Top Banner
1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department
20

1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Mar 29, 2015

Download

Documents

Laney Bawden
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

1

City of InglewoodWater and Sewer Rate Discussion

Operating Plans and Rates

Public Works Department

Page 2: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

What is HCF?

• HCF refers to Hundred Cubic Feet. • It’s how we measure water usage.• So, what does it really mean?

• The average residence uses 15 HCF per month, which is…– 11,220 gallons of water, or– About 360 gallons of water per day. This is equivalent to…

Slide 2

72 five-gallon

water bottles

Areas of usage…

Page 3: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Why the Increase in Rates?

• The last rate increase was in 2003, and it was less than 3%.• The system on average brings in $338,000 per month less

than what it costs to operate.• The proposed March increase only allows us to breakeven,

and the October increase lets us begin repairs.• As a comparison, in February the City of Los Angeles

approved an increase of 14% for residential and 12% for commercial customers. Cumulatively, rates have increased 70% since 2003.

Slide 3

Page 4: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Proposed Water Rate Increase—Issues Raised

Is this a hidden tax increase?

No, this is not a tax. The cost the City pays for water has continually increased, and the City’s General Fund can not subsidize the cost.

There is nothing secret or hidden. The City is following Proposition 218. Notice has been sent to all water customers as prescribed by law. Furthermore, notice was published in the local newspapers and placed on the City’s Website. Finally, today is the public hearing on the matter.

Slide 4

Page 5: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Proposed Water Rate Increase—Issues Raised

Is the typical residential increase 58%?

No! It’s 28% and 12%. While the proposed water rate increases for a typical household are approximately 28% ($14) and 12% ($6.60) over the next two fiscal years (March and October), some households may see higher rates because the new tiered rates charge low-volume users less than high-volume users.

NOTE: The proposed rates are still 10% less than what Golden State Water charges, which is 57% higher than our current rate and slated to increase again in July of 2012.

Slide 5

Page 6: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Monthly Residential Water Bill Comparison

Slide 6

$37.84

$44.40$48.90 $50.71

$56.80$59.31

$62.82 $63.56

$70.03 $72.01

$83.76

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

El Segundo Inglewood- current

City ofLomita

LosAngeles

InglewoodFY 2012

HermosaBeach

CaliforniaWater Co

(PalosVerdes)

InglewoodFY 2013

GoldenStateWater

2011 (a)

ParkWater Co.(Downey)

GoldenStateWater

Proposed

Monthly Residential Water Bill, 14 hcf/mo

a. Golden State Water Southwest Region serves areas of Inglewood, Hawthorne and Gardena.

Page 7: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Water Bill Comparison: Inglewood vs. GSW

Slide 7

Current February 2012

Items Inglewood Customer

Golden State Customer

3/4" meter $9.00 $21.40

Water Use (15 hcf) $38.35 $44.48

Utility Tax / City Tax $4.74 $7.16

California PUC Fee $0.00 $1.07Surcharge $0.00 $5.75

Total $52.09 $79.86

Proposed March 2012   

Items Inglewood Customer

Golden State Customer

3/4" meter $12.00 $21.40

Water Use (15 hcf) $48.00 $44.48

Utility Tax / City Tax $6.00 $7.16

California PUC Fee $0.00 $1.07Surcharge $0.00 $5.75

Total $66.00 $79.86

Both consume 15 hundred cubic feet of water each month.

Page 8: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Water Bill Comparison: Inglewood vs. GSW

Slide 8

Current February 2012

Items Inglewood Customer

Golden State Customer

3/4" meter $9.00 $21.40

Water Use (15 hcf) $38.35 $44.48

Utility Tax / City Tax $4.74 $7.16

California PUC Fee $0.00 $1.07Surcharge $0.00 $5.75

Total $52.09 $79.86

Proposed March 2012   

Items Inglewood Customer

Golden State Customer

3/4" meter $12.00 $21.40

Water Use (15 hcf) $48.00 $44.48

Utility Tax / City Tax $6.00 $7.16

California PUC Fee $0.00 $1.07Surcharge $0.00 $5.75

Total $66.00 $79.86

Both consume 15 hundred cubic feet of water each month.

$3

$10

$1.25

$14

Page 9: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Proposed Water Rates for October (FY 2012-2013)

Slide 9

Proposed October 2012

Items Inglewood Customer

Golden State Customer

3/4" meter $13.50 $23.20

Water Use (15 hcf) $52.50 $55.86

Utility Tax / City Tax $6.60 $8.59

California PUC Fee $0.00 $1.07Surcharge $0.00 $5.75

Total $72.60 $94.47

Inglewood vs. GSW

$6.60

Page 10: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

In general, the area north of Century Blvd., is served by the City, and south of Century Blvd., is served by Golden State Water.

Slide 10

Page 11: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Comparisons

Inglewood Rates vs. Golden State Water (GSW) Rates

Slide 11

Inglewood Current

Inglewood March 2012

Inglewood October

2012

GSWCurrent

GSWProposed

Page 12: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Proposed Water Rate Increase—Issues Raised

We need to defer some of these water system upgrades for a few more years until the economy picks up.

This is not prudent nor advisable. This would be catastrophic depending on transmission or distribution line failure and could result in non-availability of water for several days. Additionally, since most of the pipes are 40 to 50 years old and far beyond their useful life, water quality is a big concern.

Slide 12

Page 13: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Proposed Water Rate Increase—Issues Raised

The money required to build the wells can be used from the $8 million water reserve account and the $2.1 million current 2011/2012 budget line item fordesign and construction of two (2) wells.

There is no $8 million water reserve account. There was a beginning fiscal year fund balance of $6 million. If no rate increase is approved, there will be a deficit of $3.4 million by September 30, 2012.

Slide 13

Page 14: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Proposed Water Rate Increase—Issues Raised

The City sold 2,000 acre feet of water rights at $70 peracre foot, and we are buying water at $964 per acrefoot resulting in a loss of $1.8 million.

This is not a valid comparison. The water rights lease at $70 per acre foot is for raw water from the ground. The costs to pump it, treat it (e.g., make it usable), and transport to your home are not included.

The City pumps, treats, and transports water at a cost of $700 per acre foot. Without the necessary infrastructure, the City is forced to buy water at a higher price.

Slide 14

Page 15: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Water System

• Condition– Water pipelines and fittings were built in 1940 – 1990.– We have exceeded the expected life of pipes and fittings.– 30 miles of pipes are cast iron and need to be replaced.– Water breaks occur in each area due to aging pipes.– Leaks in different areas

result in city water losses.– We need to do pipeline

replacement in conjunction with street projects.

Slide 15

Page 16: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Example: Leaking Pipe

Slide 16

Page 17: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Pipe After Extraction

Slide 17

Page 18: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Water System

• Improvement Plan– Additional technologies are required to improve the system.– Improvement projects are outlined in the water master plan.

• Conservation– Replacement and improvement

projects are needed to meet the water conservation plan in 2015 and 2020.

– Defective pipes, fittings, meters and other water transmission-related items will increasewater losses.

Slide 18

Page 19: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Sewer System Overview

• Built in the 1920s.• We have exceeded the expected life of the sewer pipes.• Some pipe segments are lined but many areas have big

cracks and holes, and need to be replaced.• Approximately 150 miles of sewer pipe and 3,635

manholes need improvement.• City spends an average of

$1 million a year to maintain the system.

Slide 19

Page 20: 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Questions

Slide 20