1. FY 2010 Budget Slide 1 Public Works March 18, 2009 Wastewater User Fees Wastewater Collection Proposed RCO Fee Surcharge Recommendation: Regional Consent Order (RCO) Fee Surcharge 44 cents per one hundred cubic feet of water used Impact typical homeowner $7.92 per two-month billing cycle

2. FY 2010 Budget Slide 2 Public Works March 18, 2009 Wastewater User Fees Wastewater Collection Proposed RCO Fee Surcharge Background: Sept. 2007 RCO requires Specific studies, programs completed by fixed deadlines Capital program initiated at end of 60 month study period Sanitary Sewer Overflows (SSOs) be promptly addressed

3. FY 2010 Budget Slide 3 Public Works March 18, 2009 Wastewater User Fees

4. FY 2010 Budget Slide 4 Public Works March 18, 2009 Wastewater User Fees Wastewater Collection Proposed RCO Fee Surcharge Background: Sept. 2007 RCO requires Specific studies, programs completed by fixed deadlines Capital program initiated at end of 60 month study period Sanitary Sewer Overflows (SSOs) be promptly addressed FY09 Budget included 41 cent rate increase = $2 million in new revenue Expend on RCO, maintenance, inflation since 2002

5. FY 2010 Budget Slide 5 Public Works March 18, 2009 Wastewater User Fees Wastewater Collection Proposed RCO Fee Surcharge What has changed? FY09 RCO costs higher than expected CMOM / SSES studies +$180,000 Flow metering +$280,000 Impact on O&M efforts  Deferred maintenance in FY09 of $500,000  More of FY09 rate increase needed for O&M needs Flow monitoring data indicate wet weather flows affect more of the system (57%) than anticipated (30-40%) Impact on RCO efforts  Hydraulic model increases $700,000 /3 yrs  Contractor find & fix work $5,000,000 /3 yrs

6. FY 2010 Budget Slide 6 Public Works March 18, 2009 Wastewater User Fees Wastewater Collection Proposed RCO Fee Surcharge Surcharge recommended because Accountability - funds used only to implement the RCO Flexibility – allows surcharge to change (+ or -) how much is actually expended each FY additional requirements from the regulatory agencies

7. FY 2010 Budget Slide 7 Public Works March 18, 2009 Wastewater User Fees Next Steps Adopt new fee surcharge with adoption of FY 2010 budget Surcharge implemented with first billing after July 1, 2009

8. FY 2010 Budget Slide 8 Public Works March 18, 2009 Wastewater User Fees Next Steps Line item as it will appear on bi-monthly Waterworks bill