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Home My WebLink AboutAGENDA 2012 0613 CC SPC 7:00 PM ITEM 05A ITEM 5.A. +::ity Council Meeting X__ 6-.3 ACTION: MOORPARK CITY COUNCIL -- -- - - - AGENDA REPORT TO: Honorable City Council FROM: Dave Klotzle, City Engineer/Public Works Director Prepared by: Teri Davis, Senior Management Analyst:6) DATE: June 6, 2012 (CC Special Meeting of 06/13/12) SUBJECT: Consider Water Rate Increase Presentations by General Managers from Calleguas Municipal Water District and Metropolitan Water District of Southern California BACKGROUND The City of Moorpark (City) incurred unprecedented water rate increases over the past several years and water rates are expected to continue to rise in the foreseeable future. The City purchases water from the Ventura County Waterworks District No. 1 (District) which in turn purchases water from Calleguas Municipal Water District (Calleguas) which purchases imported water from Metropolitan Water District of Southern California (Metropolitan). The District's service area encompasses approximately 21,500 acres, including about 7,900 acres of the City (approximately 65 acres within the City boundaries is not serviced by the District). The District services approximately 10,950 customers, 96% of which are inside the City boundaries while the remaining 4% are outside the City boundaries. The volume of water sold inside the City is 75% of the total water sold by the District. Approximately 20% of the District's water is a blend of well water and imported water supplied by Calleguas and 95% of the blended water is delivered to customers outside of the City boundaries. Also of note, the District rates for water designated to be used for agricultural purposes rather than municipal and industrial purposes is approximately 15% lower than the municipal and industrial water rates. On December 1, 2010, City Council directed staff to submit to the Ventura County Board of Supervisors (Board) a letter protesting a proposed 10% water rate increase scheduled to take effect January 1, 2011. The Board postponed consideration of the water rate increase and later adopted a 12% water rate increase to take effect May 1, 2011. In January 2012, staff brought before City Council a subsequent proposed water rate increase scheduled to take effect March 1, 2012. This 2012 increase ranged between 6.5% and 8%and the City Council did not direct staff to submit a letter of protest but rather directed staff to submit to the Board a letter of concern. Additionally, the City Council directed staff to request 1 Honorable City Council June 13, 2012 Special Meeting Page 2 presentations from the General Managers of Calleguas and Metropolitan at a future City Council meeting to explain and discuss the need for seemingly excessive water rate increases and why water rates are projected to steadily increase for a minimum of ten years. DISCUSSION Historically, the District has generally imposed rate increases when Calleguas increases water rates and Calleguas has generally imposed increases when Metropolitan increases water rates. The table below summarizes the agencies' increases over the past five years. Water Rate Increases for 5 Year Period Effective Date Metropolitan Calleguas District 2008 6% 10% 9.5% ....................................................................................._..........._........................_..........................................._.........._._.._...._...._........_.................._...._.................._._..........._.....;................_................................_....... 2009 14% 17% 15% ......................._....__....._........................................_............._....._.............__....................................._................_...................._..............__.._................................_............._._...._.._....._..._.............................. .__..._.............. 2010 20% 22% 16% ..................................... :..............._............................................._................................................................_................................................................................................................;...................................................._...... 2011 7.5% 10% 12% .. .._ 2012 7.5% 8% 6.5-8% The cost to the City resulting from the 5 year period of water rate increases is estimated to exceed$245,000. This$245,000 only relates to parks and landscaping subsidies from the general fund and self-funded landscape assessment district zones, which represents the vast majority of water costs to the City. Costs for interior water use at City Hall, Active Adult Center, Library, Moorpark Public Services Facility, and other City facilities are not included in this estimated cost to the City. Cost to City Incurred by 5 Year Period of Water Rate Increases Landscape Fiscal Parks/Landscaping Assessment Districts Effective Increase Year General Fund Subsidies Self-funded 2008 9.5% 2007/08 $ 6,744.61 $ 5,248.34 ............._......................._.........._....._...._...................._..._.............._.........._...._......._........._._...._.............._...._..........._.._........_............_.........._......_._....._.__.............._.........._.._._..._......_........_...............................__......_................. 2009 15% 2008/09 : .. $ 14,918.75. $ ._._ 19,264 46 . 2010 16% 2009/10 $ 30,470.39 $ 38,835.49 ....... _. _....... . ... ....... .. ...._.... .. ............_ ... 2011 12% 2010/11 $ 25,119.09 $ 56,688.16 ......... . ............... .. ............... ...._ .. .. 2012 8% 2011/12 $ 14,377.75 $ 34,212.94 ......... ... ................... .. ......;. ......__ ............. ._........ ._.... .... Subtotal $ ....... ... ....... . ....._.... . ....... Total $ 245,879.98 2 Honorable City Council June 13, 2012 Special Meeting Page 3 Jeffrey Kightlinger, General Manager of Metropolitan, will give the first presentation at the Special Meeting followed by Susan Mulligan, General Manager of Calleguas. Reddy Pakala, Director of the Water & Sanitation Department of the County of Ventura will be available to answer questions. The City Council will receive, under separate cover, a comparison of recent water rate increases (comparing water rate increases in the cities of Moorpark, Simi Valley,Thousand Oaks, and Camarillo), and copies of presentation slides from both Metropolitan and Calleguas. FISCAL IMPACT None. STAFF RECOMMENDATION Hear presentations and direct staff as deemed appropriate. 3 ATTACHMENT 1 Comparison of Recent Base Water Rate Increases in Four Cities Tier 1 Rates per Acre Foot Year Moorpark Camarillo Simi Valley Thousand Oaks 2012 $ 1,122.98 $ 723.10 $ 1,067.22 $ 1,572.52 2011 $ 1,054.59 $ 675.18 $ 1,067.22 $ 1,324.22 2010 $ 941.77 $ 622.91 $ 1,067.22 $ 1,324.22 Tier 1 Rates per Hundred Cubic Foot Year Moorpark Camarillo Simi Valley Thousand Oaks 2012 $ 2.58 $ 1.66 $ 2.45 $ 3.61 2011 $ 2.42 $ 1.55 $ 2.45 $ 3.04 2010 $ 2.16 $ 1.43 $ 2.45 $ 2.70 Source: Ventura County Water&Sanitation Department Note: Camarillo is low because imported water is blended with a high quantity of well water and Thousand Oaks is high because it is 100% imported water. 6/12/2012 cz V) (1) bu ! i ZA fm doZ� 4-j c tj - J 1113 (ill U .- N 4-j U � � O 1 QM O � O � z : 600Z pueuaap Hela�] . u011P} Z $ :Auaouo:)a Ieuoi2a�] sIuapisaa uoiIPua 6t� . sai:)ua2y aaquaaW gZ saijunoD 9 0l aalesaloq/N aaleM jeuoi2a�j . eiujoj! IeD uj@qlnoS jo 1:)ijlsi (] j@IeN\ uel! lodojl@N Sources of Water for Southern California Sierra Mtns LA Aqueduct Delta � � Colorado River Aqueduct State Water Supplies Project Supplies Conservation Local Groundwater and Recycling 6uipu3 aeaA Ie:)si:l Z60Z ti�OZ £ 60Z Z40Z 196pn8 6602 O �OZ •doad •doad •toad pasinab den;oV den;oV loealuoo 0$ aaleM alelg ■ - OOZ$ 6uioueuij - OOti$ lelideo � swea6oad 009$ o. Ajddng 008$ � v Wso � — - 000` �$ o0z, Ls aannod b'?AO juauaafeuew .Siam OOti` L$ pueuaaa ,. "� 009` 4$ /\/\@IAJ@Ao ajnl! Pu@ax3 • / • 1 1 MWD Service Area Treatment Piwits Colorad River Aqueduct Jose h Jensen Filtration Plant State Water Project Treated Water Untreated Water ` p tV"F.E.Weymouth Filtratio Plant obert B.Diemer Filtration Plant nry J. Filtration Plant 4 I � � 9 n ert .Skinner Filtration Plant--, t � M 10 5 0 10 20 30 40 Miles 3R L u rrOOR27TI5 Capital Investment Plan FY 12/13 — 13/14 20 - Year Period: 1995/96 — 2014/15 700,000 600,000 500,000 400,000 300,000 200,000 100,000 i p -- 10 'l boo h 6 1 O O O '� �, "� N h �� 6� 'l� O,O O,O 0,0 �,O �,O ,�,0 �,O �,O O,O ,1,0 00 O,h 0,� N'� � �'� �'� 1100 1,00 "00 1100 N00 1p X00 100 ,000 l00 X00 X00 1p X00 ,�0o 104 �,0N �0� IpN �0N Infrastructure Regulatory ■ Cost Efficiency & Productivity Water Quality Supply Reliability 2uipu3 aePA Ie:)siJ ZZOZ 17ZOZ £ZOZ ZZOZ IaSpn8 TTOZ OZOZ •doad •doad •foad pasinaM lenpV lenpV saes aalem 0$ aaj u011exauud OOZ$ #g saxel - OOtp$ anaas 009$ -01-ssauipead 008$ :)siw '8 _ 000`1$ o awo3ul Isaialul — OOZ`1$ 00 '1$ a�aey� /t�i�ede� ■ uoijeaaua! 009`1$ aamOd 008`1$ nE) nU@A@lj i V) %0'£ <el i I i I • w V) %0 £ �g s ro %0'£ s s V � � p s p o p o %L'6 � OZ oe � p � 'b� 6 c' %£' O Q� %8.5 Oc' ca O 00 V • —� %9' L 9p V %0'Z A Oe O ' O O ' O ' O 0 66 +-� 6, o 0 0 0 o N � � OSeGJOUI GjeN OBeJOAd Off' Off' 0�' 0 �o�' 10�' 0�' 0�' 1o�' 10 �o�' 10 1o�' �O 00 ��° O�° �4' 04 Gib' Off' �°� 00 �� O� GiO O'0 y4' O4' saxel %OZ Ajaadoad %OZ %OE sasaey:) %Ob aa4}O %OS %09 %OL saleS aaleM %08 %06 %001 sa:)jnoS anU@A@� Ie3I.JOISI, H o� suoilipuoo juaaano uo paseq pal:)afoad ZTOZ TTOZ OTOZ 6002 8002 I-OOZ 9002 0 001 LOT b'Z g0t Z'Z Z D *CZ � a:)uele8 a9eaols aOeaoIs A:)uaSaaua3 P@Aoidwl DAeH S@AJ@S@� @�ejojS C] N\ A fti• c/1 N C� N UNICIPAL WAT D1STiR1CT The Cost of Reliability Moorpark City Council June 13, 2 012 D D n 2 m z w i What you will learn tonight Which costs have been increasing and why? How much will rates increase over the next ten years? Calleguas Service Area �NiU RA COUiyr v r 33 Sespe Creek Lake Ojai Piru 150 Piru Fillmore 126 150 101 Lake Santa Paula 23 Casitas 33 126 Moorpark Simi ' Ventura Camarillo 23 118 118 Lake Oxnard 232 34 Thousand Bard Port Hueneme 34 Oaks Westlake Point Mugu Newbury ,o, Park El Calleguas Service Area u Calleguas' mission . . . . . .to provide the service area with a reliable supply of regional and locally developed water in an environmentally and economically responsible manner. IJ, Calleguas Water Rate Facts Increases have been and will be driven by the critical need to fund costly capital improvement programs to improve su-Dply reliability. Development of new local resources to reduce reliance on Sacramento Delta supplies. Rehabilitation and replacement of aging infrastructure. • Operations and maintenance costs have been held in check over past five years. Five-year annual O&M rate increase < i%. No O&M rate increases in 2011, 2012, or 2013. 7x 1� 2012 Ca I l e u a s Water Rate Components Calleguas O&M 5% ,Ol MWD 76% A few ways Calleguas has held operations and maintenance costs flat... t 1 \\ \ gg Historical investment in reservoirs to allow for pumping during less expensive, off-peak k SCE periods p :r �t4 ,�T�� ?i r a f�jrl� 09/10 '2009 N Nj K'I\P Rotating the fleet to smallest vehicles suitable for needs 36 Month Average Retail Price Chart Regular Gas Regular Gas Price(US $/G) USA Average Price (US $fG) 3.96 3.96 3.81 3.81 3.66 3.66 3.51 3.51 3.36 3.36 3.21 3.21 3.05 3.05 2.90 2.90 2.75 2.75 2.60 I 2.60 2.45 2.45 3 3 i�3 C' �3 �3 iB M13 i Z CD SD �B A3 CD Z, w " il LN tIj CD w C5 �3 C� M -j C1 cr) M tj W CO 2009 2010 2011 2012 Date(Monthffiay) I.-L"12012 udsBuddyxom 4Hd\\\bJ d Automating processes to reduce staff requirements ASRSYSTEM rmunr oK s & -- metering billing _-- GN.. 1 WtlAY] Y smart labor a.w r - a] ♦ n..�. ,� avr roGF AKOSr epae]cm scheduling & tracking G O r.anraFanr.latpe '=� arm= RAG water quality & -- opera1. tional Ca-teO N i cccm nt to fa.,l t,-i �... Document TytM Faculty/Component type:_AIJ .. Document Name: Facplty: !AIII Document Descrlptlon: monitoring & control $ed A00 New DOCVmem 12:±552 B 410 11222711191A 121E 1329... Q95pBt6[LC7l6019 lyft Deatftollen 54Btt4 ChW E k Sire J CI.--Yedve Se."'.fcrm General 55.82 KS O X J Behef V.We SetbnGe Genw.l 28.5 K8 O x J [IS VNve Ser -e Fo.m General 55.82 KS O X J gctrvbWan Annual Msinten.nce[omeon.M[h.ckl rt G.nerpl 47.5 KB ViOaw X J Gatr.buncn Annual Ha...nen__ en,Checkj.l Ganer V.l 47.5 KB X .,11 QpValve Service Fwm n General 55.82 KB O X General 55.82 KB ViOew X .Y.��' D,etnb�:.Gn Annual Nelntenence Cemm.?!!M Chr_klitt General 47.5 KB O X J 4 C—I ch-khg 47.5 KB O X Oevalve S.M.Form General SS.B2 K6 O X 12l3id 722 to 111212 L+1314121$1329,., Calleguas Ten-Year Capital Improvement Program 2012-2021 W9 — --.,A Total Cost: $342 million ■ Local Supply - Wellfield ■ Local Supply - Salinity Mange ment Pipeline Efficiency & Security Improvements ■ Rehabilitation & Replacement Las Posas Basin ASR Project Provides a reliable local supply when imported supplies are curtailed for planned maintenance or emergencies. I_ � y Seasonal R Supply of Simi Valley Imported Water borpark Camarillo ` 1 - ■ Water Dad t Thousand Oaks Treatment # ■ ■ Plant et t a � \' ASR WQIIMid Las Posas Basin ASR Project Valv• Yard and Disinfection Facility Grimes Canyon We11flold No.2(47 cfs) Reservoir Welifield No. 1 v�• (23 cfs) r` Los t 60" Grimes Canyon Feeder 72" Las Posas Fonder No.3 tolfrom Distribution System -- X' Moorpark Pump.. Station & Pressure Regulating Station a � l Purpose of the Salinity Management Pipeline Improve the , of . ter sup-Dlies by developing sVentura County Remove salt which is building up in the watershed Y� _ { 1 mmgmm,m�mmnM,�mm'mrv,mmmmmmR,mm�ammmm .ex�a�ymmwm�mH,wwry. p,www�,womw, _.. .,.. ............. Status as of June 2012 Simi Valley -, Moorpark Complete to Design Moorpark Desalter ,► in 2016 Camarillo Cunard Thousand i Oaks Construction Port i Hueneme Compl e Cal leg uas Regional Salinity Management Pipeline Calleguas has been ver successf u y obtaining funding for theSMP g Phase I & ocean outfall Construction Celt $97 ) 464) 000 State & Federal Grants ($33) 615) 000) Net Cost $63, 849, 000 Phase Construction Cost $61 ) 181 ) 882 State & Federal Grants ($3, 750, 000) to date Net Cost $57 ) 431 ) 882 .� � ..� �� ..��\,`- \\ `.\'.. .\C ,r..p�.\\ \;\�40\l �\"� l hi�'�.\�n �l lr.,\\..�\��\''\ 0.3u\\.�� \. `.t Y\�.�1•,\: �\\C.�\1.�:�\..,� l�\�\\"<\c. S; f _ Pipe Construction pill, :- ,tee_ d _ `:,c�, �,��t� :fix ,-�:e�, r� �f� ,�..�.�. �.:z, � '� $'"�a�S'�`t,�"` r a � s • � �� .: � �� ' ri � .� � � _ ,�. ,.,•r� -, s� n =�� . �, " , ' _:. = _ :n ..�, � ri -� �� rr� _ ..�. ,�.. �� °, ` � �� • - - . . - . r •�. xr . waxy nW x � r Ron s Desalters are being p & built Simi Valley Moorpark —♦� Anil Vagay YMalar r Moorpark % Quality Cflnlral Plant ,,D�»e�sager 1 - phases ,21E,21F `+r'�'� Phase3 West Simi _.. " DesaFler '��—. .��` �i� ♦♦ Moorpark Wastewater 8wniu+Camuwlla Agdcalttrrel OaaalNr Well Desa16ef1 Treatment Plant Camrosa Camarillo Phase ZC Desatker 101 ■Mill Canyon Wastewater Thousand Oaks Treatment Plant w Phase 28 +� ■Camarillo 14a1er �� ♦♦ Reclamation taunt Agricultural IN WGN00"Iters Phase 2A of at Round Mountain Deealler Port we Recycleal�faker D-fta ter Legend Hueneme PhasesiA.B.C,D Camrosa Water Hueneme Outfall Complete Reclamation Facility Phases IA, 8,C, D Complete 61 PHWA Phase i E Construction (2009-2011) Dasaltar Phase 2A rlaxiadng� i .' Design ---- Phase 2B Design Phase 2C Design -- Phases 2D, E. F Preliminary Design Phase 3 Future It V d,e.l� ��,��, \„\,� a v,hi 1� \„ \,�M \4�,?,.V ��F, ��„�..,, Rehabilitation & are re air p projects required as the system ages Facilities date back to early 196os Vulnerable to corrosion, wear, and general degradation Calleguas routinely inspects, monitors, and performs structural analyses to confirm system integrity v _ I ry M�� ryol �x r i� I ■ l�k Reservoirs are inspected and analyzed for compliance with current seismic standards Some must be strengthened or replaced Coatings must be replaced to prevent corrosion are Pipes proactively rehabilitated based on inspection results I A a b q�w e . . a,, r r 1 An inventory of spare pipe is currently being put in place for rapid repairs A recent for the im rovement p project sole benefit of VCWWD 1 Emergency generator at Fairview Pump Station k - t i Completed in2007 _ Provides water if SCE is out o w e.g. when power poles burned down in the fires t •i i Fairview PS & Generator Rate Projectionsfrom Calleguas Long Range Finance Plan $2,200 ------------------------------------------------------------------------------------ $2,000 , Rates to increase by 6% or less each year. _______________ $1,800 ----------------------------------------------------------- ■ MWD Total ■CMWD Total $1,600 -------------------------------------------------- $1,400 ------------------------------ ---- -- --- --- --- --- -- - $1,20+0 - --- --- --- $1,000 --28&--11 --- --- -- - $800 - --- --- --- -- cc $600 - --- . --- --- -- -- - - -- --- -- - __ 933 98 $400 --- -- -- --- $200 - --- --- --- $0 2012 2013 2014 2015 2016 2017 2018 2019 2+020 2021 2022 Chart shows all rates & charges divided by sales. Sales assumed constant. Actual MW D rates through 2014, est. 5 to 6% per year thereafter. In summary, Calleguas will ... Continue to focus on implementing innovative solutions to ensure future water reliability. Incur significant costs, largely related to pursuing these regional programs. Annually update its long range financial plan to continue to provide greater certainty with respect to future rate increases. Minimize rate increases by pursuing grant funding, improving efficiency, and deferring projects to the extent possible.