• Connection Fees and Tiered Rate


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  • FileName: ConnectionFeesandTieredRateStructures-DSmith.pdf [preview-online]
    • Abstract: Connection Fees and Tiered RateStructures in Santa RosaDave Smith, Merritt Smith ConsultingProject TeamJennifer Burke, City of Santa RosaVirginia Porter, Virginia Porter Consulting ServicesWinzler & Kelly Consulting Engineers

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Connection Fees and Tiered Rate
Structures in Santa Rosa
Dave Smith, Merritt Smith Consulting
Project Team
Jennifer Burke, City of Santa Rosa
Virginia Porter, Virginia Porter Consulting Services
Winzler & Kelly Consulting Engineers
Overview
• Water reuse drivers and projects in Santa Rosa
• Urban reuse revenue sources
• User rate
• Connection fee
• Conditioning ordinance
2
Water reuse drivers
Ru
ss
ia
n
Ri
Dry Ck ve
r
limited
capacity
SCWA
Intakes
3
Water supply driver
Projected High Demand
Projected 2005 UWMP Demand
40,000
35,000
30,000
Acre - feet
25,000
Additional Supply
20,000
Recycled Water
15,000 Conservation
Groundwater
10,000 Annual Cap – 29,100 acre-feet
Agency Supply
5,000
0
2020
2016
2017
2018
2019
2004
2015
2006
2011
2014
2005
2007
2008
2009
2010
2012
2013
Year 4
Wastewater disposal driver
14,000
13,000 12,600
12,000
ANNUAL SUPPLY VOLUME (MG)
11,000
10,500
Discharge
10,000
9,500
8,900
9,000
8,000 7,600
Additional Geysers - 800 - 4,200 MG
7,000
6,400
Planned Urban Reuse - 1,300 MG
6,000
5,000
4,000
Existing Geysers – 4,000 MG
3,000
2,000
Existing Reclamation – 1,900 MG
1,000
0
2005 2010 2015 2020
YEAR
5
Water reuse drivers and projects in
Santa Rosa
• Water and wastewater are distinct enterprises
• Both need additional capacity
• 60/40 split makes urban reuse project
• Cost competitive water supply alternative
• Cost competitive disposal alternative
6
Santa Rosa Urban Reuse Project –
$152 million for 1 BG/Yr
7
Project to be built in phases –
$37 million for first 250 MG
8
User Rates
• Premise - recycled water, when used for eligible
uses, has the same value as potable water
• Assure fairness - provide a discount to help
compensate customers for the increased cost of
irrigation management associated with recycled
water usage
• Structure
• Discount monthly service charge by 10%
• Discount 1st tier by 5% for landscape uses, and use rate by 5%
for commercial/industrial uses
9
User rate structure for irrigation
connection
Tier Structure Using 2007 Rates
and 5% 1st Tier Discount
Tier Rates ($/tg)
$6.03
$4.02
$3.22 Current Irrigation
$3.06 Tier Structure
Discounted
1st Tier Rate
125% 200%
% of Water Budget
10
Connection fee
• Wastewater and water connection fees established based on
60/40 split
• One connection fee for potable and recycled water
• Existing (retrofit) customers already paid
• Retrofit is a project (not user) cost
• New customers pay same connection fee as potable connection
• Connection fee amount
• Calculation: Capital Cost of Projects/no. future connections
• For irrigation accounts (potable and recycled at City’s option)
• $496 per TG in peak month
• Example – 1 acre of turf (6.5”/mo. peak) = $87,540
• Non-irrigation accounts (potable only)
Lot Size Water Sewer


Use: 0.6956