HomeMy WebLinkAbout2007-12-19 - Agendas - Final aye ev le WATER/SEWER COMMITTEE AGENDA
Meeting Date of December 19, 2007
COMMITTEE: Chairman Kyle Cook; Alderman: Lioneld Jordan, Bobby Ferrell, Adella Gray
COPY TO: Mayor Dan Coody, Sondra Smith, Gary Dumas, Paul Becker, Susan
Thomas, Tim Conklin, Jeremy Pate, Ron Petrie, Rannon Jones, Tom
Hubbard, Peggy Bell, Lynn Hyke, OMI
FROM: David Jurgens, Water and Wastewater Director pM
A meeting of the Fayetteville Water and Sewer Committee is plann for December 19,
2007, at 4:30 PM, in Room 326, Fayetteville City Hall. Proposed topics include:
1. Water and Sewer Rate Study Presentation and Discussion with Tom Gould, HDR,
and staff.
2. Elkins Sewer Contract Amendment is attached. A full memo with explanation will be
distributed prior to the Committee meeting. Complete information will be calculated after the
last meter reading is taken on Monday, 17 December.
3. The Next Water/Sewer Committee Meetings are scheduled for(1) Water/Sewer Rate
Study, to be determined; and (2) general topics, Tuesday, January 8, 2008, 5:15, room 326
(following Agenda Session).
Attachments: Rate Study Presentation
Elkins Sewer Contract Amendment
W&S Committee Agenda 19Dec07
AMENDMENT 1 TO SEWER CONTRACT
The Sewer Contract (hereinafter "Contract") dated December 20, 2005 between the
City of Fayetteville (hereinafter "Fayetteville") and City of Elkins (hereinafter
"Elkins") shall be amended and modified by this amendment (hereinafter
"Amendment") as follows:
WHEREAS:
Under the Contract, Fayetteville receives wastewater from Elkins and then
transports and processes the wastewater in Fayetteville's wastewater treatment
facility and discharges treated wastewater effluent under Fayetteville's National
Pollution Discharge Elimination System permit; and
Fayetteville must ensure that this role does not place financial burdens on
Fayetteville's retail customers for which Fayetteville's retailcustomers receive
no benefit; and
Elkins must ensure that this role does not place financial burdens` on Elkins'
retail customers for which Elkins' retail customers receive no benefit; and
City of Fayetteville and City of Elkins desire to amend said Contract.
NOW, THEREFORE, in consideration of the mutual covenants contained herein,
Fayetteville and Elkins do hereby agree to amend the Contract as follows:
The Contract and the terms and conditions therein shall remain unchanged
except for the sections listed below:
Section C. ' IMPACT' FEE IMPLEMENTATION or CONTRACTUAL
SURCHARGE subparagraph ;3' is removed in its entirety and replaced with the
following:
3. The payment for wastewater treatment shall be based on metered water
purchased discounted by the formula described in APPENDIX B. Elkins and
Fayetteville agree to use eighty-five percent (85%) as the initial percentage.
Elkins and Fayetteville agree that the volume of wastewater received by
Fayetteville at the "Point of Connection" shall be measured by the wastewater
meter installed. The Cities agree to base monthly billing on the percentage
method. Volumes of wastewater below or above the agreed upon percentage
(85%), as measured by the wastewater meter, shall be recorded on a monthly
basis, with a reconciliation of the net difference to occur semiannually in June
and December. If the reconciliation volume is over the agreed upon percentage,
this amount shall be billed to Elkins in June and December at the actual
computed cost of wastewater collection to and treatment at the Noland
Wastewater Treatment Plant, not including the calculated rate of return and not
Elkins Contract Addendum 1 Dec07 12/14/2007, 7:58 AM
including depreciation charges, but including any capacity surcharge, based on
the most recent rate as determined in paragraph B. of this Contract. If the
reconciliation volume is below the agreed upon percentage, the actual amount
billed for the difference shall be refunded to Elkins in June and December. For
2007, the only reconciliation shall take place in December, 2007 and shall be
calculated based on the rate in place as of December 1, 2007. Late penalties
shall not be computed on any amount overage accumulated prior to the
reconciliation bill.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
day of , 2008.
CITY OF ELKINS CITY OF FAYETTEVILLE
Jack Ladyman, Mayor Dan Coody, Mayor
ATTEST:
XXXXXXXX, Cty`Clerk Sondra Smith, City Clerk
Elkins Contract Addenda n 1 Dec07 12/14/2007, 7:58 AM
City of Fayetteville
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Review of the Proposed Water and
Sewer Rate Designs
December 19, 2007
Presented by:
Tom Gould — HDR Engineering, Inc.
ONE COMPANY � Alan-j� Solurions -
Overview and Purpose
of the Presentation
■ Review of the
►' ' proposed water and
sewer rate designs
■ Consider alternative
rate design options
e ■ Determine final rate
proposal for the City
Council presentation
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Prior Key Policy Directions
From the Commission
■ Multi-year rate adjustments (transition)
■ Phase-in cost of service results
■ Establish rates by customer class of service
■ Consider establishing a low income/elderly
rate
Option 1 — No lifeline (currently as is)
Option 2 — Lifeline residential rate and "'standard"
residential rate
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Overview of the Present
Inside Fayetteville Water Rates
Fixed Meter Charge ($/Month)
5/8 x 3/4" $3.88
1 " 5.39
1 1/211 9.40
2" 13.69
3" 31 .90
4" 52.80
6" 105.60
8" 158.40
Consumption Charge ($/1,000 gallons)
Consumption 0-10,000 gallons $2.81
Consumption 10,001 - 300,000 gallons 2.42
Consumption 300,001 - 5,000,000 galllons 1 .76
Consumption 5,000,000 gal and over 1 .60
5
Overview of the Proposed
Monthly Fixed Charges
Overall Water Increase 3.6% 5.8% 5.3% 5.3%
Fixed Charge - $/Month
For all Classes
Present
Meter Size Rate 2008 2009 2010 2011
5/8 x 3/4" $3.88 $4.00 $4.25 $4.50 $4.75
1" 5.39 5.55 5.90 6.25 6.60
1 1/2" 9.40 9.70 10.30 10.90 11 .50
2" 13.69 14.10 15.00 15.90 16.75
3" 31 .90 32.90 34.95 37.00 39.05
4" 52.80 54.45 57.85 61 .25 64.65
6" 105.60 108.85 115.65 122.45 129.30
8" 158.40 163.30 173.50 183.70 193.90
Note: Applicable to all Inside Fayetteville water rate options. Outside
Fayetteville and wholesale have fixed meter charges, but different rates.
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Residential Water Rate Options
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Overview of the Development of the
Residential Water Rate Options
■ Developed two options
Option A — No rate for Low-Income/Elderly (status quo — all
residential charged the same rate)
Option B — Qualifying Low-Income/Elderly rate and a non-
qualifying "standard" rate
Customer must be low-income and elderly to qualify
Qualifying criteria to be determined by the City
■ Conservation and a Uniform (Consumption) Charge
Rate Structure
Not a tiered rate, but does result in largest increases to the
largest residential users (conservation effect) as a result of
moving from a declining structure to a uniform structure
la"I $
Overview of the Residential
Water Rate Options
2008 2009 2010 2011
Residential - Overall Revenue Adjustments 5.5% 5.5% 5.5% 5.5%
Residential Option A - Single Rate: No Low Income & Elderly or Lifeline Rate
Fixed Monthly Charge, Plus:
All Consumption($/1,000 gal) $2.81 $2.96 $3.14 $3.33
Residential Option B - Low Income & Elderly Rates
Non-Qualifying Customer
Fixed Monthly Charge, Plus:
All Consumption($/1,000 gal) $2.94 $3.10 $3.29 $3.49
Qualifying Customer Low Income & Elderly
Equals 75% of Residential Rate
Low Income & Elderly Fixed Charge ($/Month) $3.00 $3.19 $3.38 $3.56
Low Income & Elderly Volumetric Charge ($/1,000 gal) 2.21 2.33 2.47 2.62
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Bill Comparison for Residential
Water Rate Option A
Residential Option A - Single Rate: No Low Income & Elderly or Life Line Rate
Consumption 2008
1,000 gal Present Bill Proposed Bill $ Different % Different
0 $6.69 $6.81 $0.12 1 .8%
2 9.50 9.62 0.12 1 .3%
4 15.12 15.24 0.12 0.8%
6 20.74 20.86 0.12 0.6%
8 26.36 26.48 0.12 0.5%
10 31 .98 32.10 0.12 0.4%
15 44.08 46.15 2.07 4.7%
20 56.18 60.20 4.02 7.2%
25 68.28 74.25 5.97 8.7%
30 80.38 88.30 7.92 9.9%
35 92.48 102.35 9.87 10.7%
40 104.58 116.40 11 .82 11 .3%
45 116.68 130.45 13.77 11 .8%
50 128.78 144.50 15.72 12.2%
Note: Assumes a 5/8" x 3/4" meter. Min. bill = 1,000 gallons. An
la"I average residential customer uses approximately 6,000 gallons/month lo
Bill Comparison for Residential
Water Rate Option B ( Non -Qualifying )
Residential Option B - Non-Qualifying Low Income & Elderly Rates
Consumption 2008
1,000 gal Present Bill Proposed Bill $ Different % Different
0 $6.69 $6.81 $0.12 1 .8%
2 9.50 9.88 0.38 4.0%
4 15.12 15.76 0.64 4.2%
6 20.74 21 .64 0.90 4.3%
8 26.36 27.52 1 .16 4.4%
10 31 .98 33.40 1 .42 4.4%
15 44.08 48.10 4.02 9.1%
20 56.18 62.80 6.62 11 .8%
25 68.28 77.50 9.22 13.5%
30 80.38 92.20 11 .82 14.7%
35 92.48 106.90 14.42 15.6%
40 104.58 121 .60 17.02 16.3%
45 116.68 136.30 19.62 16.8%
50 128.78 151 .00 22.22 17.3%
Note: Assumes a 5/8" x 3/4" meter. Min. bill = 1,000 gallons. An
la"I average residential customer uses approximately 6,000 gallons/month 11
Bill Comparison for Residential
Water Rate Option B ( Qualifying LI /Elderly )
Residential Option B - Qualifying Low Income & Elderly Rates
Consumption 2008
1,000 gal Present Bill Proposed Bill $ Different % Different
0 $6.69 $5.21 ($1 .48) -22.1%
2 9.50 7.41 (2.09) -22.0%
4 15.12 11 .82 (3.30) -21 .8%
6 20.74 16.23 (4.51 ) -21 .7%
8 26.36 20.64 (5.72) -21 .7%
10 31 .98 25.05 (6.93) -21 .7%
15 44.08 36.08 (8.00) -18.2%
20 56.18 47.10 (9.08) -16.2%
25 68.28 58.13 (10.15) -14.9%
30 80.38 69.15 (11 .23) -14.0%
35 92.48 80.18 (12.30) -13.3%
40 104.58 91 .20 (13.38) -12.8%
45 116.68 102.23 (14.45) -12.4%
50 128.78 113.25 (15.53) -12.1%
Note: Assumes a 5/8" x 3/4" meter. Min. bill = 1,000 gallons. An
la"I average residential customer uses approximately 6,000 gallons/month 12
Non - Residential . . te Option
Overview of the Non - Residential
Water Rate Option
■ Non-residential needed a two-block structure to
minimize impacts to larger non-residential customers
( > 300,000 gallons)
Result of City's current 4-block declining block rate structure
Price difference between the blocks narrows each year
2008 2009 2010 2011
Non-Residential - Overall Revenue Adjustments 4.1% 4.1% 4.1% 4.1%
Non-Residential Rate Option
Fixed Monthly Charge, Plus:
Consumption Charge -
0 - 300,000 gallons ($/1 ,000 gallons) $2.55 $2.65 $2.76 $2.87
All use over 300,000 gallons ($/1 ,000 gallons) 1 .93 2.10 2.29 2.47
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Bill Comparison for the
Non - Residential Rate Option
Consumption 2008
1,000 gal Present Bill Proposed Bill $ Different % Different
0 $6.69 $6.55 ($0.14) -2.1%
10 31 .98 29.50 (2.48) -7.8%
20 56.18 55.00 (1 .18) -2.1%
30 80.38 80.50 0.12 0.2%
40 104.58 106.00 1 .42 1 .4%
50 128.78 131 .50 2.72 2.1%
100 249.78 259.00 9.22 3.7%
200 491 .78 514.00 22.22 4.5%
300 733.78 769.00 35.22 4.8%
400 937.80 990.90 53.10 5.7%
500 1 ,085.78 1 ,183.90 98.12 9.0%
1 ,000 1 ,993.80 2,148.90 155.10 7.8%
2,000 3,753.80 4,078.90 325.10 8.7%
3,000 5,513.80 6,008.90 495.10 9.0%
4,000 7,273.80 7,938.90 665.10 9.1%
5,000 9,033.80 9,868.90 835.10 9.2%
Note: Min. Bill = 1,000 gallons. Usage up to 300,000 gallons assumes
a 5/8" x 3/4" meter. Over 300,000 gallons assumes a 3" meter 15
Major Industrial User
Water Rate Option
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Major Industrial User
Water Rate Option
2008 2009 2010 2011
Major Industrial User Overall Rev. Adj. 6.6% 6.6% 6.6% 6.6%
Major Industrial User Rate Option
Fixed Monthly Charge, Plus:
Consumption Charge -
AII Consumption($/1 ,000 gal) $1 .76 $1 .88 $2.00 $2.13
Note: Major Industrial User defined as using an average of
5,000,000 gallons or more per month — single meter; non-
irrigation use
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Bill Comparison for the
Major Industrial User Rate Option
Consumption 2008
1,000 gal Present Bill Proposed Bill $ Different % Different
5,000 $9,107 $8,909 ($199) -2.2%
7,500 13,107 13,309 201 1 .5%
10,000 17,107 17,709 601 3.5%
12,500 21 ,107 22,109 1 ,001 4.7%
15,000 25,107 26,509 1 ,401 5.6%
17,500 29,107 30,909 1 ,801 6.2%
20,000 33,107 35,309 2,201 6.6%
22,500 37,107 39,709 2,601 7.0%
25,000 41 ,107 44,109 3,001 7.3%
27,500 45,107 48,509 3,401 7.5%
30,000 49,107 52,909 3,801 7.7%
Note: Assumes a 6" meter. Two customers currently qualify for this
rate and use, on average, 17,100 and 29,400/month each
]FD
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Irrigation WaterRate • •
2
19�1�lY
Irrigation Water Rate Option
■ Rate required a two-block structure to
minimize impacts to largest irrigation
customer
➢ Result of City's current declining block structure
➢ Price difference between blocks narrows each year
2008 2009 2010 2011
Irrigation - Overall Revenue Adjustments 10.0% 10.0% 10.0% 10.0%
Irrigation Rate Option
Fixed Monthly Charge, Plus:
Consumption Charge -
0 - 300,000 gallons ($/1 ,000 gallons) $2.81 $3.09 $3.37 $3.64
All use over 300,000 galllons ($/1 ,000 gal.) 1 .84 2.16 2.70 3.28
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Bill Comparison for the
Irrigation Rate Option
Consumption 2008
1,000 gal Present Bill Proposed Bill $ Different % Different
0 $8.20 $8.36 $0.16 2.0%
5 19.44 19.60 0.16 0.8%
10 33.49 33.65 0.16 0.5%
15 45.59 47.70 2.11 4.6%
20 57.69 61 .75 4.06 7.0%
25 69.79 75.80 6.01 8.6%
50 130.29 146.05 15.76 12.1%
100 251 .29 286.55 35.26 14.0%
150 372.29 427.05 54.76 14.7%
200 493.29 567.55 74.26 15.1%
300 735.29 848.55 113.26 15.4%
500 1 ,087.29 1 ,216.55 129.26 11 .9%
750 1 ,527.29 1 ,676.55 149.26 9.8%
1 ,000 1 ,967.29 2,136.55 169.26 8.6%
Note: Minimum Bill = 1,000 gallons. Assumes a 1" meter for bill
comparison purposes 21
Outside Fayetteville . •
Wholesale Rate • •
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Outside Fayetteville Water Rates
■ Outside Fayetteville rates are directly tied to Inside
Fayetteville rates
Can be developed once the Inside Fayetteville rates are
finalized
■ Outside rate = inside rate + rate differential
■ Calculated rate differential for Outside Fayetteville
customers is 15%
i.e. Inside Fayetteville rate + 15%
■ White River has a $5.94/month surcharge (all meter
sizes), in addition to the 15% Outside Fayetteville
rates
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Wholesale Water Rates
■ Contractual rates with Elkins, Mount Olive,
West Fork and RDA/WWA Rural Water
Wholesale Water Rate
Wholesale - Overall Revenue Adjustment 1 .9% 6.0% 3.0% 3.0%
Present
Rate 2008 2009 2010 2011
Fixed Meter Charge -
3" $40.51 $41 .30 $43.80 $45.10 $46.50
4" 55.55 56.60 60.00 61 .80 63.70
6" 134.11 136.70 144.90 149.20 153.70
Consumption Charge -
AII Usage ($/1 ,000 Gallons) $1 .81 $1 .84 $1 .95 $2.01 $2.07
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Overview of the Present
Inside Fayetteville Sewer Rates
Fixed Meter Charge - ($/Month)
5/8 x 3/4" $10.36
1 " 13.47
1 1/211 21 .99
2" 31 .44
3" 73.01
4" 120.26
6" 238.37
8" 356.48
Volume Charge - ($/ 1 ,000 gallons)
Residential $3.10
Commercial/Industrial/Gov. $2.42
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Overview of the Sewer Rate
Adjustment Options
2009 2010 2011
Option 1
Residential 19.0% 1 .5% 1.5%
Non-Residential 25.0% 1 .5% 1.5%
Major Industrial User 20.0% 9.4% 9.4%
Farmington 10.0% 3.0% 3.0%
Outside Fayetteville 19.6% 3.0% 3.0%
Elkins 15.5% 3.0% 3.0%
Overall Revenue Adjustment 19.9% 3.0% 3.0%
Option 2
Residential 15.0% 3.0% 3.0%
Non Residential 21 .0% 3.0% 3.0%
Major Industrial User 30.0% 3.0% 3.0%
Farmington 10.0% 3.0% 3.0%
Outside Fayetteville 19.6% 3.0% 3.0%
Elkins 15.5% 3.0% 3.0%
Overall Revenue Adjustment 19.9% 3.0% 3.0%
Note: Option 1 is a slower phase-in of Major Industrial User cost
of service which impacts Inside Fayetteville customers only
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