1. Comprehensive Rate Study & Cost Allocation Analysis
Public Workshop #2 | November 6, 2017

2. Rate Design Alternatives
Today’s Workshop: Will focus on high-level themes ahead of presenting preliminary results
Revenue Requirements
Rate Design Alternatives
Overhead Cost Allocation Plan

3. Recycled Water Cost Recovery Results of CAP
Revenue Requirements: Development of preliminary financials is still on going…
Updated Master Plan
Recycled Water Cost Recovery
Results of CAP
Water Demands
Replenishment of Reserves …

4. Rate Design Discussion: Review for potential adjustments
Marina
Ord
Water Consumption Charge
0-8 hcf
Tier 1
$2.70 per hcf
$3.40 per hcf
8-16 hcf
Tier 2
3.10 per hcf
5.22 per hcf
16+ hcf
Tier 3
5.47 per hcf
7.03 per hcf
Capital Surcharge  -
20.00 per EDU
Flat Rate
per unit
Size
2017 Fee (Monthly)
5/8" or 3/4"
$21.71
$37.55 1'
35.02
58.57
1-1/2"
57.22
93.62 2'
83.85
135.66 3'
146.03
233.85 4'
234.77
373.96 6'
456.71
724.39 8'
900.86
1,425.66
 Monthly Wastewater Charge
13.44 per EDU
29.90 per EDU $5.00 Capital Surcharge
Tiered vs. Uniform Rates
Fixed Cost Recovery
What are potential customer Impacts?
What is the potential revenue (financial) risk?

5. 30% fixed / 70% Variable (eliminated due to revenue risk)
Fixed vs Variable: Revenues that more closely reflect expenditures can limit revenue risk
Key Highlights:
Historical BMP was
30% fixed / 70% Variable (eliminated due to revenue risk)
Combination of decoupling and increase to fixed charge can limit potential cost recovery risk

6. Marina Water 25% Ord Water 54% Marina Sewer 7% Ord Sewer 14%
Cost Allocation Plan: District costs that are not dedicated to a specific cost center are shared among the four primary cost centers
The District uses the expense ratio method to allocate these shared expenses. For FY , the assigned percentages are as follows:
Marina Water 25%
Ord Water 54%
Marina Sewer 7%
Ord Sewer 14%

7. CAP Update: Will define how support functions are allocated to the cost centers
Human Resources
Information Technology
Finance
Board
Cost Centers
Ord Water
Ord Sewer
Marina Water
Marina Sewer

8. Schedule and Next Steps
Rate Adoption
July 1, 2018
Consideration of Initiating Proposition 218 Process
Q1 CY 2018
Introduction of Draft Results
Board Meeting (December)
Preparation of Draft Results
November

9. Q&A