1. FEE INCREASES
Public Work Shop
June 2, 2018

2. The Workshop Presentation Questions and Discussion
The Need
The Rates
The Process
The Schedule
Questions and Discussion
Conclusion and Next Steps

3. The Need: The Systems Sewer Water Two Wells
Water Treatment Plant (in design)
Two Water Storage Tanks
Water Distribution System with 627 connections and 54 hydrants
Two Sewer Plants
Three Lift Stations
Four Leachfields
Two Sewer Collection Systems with 394 connections

4. The Need: Overview Financing a New Water Treatment Facility
Increasing Costs of Maintenance, Repair, and Replacement of Existing Water and Sewer Facilities
Increasing Costs for Operation: Labor, Subcontractors, Equipment, Materials, Utilities
Paying Current Debt-Service
Maintaining Reserves
No Fire Tax Increase

5. Five Year Need: Water Financing a New Water Treatment Plant
District under a Compliance Order
Remove Arsenic to meet Federal Standard of 10 ppb
Reduce Manganese and Iron
Improvements, Replacement and Repair
Hydrants
Pressure Release Valves
Well 2 repairs, VFD
Storage Telemetry
Water Master Plan for Well and Tank Replacement

6. Water Treatment Plant

7. Water Treatment Plant

14. Five Year Need: Sewer Improvements, Replacement and Repair
Lift Station 7 Improvements (Compliance Order)
Repair Leaking Manholes-stop infiltration
Treatment Plant 7 Galley Painting
Water Reclamation Filtering
Repairs to Waste Treatment Plant 6
Master Planning: DHLF, Increase Reclamation
Debt-Service
WWTP 7
Dynamite Hill Leachfield

18. Five Year Need: Assumptions
Labor: 24/7 operation, 5 day a week office hours
Class III Operators for Treatment Plants
Full-time General Manager
Administrative Support
Increasing costs of benefits-medical, dental, vision, retirement
Subcontractors, Equipment,
Prevailing Wage, Insured
Specialize Equipment-Pumps, Panels, Pipes and Valves
Utilities
Electricity, Propane, Septic, Waste Collection

19. Five Year Need: Assumptions
Reserves
Operating Reserve= 90 days of O&M
Capital Reserve= 1 year of capital expenses (variable)
Bond Reserves will meet loan requirements
Existing reserves adequate

20. The Fees: Limits Fees must be related to the cost of providing service
Operation and maintenance including overhead
Capital Improvements: replacing, repairing, adding facilities and equipment
Debt service
Proposed rates include increases based on a Consumer Price Index

21. Adhere to District Fiscal Policy
The Fees: Rate Study
Determine the revenue required to operate & maintain water, sewer, and fire protection system into perpetuity
Meets State of California SRF Requirements
Goal 1
Determine Revenue
Clearly define fiscal policy
Create financial performance target levels
Goal 2
Adhere to District Fiscal Policy
Simple to understand by Ratepayers
Simple to manage by staff
Goal 3
Simplicity

22. The Fees: Rate Study
Compares the revenues of the PECSD to future expenses to determine the size of the rate adjustment
Revenue Requirement
Equitably allocates the revenue requirements between the classes of customers using the concept of EDUs
Cost of Service
Design rates for each class of service to meet the revenue requirement plus any additional rate design goals and objectives
Rate Design

23. The Fees : Residential

24. Water Fees

25. Water Fees

26. The Process: Prop 218

27. The Process: Ordinance

28. The Schedule Start of Rate Study Dec 31, 2017
Final Rate Study Report April 30, 2018
Prop 218 Mailing May 11, 2018
Public Hearing June 2, 2018
Introduction of Ordinance June 13, 2018
Final Date for Accepting Protests June 27, 2018
Adoption of Ordinance June 27, 2018
Effective Date July 1, 2018

29. Questions and Comments