14 - Laserfiche WebLink

A majority of these costs will be repaid from Vineyard Avenue Corridor Specific Plan fees paid by new housing development in the area. However, over sizing of the water facilities was a direct result of existing residential water customers consuming large amounts of water; therefore, it was determined that approximately $850,000 was the amount of these costs that should come from a water rate adjustment charged to single family residential water customers who have high water consumption. A fourth tier water rate is proposed for single family users and includes the extra cost of expanding the water system to accommodate these users and also has the beneficial effect of encouraging water conservation. The fourth tier will generate approximately $100,000 per year for the added costs of the Vineyard Corridor improvements and these funds will be deposited in the Water Repair and Replacement Fund to reimburse this fund for these expenditures. By adding the $100,000 per year to the cost of water in the fourth tier it resulted in approximately $.13 per Ccf of added cost. Recycling The City is in the process of developing a recycling program for commercial irrigation water for the area between the DSRSD plant located on Johnson Drive and the northeast section of Pleasanton. Recycled water benefits all water users by freeing up potable water for domestic water usage. Therefore, it is proposed that the water rates generate approximately $480,000 per year or $.10 per Ccf of added cost for the development of this program. It is proposed that this added cost be included in water rates for all customers except Tier 1 and 2 of the single family residential rates. Senior and Low Income Discounts The City currently provides a 20% discount on water and sewer bills for residents who qualify as a "senior" (age 62 or older), and a 30% discount for residents who qualify as a low income family (those who qualify for PG &E, PacBell, or cable television discounts through either the California Department of Economic Opportunity or the Social Security Administration). Discounts are not additive; therefore, residents who quality for both discounts can not receive both discounts. The cost of these discounts in 2009 were water $330,260 and sewer $326,634 for a total of $656,894. With the passage of Proposition 218, it is no longer possible for the rate payer or rate base to absorb the cost of these discounts and instead it must be borne by the City's General Fund or eliminated. Unfortunately, the current economic situation does not allow the City's General Fund to absorb 100% of these discounts. Also, the dollar amount of these discounts will only grow in the coming years due to the aging population in Pleasanton as has been seen in the growth of these programs since 1995 ($100,000) to 2009 (almost $700,000). Additionally, staff has learned through the audit of these programs that some of the City's highest consumers of water are those who take advantage of both the senior and low- income discounts offered by the City. This calls into question the effectiveness of the program and whether the program should be modified to address inconsistent objectives. Use of the City's General Fund for these purposes is also contrary to the City's fiscal policies. Page 4 of 20