1. Water Rates Options, Explanations & Impacts Presentation to the West Linn City Council October 5, 2009

2. Water Rates - City of West Linn2 Tonight’s Presentation Current rate structure What are tiered rates? Examples of tiered rates Discussion West Linn impacts from Pioneer Consulting Group

3. Water Rates - City of West Linn3 Tonight’s Presentation Examine current and tiered rates on five sample customers Small Residential Customer Large Residential Customer SchoolSmall Commercial Customer Large Commercial Customer In each scenario: –Meter size and consumption is the same for each customer –Impact from different rate scenarios is shown Goals: –“Apples to apples” comparison; show impact on West Linn citizens and businesses

4. Water Rates - City of West Linn4 Current Rate Structure Base charge per user based on meter size Any water consumption above 7 CCF is charged $1.67 per CCF Examples: Small Residential Customer 5/8” meter $14.94 base 7 CCF $1.67 per CCF over 7 CCFs Total: $14.94 Large Residential Customer 3/4” meter $14.94 base 52 CCF $1.67 per CCF over 7 CCFs Total: $90.09 School 3” meter $31.71 base 612 CCF $1.67 per CCF over 7 CCFs Total: $1,042.06 Small Commercial Customer 1-1/2” meter $19.72 base 174 CCF $1.67 per CCF over 7 CCFs Total: $298.61 Large Commercial Customer 2” meter $25.26 base 230 CCF $1.67 per CCF over 7 CCFs Total: $397.67

5. Water Rates - City of West Linn5 What Are Tiered Rates? Assess a base charge based on meter size Assess a consumption charge –One Tier –Two Tier –Three Tier –Seven Tier Thought to promote conservation because consumption impact rates are charged –The more consumption, the higher the bill Necessary revenue yield can result in disproportionate impact –City’s total revenue yield must be the same – the impact on various user groups is different –Rates may significantly increase or decrease based on consumption

6. Water Rates - City of West Linn6 One Tier Rate Structure Base charge per user based on meter size All water consumption is charged $2.32 per CCF Examples: Small Residential Customer 5/8” meter $9.12 base 7 CCF $2.32 per CCF Total: $25.36 Large Residential Customer 3/4” meter $9.12 base 52 CCF $2.32 per CCF Total: $129.76 School 3” meter $145.93 base 612 CCF $2.32 per CCF Total: $1,565.77 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $2.32 per CCF Total: $449.28 Large Commercial Customer 2” meter $72.96 base 230 CCF $2.32 per CCF Total: $606.56

7. Water Rates - City of West Linn7 Cost Comparison

8. Water Rates - City of West Linn8 Two Tier Rate Structure Base charge per user based on meter size – same as one tier rate structure Water consumption is charged $1.76 for 0-20 CCF; $3.39 for 21+ CCF Examples: Small Residential Customer 5/8” meter $9.12 base 7 CCF $1.76 per CCF Total: $25.36 Large Residential Customer 3/4” meter $9.12 base 52 CCF $1.76 for 0-20 CCF $3.39 for 21-52 CCF Total: $152.80 School 3” meter $145.93 base 612 CCF $1.76 for 0-20 CCF $3.39 for 21-612 CCF Total: $2,188.01 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $1.76 for 0-20 CCF $3.39 for 21-174 CCF Total: $602.86 Large Commercial Customer 2” meter $72.96 base 230 CCF $1.76 for 0-20 CCF $3.39 for 21-230 CCF Total: $820.06

9. Water Rates - City of West Linn9 Cost Comparison

10. Water Rates - City of West Linn10 Three Tier Rate Structure Base charge per user based on meter size – same as one tier rate structure Water consumption is charged $1.71 for 0-20 CCF; $2.38 for 20-50 CCF; $4.58 for 50+ CCF Examples: Small Residential Customer 5/8” meter $9.12 base 7 CCF $1.71 per CCF Total: $21.09 Large Residential Customer 3/4” meter $9.12 base 52 CCF $1.71 for 0-20 CCF $2.38 for 21-50 CCF $4.58 for 51-52 CCF Total: $123.88 School 3” meter $145.93 base 612 CCF $1.71 for 0-20 CCF $2.38 for 21-50 CCF $4.58 for 51-612 CCF Total: $2,825.49 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $1.71 for 0-20 CCF $2.38 for 21-50 CCF $4.58 for 51-174 CCF Total: $719.12 Large Commercial Customer 2” meter $72.96 base 230 CCF $1.71 for 0-20 CCF $2.38 for 21-50 CCF $4.58 for 51-230 CCF Total: $1,002.96

11. Water Rates - City of West Linn11 Cost Comparison

12. Water Rates - City of West Linn12 Seven Tier Rate Structure Base charge per user based on meter size – same as one tier rate structure Water consumption is charged $1.28 for 0-10 CCF; $1.85 for 11-20 CCF; $2.24 for 21-30 CCF; $2.68 for 31-50 CCF; $3.18 for 51-100 CCF; $3.97 for 101-300 CCF; $5.92 for 300+ CCF Examples: Small Residential Customer 5/8” meter $9.12 base 7 CCF $1.28 per CCF Total: $18.08 Large Residential Customer 3/4” meter $9.12 base 52 CCF $1.28 for 0-10 CCF $1.85 for 11-20 CCF $2.24 for 21-30 CCF $2.68 for 31-50 CCF $3.18 for 51-52 CCF Total: $122.78 School 3” meter $145.93 base 612 CCF $1.28 for 0-10 CCF $1.85 for 11-20 CCF $2.24 for 21-30 CCF $2.68 for 31-50 CCF $3.18 for 51-100 CCF $3.97 for 101-300 CCF $5.92 for 300-612 CCF Total: $3,053.27 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $1.28 for 0-10 CCF $1.85 for 11-20 CCF $2.24 for 21-30 CCF $2.68 for 31-50 CCF $3.18 for 51-100 CCF $3.97 for 101-174 CCF Total: $605.68 Large Commercial Customer 2” meter $72.96 base 230 CCF $1.28 for 0-10 CCF $1.85 for 11-20 CCF $2.24 for 21-30 CCF $2.68 for 31-50 CCF $3.18 for 51-100 CCF $3.97 for 101-230 CCF Total: $855.36

13. Water Rates - City of West Linn13 Cost Comparison

14. Water Rates - City of West Linn14 Compare & Contrast – Small Residential Customers Small Residential Customer 5/8” meter $14.94 base 7 CCF $1.67 per CCF over 7 CCFs Total: $14.94 Small Residential Customer 5/8” meter $9.12 base 7 CCF $2.32 per CCF Total: $25.36 Small Residential Customer 5/8” meter $9.12 base 7 CCF $1.76 per CCF Total: $25.36 Small Residential Customer 5/8” meter $9.12 base 7 CCF $1.71 per CCF Total: $21.09 Small Residential Customer 5/8” meter $9.12 base 7 CCF $1.28 per CCF Total: $18.08 CurrentTwo TiersOne TierSeven TiersThree Tiers

15. Water Rates - City of West Linn15 Compare & Contrast – Large Residential Customers CurrentTwo TiersOne TierSeven TiersThree Tiers Large Residential Customer 3/4” meter $9.12 base 52 CCF $1.28 for 0-10 CCF $1.85 for 11-20 CCF $2.24 for 21-30 CCF $2.68 for 31-50 CCF $3.18 for 51-52 CCF Total: $122.78 Large Residential Customer 3/4” meter $9.12 base 52 CCF $1.71 for 0-20 CCF $2.38 for 21-50 CCF $4.58 for 51-52 CCF Total: $123.88 Large Residential Customer 3/4” meter $14.94 base 52 CCF $1.67 per CCF over 7 CCFs Total: $90.09 Large Residential Customer 3/4” meter $9.12 base 52 CCF $2.32 per CCF Total: $129.76 Large Residential Customer 3/4” meter $9.12 base 52 CCF $1.76 for 0-20 CCF $3.39 for 21-52 CCF Total: $152.80

16. Water Rates - City of West Linn16 Compare & Contrast – Schools CurrentTwo TiersOne TierSeven TiersThree Tiers School 3” meter $31.71 base 612 CCF $1.67 per CCF over 7 CCFs Total: $1,042.06 School 3” meter $145.93 base 612 CCF $2.32 per CCF Total: $1,565.77 School 3” meter $145.93 base 612 CCF $1.76 for 0-20 CCF $3.39 for 21-612 CCF Total: $2,188.01 School 3” meter $145.93 base 612 CCF $1.71 for 0-20 CCF $2.38 for 21-50 CCF $4.58 for 51-612 CCF Total: $2,825.49 School 3” meter $145.93 base 612 CCF $1.28 for 0-10 CCF $1.85 for 11-20 CCF $2.24 for 21-30 CCF $2.68 for 31-50 CCF $3.18 for 51-100 CCF $3.97 for 101-300 CCF $5.92 for 300-612 CCF Total: $3,053.27

17. Water Rates - City of West Linn17 Compare & Contrast – Small Commercial Customers CurrentTwo TiersOne TierSeven TiersThree Tiers Small Commercial Customer 1-1/2” meter $19.72 base 174 CCF $1.67 per CCF over 7 CCFs Total: $298.61 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $2.32 per CCF Total: $449.28 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $1.76 for 0-20 CCF $3.39 for 21-174 CCF Total: $602.86 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $1.71 for 0-20 CCF $2.38 for 21-50 CCF $4.58 for 51-174 CCF Total: $719.12 Small Commercial Customer 1-1/2” meter $45.60 base 174 CCF $1.28 for 0-10 CCF $1.85 for 11-20 CCF $2.24 for 21-30 CCF $2.68 for 31-50 CCF $3.18 for 51-100 CCF $3.97 for 101-174 CCF Total: $605.68

18. Water Rates - City of West Linn18 Compare & Contrast – Large Commercial Customers CurrentTwo TiersOne TierSeven TiersThree Tiers Large Commercial Customer 2” meter $25.26 base 230 CCF $1.67 per CCF over 7 CCFs Total: $397.67 Large Commercial Customer 2” meter $72.96 base 230 CCF $2.32 per CCF Total: $606.56 Large Commercial Customer 2” meter $72.96 base 230 CCF $1.76 for 0-20 CCF $3.39 for 21-230 CCF Total: $820.06 Large Commercial Customer 2” meter $72.96 base 230 CCF $1.71 for 0-20 CCF $2.38 for 21-50 CCF $4.58 for 51-230 CCF Total: $1,002.96 Large Commercial Customer 2” meter $72.96 base 230 CCF $1.28 for 0-10 CCF $1.85 for 11-20 CCF $2.24 for 21-30 CCF $2.68 for 31-50 CCF $3.18 for 51-100 CCF $3.97 for 101-230 CCF Total: $855.36

19. Water Rates - City of West Linn19 Discussion

20. Water Rates - City of West Linn20 West Linn Impacts from Pioneer Consulting Group

21. Water Rates - City of West Linn21 Questions? City of West Linn –Richard W. Seals, CPA CMA CFM –Finance Director, City of West Linn, Oregon –rseals@westlinnoregon.govrseals@westlinnoregon.gov Pioneer Consulting Group –Doug Gardner –Pioneer Consulting Group, Inc. –dgardner@municipalconsultants.netdgardner@municipalconsultants.net