CCMIN060110 - Laserfiche WebLink

Ms. Wagner stated that staff had to know that in order to develop the revenue. Everyone is in the first tier, and then there are only about 15% in the over 60% in the residential portion of the revenue structure. Otherwise, 85% of the residential revenues are derived from Tiers 1 -3. Mr. Smith added that this is projected because they do not know what people will do at those costs in those rate structures, and it is hoped they will use less water. Mr. Smith presented levels for the average resident who uses 40 CCF's. Their bill would be $5.20 a month. In the first tier, the rate increase will be $2.70. A high user's bill would be $8.60 a month. In comparing Pleasanton to other agencies, he presented the fixed meter charge with the average bill for a total bill of $82.70 for two months. He presented Pleasanton's proposed rates and the average bill would increase to $98.10. The increase is 7.2% overall but if you look at water only it is 12.57 %. DSRSD's has an infrastructure charge to pay for their infrastructure and in other cities, water bills are considerably higher than it would be in Pleasanton, even at the new proposed rates. Regarding commercial and irrigation rates, the current rates are $1.63 for commercial and the new proposed rates including multi - family would be $2.16. Regarding irrigation, Mr. Smith said currently they have a seasonal system and for 8 months of the year, the City charges $1.30 and the peak is $2.12. They are planning on eliminating the seasonal system and going to a flat irrigation rate, for a total of $2.29. He discussed peak and off peak rates and subsidies which showed that the only place they were recouping costs was at the 12% during 4 months of the peak irrigation time. Regarding what it would do to businesses, Mr. Smith said inside irrigation ranges from $8 to $50 and outside runs from $50 to $190. Mr. Smith said they want to target the right people for the senior and low income discount rates. After Proposition 218, most agencies have discontinued this because one ratepayer cannot subsidize another one. The current program is 20% for seniors at age 62, 30% for low income discount for those who qualify, there is no limit for water usage and this is not what the program was intended to do, and therefore, restructuring will help with that. Currenly, the cost per year is about $700,000 that will have to come out of the General Fund. Proposed is that the 20% discount would stay the same, they would raise the age to 65 and would grandfather anybody in the program now. The 30% low income discount would stay the same. There would be no discount on the DSRSD or the City of Livermore portion of the regional sewer bill, which is done now. There would be no discounts on water or sewer if they exceeded the 40 CCF tier which is to eliminate people who probably have the money to pay the bill. If they go above the 40 CCF tier, they would lose the discount for that two month billing cycle. Vice Mayor Thorne stated that if the 40 CCF is exceeded, the discount is lost on the entire bill, and Mr. Smith stated this is correct. Someone who gets to 41 CCF would lose the discount for the entire bi- monthly period and not just on the amount they go over. Councilmember Cook- Kallio questioned an example of a size of a house that would use 40 CCF a day. Mr. Smith said it is about double the amount an average house would use, and this accounts for water inside and outside the house. By changing this, the City will reduce its subsidy to the General Fund by half. Regarding future rate increases, staff proposes having an automatic CPI increase which is allowed for 5 years on the Pleasanton local portion of the bill. For water, this would be done each January 1 with the first being January 1, 2011. This would cover the meter charge of City Council Minutes Page 5 of 16 June1, 2010