Water and sewer - City of Inglewood

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City of Inglewood
Water and Sewer Rate Discussion
Operating Plans and Rates
Public Works Department
1
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…
Areas of usage…
72
five-gallon
water bottles
Slide 2
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
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
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
Monthly Residential Water Bill Comparison
Monthly Residential Water Bill, 14 hcf/mo
$90.00
$83.76
$80.00
$70.03
$70.00
$62.82
$56.80
$60.00
$48.90
$50.00
$40.00
$72.01
$63.56
$59.31
$50.71
$44.40
$37.84
$30.00
El Segundo Inglewood
- current
City of
Lomita
Los
Inglewood Hermosa California Inglewood Golden
Park
Golden
Angeles FY 2012
Beach Water Co FY 2013
State Water Co. State
(Palos
Water (Downey) Water
Verdes)
2011 (a)
Proposed
a. Golden State Water Southwest Region serves areas of Inglewood, Hawthorne and Gardena.
Slide 6
Water Bill Comparison: Inglewood vs. GSW
Current February 2012
Proposed March 2012
Inglewood
Customer
Golden State
Customer
3/4" meter
$9.00
$21.40
Water Use (15 hcf)
$38.35
Utility Tax / City Tax
California PUC Fee
Surcharge
Items
Total
Inglewood
Customer
Golden State
Customer
3/4" meter
$12.00
$21.40
$44.48
Water Use (15 hcf)
$48.00
$44.48
$4.74
$7.16
Utility Tax / City Tax
$6.00
$7.16
$0.00
$0.00
$1.07
$5.75
California PUC Fee
Surcharge
$0.00
$0.00
$1.07
$5.75
$52.09
$79.86
$66.00
$79.86
Items
Total
Both consume 15 hundred cubic feet of water each month.
Slide 7
Water Bill Comparison: Inglewood vs. GSW
Current February 2012
Proposed March 2012
Inglewood
Customer
Golden State
Customer
3/4" meter
$9.00
$21.40
3/4" meter
$12.00
$3
$21.40
Water Use (15 hcf)
$38.35
$44.48
Water Use (15 hcf)
$48.00
$10
$44.48
Utility Tax / City Tax
$4.74
$7.16
Utility Tax / City Tax
$6.00
$1.25
$7.16
California PUC Fee
Surcharge
$0.00
$0.00
$1.07
$5.75
California PUC Fee
Surcharge
$0.00
$0.00
$52.09
$79.86
Items
Total
Inglewood
Customer
Items
Total
$66.00
Golden State
Customer
$1.07
$5.75
$14
$79.86
Both consume 15 hundred cubic feet of water each month.
Slide 8
Proposed Water Rates for October (FY 2012-2013)
Inglewood vs. GSW
Proposed October 2012
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
Surcharge
$0.00
$0.00
$1.07
$5.75
Items
Total
$72.60
$6.60
$94.47
Slide 9
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
Comparisons
Inglewood Rates vs. Golden State Water (GSW) Rates
90
$77.03
80
$70.03
70
$63.56
$56.80
60
50
$44.40
40
30
20
10
0
City
Inglewood
Current
Current
City 2012
Inglewood
March
2012
City 2013
Inglewood
October
2012
Golden
GSW
State
Current
Current
Golden
GSW
State
Proposed
Proposed
Slide 11
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
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 for
design 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
Proposed Water Rate Increase—Issues Raised
The City sold 2,000 acre feet of water rights at $70 per
acre foot, and we are buying water at $964 per acre
foot 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
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
Example: Leaking Pipe
Slide 16
Pipe After Extraction
Slide 17
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 transmissionrelated items will increase
water losses.
Slide 18
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
Questions
Slide 20
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