Level
Source: U.S. Geological Survey