Download - FY16 & FY17 Strategic Plan Update and Mid-Cycle …...FY16 & FY17 Strategic Plan Update and Mid-Cycle Budget Workshop Board Presentation May 24, 2016 Workshop Agenda • Introduction

FY16 & FY17 Strategic Plan Update

and Mid-Cycle Budget

Workshop

Board Presentation May 24, 2016

Workshop Agenda

• Introduction

• Strategic Plan

• FY17 Mid-Cycle Budget Update

• FY17 Staffing Changes

• FY17 Non-Prop 218 Rates, Charges and Fees

• Board Discussion

1

Strategic Plan

2

Goals

Long-Term Water Supply

Water Quality & Environmental Protection

Long-Term Infrastructure Investment

Long-Term Financial Stability

Customer & Community Services

Workforce Planning & Development

• Created 2004

• Updated every 2 years

• New approach & design in 2016

Strategic Plan

3

• A unique opportunity

• Hosted 10 Employee Talks

• Approximately 720 employees participated

Strategic Plan Employee Talks

4

Employee Talks Examples of Questions/Comments

?

5

• Affirmed goals - they remain essentially unchanged

• Some modifications and additions to Strategies/Objectives

• Updated and added new KPI’s

• Most comments aligned with Values and Improvement areas of focus

Strategic Plan Approach and Updates

6

Goals





Customer Service


Strategic Plan

7

Long-Term Water Supply Goal

8

Existing Goal

Ensure a reliable high quality water supply for the future.

Strategy Description

Strategy 1 Preserve current entitlements and augment the District’s successful water supply projects by obtaining supplemental supplies to meet annual customer demands.

Strategy 2 Reduce potable water demand through water conservation and build on past water savings success to help ensure a reliable water supply.

Strategy 3 Reduce potable water demand through water recycling and build on past success to achieve a diversified and reliable water supply.

Strategy 4

Maintain an updated Climate Change Monitoring and Response Plan to inform the District’s planning efforts for future water supply, water quality and infrastructure, and support sound water and wastewater infrastructure investment decisions.

Long-Term Water Supply Strategies

9

Objectives:

• Continue implementation/updating:

– Conservation strategies and drought response plans

– Customer engagement services

– Supply-side conservation/water loss control

– Regulatory and legislative initiatives

– Research and test new efficiency technologies

Long-Term Water Supply – Water Conservation

10

WCMP Implementation Strategy & Program Priorities (2017-2018)

• Continue focus on outdoor water efficiency and savings

• Expand customer water management services (landscape water budgets, Home Water Reports, web self services)

• Adopt District AMI standards and accelerate phased installations to promote conservation and reduce non-revenue water use

• Sunset toilet and clothes washer rebates

• Lock in achieved efficiency to cost-effectively meet near-term, 2020 and 2040 savings goal

11

Strategy 1 Key Performance Indicator

FY17 Target

Supplemental Supply

Additional supply by 2040 to provide 85% reliability under design drought conditions and diversify through regional partnerships

• Work with Placer County Water Agency (PCWA) to publish a draft environmental document for a long-term water transfer

• Enter into an agreement to develop a second long-term water transfer project with Yuba County Water Agency (YCWA), Sacramento River Settlement contractors (SRSC), or other potential sellers

• Complete water rights and export permitting and initiate design for the DREAM project in San Joaquin County

• Complete Bay Area Regional Reliability (BARR) Draft Drought Contingency Plan

Key Performance Indicators – Proposed Changes

12


FY17 Target

Water Recycling

20 MGD of recycled water capability by 2040

• Complete installation of phase 2 recycled water pipelines in Bishop Ranch/San Ramon and continue customer site conversions

• For San Ramon phase 3 pump station, begin CEQA and property acquisition

• Complete installation of recycled water pipeline in Emeryville and continue customer site conversions

• Amend North Richmond agreement with the Chevron Refinery

• Begin recycled water master plan update

Key Performance Indicators – Proposed Changes (cont.)

13


FY17 Target

Climate Change Update the Climate Change Monitoring and Response Plan. Explore approaches for how to adapt to potential future conditions and identify "no regrets" infrastructure investment decisions

Update the Climate Change Monitoring & Response Plan to account for new information when the Intergovernmental Panel releases its Sixth Assessment Reports

Key Performance Indicators – Proposed Changes (cont.)

14

Goals





Customer Service


Strategic Plan

15

Water Quality & Environmental Protection Goal

16

Existing Goal

Meet or surpass environmental and public health standards and protect trust values.


Strategy 1 Manage the Mokelumne and East Bay watersheds to ensure a high quality water supply and protect natural resources while providing appropriate public access.

Strategy 2 Operate and maintain District facilities to surpass federal and state drinking water regulations.

Strategy 3 Operate and maintain District facilities to anticipate and meet all water discharge, air emission, and land disposal requirements to protect and enhance the environment.

Strategy 4 Minimize impacts to the environment by reducing, recycling, reusing and reclaiming waste, and by conserving natural resources.

Strategy 5 Ensure protection and stewardship of San Francisco Bay.

Strategy 6

Operate Pardee and Camanche Reservoirs and facilities jointly as an integrated system to achieve multiple objectives including municipal water supply, stream flow regulation, environmental protection, flood control, hydropower, and releases for downstream requirements.

Water Quality & Environmental Protection Strategies

17

Manage the Watersheds

Objective:

• Collaborate with stakeholders to protect water quality and the environment on non-District owned lands

18

Manage the Watersheds Collaboration

• Participate with local agencies and organizations in efforts to promote water quality, water supply and sustainability initiatives (e.g. forest health)

• Example: Upper Mokelumne River Watershed Authority partnership with the US Forest Service approved April 22, 2016

19

• Provided staff time, materials and equipment for erosion mitigation following the Butte Fire

• Ranger-led Environmental Education Program

• Working to expand multi-agency fuel breaks in the East Bay watersheds

• Ongoing environmental, educational, and stewardships efforts

Manage the Watersheds Collaboration

20

Renewable Energy in Wastewater

Objective:

• Pursue opportunities to recover and utilize resources (e.g. nutrients and minerals), and renewable energy in wastewater

21

Resource Recovery – Nutrients Activities FY16 & FY17

• Complete an evaluation of nutrient recovery for struvite control

• Maximize the use of biosolids for land application

• Establish new biosolids contracts that favor nutrient utilization

22

Resource Recovery – Energy Activities FY16 & FY17

• Continue to pursue a diverse portfolio of high-strength wastes for anaerobic digestion, including food waste

• Expand gas utilization capabilities to minimize flaring

23

Key Performance Indicator – Proposed Change

• Percent onsite generation depends on:

- Energy demand of MWWTP

- Biogas produced

- Biogas utilized

• A KPI of 130% supports demand reduction and efficient biogas utilization

0%20%40%60%80%

100%120%140%160%

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Calendar Year

Percent of Plant Power Demand Met by Onsite Generation

24

Integrated Operation of Mokelumne Reservoirs

Objective:

• Adaptively manage reservoir operations to improve salmon migration through variable flows, temperature optimization, and collaborative efforts with lower Mokelumne stakeholders

25

Mokelumne Reservoirs – Adaptive Management & Variable Flows

• Improve temperature modeling capabilities • Enhance and expand fishery science program • Continuous improvement of habitat along the

lower Mokelumne River

26

Goals





Customer Service


Strategic Plan

27

Long-Term Infrastructure Investment Goal Change

28

Proposed Goal

Maintain and improve the District’s infrastructure in a cost effective manner to ensure sustainable delivery of reliable, high quality service now and in the future, addressing economic, environmental, and social financial concerns.


Strategy 1 Maintain coordinated master plans for all facilities and assets.

Strategy 2 Meet operational needs and reliability goals by effectively maintaining the infrastructure.

Strategy 3 Implement the master plans and set priorities in the operating and capital budget process to reflect the needs identified in those plans.

Long-Term Infrastructure Investment Strategies

29

Long-Term Infrastructure Investment Highlights

• Distribution Reservoirs (161)

• Pumping Plants (136)

• Pipeline Rebuild • Mokelumne Aqueducts

Relining • Treatment Plants (6) • Wastewater Infrastructure

Summit Reservoir Construction

30

Distribution Reservoirs

31

Estates Reservoir (Open-Cut Reservoir)

Before

Estates No. 1 and No. 2 Reservoirs (Concrete)

After

Open Cut vs. Concrete Reservoirs

32

Miranda Reservoir

Rehabilitated Steel Reservoir

33

FY16 Distribution Reservoir Activity

In Design •South

•San Pablo Clearwell

•Carisbrook

•Montclair

•San Ramon

•Muir

•Berkeley View No. 2

•Potrero

•Pearl

•Bacon

•Mendocino

Completing Construction •Sunset

•Trilane

•Pinehaven No. 1 and No. 2

•Crossroads

In Construction •Summit

•El Portal

•San Pablo Rec Area

•Round Hill

•Eden

•Stonewall

•Acorn

•University

KPI = 3 Steel Tanks per year 34

Pumping Plants

0.2 MGD 100 MGD 35

Recently Upgraded Facility – Las Aromas Pumping Plant

BEFORE

AFTER BEFORE 36

FY16 Pumping Plant Activity

In Design •Diablo •Gwin & Laguna No. 1 •Skyline

In Construction •Moyers & Road 24 No. 2 •Diablo Vista •Shasta & Woods

Completing Construction •Danville No. 1 •39th Avenue & Redwood •Bryant No. 2 •Almond •Berkeley View

KPI = 3 Pumping Plants per year

37

Identify Improvements

• Gain efficiencies

• Lower costs • Maintain

reliability

Scale Up

• Hire staff • Collaborate • Increase

replacement

Pilot

• Streamline design

• Flexibly staff crews

• Focus on trenchless (aqua-pipe and pipe bursting)

• Utilize GPS solutions

Evaluate

• Document metrics

• Strive for sustainability

• Determine long-term solution 38

• NSF 61 approved

• Class IV structural liner

• Services reinstated robotically

• Bonds to host pipe

• No specialty fittings or tapping tools for connections/repairs

• Widely tested

• 50-year design life

Aqua-Pipe

39

Relining of Mokelumne Aqueducts No. 2 and 3

Problem

Inspect approximately 75 miles each of Moke No. 2 and No. 3 Aqueducts to evaluate the extent of lining failures

Engineering Study in FY16:

• Analyzed relining alternatives, costs, and treatment

• Developed conceptual design of treatment facility to extend life of CML

Next Steps:

• Detailed condition assessments

• Inspection of 16 miles of Aqueduct No. 2 in the Delta in FY17

40

Wastewater Infrastructure Interceptor Rehabilitation

• Completed rehab of 1.6 miles of interceptor system

Wood St. Interceptor Rehab Phase 2 Alameda Interceptor Rehab Phase 1

• Completed design for rehab of additional 1.5 miles – 3rd Street Interceptor Rehab Phase 1 (start construction in FY17) – Alameda Interceptor Rehab Phase 2 (in construction)

41

Wastewater Infrastructure Concrete Rehabilitation

• Completed first year of construction for the two-year Primary Sedimentation Tanks and Channels Rehabilitation Project

42

Key Performance Indicator FY17 Target

% of Water System Corrective Work Order Hours Classified High Priority

< 10%

Miles of Pipe Surveyed 600

Infrastructure Leakage Index N/A

% of High Priority Meter Repair Orders Completed in 60 days

90%

Miles of Distribution Pipeline Replaced 15

Cumulative % of Interceptor Assets with Major Defects that have been Repaired

80%


43

Goals





Customer Service


Strategic Plan

44

Long-Term Financial Stability Goal Change

45

Proposed Goal

Manage the District’s finances to meet funding needs and maintain reasonable fair water and wastewater rates.


Strategy 1 Maintain a Long-Range Financing Plan that sets forth the long-term funding needs of the District.

Strategy 2 Implement water and wastewater rates and charges that are legal, fair, and equitable.

Strategy 3 Ensure integrity, accountability and transparency in financial management.

Strategy 4

Implement technologies that improve the efficiency and effectiveness of business processes.

Long-Term Financial Stability Strategies

46

47

• Improve access to information and tools

• As the District dramatically increases rate of infrastructure in the future, opportunities exist for technology to streamline work processes

Reasons for Update

48

Updates to Strategy

• Structure and manage data to support consistent analysis and reporting and provide appropriate access to customers, employees and other stakeholders.

• Make effective use of

geospatial tools.

49

Updates: Data is Available When and Where it is Needed

• Ensure that all employees have ready access to tools and data so they can provide excellent customer service and maintain our infrastructure

• Develop and maintain long-term plan to guide evolution of IT infrastructure and capabilities

Goals





Customer and Community Services


Strategic Plan

50

Customer and Community Services Goal Change

51

Proposed Goal

Understand and be responsive to customer expectations for service. Maintain and enhance service excellence through continuous improvement.


Strategy 1 Understand customer expectations, opinions and satisfaction levels by obtaining feedback, and use input to inform our business decisions.

Strategy 2 Enhance the customer experience and improve operational efficiencies by investing in cost effective technologies.

Strategy 3 Provide reliable, responsive, quality service to customers at fair rates and charges.

Strategy 4

Maintain an active emergency preparedness program to plan for and manage the District’s functions during an emergency and allow for an efficient and effective recovery following an emergency.

Customer and Community Services Strategies

52

Satisfaction Survey

• Assess overall service satisfaction levels

• Gain post-drought insight

• Obtain feedback on key areas

• Understand customers’ needs to improve overall experience

53

Business Process Improvements

54

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

Delayed Accounts Trend

Technology – Electronic Payments

55

Technology – Electronic Payments

56

Phase 1 - completed Reduced customer transaction

fee 50% ($1.99 vs. $3.95)

EBMUD branded site

Reduced operational costs

Phase 2 – in progress

Electronic Bill Presentment & Payment

Integrated EBMUD site

Welcome to www.ebmud.com

Average Monthly Call Statistics

Call Metric 2012 2013 2014 2015

Average Monthly Call Volume

30,409 28,357 26,886 26,664

Calls Answered within 60 seconds

41% 65% 80% 95%

Average Speed of Answer (ASA)

(minutes/seconds) 3:42 1:32 :48 :09

Call Abandonment Rate

14% 6% 3% 1%

57

Technology – Contact Center Telephony System

58

Wastewater Odor Complaints

59

36

62

27

12

28

55

26

34

14

26

47

0

25

50

75

Num

ber o

f Odo

r Com

plai

nts

Objective: Minimize customer and community impacts from water and wastewater operations.

KPI for FY16 and FY17: ≤ 30 complaints

Odor Control Activities FY16 & FY17

• Begin construction of a two stage odor scrubber at the influent pump station (expected completion December 2017)

• Initiate planning level technology assessment for addressing odor management at the primary sedimentation tanks

• Optimize both the performance of existing odor control facilities and the implementation of O&M practices

• Continue to engage with neighboring stakeholders, including the West Oakland Liaison Group, to identify opportunities to improve

60

Home Water Reports

Landscape Irrigation Budgets

AMI – web interface

Conservation management tools

Customer Engagement

61

Customer Self Service

Welcome to www.ebmud.com

62

63

Strategy Key Performance Indicator FY 17 Target

Customer Satisfaction

Timely billing of customer statements as scheduled

99%

Electronic bill presentment & payment enhancements

Implement phase 1- April 2016 Test phase 2– October 2016

Implement new telephony and IVR system

January 2017

Odor Complaints near the MWWTP

< 30 complaints


Strategic Plan

Goals





Customer Service


64

Proposed Goal

Create an environment that attracts, retains and engages a high performing diverse workforce in support of the District’s mission and core values.

Workforce Planning & Development Goal Change

65

Workforce Planning & Development Strategies


Strategy 1 – Workforce Planning

Maintain robust workforce plans to determine future needs, identify gaps and implement actions to close the gaps.

Strategy 2 - Employee Development

Continue to develop employees to meet workforce demands.

Strategy 3 - Employee Wellness Performance Culture

Integrate District values, recognize employee contributions, and establish clear performance measures to achieve a high performance culture.

Strategy 4 -Recruitment

Enhance the District’s ability to recruit a highly qualified, diverse staff.

66

Rapidly Changing Workforce

67

Year Retirements Hires Promotions*

2010 93 43 83

2011 72 67 61

2012 94 80 84

2013 96 86 82

2014 90 154 145

2015 89 166 115

2016 (to date)

52 142 129

Hires = External Hires Promotions = Internal Promotions

*Includes Civil Service and Comp Standards

Values and Organizational Improvements Project

Phase 1 – Complete

Assessment of the Districts strengths, challenges, and perceived values

Phase 2 – Complete

Engagement of employees in identification of District Values and strategies to address challenges

Phase 3 – In progress

Embedding of the values, and implementation of employee recommendations

Phase 4 – On-going

Normalizing new District culture and evaluating progress 68

Values and Organizational Improvements Key Outcomes

Employee Engagement

• Over 160 employees engaged in values and organizational improvement teams

• Over 750 employees engaged through surveys, direct interviews, and focus groups

Employee Voice

• New values from the voice of employees

• Numerous employee recommendations to address District challenges

69

Workforce Planning • Expand workforce planning efforts

Employee Development • Enhanced onboarding of new employees

• Develop employees to meet workforce demands

Approaches to Workforce Planning and Development

70

Performance Culture • Engage employees in continuous improvement

processes, problem solving, and finding new ways to do our work

Recruitment • Engage our employees as ambassadors

• Ongoing talent acquisition techniques – best industry practices with a commitment to diversity

• Continued efforts to expand list of community partners for outreach efforts

Approaches to Workforce Planning and Development

71


Strategy 2 & 4 Key Performance Indicator FY17 Target

Employee Development

Number of employees in development programs (academies, rotations, internships, mentorships)

Performance measure

Recruitment Number of internships % of exams resulting in hiring lists within 60 days

Performance measure

80%

72

New approach, new design Broad engagement of employee outreach

Goals

Remain essentially unchanged

Strategies/Objectives

Considered employee feedback/comments

Updated to reflect current practices and priorities

Key Performance Indicators

Updated and new KPI’s added

Communication

Continuous on-going process both internally and externally

Summary of Plan Changes

73

FY17 Mid-Cycle Budget Update

74

FY17 Mid-Cycle Budget Update

• FY16 & FY17 Budget

• Revenues & Expenditures

• Staffing

75

FY16 & FY17 Budget Priorities

•Make sustained reinvestments in aging physical infrastructure

• Invest in critical information technology infrastructure

•Manage impacts of extended drought

76

FY16 Infrastructure Investment Accomplishments

$105M Water - $28M Wastewater

• Reinvest in aging physical infrastructure

– Small-diameter pipeline infrastructure renewals

– Pipeline Rebuild underway

– Dingee Pipeline & Claremont Center aqueduct replacements

– Reservoir and pumping plant rehabilitations

– Interceptor rehabilitations

– MWWTP concrete rehabilitation

– Chemical storage and feed system improvements 77

FY16 IT Infrastructure Investment Accomplishments

• Invest in critical information technology

Established IT Governance group, developed principals and priorities, and drafted strategic IT plan

Core information system upgrades are underway

• Data storage system

• Replaced firewalls, proxy & aging servers

• Replaced customer statement printers

78

110

120

130

140

150

160

170

180

190

200

Actual Water Sales

Budgeted FY16-20

Water Sales

Projected FY16-20

Water Sales

Drought Rebound History Water Sales 1976 – 2020 (MGD)

Drought Rebound

’14-’16 ’88-’95 ’08-’10 ’77-’78

79

Mid-Cycle Trends

• FY16 – Conservation higher than anticipated – Water sales below budget – Supplemental supplies used – Drought surcharge revenue – Increased SCC revenue from new development – Increased resource recovery revenue – Use of rate stabilization funds

• FY17 – Slow rebound anticipated – Water sales below budget – Adequate water supply anticipated – No supplemental supplies/drought surcharge – State & District water restrictions & messaging – Expenditures less than budget – Increased use of rate stabilization funds

80

FY16 Water System Revenue and Expenses ($M)

Amended Budget1

Year-End Projection

Variance Favorable/

(Unfavorable)

Operating Revenues:

Water Charges $422.8 $371.8 ($51.0)

SCC Revenues 24.6 35.0 10.4

Other 57.8 57.8 -

Drought Surcharge/Excessive Use2 - 51.9 51.9

TOTAL REVENUES 505.2 516.5 11.3

Operating Expenses:

Operations 248.3 239.8 8.5

Debt Service 169.9 167.3 2.6

Drought Expenses - 25.9 (25.9)

TOTAL OPERATING EXPENSES 418.2 433.0 (14.8)

NET VARIANCE COMPARED TO BUDGET3 (3.5)

81

1 Drought contingency budget includes $64.2 million not shown above 2 Excessive Use revenues is $0.6 million 3 Projecting $12 million use of Rate Stabilization Funds at year-end to meet financial metrics

FY16 Projected Water System Budget Variance

FY17 Projected Water System Budget Variance

82

FY17 Water System Revenue and Expenses ($M)

Amended Budget1

Year-End Projection

Variance Favorable/

(Unfavorable)

Operating Revenues:

Water Charges $453.0 $398.0 ($55.0)

SCC Revenues 26.0 26.0 -

Other 86.5 87.2 0.7

Drought Surcharge/Excessive Use2 - 5.0 5.0

TOTAL REVENUES 565.5 516.2 (49.3)

Operating Expenses:

Operations 262.2 244.6 17.6

Debt Service 180.2 177.6 2.6

Drought Expenses - 0.0 -

TOTAL OPERATING EXPENSES 442.4 422.2 20.2

NET VARIANCE COMPARED TO BUDGET3 (29.1) 1 Drought contingency budget includes $62.1 million not shown above 2 Prorated FY16 drought surcharge collected in July due to billing cycle 3 Projecting $29 million use of Rate Stabilization Funds at year-end to meet financial metrics

Water System Rate Stabilization Funds ($M)

1 Considers drought surcharge suspended effective June 30, 2016

83

Fiscal Year

Deposit/ (Withdrawal)

Year-end Balance

FY13 --- $50 FY14 $35 $85 FY15 $10 $95 FY16 ($12) $83 FY171 ($29) $54

Challenging Last Decade

• Fiscal challenges from drought & recession

– Reduced sales volumes, capacity charge revenues, and interest earnings

• Multi-year effort to mitigate rate increases

– Reductions/deferrals ≈ $200 million

• Hiring freeze, no FY12 & FY13 GSI increase

• Reduced discretionary/contract expenses

• Capital project reductions/deferrals

• Refinanced outstanding debt

84

Getting Back on Track

FY14 – FY16 Budget Priorities • Invest in aging infrastructure

– Increase miles of pipeline replaced

– Rehabilitate Water & Wastewater treatment plants

– Rehabilitate raw water aqueducts

• Enhance maintenance practices – Pipelines, meters and valves

– Corrosion control

– Structural and mechanical systems

• Improve customer service – Electronic bill payment

– Respond to customer inquiries 85

Mitigating Water Rate Increases Mix of Multi-Year Strategies

• Pursue expense reduction opportunities

• Prioritize CIP to defer projects beyond year 2020

• Search for revenue generation opportunities

86

FY16 Projected Wastewater System Budget Variance

87

FY16 Wastewater System Revenue and Expenses ($M)

Amended Budget

Year-End Projection

Variance Favorable/

(Unfavorable)

Operating Revenues:

Treatment Charges & Permits $68.7 $66.6 ($2.1)

Resource Recovery 8.0 11.6 3.6

Other 42.6 44.6 2.0

TOTAL REVENUES 119.3 122.8 3.5

Operating Expenses:

Operations 65.4 62.7 2.7

Debt Service 33.7 33.6 0.1


NET VARIANCE COMPARED TO BUDGET 6.3

FY17 Projected Wastewater System Budget Variance

88

FY17 Wastewater System Revenue and Expenses ($M)

Amended Budget

Year-End Projection

Variance Favorable/

(Unfavorable)

Operating Revenues:

Treatment Charges & Permits $72.1 $70.1 ($2.0)

Resource Recovery 8.0 10.0 2.0

Other 44.4 44.4 -

TOTAL REVENUES 124.5 124.5 -

Operating Expenses:

Operations 70.7 67.6 3.1

Debt Service 34.0 33.9 0.1


NET VARIANCE COMPARED TO BUDGET 3.2

Summary for Board Consideration

89

Affirm FY17 Budget Appropriation ($M)

Water System

Wastewater System

Operating* $504.5 $104.7

Capital $290.4 $32.6

Total $794.9 $137.3

*Water System appropriation includes $62.1 for drought contingency.

FY17 Staffing Changes

90

FY17 Staffing Changes

91

Approved in FY16 & FY17 Budget +3.0

• Assoc Electrical Eng/Control System Eng

• Drought-related (not expected to be filled)

− Water Conservation Rep (LT)

− Water Conservation Tech (LT)

Proposed +1.0

• TC Construction Inspector

FY17 Proposed Non-Prop 218 Rates, Charges & Regulations

92

Key Dates

93

• FY17 Adopted Prop 218 Rates, June 9, 2015 Fees & Charges

• FY17 GM Report on Recommended May 10, 2016

Non-Prop 218 Rates, Fees & Charges

• Public Hearing June 14, 2016

94

Proposed Updates to Rates, Fees & Charges (Non-Prop 218) Focus on ensuring cost recovery:

•Water Account Establishment (Schedule B)

•Special Services Charges (Schedule C)

•Other District Fees − Real Property Use Application Fees

− Public Records Act Fee

•Water and Wastewater capacity fee (Schedules H, J,N and G) calculations and credit for existing service

Account Establishment Charge

Action Current Charge Proposed Charge

Account Establishment – Phone

$40 $52

Account Establishment – On-Line

$20 $36

Account Establishment – Customer Assistance Program

$14 $26

Water Service Agreement (Landlord): One-time charge

$27 $55

95

Charges for Special Services

Action Current Charge Proposed Charge

Meter Testing (by meter size)

$44 to $268 $58 to $261

Trip Charge $43 $45

Meter S-Lock (In addition to $1,000 water theft penalty)

New $57

Flow Restrictor $53 to $187 $113 to $243

Backflow Violation $199 $470

96

Charges for Special Services – Liens

Action* Current Charge Proposed Charge

Lien Filing Fee $155 $167

Lien Removal Fee (CC/AL) 1st lien removed Subsequent liens removed

$64/$71 $15/$23

$144/$152 $51/$59

Property Tax Transfer CC County AL County

$20 + $3 parcel

$20 + 1.7%

$26 + $3 parcel

$26 + 1.7%

*Partial list of changes is shown – the complete list is available in Schedule C.

97

98

Real Property Use Application Fees

Fees to cover the cost of reviewing/approving use of District property. Four categories of use applications:

• Title Transfers – Outright purchase of District’s property. Transfers ownership with all the rights to buyer.

• Easements – Conveys rights for permanent use of District property. Could include either above or below ground rights or both.

• Leases and Licenses – Transfers the right to occupy and use District property for specified time; term could range from 1 to 25 years.

• Permits (entry, encroachment, temporary construction, land use) – Provide permission for temporary access to District property; term rarely exceeds one year.

Real Property Use Application Fees

Use Type Current Charge

Proposed Charge

Fee Title – Property for Sale Fee Title – Unsolicited

$2,000 $2,000

$2,000 $12,000

Easement – Utility Type Easement – Other

$1,000 $1,000

$2,000 $5,600

Quitclaim – Pipe Abandonment Quitclaim – Other

$1,000 $1,000

$1,000 $2,300

Revocable License $500 $1,600

Telecomm Lease Other Lease

$2,000 $600

$3,400 $2,000

99

Real Property Use Application Fees (cont.)

Use Type Current Charge

Proposed Charge

Temporary Construction Easement/Encroachment Permit Open Land (no facilities) With Facilities

$100 $100

$600 $2,200

Property Entry Permits Limited Land Use Permit

$100 $25

$300 $100

Information Only Process and Review of Proposals

$60/hr $60/hr

$130/hr $130/hr

Survey Cost if needed for review $125/hr

100

Capacity Fees

101

102

Proposed Water and Wastewater Capacity Charges Increase

• Water System Capacity Charge (SCC) – Adjust charges for 2016 ENR Construction Cost Index

– Updated costs for the Future Water Supply component

– SFR SCC increase 2.3% to 3.3% for Regions 1, 2 and 3

• Wastewater Capacity Fee (WCF) – Adjust charges for 2016 ENR Construction Cost Index

– Implement 4th year of 5 year phase-in of updated calculations from FY13; FY17

– SFR WCF increase 15.6% from $1,860 to $2,150

103

Current and Proposed SCC for 3/4*-inch Meters (Single Family) and 5/8-inch Meters (Non-Residential)

CURRENT FY16 PROPOSED FY17 For Single Family Residential

Region Single Family

Non-Residential

Single Family

Non-Residential Increase %

Increase

1 $16,370 $23,380 $16,740 $23,920 $370 2.3%

2 28,410 42,220 29,040 43,160 630 2.2%

3 36,230 39,040 37,050 39,930 820 2.3%

3C 83,830 See Note 1 86,590 See Note 1 2,760 3.3%

3D 93,850 93,850 96,870 96,870 3,020 3.2%

*If a combined fire service is required, a 1" or larger combined meter will be installed; SCC will be based on potable demand ¾" minimum. Note 1: Calculated based on a 1993 Agreement with HCV & Associates Ltd., Wiedemann Ranch, Inc., and Sue Christensen.

SCC Rates by Region and Sub Region

104

Assessment of Capacity Fees

• For water system, SCC is based on expected average annual water use

– Expected water use for larger meters is individually analyzed

– Small meters are assigned water use by region and meter size

– Proposed change to include 2” non-residential meters in larger meter calculation

• For wastewater, WCF is based on expected wastewater flow and strength

– Residential flow and strength are assigned by number of dwelling units

– Non-residential is individually analyzed

105

Capacity Fee Credit for Expanding an Existing Service

• Where an SCC/WCF was paid for existing service, credit is based on prior SCC/WCF capacity

– Water SCC began 1983; Wastewater WCF began 1987

• Where no SCC/WCF was paid on existing service:

– Water SCC credit is based on meter size or last 10 years of water use

• Small meters 1½” and under receive credit based on meter size

• Larger meters 2” and over receive credit based on average of last 10 years of water use

• Update minimum credit for larger meters equal to 1½” credit given to small meters

– Wastewater WCF service credit is based on wastewater strength and last 10 years of use

Workshop Summary

• Strategic Plan updated with broad employee input

• Drought created unfavorable fiscal impacts for the Water System in FY16 & FY17

• Wastewater System projecting a favorable net budget variance each fiscal year

• Development of FY18 & FY19 budget

106

Next Steps

Milestone Date

Public hearing on rates & charges June 14

Board consider adoption & budget affirmation

June 14

Water & WW rates take effect July 1

SCC rates take effect August 15

107

Board Discussion

108

Download - FY16 & FY17 Strategic Plan Update and Mid-Cycle …...FY16 & FY17 Strategic Plan Update and Mid-Cycle Budget Workshop Board Presentation May 24, 2016 Workshop Agenda • Introduction

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