Cities Index.
Proposition 218 Protests Batch 1

Camarillo City Council
May 14, 2025

Document
Proposition 218 Protests Batch 1
Meeting
May 14, 2025
Body
Camarillo City Council
Original file
115.6 MB
Text extracted from the city's file for reading and search. Open the original on camarillo.primegov.com. That file is the official record.

Council and CSD Board,
Pursuant to ProposiƟon 218, wriƩen objecƟons and protests are being provided herein.

These objecƟons and protests were received between the beginning of the 45-day Prop 218 period on March 31 up to this morning, May 14, at 10:00. Emails are included. They have been separated into the following three categories: ObjecƟons, Protests and Invalidated Protests.

OBJECTIONS
An “objecƟon” is required to idenƟfy the grounds for alleging the City/CSD did not comply with ProposiƟon 218. In accordance with “AB 2257,” the City/CSD is required to provide a wriƩen response at the public hearing for each Ɵmely wriƩen objecƟon received prior to the deadline.

PROTESTS
WriƩen protests lack substanƟve grounds for alleging noncompliance with Prop 218. Example:
“I’m on fixed income and can’t afford the increase.” The City/CSD is not required to provide wriƩen responses to protests.

City of Camarillo
Public Comments
PUBLIC COMMENTS Wednesday, March 26, 2025 12:29 PM
NOTICE
This is a public document and will be posted as part of the public record. Any attachments, pictures, and information submitted will be subject to disclosure in accordance with applicable law, including the Public Records Act.

Meeting Date Wednesday, March 26, 2025
Agency City Council
Item Type Agenda Item
Item Number or Subject M-Sewer rates
Position Oppose
Comments Comments attached
Upload Additional Information
PDF
burke on sewer fees.pdf

IDENTIFICATION
Name Paul Burke
Address prefer not to have on public record
Camarillo
Telephone
Email [email protected]
1 Public Records Acknowledgement By checking this box, I acknowledge that I understand anything I submit will become part of the public record and be subject to disclosure in accordance with applicable law, including the Public Records Act.
2 3/26/25 Council agenda item M - Comment on Planned Sewer Fees Paul Burke, [email protected] 3/26/2025
It is premature to notify customers of fee increases. The planned fees are unsustainable and not proportional to the cost of sewage treatment. Please put on a future agenda a discussion of flat rates versus rates varying by usage.

Planned fees are unsustainable
The monthly rate for a single family home, big or small, is planned to be $135 in 2028 (and $216 in 2033),
1 no matter how little sewer service they use.

That’s unsustainable, and not proportional to their cost. Mobile homes and age-restricted homes pay 60% less, no matter how much sewer service they use.

Residential fees need to vary with flows, as nonresidential fees do. When you don’t provide the water, you need to get water use from the water provider or customer.

Fees which vary with usage encourage conservation and let customers control their cost by reducing use. In another month staff can propose fees proportional to use. The Council can send that notification to customers. Fees can start in any month.

Solution:

1. Raftelis, author of the rate study, points out that Ventura City rates vary with usage, p.8, so Camarillo can vary too. Raftelis calculated a rate for Ventura City at $18.94 base charge per month + $4.46 per hundred cubic feet (HCF = 748 gallons = 25 gallons/day). 2 2. Raftelis calculated a rate for Camarillo of $5.44 per HCF, p.26. This means they’ve identified which costs do and don’t vary with flows. Staff or Raftelis can divide the non-varying costs by the number of customers to give a monthly base charge per customer, without waiting for a new cost study.

3. Starting at about $20/month + 2 HCF, at 5.44 per HCF, means rates would be $56 in 2028 and $90 in 2033 for 50 gallons per day, which is a reasonable level for the many 1-2 person households in the city.
3 4. Pricing sewers per HCF lets people control their costs and encourages conservation.

5. Raftelis says they did a “Cost of Service Analysis in 2017” (p.1), which I’m waiting to receive by public records request.

6. For sewer customers where Camarillo doesn’t provide the water, you can ask the water provider for usage. If you don’t get water usage, you can (a) ask the customer to provide the water bill, (b) charge for high usage if they don’t, and (c) every year or two check the meter.

Planned fees are not proportional
Raftelis says the California Constitution requires, “The amount of the fee or charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel” p.2. Since costs rise by $5.44 per HCF, flat rates violate this state rule.
3 Cotati City recommends 25-30 gallons per person per day https://www.cotaticity.gov/FAQ.aspx?QID=89 Denver recommends 40 https://www.denverwater.org/residential/efficiency-tip/how-efficient-are-you-indoors 2 Ventura rates at https://www.cityofventura.ca.gov/DocumentCenter/View/40640/2024-25-Rates Rate study at www.cityofventura.ca.gov/DocumentCenter/View/26850/2021-Cost-of-Service-and-Rate-Design-Study-Report 1 Sewer Rate study p.4 shows 16% rise per year through 2031, then 6% https://camarillo.primegov.com/api/compilemeetingattachmenthistory/historyattachment/?historyId=7e717bd1-5f0e49d3-a5b8-a5f0f74203fc

From: TORREY ANDERSON
To: City Clerk Internet EMAIL Group
Subject: Re: Sewage Rate Hike
Date: Saturday, April 5, 2025 12:56:28 PM
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To Whom it May Concern,
We are writing to protest the sewage rate hike.

We oppose the sewage rate hike. Residents that have been in Camarillo for awhile shouldn't have to pay extra for things to be upgraded and expanded because members of the city council approved more apartments, houses, etc. We are already over capacity, and we don't need to be building more and taking away open/farm land. Our streets and especially the 101 are already over capacity with vehicles and traffic.

Thank You,
Torrey and Janelle Anderson (Property Owner)
1650 Bridgeport Lane
Camarillo, CA 93010
1 Veronica Madrigal
From: TORREY ANDERSON <[email protected]>
Sent: Saturday, April 5, 2025 12:56 PM
To: City Clerk Internet EMAIL Group
Subject: re: Water bill hike
Follow Up Flag: Flag for follow up
Flag Status: Flagged
To Whom it May Concern,
We are writing to protest the water rate hike.

We oppose the water rate hike. Residents that have been in Camarillo for awhile shouldn't have to pay extra for things to be upgraded and expanded because members of the city council approved more apartments, houses, etc. We are already over capacity, and we don't need to be building more and taking away open/farm land. Our streets and especially the 101 are already over capacity with vehicles and traffic.

Thank You,
Torrey and Janelle Anderson (Property Owner)
1650 Bridgeport Lane
Camarillo, CA 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: R. DeBenedetti <[email protected]>
Sent: Tuesday, April 15, 2025 10:05 PM
To: City Clerk Internet EMAIL Group
Cc: Robert D
Subject: Written Letter of Protest to Water Rate Increases Attached Attachments: Letter to City Council on Water Rates April 12 2025 Dispute Hike.docx Please find the Written Letter of Protest to Water Rate Increases Attached.

To be presented to the City Council prior to the meeting on May 14, 2025.

PLEASE ACKNOWLEDGE RECEIPT.

Regards,
Robert
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Some people who received this message don't often get email from [email protected]. Learn why this is important April 12,2025
Camarillo City Clerk
601 Carmen Drive, Camarillo, CA 93010
RE: Proposed Water Rate Increases for MeeƟng May 14, 2025 Email: [email protected]
To the City Council,
It goes without saying we all want to conƟnue to have a safe and reliable supply of water, that has been going on for 100+ years so the literature sent should have no need to imply there is impending criƟcal risk at Camarillo and if so, then there is mismanagement.

We all want to have stewards of the water supply and customer service to be provided equitable compensaƟon for a city posiƟon.

I think providing the “NoƟce to Property Owners and Customers” showing ONLY a $14.90 increase per month for what appears to be 1” and 12 HCF is misleading in terms of NOT showing the enƟre Revenue increase for this 4-year proposed rate hikes. And what project will actually be done and if not done ON TIME and AT COST, then accountability is penalƟes.

As a Property Owner of 2886 Avenida De Autlan, Camarillo, CA I protest the amount of the rates being requested for increase as the study is front loaded and shows inconsistent inflaƟon assumpƟons.

I would propose that the City Council of Camarillo, revaluate the inflaƟonary assumpƟons and the Salary & Benefits rate increases over Ɵme which if were to be modified the FRONT LOADED costs to Camarillo Residents can and should be avoided as residents we should not be burdened with “assumpƟons” that do not make sense on inflaƟon.

Below are the comments for such review and in the name of common sense reduce the cost burden.

These inflaƟonary assumpƟons seem very rudimentary if not just lack of depth of study.

First and foremost, General InflaƟon at a rate of 3% would not substanƟate the jusƟficaƟon of across the board 4 years running of Salary & Benefits at 9%.

A GI rate of 3% per year would be 12.55% across 4 years.

Salary & Benefits increases at FY26 7%, FY27 6%, FY 28 5% and FY 29 4% is cumulaƟve 23.85% or double the rate of inflaƟon. This rate can always be increased IF jusƟfied by actual inflaƟon rate.

What substanƟates the reason for Customer Service rising at the rate shown other than the inflated salary and benefits running at “assumpƟons” of 9% year over year 4 years running.

This Customer Service and Admin should be reduced by similar rate reducƟon over 4 years.

The inflaƟonary rates for CIP are “inflated” beyond the General InflaƟon rate upwards of 3-4%.

There would seem to be opƟmizaƟon based on the Project Line Item and the expenditure AND the inflaƟon number to do Reserve CoaƟngs earlier and defer other line items.

Where is the “Risk Analysis” and CriƟcal factor on each of these as that should be part of the study.

Thank You
Robert DeBenedeƫ
2886 Avenida De Autlan, Camarillo, CA
1 Veronica Madrigal
From: Beth Brady <[email protected]>
Sent: Thursday, May 1, 2025 5:54 PM
To: City Clerk Internet EMAIL Group
Subject: Protest to Water and Sewer Rates - 2368 Placita San Leandro, Camarillo, CA This is a protest against the proposed Water and Sewer Rates that will go into effect 7/1/2025. It's not that I'm against any increases, but a 70% increase over 4 years is extreme! What about all the people on fixed incomes that can't afford these steep increases? I think you should try to cut costs (like the rest of us have to!) and request a lower level of increase.

Respectfully,
Elizabeth Brady
--
Beth Brady <[email protected]>
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Connie Moore <[email protected]>
Sent: Saturday, May 3, 2025 6:42 PM
To: City Clerk Internet EMAIL Group
Subject: Formal Protest to the Proposed Sewer Rate Increases - Public Hearing May 14, 2025 Connie Moore
537 Avenida Magdalena
Camarillo, CA 93010
[email protected]
3 May 2025
Camarillo City Clerk
601 Carmen Drive
Camarillo, CA 93010
Dear City Clerk,
I, Connie Moore, am the property owner of 537 Avenida Magdalena Camarillo 93010, and I am writing to formally protest the proposed sewer rate increases described in the public notice for the upcoming hearing on May 14, 2025.

I hereby oppose the rate increases and request that my written protest be counted in accordance with the procedures outlined under Proposition 218.

Sincerely
Connie Moore
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From: Warren Felger <[email protected]>
Sent: Saturday, May 3, 2025 8:15 AM
To: City Clerk Internet EMAIL Group
Subject: Water Rate Increase Protest
Warren H. Felger
784 Duvall Ave
Camarillo, CA 93010
(805)415-4786
5/3/25
City of Camarillo
601 Carmen Drive
Camarillo, CA 93010
Dear City Council Members,
I am writing to formally protest the proposed water rate increases scheduled to take eƯect each July for the next three years. As a resident of Camarillo, I am deeply concerned about the financial burden these compounded increases will place on households, particularly those on fixed incomes or already struggling with the rising cost of living.

While I understand the importance of maintaining infrastructure and ensuring water quality, I urge the City to explore more sustainable and equitable solutions before approving these hikes. Greater transparency in budgeting, prioritizing eƯiciency and considering alternative funding sources should be thoroughly evaluated and shared with the public.

Please consider the long-term impact this will have on our community and vote against the proposed rate increases.

Sincerely,
Warren H. Felger
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From: Warren Felger <[email protected]>
Sent: Saturday, May 3, 2025 8:15 AM
To: City Clerk Internet EMAIL Group
Subject: Sewer Rate Increase Protest
Warren H. Felger
784 Duvall Ave
Camarillo, CA 93010
(805)415-4786
5/3/25
City of Camarillo
601 Carmen Drive
Camarillo, CA 93010
Dear City Council Members,
I am writing to formally protest the proposed sewer rate increases scheduled to take eƯect each July for the next three years. As a resident of Camarillo, I am deeply concerned about the financial burden these compounded increases will place on households, particularly those on fixed incomes or already struggling with the rising cost of living.

While I understand the importance of maintaining infrastructure and ensuring sewer service, I urge the City to explore more sustainable and equitable solutions before approving these hikes. Greater transparency in budgeting, prioritizing eƯiciency and considering alternative funding sources should be thoroughly evaluated and shared with the public.

Please consider the long-term impact this will have on our community and vote against the proposed rate increases.

Sincerely,
Warren H. Felger
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From: cathy ballard <[email protected]>
Sent: Friday, May 9, 2025 6:13 AM
To: City Clerk Internet EMAIL Group
Subject: Increase in rates
Follow Up Flag: Flag for follow up
Flag Status: Flagged
I oppose the increase of rates to our utilities.

Cathy Ballard
1921 El Rancho Dr
Camarillo, ca 93010
Sent via the Samsung Galaxy S23 Ultra 5G, an AT&T 5G smartphone Get Outlook for Android
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Kristine Barrett <[email protected]>
Sent: Friday, May 9, 2025 7:27 AM
To: City Clerk Internet EMAIL Group
Subject: Water and sewer rates protest
[Some people who received this message don't oŌen get email from krisƟnejbarreƩ@icloud.com. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] I protest the excessive water and sewer rates proposed for my property at 1678 Burnley Street
Camarillo, 93010
KrisƟne BarreƩ
1 Veronica Madrigal
From: [email protected]
Sent: Friday, May 9, 2025 7:25 AM
To: City Clerk Internet EMAIL Group
Subject: Water/sewer rates increase
We are protesting the current increase proposed for water and sewer. 2164 Dewayne Ave
Camarillo, 93010
Rodney & Lynne Wickham
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Joyce Ornelaz <[email protected]>
Sent: Friday, May 9, 2025 8:42 AM
To: City Clerk Internet EMAIL Group
Subject: Increase protest
I am a property owner in Camarillo & protest the water & sewer increase.

Joyce M. Ornelaz -- Property owner
24 E. Calle La Guerra
Camarillo, CA 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important The Pietrowski-Saurer Revocable Trust ---04/29/1994
Charlene P. Saurer, Trustee
Peter E. Pietrowski, Trustee
1597 Avenida Soltura [APN 158-0-232-125]
Camarillo, CA 93010-9210
May 05, 2025
Camarillo City Hall
City Council Chambers
601 Carmen Drive
Camarillo, CA 93010
l
I
RE: Objection to Utility Billing and Compliance with Proposition 218 Utility Billing Account number: 5901-59618
Gentlepeople,
Please find this letter as our objection to Camarillo's flat rate and minimum charge utility billing proposal. Prop. 218 requires that fees be proportionate to benefit.

REM~ ~'8 2025
FIN.ANGE
1 Veronica Madrigal
From: Gail Bannon <[email protected]>
Sent: Friday, May 9, 2025 9:46 AM
To: City Clerk Internet EMAIL Group
Subject: I AM PROTESTING WATER AND SEWER RATE INCREASES [Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] I am protesƟng the water and sewer rate increases.

Gail A. Bannon
221 Calle Converse
Camarillo, CA 93010
1 Veronica Madrigal
From: Jennifer Martin <[email protected]>
Sent: Friday, May 9, 2025 9:55 AM
To: City Clerk Internet EMAIL Group
Subject: Protest increased sewer rates
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] Hello,
As a resident and homeowner in Camarillo I protest the proposed sewer rate hike. This is too significant an increase.

Best,
Jennifer MarƟn
1623 Lyndhurst Ave
Camarillo, Ca 93010
1 Veronica Madrigal
From: [email protected]
Sent: Friday, May 9, 2025 9:59 AM
To: City Clerk Internet EMAIL Group
Subject: Protest Sewer an Water Rate Increases
As a longtime city of Camarillo residents, our household would like it to be noted that we PROTEST the proposed rate increases to the sewer and water rates.

Residence: 1090 Bradford Ave., Camarillo
Stephen and Ann Meade
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From: Stephanie Peres <[email protected]>
Sent: Friday, May 9, 2025 9:48 AM
To: City Clerk Internet EMAIL Group
Subject: Protest water and sewage increase.

Please note. My husband and myself are retired and on limited income. We protest the increases you are proposing. Pass on giving yourself a raise and move the $$ to offset the increase. This will help the less fortunate that aren't getting raises anymore.

Tim & Stephanie Peres
156 Elm Dr, Camarillo, CA 93010
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From: Jonathan Olson <[email protected]>
Sent: Friday, May 9, 2025 10:05 AM
To: City Clerk Internet EMAIL Group
Subject: Protesting increases
We are protesting the increases in water and sewer rates for the city of Camarillo Jon and Wendy Olson
4738 Aqua Verde ct
Camarillo, Ca
Sent from the all new AOL app for iOS
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Mel Bannon <[email protected]>
Sent: Friday, May 9, 2025 9:22 AM
To: City Clerk Internet EMAIL Group
Subject: Sewer & Water Rate Increases
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] Please be advised that I protest & object to the proposed increases in sewer & water rates.

Mel Bannon
221 Calle Converse
Camarillo CA 93010
1 Veronica Madrigal
From: [email protected]
Sent: Friday, May 9, 2025 11:02 AM
To: City Clerk Internet EMAIL Group
Cc: [email protected]
Subject: Sewer Rates
My name is Karen M. Cory, 227 Cartagena Street, Camarillo, CA 93010-7705 (805)987-2702 I PROTEST the increase in sewer rates at 81% over 4 years.

Please notify the City Council of my Protest, do not approve of this.

Thank you
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Michael Dutter <[email protected]>
Sent: Friday, May 9, 2025 11:11 AM
To: City Clerk Internet EMAIL Group
Subject: Water and sewer increases
[Some people who received this message don't oŌen get email from mldduƩ[email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
Sent from my iPhone
I am against the sewer and water increases.

Mike DuƩer
2420 Balmoral Court
Camarillo 93010
1 Veronica Madrigal
From: CathyKey Channels <[email protected]>
Sent: Friday, May 9, 2025 11:30 AM
To: City Clerk Internet EMAIL Group
Subject: Water rates
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
I would like to “PROTEST" the proposed increase in water and sewer rates. I am a property owner living at 2235 Briarfield Street in Camarillo.(93010). Any increases would be a hardship on me! Please explore other possibiliƟes to reduce costs.

Cathy Channels
1 805 844-5943
1 Veronica Madrigal
From: Maribel Rosas <[email protected]>
Sent: Friday, May 9, 2025 12:30 PM
To: City Clerk Internet EMAIL Group
Subject: Increase in rates
Hello,
As a resident and home owner in the city of Camarillo, I am opposing the increase in water/sewer rates. The increase would cause a burden to many residents including my household. Currently, we are witnessing a decline in our economy and many reports indicate “The Global and US economies are facing a challenging outlook in 2025”. This is a familiar pattern prior to a recession. Increasing our rates now will only trigger the start of many financial hardships. Necessities such as water and other household utilities should not be used to increase the city’s revenue while cause financial hardship to households. I am firmly opposing the increase in water/sewer rates.

City of Camarillo resident,
Jose and Maribel Rodriguez
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Stephanie Nowlin <[email protected]>
Sent: Friday, May 9, 2025 10:52 AM
To: City Clerk Internet EMAIL Group
Subject: Protest Sewer Rate increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
Hello,
I am emailing to oppose/protest the sewer rate increases proposed. AŌer aƩending the city meeƟng, I do understand the challenges with managing the sewer system with the current rate of inflaƟon and proposed changes. However, I feel that alternaƟve soluƟons were not thoroughly pursued or discussed, and the financial concerns of the ciƟzens were not valued. AddiƟonally, these excessive rate hikes only accounted for a 3% inflaƟon rate, which we know has not been consistent with the last four years. Meaning, if inflaƟon rises higher than 3%, these rate hikes will go substanƟally higher than they’re already proposed to.

Staff commissioned rate studies such as those brought forth by the city’s well-intenƟoned staff will always recommend rate increases to cover increasing expenses and capital investments, however when these become excessive and unaffordable to residents’ alternaƟves must be pursued. From downsizing or delaying a proposed investment to allow for a more gradual collecƟon of needed funds, to reducing other expenses through means such as the audits and benchmarking proposed by Mr. Fuld, to idenƟfying other cuts in ongoing expenses. If the council directs staff to idenƟfy credible alternaƟves, I have no doubt city staff can idenƟfy them.

Thank you,
Stephanie Kruelle
1138 Bollin Ave
Camarillo, CA 93010
1 Veronica Madrigal
From: Robert Stradling <[email protected]>
Sent: Friday, May 9, 2025 12:52 PM
To: City Clerk Internet EMAIL Group
Subject: PROTEST
PROTESTING THE INREASES TO BE NOTICED BY MAY 14TH AT 5PM

THANK YOU, ROBERT STRADLING
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From: Alan Garner <[email protected]>
Sent: Friday, May 9, 2025 11:20 AM
To: City Clerk Internet EMAIL Group
Subject: Sewer and Water rate increases
I am protesting these Sewer and Water rate increases.

Alan Garner
51 Calle Escalon
Camarillo, CA 93010
(818)645-6838
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Daniele Rose <[email protected]>
Sent: Friday, May 9, 2025 2:16 PM
To: City Clerk Internet EMAIL Group
Subject: Protesting the Proposed Rate Increast
To whom it may concern,
This letter is intended to inform you that I am protesting the proposed sewer and water rate increase. My information is as follows:

Daniele Rose
2052 Morongo Drive
Camarillo, CA 93012
Thank you,
Mrs. Rose
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From: Lauren Reardon <[email protected]>
Sent: Friday, May 9, 2025 2:27 PM
To: City Clerk Internet EMAIL Group
Subject: Protesting Increase
I am writing to protest the proposed sewer and water rate increase.

Sincerely,
Lauren Reardon
81 Avocado Pl, Camarillo, CA 93010
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From: [email protected]
Sent: Friday, May 9, 2025 2:14 PM
To: City Clerk Internet EMAIL Group
Subject: Sewage Rate Increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] Hello,
I am wriƟng to protest the sewage rate increase to be discussed next week by the council.

These rate increases are astronomical and will negaƟvely impact most families in the city. At a Ɵme when groceries and gas are unaffordable, to make one uƟlity a weeks worth of groceries for some families feels criminal.

I encourage the city to please demand an alternaƟve soluƟon.

Thank you,
Jessica Palmer
Sent from my iPhone
1 Veronica Madrigal
From: Kelly Williams <[email protected]>
Sent: Friday, May 9, 2025 2:29 PM
To: City Clerk Internet EMAIL Group
Subject: Sewage Rate Increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
We are the home owners of 1890 AbboƩ Ave, Camarillo, CA protest the increase cost for Sewage/Water.

I am wriƟng to hopefully stop the city from increase the bills.

Sent from my iPhone
1 Veronica Madrigal
From: Jessica Francis <[email protected]>
Sent: Friday, May 9, 2025 2:48 PM
To: City Clerk Internet EMAIL Group
Subject: Opposing new sewer rate
To whom it may concern,
As a local home owner, I am writing to protest the increase of sewer rates.

Respectfully,
Jessica Francis
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From: joan handzel <[email protected]>
Sent: Friday, May 9, 2025 3:02 PM
To: City Clerk Internet EMAIL Group
Subject: Protest increase in water and sewer rates
I am protesting the proposed increases of the water and sewer rates.

Joan Handzel
248 Carrizo Creek Road
Camarillo, CA 93020
Get Outlook for Android
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: 805-217-7611 Cami Pinsak <[email protected]>
Sent: Friday, May 9, 2025 3:12 PM
To: City Clerk Internet EMAIL Group
Subject: Water Rates
I am protesting the increase of sewer and water rates by the amount the City is proposing. While I understand the need for adequate infrastructure, I believe there are solutions the City has not yet explored outside of more than quadrupling our sewer and water rates.

Thank you,
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Realty ONE Group

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To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.

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Do the Math - Check Out Our No Bulls#@t Commission Structure! Check Your Home Value
1 Veronica Madrigal
From: Julianne Seeley <[email protected]>
Sent: Friday, May 9, 2025 3:14 PM
To: City Clerk Internet EMAIL Group
Subject: Proposed Water and Sewer Rate Increases
I would like to oƯicially oppose the proposed increases. To attempt to do a sewer rate increase of 81% over the next few years is crazy and unacceptable. We are on the verge of heading into a recession and many people will be losing jobs and having to cut back on expenses. This city already charges highest rates than any other city in the county. Please do not raise the rates that you are proposing.

Julianne Seeley
4962 Via Fresco
Camarillo, CA 93012
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Starr Wilson <[email protected]>
Sent: Friday, May 9, 2025 3:28 PM
To: City Clerk Internet EMAIL Group
Subject: Water and sewer rate increases
This email is in opposition to your proposed rate increases. Although I don’t get my water or sewer service from the city, my property is within city limits and it’s exorbitant to increase rates this much. Starr Wilson 386 Mesa Drive Camarillo 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Joan Knisely <[email protected]>
Sent: Friday, May 9, 2025 3:49 PM
To: City Clerk Internet EMAIL Group
Subject: Water and sewer rate increase
I protest the proposed increase in water and sewer rates.

Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Joan Knisely <[email protected]>
Sent: Friday, May 9, 2025 3:54 PM
To: City Clerk Internet EMAIL Group
Subject: Proposed increased water and sewer rates
We protest the proposed water and sewer rates to our property at 1185 Itamo St., Camarillo, CA 93012.

We can barely afford property taxes as it is without this ridiculously high increase to our water and sewer rates.

Dan and Joan Knisely
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Alicia Ibarra <[email protected]>
Sent: Friday, May 9, 2025 4:53 PM
To: City Clerk Internet EMAIL Group
Subject: Protest of sewer and water increases
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] Hello,
I am protesƟng the proposed increase of sewer and water rates. I am at 3170 Dwight Ave, Camarillo, CA 93010. Thank you for your consideraƟon.

Alicia Ibarra
1 Veronica Madrigal
From: mark jenkins <[email protected]>
Sent: Friday, May 9, 2025 5:14 PM
To: City Clerk Internet EMAIL Group
Subject: water/sewer rate increase protest
This email is my protest to you in regards to the upcoming water/sewer rate increase.

Mark Jenkins
4116 Village 4
Camarillo, Ca. 93012
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: rgbarrett1 <[email protected]>
Sent: Friday, May 9, 2025 5:28 PM
To: City Clerk Internet EMAIL Group
Subject: Sewer Increase
I am protesting the sewer rate increase.

Robert Barrett
576 Corte Aguacate
Camarillo, CA 93010
Sent from my T-Mobile 5G Device
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: kelly ogg <[email protected]>
Sent: Friday, May 9, 2025 5:53 PM
To: City Clerk Internet EMAIL Group
Subject: Protesting
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
I am protesƟng the price increase on sewage and water rates! It’s ridiculousKelly Ogg
Sent from my iPhone
1 Veronica Madrigal
From: Samuel Reyna <[email protected]>
Sent: Friday, May 9, 2025 7:44 PM
To: City Clerk Internet EMAIL Group
Subject: Protest Sewer and Water Rate Increases
Hello,
This email is to notify that I am protesting the sewer and water rate increases, along with any other proposed increases to utilities.

Full Name: Samuel Reyna
Address: 159 Glenbrook Ave Camarillo, CA 93010
Thank you.

Best,
-Samuel R.

Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Anna Klingerman <[email protected]>
Sent: Friday, May 9, 2025 7:58 PM
To: City Clerk Internet EMAIL Group
Cc: Anna Klingerman
Subject: Protesting The Sewer and Water Increases
We are protesting the proposed sewer and water increases! Michael and Anna Klingerman
1530 Kendall Ave, Camarillo, CA 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Roy Taggueg <[email protected]>
Sent: Friday, May 9, 2025 8:05 PM
To: City Clerk Internet EMAIL Group
Subject: Sewer and water rate increases
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
I am protesƟng these increases…
Roy P. Taggueg
tenant
159 Glenbrook Ave
Camarillo CA 93010
1 Veronica Madrigal
From: Alex Holguin <[email protected]>
Sent: Friday, May 9, 2025 8:51 PM
To: City Clerk Internet EMAIL Group
Subject: Rate increases
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
Alexandra “Allie” Quinn
2075 Sierra Mesa Dr
I’m wriƟng to protest any rate increases to the sewer and water rates.

Thank you.

Sent from Allie Quinn's iPhone
1 Veronica Madrigal
From: Roy Taggueg <[email protected]>
Sent: Friday, May 9, 2025 8:10 PM
To: City Clerk Internet EMAIL Group
Subject: Sewer and Water Rate increases
I am protesting these increases…
Roy P. Taggueg
tenant
159 Glenbrook Ave
Camarillo CA 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Nicole Valdivia <[email protected]>
Sent: Friday, May 9, 2025 8:58 PM
To: City Clerk Internet EMAIL Group
Subject: Formal Protest to Proposed Sewer Rate Increases – Public Hearing May 14, 2025 Nicole Valdivia
1674 Calle La Cumbre, Camarillo, CA 93010
[email protected]
May 9, 2025
TO: Camarillo City Clerk 601 Carmen Drive Camarillo, CA 93010 Email: [email protected] RE: Formal Protest to Proposed Sewer Rate Increases – Public Hearing May 14, 2025 Dear City Clerk,
I, Nicole Valdivia, am the property owner of 1674 Calle La Cumbre Camarillo, CA 93010, and I am writing to formally protest the proposed sewer rate increases described in the public notice for the upcoming hearing on May 14, 2025.

I hereby oppose the rate increases and request that my written protest be counted in accordance with the procedures outlined under Proposition 218.

Sincerely,
Nicole Valdivia
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Mallory Crosby <[email protected]>
Sent: Friday, May 9, 2025 9:08 PM
To: City Clerk Internet EMAIL Group
Subject: Protest
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] Good evening,
I am protesƟng the rate hike for the sewer customers of Camarillo. I live at 348 Appletree Ave. and do not agree with the substanƟal rate hike.

Thank you,
Mallory Crosby
1 Veronica Madrigal
From: Mary Simiens <[email protected]>
Sent: Friday, May 9, 2025 9:11 PM
To: City Clerk Internet EMAIL Group
Subject: Planned water and sewer rate increases
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
Hello,
I am protesƟng the proposed water and sewer rate increases.

Thank you,
Mary Ann Simiens,
Property owner: 2109 Vanguard Drive, Camarillo CA 93010 1 Veronica Madrigal
From: Sarah Fox <[email protected]>
Sent: Friday, May 9, 2025 9:26 PM
To: City Clerk Internet EMAIL Group
Subject: Sewer rate increase protest
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
Hello,
I am protesƟng the rate increase of the sewer and water rates in Camarillo.

Camarillo resident
Sarah Rodriguez
791 jay ave
Camarillo ca 93010
Sent from my iPhone
1 Veronica Madrigal
From: D H <[email protected]>
Sent: Friday, May 9, 2025 9:57 PM
To: City Clerk Internet EMAIL Group
Subject: Sewer rate increase protest
My name is Denise Hribar and I reside at 860 Aloha St,
Camarillo, CA 93010. I am protesting your proposed sewer and water rate increase.

Moorpark raised their sewer rates from $33 to $35 a
month. You left Moorpark off of your comparison chart.

You are proposing an increase of 81%, on top of the recent $20 increase. I live on disability retirement. I get an increase of $80 each September. This is nowhere near your 81%.

I was at one of the information meetings. I asked about why there were no reserves. We were told that because of a
proposition that you could only charge for the exact cost of the service you were providing. My question is this - Why weren't you collecting reserves before this proposition? It sounds like poor management.

Do you need a new sewage plant because of the additional homes being built? Have the developer pay for the plant.

Thank you
Some people who received this message don't often get email from [email protected]. Learn why this is important 2 Denise Hribar
1 Veronica Madrigal
From: Melissa Flores <[email protected]>
Sent: Friday, May 9, 2025 9:35 PM
To: City Clerk Internet EMAIL Group
Subject: proposed water and sewer rate increases
This email is to let you know we will be protesting this increase.

Melissa Flores
2690 Gemini Court
Camarillo, CA 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: A Hays <[email protected]>
Sent: Friday, May 9, 2025 9:24 PM
To: City Clerk Internet EMAIL Group
Subject: Re: proposed water & trash rate inceases
To: city council of Camarillo
I Amber Hays
a resident of Camarillo located at
1905 moonshadow circle
do hereby Protest the proposed increases to water and sewage rates.

Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Charles Darnall <[email protected]>
Sent: Saturday, May 10, 2025 11:16 AM
To: City Clerk Internet EMAIL Group
Subject: Protest rate increases
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
We have reduced water and sewerage at the requests to cut backs over the past years. The idea was because of lack of annual rainfall etc. This household usage has not been over 4 units since September last year.

However the city keeps on increasing the number of new rental units etc. In a recent billing period we could not discover cause of the lack of water for three days. Geƫng a glass of water took a full minute draw.

We could not find an explanaƟon.

Charles and KarenDarnall
1 Veronica Madrigal
From: Renee Murphy <[email protected]>
Sent: Saturday, May 10, 2025 11:40 AM
To: City Clerk Internet EMAIL Group
Subject: Rate increases
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] This email is to provide my protest of the increase in our water prices.

Sincerely,
Renée Murphy
1919 Yolanda Street
93010
Sent from my iPhone
1 Veronica Madrigal
From: Rick ONeil <[email protected]>
Sent: Saturday, May 10, 2025 11:24 AM
To: City Clerk Internet EMAIL Group
Subject: Re: Resident Protest-Water & Sewer Rate Increase Dear City Council Members,
We are residents /Homeowners living in Sterling Hills, Camarillo, CA 93010 Richard and Donna O’Neil
2866 Diamond Drive
Camarillo, Ca 93010
[email protected]
Cell: (805) 402-1281
We strongly oppose any rate
increase for Water & Sewer.

Our current rates are already to high!
Sincerely,
Richard & Donna O’Neil
To help protect your privacy,
Micro so ft Office prevented
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Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Christopher McGovern <[email protected]>
Sent: Saturday, May 10, 2025 11:21 AM
To: City Clerk Internet EMAIL Group
Subject: Water sewer rates
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] Sent from my iPhone I am protesƟng the water/sewer rate increases. Christopher McGovern 2224 Marco Dr Camarillo CA 93010
1 Veronica Madrigal
From: KIM SCHMEICHEL <[email protected]>
Sent: Saturday, May 10, 2025 11:05 AM
To: City Clerk Internet EMAIL Group
Subject: Protesting proposed Increase of water rates
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
I am a long-Ɵme resident of Camarillo.

My name is Kim Schmeichel
I live at 1558 Agusta Ave.

Camarillo, CA. 93010
I would like to protest the proposed increase in water rates. Please seek alternaƟves to this increase.

Thank you,
Kim Schmeichel
(805) 276-7365
1 Veronica Madrigal
From: terriedevin <[email protected]>
Sent: Saturday, May 10, 2025 10:38 AM
To: City Clerk Internet EMAIL Group
Subject: Sewer rate increase
To whom it may concern,
I am protesting the proposed sewer rate increase. The increases are too high in too short a time frame.

Thank you for considering an alternative.

Sincerely,
Terrie Romines
391 Loma Dr.

Camarillo
Sent from my Galaxy
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Joe and Debbie Darby <[email protected]>
Sent: Saturday, May 10, 2025 10:20 AM
To: City Clerk Internet EMAIL Group
Subject: Sewer/water increase
We are protesting the sewer and water increases. Our address is one.1021 Pinehurst Pl, Camarillo.

Joseph and Deborah Darby.

Sent from Yahoo Mail for iPad
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Lonnie Davenport <[email protected]>
Sent: Saturday, May 10, 2025 10:41 AM
To: City Clerk Internet EMAIL Group; Vicki Davenport
Subject: Water and Sewage Rates
Protecting Water and Sewer rate increases.

God Bless You,
Romans: 5:8
Lonnie Davenport
18 Isabel Ave,
Camarillo, Ca. 93012
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Courtney Nicholls <[email protected]>
Sent: Saturday, May 10, 2025 9:31 AM
To: City Clerk Internet EMAIL Group
Subject: Protest sewage / water rate increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] We am protesƟng the sewage and water rate proposed increases.

Aaron and Courtney Nicholls
2763 Waverly Ct, Camarillo 93010
1 Veronica Madrigal
From: Matt Carroll <[email protected]>
Sent: Saturday, May 10, 2025 9:24 AM
To: City Clerk Internet EMAIL Group
Subject: Protesting of Sewer and Water Rate Increases
Good morning:

I am formally protesting the raising of sewer ad water rates proposed for July 1, 2025. I respectfully urge the City Council and City staff to find ways to mitigate these unaffordable and excessive increases.

John M. Carroll
2898 Avenida de Autlan
Camarillo, CA 93010
(805) 341-7221
35 year Camarillo resident.

Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Amy <[email protected]>
Sent: Saturday, May 10, 2025 8:48 AM
To: City Clerk Internet EMAIL Group
Subject: Sewer increase objection
As a Camarillo resident I feel the increase in sewer, monthly payments should be absorbed from all the taxes of the new homes, the outlets and new restaurants. I object from the homeowners incurring more costs to sewer.

Thank you
Amy garcia
1222 BEECHWOOD St.

Camarillo, CA 93010
Sent from the all new AOL app for iOS
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Jan Turck <[email protected]>
Sent: Saturday, May 10, 2025 9:22 AM
To: City Clerk Internet EMAIL Group
Subject: Sewer increase proposal 218
To whole it may concern My name is Jan Carella. I live at 2153 Viet Moss, Camarillo, California 93010 and I am protesting the increased water and sewer proposal 218.

Yahoo Mail: Search, Organize, Conquer
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Joan Coapman <[email protected]>
Sent: Saturday, May 10, 2025 8:59 AM
To: City Clerk Internet EMAIL Group
Subject: water, sewer rate protest
I am protesting the water & sewer rate increases!
Joan Coapman
17208 Village 17
Camarillo, CA 92012
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: maynard belzer <[email protected]>
Sent: Saturday, May 10, 2025 8:22 AM
To: City Clerk Internet EMAIL Group
Subject: Increasing water and sewer rates
I am sending you this email to protest the increasing of water and tour rates in the city of Camarillo. My address is 2981 Avenida de Autlan Camarillo, CA 93010. My name is Maynard D Belzer. Thank you.

Sent from Yahoo Mail for iPhone
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Doug Carroll <[email protected]>
Sent: Saturday, May 10, 2025 7:39 AM
To: City Clerk Internet EMAIL Group
Subject: Proposed Sewer Rate Increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] Please accept this as my protest against the proposed sewer rate increase. Our property address is at 293 Spindlewood Ave, Camarillo CA

DOUGLAS CARROLL
1 Veronica Madrigal
From: RaganProfessional AdminServices <[email protected]> Sent: Saturday, May 10, 2025 7:50 AM
To: City Clerk Internet EMAIL Group
Subject: Protest water and sewer rate increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
We are protesƟng the increase in water and sewer rates to be discussed on May 14, 2025.

Raising 4 kids in this city is very expensive already. We cannot afford this increase.

Bridget Mik
651 Vista Coto Verde
Camarillo, CA 93010
1 Veronica Madrigal
From: SRagan <[email protected]>
Sent: Saturday, May 10, 2025 7:46 AM
To: City Clerk Internet EMAIL Group
Subject: Protest Water and Sewer rate Increase
My household is protesting the water and sewer rate increase that is to be discussed on May 14, 2025.

As Seniors on fixed income, we cannot afford another increase in monthly costs.

Sean Ragan
616 Vista Coto Verde
Camarillo, CA 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: BARBARA REINIG <[email protected]>
Sent: Saturday, May 10, 2025 7:44 AM
To: City Clerk Internet EMAIL Group
Subject: Water rate increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
Address
1375 Fairway Dr
Camarillo
I vehemently oppose the water rate increase.

Sincerely,
Barbara Reinig
Sent from my iPhone
1 Veronica Madrigal
From: Sandra Cordova <[email protected]>
Sent: Saturday, May 10, 2025 8:01 AM
To: City Clerk Internet EMAIL Group
Subject: Water sewer rate PROTEST
Good morning,
The following has piqued my interest as a resident of Camarillo. I am writing to protest the water and sewer increase rate that are being considered for implementation. Below is my address:
1176 Baywood Ave
Camarillo, CA 93010
Signed,
A concerned Camarillo resident
Sandra Cordova
210-372-2691
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Luke Cardella <[email protected]>
Sent: Saturday, May 10, 2025 7:00 AM
To: City Clerk Internet EMAIL Group
Subject: Protest water and sewage rate increases
City Clerk,
We would like to notify the city of Camarillo that we protest the proposed sewer and water rate increases.

We woudl like the city to consider other alternatives before moving to this rate increase plan.

Regards,
Luke and Elaine Cardella
1699 Tejon Court
Camarillo, Ca. 93010
Resident of Camarillo since 1963
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Melanie Reiter <[email protected]>
Sent: Saturday, May 10, 2025 6:06 AM
To: City Clerk Internet EMAIL Group
Subject: Sewer Rate Increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] As owners of the property located at 4649 Calle Brisa, Camarillo 93012, we oppose the proposed sewer rate increases.

John and Melanie Reiter
1 Veronica Madrigal
From: R M <[email protected]>
Sent: Saturday, May 10, 2025 9:41 AM
To: City Clerk Internet EMAIL Group
Subject: Formal Protest to Proposed Sewer Rate Increases – Public Hearing May 14, 2025 Roger Pichardo
4824 Calle Descanso
Camarillo, CA 93012
TO: Camarillo City Clerk 601 Carmen Drive Camarillo, CA 93010 Email: [email protected] RE: Formal Protest to Proposed Sewer Rate Increases – Public Hearing May 14, 2025 Dear City Clerk,
I, Roger Pichardo, am the property owner of 4824 Calle Descanso, and I am writing to formally protest the proposed sewer rate increases described in the public notice for the upcoming hearing on May 14, 2025.

I hereby oppose the rate increases and request that my written protest be counted in accordance with the procedures outlined under Proposition 218.

Sincerely,
Roger Pichardo
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: [email protected]
Sent: Saturday, May 10, 2025 9:58 AM
To: City Clerk Internet EMAIL Group
Subject: Protest
I, P. Scott Corbett, resident of 790 Jewel Court, Camarillo, CA. 93020, do herby register my protest to proposed water and sewer rate increases.

P. Scott Corbett
Camarillo California.

Sent from Yahoo Mail for iPhone
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Lee Martin <[email protected]>
Sent: Friday, May 9, 2025 9:11 PM
To: City Clerk Internet EMAIL Group
Subject: Proposed Water and Sewer Rate Increase
[Some people who received this message don't oŌen get email from lmarƟ[email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
I am officially “protesƟng” the proposed rate increase of water and sewer effecƟve July 1, 2025 in Camarillo, California.

Lee M. MarƟn
591 Calle PorƟlla
Camarillo, California 93010
Sent from my iPad
1 Veronica Madrigal
From: Sarah Monroe-Allen <[email protected]>
Sent: Saturday, May 10, 2025 12:27 PM
To: City Clerk Internet EMAIL Group
Cc: Sarah Monroe-Allen
Subject: Protest sewer and water rate increase
We protest the proposed sewer and water increase in the city of Camarillo for the following address:
4081 Mission Oaks Boulevard Suite A
Camarillo, CA 93012
I do not agree with the city increasing the revenue by over 25 million a year.

Sarah Monroe Allen
Ojai Oil Company
Golden State Storage
4081 Mission Oaks Boulevard Suite A
Camarillo, CA 93012
office phone 805-388-5858
direct phone 805-322-3685
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: [email protected]
Sent: Saturday, May 10, 2025 12:12 PM
To: City Clerk Internet EMAIL Group
Subject: Water rates protest
I wish to protest the raising of water rates for Camarillo residents.

Michael Newman
1512 Joshua Place
Camarillo, CA 93012
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Duane B <[email protected]>
Sent: Saturday, May 10, 2025 2:18 PM
To: City Clerk Internet EMAIL Group
Subject: Protesting water and sewer proposed rate increase Hello,
This email serves as my protest to the proposed water and sewer rate increases being proposed by the city of Camarillo.

The proposed rates are ridiculously high and another solution approach needs to be determined other than raising the already high water and sewer rates of Camarillo.

My property address is:
1708 Avenida Cafe
Camarillo, CA 93012
Thank you,
Duane Burdette
805-827-2803
1 Veronica Madrigal
From: Helena Bellion <[email protected]>
Sent: Saturday, May 10, 2025 12:18 PM
To: City Clerk Internet EMAIL Group
Subject: Protesting
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
I am protesƟng the increase of the water and sewer, ProposiƟon 218.

Helena Bellion
2491 Deerfield Ct
Camarillo
Sent from my iPad
1 Veronica Madrigal
From: Sarah Monroe-Allen <[email protected]>
Sent: Saturday, May 10, 2025 12:28 PM
To: City Clerk Internet EMAIL Group
Cc: Sarah Monroe-Allen
Subject: Sewer and Water Increase
We protest the proposed sewer and water increase in the city of Camarillo for the following address:
300 West Ventura Boulevard
I do not agree with the city increasing the revenue by over 25 million a year.

Sarah Monroe Allen
Ojai Oil Company
Golden State Storage
4081 Mission Oaks Boulevard Suite A
Camarillo, CA 93012
office phone 805-388-5858
direct phone 805-322-3685
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Miriam Hoffmann <[email protected]>
Sent: Saturday, May 10, 2025 2:12 PM
To: City Clerk Internet EMAIL Group
Subject: urging water, sewer rate protest
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] I am protesƟng the increases in the water and sewer rates. Please do not increase these rates.

Miriam Hoffmann. Property address is 5485 Cherry Ridge Drive, Camarillo, CA 93012.

Miriam Hoffmann
1 Veronica Madrigal
From: Beth Sanchez <[email protected]>
Sent: Saturday, May 10, 2025 3:22 PM
To: City Clerk Internet EMAIL Group
Subject: Opposition to Proposed Rate Increases
[Some people who received this message don't oŌen get email from cobalƩ[email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] For inclusion in the public hearing of the May 14, 2025, Council MeeƟng:

This is our wriƩen formal OPPOSITION to the Proposed Rate increases. Our property address is 80 Kenneth Street, Camarillo, CA.

Thank you,
Beth and Gary Sanchez
Sent from my iPhone
1 Veronica Madrigal
From: Ryan Petersen <[email protected]>
Sent: Saturday, May 10, 2025 3:12 PM
To: City Clerk Internet EMAIL Group
Subject: Protesting city water and sewer rate increases [Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
City of Camarillo,
I would like to protest the proposed water and sewer rate increases. Thank you.

Ryan Petersen
311 Sycamore CoƩage Court
Camarillo, CA 93013
1 Veronica Madrigal
From: Dave Mandelbaum <[email protected]>
Sent: Saturday, May 10, 2025 3:17 PM
To: City Clerk Internet EMAIL Group
Subject: protesting sewer rate increase
Hello, I am protesting the obscene sewer rate increase. Being a retired senior living on social security this rate increase is too high and unjust to all seniors in my position. Please find funds for the necessary updates from some other source.

Dave Mandelbaum
2174 Chandler St.

Camarillo, CA 93010-4611
805-987-7881
[email protected]
[email protected]
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Jerry Griffin <[email protected]>
Sent: Saturday, May 10, 2025 2:27 PM
To: City Clerk Internet EMAIL Group
Subject: To city clerk, I am writing this email in protest of upcoming proposed increases in sewer and water rates. My name is Gerald Griffin and my address is is 3126 east Landen Street , Camarillo California 93010.
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] Sent from my iPhone
1 Veronica Madrigal
From: Dslextreme <[email protected]>
Sent: Saturday, May 10, 2025 1:25 PM
To: City Clerk Internet EMAIL Group
Subject: Proposed water and sewer rate increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] I protest the proposed water and sewer rate increases. There needs to be a less impacƞul way to update infrastructure.

Maybe decrease the home building.

Mike Schilling
106 Palm Drive
Camarillo 93010
1 Veronica Madrigal
From: Linda and Frank Orosco <[email protected]>
Sent: Saturday, May 10, 2025 12:47 PM
To: City Clerk Internet EMAIL Group
Subject: Rate increases
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] I am protesƟng the proposed sewer and water rate increases Evaristo F Orosco 85 Camino Estrada
Camarillo, CA 93010
Sent from my iPhone
1 Veronica Madrigal
From: Keith Parker <[email protected]>
Sent: Saturday, May 10, 2025 3:18 PM
To: City Clerk Internet EMAIL Group
Subject: Water/Sewer rate increase protest
I am protesting the water/sewer rate increase.

Keith Parker
324 Lantana Street
Although I am under Ventura County jurisdiction, the rate increases will still affect me.

Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Gino dellanina <[email protected]>
Sent: Sunday, May 11, 2025 10:10 AM
To: City Clerk Internet EMAIL Group
Subject: Protesting sewer rate hikes.
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
The rates hikes are too steep and unaffordable for sewer and water in Camarillo.

Alfred Dellanina
6436 corte campina
Camarillo
1 Veronica Madrigal
From: Gary Lundberg <[email protected]>
Sent: Sunday, May 11, 2025 10:40 AM
To: City Clerk Internet EMAIL Group
Subject: Water and Sewer Rate Protest
I Gary Lundberg, protest the proposed water and sewer rate hikes for my residence at:
1074 Ashbury Court, Camarillo.

This rate hike is unquestionably wrong and unaffordable.

Perhaps the City of Camarillo should reconsider reducing water and sewer applications for new residential and commercial construction.

Leave our open spaces alone.

Sincerely,
Gary Lundberg
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: TL <[email protected]>
Sent: Sunday, May 11, 2025 10:06 AM
To: City Clerk Internet EMAIL Group
Subject: protest increase of water and sewer rates
Hi,
I would like to protest the proposed substantial increase of water and sewer rates in Camarillo.

Tsang-Lin Hwang
3852 Golden Pond Drive, Camarillo, CA 93012
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From: Cece Casey <[email protected]>
Sent: Sunday, May 11, 2025 6:41 AM
To: City Clerk Internet EMAIL Group
Subject: protest water rate and sewer rate increases
My husband and I are elderly and own a home at 2741 Hartnell St. in Camarillo 93010-zip code. We wish to protest the water and sewage rate increases that add to the rising cost of living. Please reconsider this excessive rate hike.

Thank you for this consideration:

Richard and Cece Casey
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Betty Crowell <[email protected]>
Sent: Sunday, May 11, 2025 10:03 AM
To: City Clerk Internet EMAIL Group
Cc: betty crowell
Subject: Protesting sewer and water rate increases
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] I am protesƟng the proposed city and water rates as being unaffordable.

BeƩy Crowell
6436 Corte Campina
Camarillo 93012
1 Veronica Madrigal
From: Chad Armstrong <[email protected]>
Sent: Sunday, May 11, 2025 7:28 AM
To: City Clerk Internet EMAIL Group
Subject: Re: Proposed Sewer and Water Rate Increase
Dear City of Camarillo Staff,
This letter is to document my “protest” against the proposed sewer and water rate increase. I would like to request looking into an alternative method that would lessen the significant cost increases that are in the current proposal.

As a 26 year resident of Camarillo I appreciate you noting my concern.

Warm Regards,
Chad Armstrong
3888 Golden Pond Dr.

Camarillo, Ca 93012
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Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: [email protected]
Sent: Sunday, May 11, 2025 7:36 AM
To: City Clerk Internet EMAIL Group
Subject: sewer rate and water meter increases
We are Camarillo Residents since 1970...55 years... Robert and Deborah Schmidt Our address is 1987 Glenbrook Ave, Camarillo
Raised our children here
Taught school here
joined many groups here
HELPED MAKE CAMARILLO PROUDLY WHAT IT IS TODAY...

YOU are helping to push thoe out that are running lout of money to live here...

Homeowner Insurance after the fires....

Cost of livinig here OUTRAGES

WE CAN NOTR AFFORD THIS

PROTESTING THESE INCREASES

YOU HAVE NOT EVEN SAID WHAT THE WATER INCREASE WILL BEW EJ HARRISON WONT TELL US YET WHAT OUR RATE IS now that we will be paying them.. You hit your community with to m uch at once...HOW DARE YOIU Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Thomas & Annsy <[email protected]>
Sent: Sunday, May 11, 2025 7:53 AM
To: City Clerk Internet EMAIL Group
Subject: Water & sewer rate increase
We are protesting the increase in water and sewer rates being set by the city of Camarillo! We are retired residents of Camarillo living on a fixed income. Please reconsider this increase as it will definitely affect not just us but also our neighbors and friends.

M. Thomas & Annsy Thomas
2702 Avenida de Autlan
Camarillo
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Alan Young <[email protected]>
Sent: Sunday, May 11, 2025 7:04 AM
To: City Clerk Internet EMAIL Group
Subject: Water Price Increase
I protest any water increase.

Thank you!
Alan Young
2590 Dunnigan St
Camarillo
805-208-4006
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Mitchell Ogg <[email protected]>
Sent: Sunday, May 11, 2025 5:55 AM
To: City Clerk Internet EMAIL Group
Subject: “Protesting Rate Increase”
We are protesting the sewer and water rate increase.

Mitch Ogg
2671 Waverly Ave
Camarillo Ca 93010
Four people in house
Get Outlook for iOS
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Steve Hunt <[email protected]>
Sent: Sunday, May 11, 2025 6:20 AM
To: City Clerk Internet EMAIL Group
Subject: No Increase in Sewer Rate
The City of Camarillo has numerous other tax sources like the airport, outlet mall, business parks and numerous shopping centers and should not rely on a regressive tax plan that depends on many elderly residents who live on a fixed and dwindling income from social security.

UnƟl all sewer revenue is used only for sewer maintenance and not commingled with the general fund, our family will be opposed to all rate increases.

Camarillo Resident
Sent from my iPhone
1 Veronica Madrigal
From: REBECCA JOHNSON <[email protected]>
Sent: Saturday, May 10, 2025 8:23 PM
To: City Clerk Internet EMAIL Group
Subject: No Increase in Sewer Rates Please
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
As a homeowner in Camarillo I am not for the proposed sewer rate increase.

Thank you,
Rebecca
Sent from my iPhone
1 Veronica Madrigal
From: Laurie Vos <[email protected]>
Sent: Saturday, May 10, 2025 9:50 PM
To: City Clerk Internet EMAIL Group
Subject: Reduce water and sewer rates
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
Please reconsider the proposed increase in sewer and water rates as we have already had recent increases and it’s not sustainable for most people on a budget especially in light of recent economic downturn. Those of us who are choosing to stay in California and not leave as many have, are finding more and more increases across the board in mulƟple bills and it is very difficult to remain.

Laurie Vos
1742 Calle Corva
Camarillo 93010
1 Veronica Madrigal
From: Phyllis Harsma <[email protected]>
Sent: Sunday, May 11, 2025 12:51 AM
To: City Clerk Internet EMAIL Group
Subject: Water and Sewer Rate Increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
I would like to voice my protest to the excessive rate increase to our Water and Sewer fees. My property address is 460 Baja Ct. In Camarillo.

Phyllis Harsma
Sent from my iPad
1 Veronica Madrigal
From: Noelle Claus <[email protected]>
Sent: Saturday, May 10, 2025 7:20 PM
To: City Clerk Internet EMAIL Group
Subject: Excessive water fees
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] To whom it may concern,
I am wriƟng to protest the increase in water and sewer rates.

I have lived in Camarillo for 26 years. My children were born here and now as young adults they have moved away from this area because of unaffordability.

I pay more monthly now as a single woman than I did with a family of 5. This is unacceptable and unsustainable and I urge you to not increase our water and sewer rates.

Sincerely,
Noelle Claus
1061 Beechwood St
Camarillo
Sent from my iPhone
1 Veronica Madrigal
From: elizabeth vaccaro <[email protected]>
Sent: Saturday, May 10, 2025 8:00 PM
To: City Clerk Internet EMAIL Group
Subject: Property owner opposes utility rate increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] To whom it may concern,
My name is Elizabeth Vaccaro and I live at 1028 Deseo Ave. Camarillo CA 93010. My telephone number is 805-490-9162.

I am wriƟng to strongly protest any uƟlity increases in our neighborhood.

To increase our water bill at this Ɵme is an injusƟce. Many of us in this area live on large properƟes and are struggling to keep our water usage under control. My husband and I have made major modificaƟons to our landscape to accommodate restricƟons and use less water. However, we own 18 redwoods that are between 50 and 80 feet tall. We cannot allow these trees to die as they would present an environmental hazard and could fall on our house and kill us.

We saved our enƟre lives to buy a home in the Las Posas Estates. Having our uƟliƟes prices go up, especially the water, could force us out of the home we dearly love.

Therefore, we request that water and sewer costs remain the same and not increase in our neighborhood.

Kenneth Vaccaro
Elizabeth Vaccaro MS, RD
1028 Deseo Avenue
Camarillo Ca. 93010
(805) 444-3749
(805)490-9162
1 Veronica Madrigal
From: Steve Gray <[email protected]>
Sent: Saturday, May 10, 2025 8:43 PM
To: City Clerk Internet EMAIL Group
Subject: Proposed water and sewer rate increase(s)
I am in protest of the proposed rate increases. An increase in the percentages proposed is unaffordable by most property owners. Proposing such an increase clearly demonstrates irresponsibility by the members of the City Council and its members to seek a reasonable and/or creative solution.

Thank you,
Steve Gray
177 Geneive St.

Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Mike Hause <[email protected]>
Sent: Saturday, May 10, 2025 9:15 PM
To: City Clerk Internet EMAIL Group
Subject: Protest letter
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] ProtesƟng the rate increases for water and sewer. ReƟred on a fixed income.

Michael Hause
850 Club Court
Camarillo 93010
Sent from my iPhone
1 Veronica Madrigal
From: Douglas W. Blois <[email protected]>
Sent: Saturday, May 10, 2025 7:22 PM
To: City Clerk Internet EMAIL Group
Subject: water, sewer rate increases
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] Camarillo City Council,
I protest the proposed rate increases for water & sewer service in the City. In four years, based on your figures, our rates will close to double! This is unconscionable. The sewer plant is 50 years old. If you had started regularly puƫng a small amount of money aside 20 years ago for upgrades, we would not be in this situaƟon. Also, you sold us on the desalter because our water rate increases would not be high as a result. Obviously that wasn't true. Now you hire some consultants to tell us that we are in desperate straits. Shame on you! You have to figure a beƩer, more reasonable way to solve these problems.

Sincerely,
-Doug Blois
1629 Tejon Court, Camarillo 93010
1 Veronica Madrigal
From: CW Richards <[email protected]>
Sent: Saturday, May 10, 2025 5:39 PM
To: City Clerk Internet EMAIL Group
Subject: Decline sewer increase rates
We wish to protest sewer rate increase that is proposed.

Our address is
1274 Centennial Ave.

Camarillo, Ca 93010
Thank you for your understanding.

Regards,
John and Christina Richards
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Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Mike Jones <[email protected]>
Sent: Saturday, May 10, 2025 6:03 PM
To: City Clerk Internet EMAIL Group
Subject: Protest of City Of Camarillo water rate increase From: Jerry M. Jones
Date: May 10, 2025
To: [email protected]
Subject: Protesting proposed Increase of water rates
I am a long-time resident of Camarillo.

My name is Jerry Jones
I live at 1537 Hobart Dr.

Camarillo, CA. 93010
I would like to protest the proposed increase in water rates. Please seek alternatives to this increase.

Thank you,
Jerry M. Jones
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Debra Creadick <[email protected]>
Sent: Saturday, May 10, 2025 6:49 PM
To: City Clerk Internet EMAIL Group
Subject: Protest Water and Sewer Increases
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
I am protesƟng the proposed water and sewer increases. The proposed rates are excessive and unaffordable for my family. We are reƟred and living on fixed incomes.

The increases were proposed very quickly and indicate a disturbing lack of long term planning on the part of the city.

Certainly more affordable strategies can be explored, and maybe other areas of the ciƟes budget can be reduced or the rate increases can be phased in over a longer period of Ɵme.

Thank you for your consideraƟon.

Debra and Michael Creadick
5207 Lynnwood Drive
Camarillo, CA 93012
805-890-9172
Sent from my iPhone
1 Veronica Madrigal
From: Kathleen Keane <[email protected]>
Sent: Saturday, May 10, 2025 5:53 PM
To: City Clerk Internet EMAIL Group
Subject: Protesting rate increases
I am protesting the increase of proposed rate increases of water and sewer. The following is my name and address:

Kathleen Keane
986 Deseo Ave.

Camarillo, Ca. 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Patty McLoughlin <[email protected]>
Sent: Saturday, May 10, 2025 5:41 PM
To: City Clerk Internet EMAIL Group
Subject: Unacceptable rate increases
Dear City Clerk,
I reside at 512 Village Commons Blvd in Camarillo. I am writing to protest the increase in unacceptable water and sewer rates over the next four years. Please abide by CA Prop. 218 and find alternative solutions. Thanks!
Patty
visit my website @ pattym2.remax.com
To help
protect your
privacy,
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from the
Internet.
1203 Flynn Rd. Suite 270
Camarillo, CA 93012
Mobile: (805) 444-4325
Email: [email protected]
DRE: #01752441
To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.

Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: [email protected]
Sent: Saturday, May 10, 2025 5:48 PM
To: City Clerk Internet EMAIL Group
Subject: water/sewer rate
Protesting the proposed increases in water and sewer.

Jacqueline Addison
1117 Mission Verde Drive
Camarillo, CA 93012
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1 Veronica Madrigal
From: Gracia Marks <[email protected]>
Sent: Saturday, May 10, 2025 5:26 PM
To: City Clerk Internet EMAIL Group
Subject: I protest water and sewer rate increases.

Gracia Marks
1714 Monte Vista Dr, Camarillo, CA 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Chris <[email protected]>
Sent: Saturday, May 10, 2025 4:45 PM
To: City Clerk Internet EMAIL Group
Subject: Protest - proposed Camarillo water and sewer rates May 10, 2025
As the owner of the property at the address referenced below and in accordance with the Proposition 218 requirements as outlined in the Notices of Public Hearing, I am writing to register my opposition to and protest of the rate increases currently proposed by the City of Camarillo and the Camarillo Sanitary District.

Thank you.

Christine Sanborn
Christine E Sanborn Trust
192 Palm Drive
Camarillo CA 93010
(Ventura County Parcel No. 162-0-152-010)
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Jaegzter <[email protected]>
Sent: Saturday, May 10, 2025 4:26 PM
To: City Clerk Internet EMAIL Group
Subject: PROTEST WATER SEWER RATE INCREASE
This is in protest of the rate increase proposal current being considered.

Patricia Jaeger
2190 Cervato Drive
Camarillo , CA 93012
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Freddie Hernandez <[email protected]>
Sent: Saturday, May 10, 2025 4:26 PM
To: City Clerk Internet EMAIL Group
Subject: Protesting the proposed water/sewer rate hikes To whom it may concern,
I am writing this email to protest the proposed water and sewer rate hikes that the City of Camarillo is proposing.

My address is 1156 Lantana street, Camarillo, Ca. 93010.

Regards,
Freddie & Angie Hernandez
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Michael Doty <[email protected]>
Sent: Saturday, May 10, 2025 3:42 PM
To: City Clerk Internet EMAIL Group
Subject: Rate protest
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] I am protesƟng the water,sewer rate increase Michael Doty 5332 Heather Street
Camarillo Ca 93012
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1 Veronica Madrigal
From: Sarah Monroe-Allen <[email protected]>
Sent: Saturday, May 10, 2025 12:29 PM
To: City Clerk Internet EMAIL Group
Cc: Sarah Monroe-Allen
We protest the proposed sewer and water increase in the city of Camarillo for the following address:
396 West Ventura Boulevard
I do not agree with the city increasing the revenue by over 25 million a year.

Sarah Monroe Allen
Ojai Oil Company
Golden State Storage
4081 Mission Oaks Boulevard Suite A
Camarillo, CA 93012
office phone 805-388-5858
direct phone 805-322-3685
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Donna McGhee <[email protected]>
Sent: Saturday, May 10, 2025 8:03 PM
To: City Clerk Internet EMAIL Group
Subject: Proposed water and sewer rate increases
I would like to protest the proposed rate increases for water and sewer for the City of Camarillo.

Donna McGhee
897 Mesa Drive
Camarillo, CA 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Iron John <[email protected]>
Sent: Saturday, May 10, 2025 3:33 PM
To: City Clerk Internet EMAIL Group
Cc: Iron John
Subject: Protest
I am protesting the sewer and water increases
Joseph Canchola
491 Escondido court,
Camarillo ca 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Susan Cowden <[email protected]>
Sent: Saturday, May 10, 2025 3:52 PM
To: City Clerk Internet EMAIL Group
Subject: Protest water and sewer rate increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] Susan Cowden, homeowner at 2314 Grandview Drive, Camarillo, and I’m protesƟng the increases of water and sewer rates.

Sent from my iPhone
1 Veronica Madrigal
From: michael d. rittenberg <[email protected]>
Sent: Saturday, May 10, 2025 7:47 PM
To: City Clerk Internet EMAIL Group
Subject: Rate Increases
[Some people who received this message don't oŌen get email from mdlhriƩ@hotmail.com. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
Hi,
As a long term property owner in Camarillo, I want it to be known that we oppose the uƟlity rate increases being proposed/submiƩed.

We live at:
1894 Chapel Drive
Camarillo, CA 93010
Thank you for hearing our protest of opposiƟon.

Michael & Lisa RiƩenberg
1 Veronica Madrigal
From: Phyllis Harsma <[email protected]>
Sent: Sunday, May 11, 2025 12:56 AM
To: City Clerk Internet EMAIL Group
Subject: Water and Sewer Rate Increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
> I would like to voice my protest to the excessive rate increase to our Water and Sewer fees. My second property address is 2030 Lakehurst in Camarillo.

Phyllis Harsma
Sent from my iPad
1 Veronica Madrigal
From: C M <[email protected]>
Sent: Sunday, May 11, 2025 10:47 AM
To: City Clerk Internet EMAIL Group
Subject: water, sewer rate protest
I protest the water and sewer taes being proposed. Find another way.

Carey Mulloy
1738 Paseo Barona
Camarillo Ca. 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Daniel Weston <[email protected]>
Sent: Saturday, May 10, 2025 4:46 PM
To: City Clerk Internet EMAIL Group
Subject: Water and sewer rate increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] I’m wriƟng this leƩer to protest the recent proposed rate increase for our water and sewer rates. I feel there are beƩer ways that the city can explore to improve the situaƟon without raising the price by so much.

Dan Weston
1 Veronica Madrigal
From: Walter pittman <[email protected]>
Sent: Sunday, May 11, 2025 9:18 PM
To: City Clerk Internet EMAIL Group
Subject: Protest sewer and water rate increase
[Some people who received this message don't oŌen get email from janetspiƩ[email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] Janet and Walter piƩman residing at
2987 Avenida de autlan
Camarillo, CA 93010
Want to protest the proposed water and sewer rate hike.

Sent from my iPhone
1 Veronica Madrigal
From: Joe Chinery <[email protected]>
Sent: Sunday, May 11, 2025 8:57 PM
To: City Clerk Internet EMAIL Group
Subject: Protest to Proposed Sewer Rate Increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] We would like to formally submit a protest to the proposed sewer increase that will be discussed at the public hearing this coming Wednesday. The increase in the sewer rate from what we pay for a single family residence now to the proposed increase for July 1, 2028 is approximately 80%. We realize the need to repair aging infrastructure but the proposed schedule of increases from July 1, 2025 to July 1, 2028 is aggressive.

Joe and PaƩy Chinery
2010 Chapel Drive
Camarillo, CA 93010
Sent from my iPad
1 Veronica Madrigal
From: Joe Chinery <[email protected]>
Sent: Sunday, May 11, 2025 9:03 PM
To: City Clerk Internet EMAIL Group
Subject: Protest to Proposed Water Rate Increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] We would like to formally submit a protest to the proposed water increase that will be discussed at the public hearing this coming Wednesday. The increase in the water rate from what we pay for a single-family residence now to the proposed increase for July 1, 2028 is approximately 70%. We realize the need to repair aging infrastructure but the proposed schedule of increases from July 1, 2025 to July 1, 2028 is aggressive.

Joe and PaƩy Chinery
2010 Chapel Drive
Camarillo, CA 93010
Sent from my iPad
1 Veronica Madrigal
From: Rachel Holst <[email protected]>
Sent: Sunday, May 11, 2025 7:49 PM
To: City Clerk Internet EMAIL Group
Subject: protest water and sewer rate increases
Hello.

I am emailing to the proposed water and sewer increases. My affected property address is 5259 Felicia St, Camarillo, CA 93012.

I urge the City Council to identify credible alternatives to raising our water and sewer rates.

Thank you,
Rachel Holst,
(805) 204-7720
[email protected]
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Dianne Glick <[email protected]>
Sent: Sunday, May 11, 2025 6:35 PM
To: City Clerk Internet EMAIL Group
Subject: Sewer and water rate increase
As a fifty year resident of the city, I protest this outrageous rate increase for our water and sewer services The dramatic consumer price increases on every imaginable product and services are stretching every family to a breaking point.

There needs to be an alternative plan,
An 81% increase over four years is not an alternative.

Dianne Glick
2999 Avenida de Autlan
Camarillo, California
93010
“Excellence is not a skill- it’s an attitude”
Dianne Glick
[email protected]
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Rosie <[email protected]>
Sent: Sunday, May 11, 2025 9:38 PM
To: City Clerk Internet EMAIL Group
Subject: Sewer Rate Increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] We wish to protest the sewer rate increase.

Our address is:
1242 Bordeaux Avenue
Camarillo, 93010
Thank You,
Peter and Rosario Rodriguez
Sent from my iPhone
1 Veronica Madrigal
From: Brice Hall <[email protected]>
Sent: Sunday, May 11, 2025 5:21 PM
To: City Clerk Internet EMAIL Group
Subject: Water/sewer costs increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
I, Brice Hall, am wriƟng to protest the increases to the water and sewer costs. This will have a server negaƟve impact on me.

Thank you
Brice Hall
2810 Diamond Drive
Camarillo, Calif 93010
1 Veronica Madrigal
From: Rod Andrews <[email protected]>
Sent: Sunday, May 11, 2025 5:54 PM
To: City Clerk Internet EMAIL Group
Subject: Water sewer rate protest
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
I protest the rate increases to our water and sewer rates.

Rod Andrews
2858 Avenida de Autlan
Camarillo, Ca 93010
Sent from my iPad
1 Veronica Madrigal
From: Jill Pfitzer <[email protected]>
Sent: Sunday, May 11, 2025 5:12 PM
To: Brice Hall; Jill Pfitzer; City Clerk Internet EMAIL Group Subject: Protest of increases in water and sewer costs
Subject: Protest of increases in water and sewer costs
I Jill Pfitzer am writing to protest the suggested increases in the water and sewer cost it will have a server negative impact on me.

Jill Pfitzer
2810 Diamond Drive
Camarillo, California 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Keith Stempel <[email protected]>
Sent: Sunday, May 11, 2025 4:09 PM
To: City Clerk Internet EMAIL Group
Subject: Formal Protest to Proposed Sewer Rate Increases – Public Hearing May 14, 2025 Dear City Clerk,
I, Keith Stempel, am the property owner of 525 Bloomfield Place, Camarillo, CA 93012, and I am writing to formally protest the proposed sewer rate increases described in the public notice for the upcoming hearing on May 14, 2025.

I hereby oppose the rate increases and request that my written protest be counted in accordance with the procedures outlined under Proposition 218.

Sincerely,
Keith Stempel
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Jill Pfitzer <[email protected]>
Sent: Sunday, May 11, 2025 5:16 PM
To: City Clerk Internet EMAIL Group
Cc: Jill Pfitzer; Brice Hall
Subject: Protest of increased water and sewer costs
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
I, Jill Pfitzer, am wriƟng to protest the increases to the water and sewer costs. This will have a server negaƟve impact on me.

Thank you
Jill Pfitzer
2810 Diamond Drive
Camarillo, Calif 93010
1 Veronica Madrigal
From: Ann O'Grady <[email protected]>
Sent: Sunday, May 11, 2025 4:14 PM
To: City Clerk Internet EMAIL Group
Subject: Sewer rate hike
To Camarillo City Council:

Please no sewer rate hikes at this time. The economy is tough already and this is just one more hit.

Therefore we are against an new rate hike.

Regards,
Joseph and Ann Marie O'Grady
321 Paradise Circle
Camarillo, CA 93010
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From: Jon Amelsberg <[email protected]>
Sent: Sunday, May 11, 2025 4:34 PM
To: City Clerk Internet EMAIL Group
Subject: Water, Sewer Rate Protest
This is in protest to the proposed sewer rate and water rate increases. We live on a very tight budget and cannot afford any more hits to our fixed income. We live in Leisure Village and recently got an 18% increase in our HOA dues. Please, help us senior citizens by not making these proposed increases so we can continue to live in comfort here in Camarillo.

Thank you for your consideration,
Jon and Pat Amelsberg
44149 Village 44
Camarillo, CA 93012
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Linda Declusin <[email protected]>
Sent: Sunday, May 11, 2025 1:42 PM
To: City Clerk Internet EMAIL Group
Subject: Outrageous water price increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] I protest this raise in price.

Linda Declusin
2807 Diamond Dr., Camarillo 93010
Sent from my iPhone
1 Veronica Madrigal
From: Kevin Trudell <[email protected]>
Sent: Sunday, May 11, 2025 1:49 PM
To: City Clerk Internet EMAIL Group
Subject: Protest rate increase
Kevin Trudell, homeowner at 191 Palm Drive, Camarillo, and I’m protesting the increases of water and sewer rates.

Thank you
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Toto Posasi <[email protected]>
Sent: Sunday, May 11, 2025 1:55 PM
To: City Clerk Internet EMAIL Group
Subject: Protest rate increase
Toto Posasi, homeowner at 191 Palm Dr., and I'm protesting the increases of water and sewer.

Thank you
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: John Sandbrook <[email protected]>
Sent: Sunday, May 11, 2025 1:04 PM
To: City Clerk Internet EMAIL Group
Subject: Protest water rate increase
My name is John Sandbrook and I own the property at 2836 Magnolia St, Camarillo, CA 93012. I protest the proposed water rate increases.

Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: ilovebassets <[email protected]>
Sent: Sunday, May 11, 2025 12:03 PM
To: City Clerk Internet EMAIL Group
Subject: Water, sewer rate protest
This is to inform you that I am protesting the water and sewer rate increases.

Marilu Tiberi-Vipraio
1408 Tamarix Street
Camarillo, CA 93010
Sent from my T-Mobile 5G Device
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: [email protected]
Sent: Sunday, May 11, 2025 7:13 PM
To: City Clerk Internet EMAIL Group
Subject: Re: Water and sewer rate increases - Protest statement To the Members of the City Council:

We are protesting the water and sewer rate increases. The proposed increases will clearly be unaffordable to many residents.

Sincerely,
Scott and Sandra Beattie
1107 Red Oak Place
Camarilo, Ca 93010

Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: [email protected]
Sent: Sunday, May 11, 2025 7:26 PM
To: City Clerk Internet EMAIL Group
Subject: Re: Letter of Protest of the Water and Sewer Rate Increases To the City Clerk:

We sent an email protesting the water and sewer rate increases, but mistakenly left the "l" out of Camarillo. We just want to be certain that the correct address is recorded.

Sincerely,
Scott and Sandra Beattie
1107 Red Oak Place
Camarillo, CA 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Shirley Myers <[email protected]>
Sent: Sunday, May 11, 2025 2:39 PM
To: City Clerk Internet EMAIL Group
Subject: water/sewer increase
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] To City Clerk of Camarillo:

Please be advised that we object strongly to the proposed proposal for the excessive increases in Water/ Sewer rates.

Please have the Board of Supervisors request staff to invesƟgate alternate plans.

Lawrence & Shirley Myers
2872 Avenida De Autlan
Camarillo 93010
1 Veronica Madrigal
From: Mike Cogan <[email protected]>
Sent: Monday, May 12, 2025 11:33 AM
To: City Clerk Internet EMAIL Group
Subject: Apposed to rate increases
Follow Up Flag: Follow up
Flag Status: Completed
I am apposed to any rate increases for water and/or sewer for 2350 Grandview Dr.

Mike Cogan
2350 Grandview Dr.

Camarillo CA 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Silvia Quintana <[email protected]>
Sent: Monday, May 12, 2025 11:34 AM
To: City Clerk Internet EMAIL Group
Subject: NO INCREASE. SEWER WATER
Follow Up Flag: Follow up
Flag Status: Completed
Account number: 23533-76754 Cycle/Route: 03-23
Location Address:1074 GEMINI AV
City/State/Zip : CAMARILLO CA 93010
Customer Name : QUINTANA, SILVIA
Mailing Address: 1074 GEMINI AV
City/State/Zip : CAMARILLO CA 93010-4718

PLEASE DO NOT INCREASE WATER AND SEWER RATES
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Patricia Spoor <[email protected]>
Sent: Monday, May 12, 2025 10:26 AM
To: City Clerk Internet EMAIL Group
Subject: Website Inquiry
Follow Up Flag: Follow up
Flag Status: Completed
Patricia Spoor resident of 846 Duvall Avenue, Camarillo, is protesting the water and sewer increases for the next four years.

Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Arsine Nossardi <[email protected]>
Sent: Monday, May 12, 2025 10:23 AM
To: City Clerk Internet EMAIL Group
Subject: Proposition 218
Follow Up Flag: Follow up
Flag Status: Completed
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
I am protesƟng the increases in ProposiƟon 218.

Arsine Nossardi
5442 Quailridge Drive
Camarillo, CA. 93012
Thank you for your aƩenƟon to this maƩer.
1 Veronica Madrigal
From: KATHLEEN SHEEHAN <[email protected]>
Sent: Monday, May 12, 2025 9:10 AM
To: City Clerk Internet EMAIL Group
Subject: Protest to Proposed Water Rate Increase
Follow Up Flag: Follow up
Flag Status: Completed
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
> We would like to formally submit a protest to the proposed water increase that will be discussed at the public hearing this coming Wednesday. The increase in the water rate from what we pay for a single-family residence now to the proposed increase for July 1, 2028 is approximately 70%. We realize the need to repair aging infrastructure but the proposed schedule of increases from July 1, 2025 to July 1, 2028 is aggressive. >
Steve and Kathy Sheehan
Camarillo, CA 93010
1 Veronica Madrigal
From: mikeandmelz01 <[email protected]>
Sent: Monday, May 12, 2025 8:34 AM
To: City Clerk Internet EMAIL Group
Subject: Rate Increases
Follow Up Flag: Follow up
Flag Status: Completed
I protest against the planned water and sewer rate increases.

Michael Zaboski
Camarillo City Resident
Sent from Skynet Central.

Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: mnmz <[email protected]>
Sent: Monday, May 12, 2025 9:07 AM
To: City Clerk Internet EMAIL Group
Subject: Rate Increases
Follow Up Flag: Follow up
Flag Status: Completed
I protest against the planned water and sewer rate increases.

Imelda Zaboski
Camarillo City Resident
Sent from my T-Mobile 4G LTE Device
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: mikeandmelz01 <[email protected]>
Sent: Monday, May 12, 2025 8:30 AM
To: City Clerk Internet EMAIL Group
Follow Up Flag: Follow up
Flag Status: Completed
I protest against the planned water and sewer rate increases.

Michael Zaboski
Camarillo City Resident
Sent from Skynet Central.

Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: mike sterlingwest.com <[email protected]>
Sent: Monday, May 12, 2025 7:40 AM
To: City Clerk Internet EMAIL Group
Subject: Fw: No Water & Sewer Price Increases
Follow Up Flag: Follow up
Flag Status: Completed
Hello,
I just want to vocalize my opposition to any water or sewer rate increases.

Thank you,
Mike Spasiano
Real Estate Broker
DRE License #01387821
Sterling West Real Estate
2817 Avenida de Autlan
Camarillo, Ca. 93010
805-844-7900 (cell)
805-604-1686 (fax)
[email protected]
Www.sterlinghillsonline.com
Sent From my iPhone
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Our Lab Inc. <[email protected]>
Sent: Monday, May 12, 2025 7:02 AM
To: City Clerk Internet EMAIL Group
Subject: Fwd: Protest water & sewer rate increases
Follow Up Flag: Follow up
Flag Status: Completed
Sent from my iPad
Begin forwarded message:

From: "Our Lab Inc." <[email protected]>
Date: May 11, 2025 at 8:16:28 AM PDT
To: cityclerk@cityofcamarillo
Cc: Cabrini DeMattia <[email protected]>
Subject: Protest water & sewer rate increases
I am formally protesting the preposed water & sewer rate increase.

Thank you
Cabrini DeMattia
4924 Caminito Luisa
Camarillo Ca
93012
Sent from my iPad
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Rosemary Spira <[email protected]>
Sent: Monday, May 12, 2025 8:29 AM
To: City Clerk Internet EMAIL Group
Subject: Protest increased rates
Follow Up Flag: Follow up
Flag Status: Completed
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ]
Hello,
We wish to protest the possible increase in sewer and water rates proposed. We have numerous properƟes in Camarillo and have lived here since 2000.

Thank you,
Charles and Rosemary Spira
1173 Corte Riviera
Camarillo
1 Veronica Madrigal
From: Krystyna Emilia <[email protected]>
Sent: Monday, May 12, 2025 6:24 AM
To: City Clerk Internet EMAIL Group
Subject: PROTEST water and sewer rate increase
Follow Up Flag: Follow up
Flag Status: Completed
[Some people who received this message don't oŌen get email from [email protected]. Learn why this is important at hƩps://aka.ms/LearnAboutSenderIdenƟficaƟon ] Hello City ClerkI am a home owner in Camarillo sending this email in PROTEST of the unaffordable sewer and water increase in our community!
Please hear my plea!
Respecƞully,
Krystyna Emilia
I reside @ 2321 Brookhill Drive,
Camarillo, CA 93010
Sent from my iPhone

1 Veronica Madrigal
From: Dominique M. <[email protected]>
Sent: Monday, May 12, 2025 7:33 AM
To: City Clerk Internet EMAIL Group
Subject: Protest of sewer and water increases
Attachments: -1696324743439965340.jpg
Follow Up Flag: Follow up
Flag Status: Completed
Protest of water and sewer increases
Dominic Montez
2321 Brookhill drive
Camarillo, CA 93010
Some people who received this message don't often get email from [email protected]. Learn why this is important 1 Veronica Madrigal
From: Sonya Sheehan <[email protected]>
Sent: Monday, May 12, 2025 8:05 AM
To: City Clerk Internet EMAIL Group
Subject: Protesting water & sewer rate increase
Follow Up Flag: Follow up
Flag Status: Completed
I am writing to protest the proposed water & sewer rate increase. --
Sonya Sheehan
4779 La Puma Ct
Camarillo, CA 93012
Some people who received this message don't often get email from [email protected]. Learn why this is important Objection to Proposed Camarillo Sewer Rates
By Linda G. Hillman
6357 Corte Tunitas, Camarillo, CA 93012
I object to the proposed sewer rates. The rates violate Proposition 218, because the residential rates are fixed, regardless of how much sewage the residence sends for treatment. Small users subsidize big users. The city has not met its burden of showing “that the amount of any contested assessment is proportional to, and no greater than, the benefits conferred on” properties with low sewer use, nor why it is proportional to vary business charges with use and not residential charges.

Prop 218 (California Constitution XIII D) requires,
● “No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel…
● “the burden shall be on the agency to demonstrate … that the amount of any contested assessment is proportional to, and no greater than, the benefits conferred on the property or properties in question.”
Government code 53759.2 says that any court case against the rates will be decided on the evidence submitted to the city, no new evidence.

Camarillo says written objections signed by owners or tenants are due by 5 pm May 12. Hearing is at 5 pm May 14. Submittal locations are Email: [email protected] and In Person:

Camarillo City Clerk, 601 Carmen Drive, Camarillo, CA 93010.

Camarillo charges businesses based on use. It’s fair to charge homes the same way. Everyone can control costs by conserving water. The cities would bill for gallons used, and customers who use less would pay less.

To avoid charging sewer rates on irrigation water which does not get sewer treatment, some big irrigators in Simi Valley have landscape meters to keep irrigation water off the main meter. The California Model Water Efficient Landscape ordinance encourages landscape meters for landscapes over 5,000 square feet.
1 Los Angeles City bills all year based on winter water use, when irrigation is low, so extra use for irrigation in drier warmer months does not entail sewer charges. Los Angeles says:
● “Annually, your average daily sewage volume is calculated for the upcoming year, from July 1 through June 30, based on previous winter's lowest average daily sewage volume. The sewage volume is determined by evaluating the water usage for the premises during the rainy season review period.” Source:
1 23 CCR § 493.2.2(e)(1)
https://govt.westlaw.com/calregs/Document/I359E82E0CF6211EFAEE1BA05241FF137?viewType=FullText&origin ationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default) 1 www.ladwp.com/account/customer-service/understanding-your-rates/residential-sewer-ser vice-charge
San Luis Obispo uses a variation, with a monthly cap based on winter use. San Luis Obispo says:
● “Water usage is tracked from December through February when irrigation systems are likely off. The usage is averaged to determine the sewer cap applicable for the upcoming year.” Source:
https://www.slocity.org/government/department-directory/utilities-department/utility-bill ing/sewer-cap
San Francisco assumes 10% for irrigation and lets people apply for a different factor. San Francisco says:
● “A discharge unit shall be based on the customer’s metered water use multiplied by the flow factor and represents the quantity of metered water use returned to the sewage system as wastewater. By default, residential single-family customers are assumed to have a flow factor of 90% and multi-family residential customers are assumed to have a flow factor of 95%.

Customers whose usage of water varies from typical patterns may apply for an adjusted flow factor.” Source:
https://www.sfpuc.gov/sites/default/files/accounts-and-services/Rates2024/2024-0625_10 44_Rates_Schedule_Water_Sewer_WEB.pdf
Camarillo has not met its burden of showing “that the amount of any contested assessment is proportional to, and no greater than, the benefits conferred on” properties with low sewer use, nor why it is proportional to vary business charges with use and not vary residential charges with use.

People vary in the water and sewer they use (sources attached):
● Oxnard bills $35.79 per month base rate plus $2.35 per Hundred Cubic feet (HCF). ● Ventura City bills $19 per month base rate plus $4.46 per HCF, to maximum of 12 HCF. ● Santa Barbara City bills $32.74 per month base rate plus $4.96 per HCF to maximum of 8 HCF.
● San Luis Obispo City bills $26.11 per month base rate plus $10.46 per HCF, to maximum based on winter use.
● Los Angeles City bills $5.80 per HCF
● San Diego City bills $15.75 per month base rate plus $5.33 per HCF to maximum of 20 HCF.
● San Francisco bills $5.76 per month base rate plus $18.72 per HCF.

Camarillo’s 2025 sewer rate study adds inflation to past rates, at 16% per year, to cover bonds for a new treatment plant. The monthly rate for single-family homes will go from $74 now to $86 in July 2 and $135 in 2028. The study expects it to reach $216 per month in 2033, to replace the old sewer plant.
2 That 2025 study says an earlier 2017 study (which is not posted on the City’s website and was obtained by public records request) covered allocation of costs. It showed different household sizes in different building types, and assumed average use was proportional to household size. It set rates based on average use, which was 169 gallons per day in single family homes. The study did not explain why the city should not set rates by use, as it does for non-residential, and as the same consultant recommended for all customers in Ventura City in 2022.

Cotati City says efficient homes use 25-30 gallons per person per day, and Denver recommends 40 (attached).

Camarillo’s plan will charge some businesses $6.32 per Hundred Cubic Feet (HCF), plus a base charge. So proportional rates would bill each family $6.32 per HCF plus a base charge. The base would be $43 to raise the same money as the proposed flat rate.

Camarillo sewer rate per month
At 30 gallons per
person per day
At current average of 63
gallons per person per day
(calculations below)
City planned flat rate $86 $86
Average rate in different family
sizes if it's based on use:
1 $51 $59
2 $58 $75
3 $66 $91
4 $73 $107
5 $81 $123
6 $89 $139
For sewer customers where Camarillo doesn’t provide the water, the city can ask the water provider for usage, as they do with commercial customers. If the city doesn't get water use data, the city can (a) ask the customer to provide the water bill, (b) charge for high usage if they don’t, and (c) every year or two check the meter and reconcile charges.

In 2013 John Bakker, a city attorney for two cities, gave the attached presentation to the League of California Cities and recommended, “Avoid flat-rate and minimum charges unless the use-based 2 2025 Camarillo Sewer Rate study p.4 shows 16% rise per year through 2031, then 6% camarillo.primegov.com/api/compilemeetingattachmenthistory/historyattachment/?historyId=7e717bd1-5f0e-49d3-a 5b8-a5f0f74203fc Notice mailed, though with wrong phone number cityofcamarillo.org/hot_topics/utility_rates.php 3 justification is explained in detail.”
3 Bakker has extensive experience as an attorney for cities and special districts.

Camarillo’s 2017 sewer rate study in 2017 (attached) cites the manual, Financing and Charges for Wastewater, for their methodology. The 2005 and 2018 editions 4 have the same messages:
● “It is common practice to use metered water data to estimate customer-contributed residential wastewater volume units of service for the majority of customer classes.” 2004-p.129
● “In recognition of the often significant amount of water used by residential customers for lawn irrigation, car washing, or other purposes not discharge to the wastewater system, it is generally reasonable, for allocation purposes, to estimate contributed residential wastewater volumes based on winter usage (where irrigation is generally limited to summer months) or as a representative percentage of total annual use (where irrigation is year-round).” 2004-p.129
● “Service units under the design basis include volume, capacity (peak wastewater volume), strength (suspended solids, BOD, and TKN), and customer billing units.” 2004-p.134 ● “under the functional-cost allocation methodology. Under this approach… capacity is not used as a cost determinant. Volume, strength, and the customer units of service are determined in the same manner as described above for the design-basis methodology.” 2004-p.136
● “Cost-of-service studies are important as guides for determining the necessity for and level of rate adjustments to be considered in recovering costs equitably from wastewater system customers. The importance of such studies is that they make policymakers aware of all factors contributing to the costs incurred in providing service to various system customers.

When practical or policy matters dictate deviation from cost of service, decision-makers can be apprised of the dollar effects of deviation.” 2004-p.142 ● “Notably, cost-of-service rates are the standard for determination of rate equity.” 2018-p.60, 2005-p.145
● “Comparisons… provide information on the magnitude and direction of subsidies across customer classes.” 2018-p.60, 2005-p.145
● “the use of fixed charges exclusively is steadily declining and being replaced by rate schedules that combine fixed charges with a volume rate.” 2018-p.61, 2005-p.146 ● “The primary disadvantages of revenue recovery largely through fixed charges are potential inequities in the distribution of cost responsibilities and lack of affordability for 4 2004 version of manual Financing and Charges for Wastewater Systems (27) (Manual of Practice) https://search.worldcat.org/search?q=+0071453040&offset=1 2018 version: Financing and Charges for Wastewater Systems (27) (Manual of Practice), 4th ed. by Water Environment Federation.
https://search.worldcat.org/search?q=9781572783478&offset=1 3 https://www.cacities.org/UploadedFiles/LeagueInternet/95/9511e374-8da9-4aa5-96dd-807988485fd1.pdf 4 small-volume users… Payment for quantities or services not received is contrary to cost-of-service principles.” 2018-p.61, 2005-p.147
● “winter averaging. Under this approach, a customer’s wastewater billable units are determined by calculating the mean, or average, of the customer’s metered water consumption during a designated series of months… when outdoor watering is at a minimum… The customer is then billed their unique winter average for each month during the subsequent year.” 2018-p.62
● “Average winter water use is generally considered to provide the most accurate estimation.” 2005-p.149
● “Uniform volume rates by customer class provide a mechanism… achieving cost recovery either through a combination of a customer charge and volumetric rate, or simply by a single rate-per-unit of billable flow.” 2005-p.153
● “in many communities, a shift in revenue recovery from fixed charges to variable rates has been made to support water conservation objectives or simply enhance ratepayers’ control of wastewater bills.” 2018-p.64, 2005-p.160
● “To the extent that these policy approaches result in inter- or intraclass subsidies, it is important to be able to quantify these transfers.” 2005-p.161 ● “If the current rate structure is a flat rate structure (i.e., the bill is fixed and does not vary with level-of-service use), then moving to a (water use) volume-based approach could assist with affordability. The reason is that if the structure is volume-based, a customer is better able to control the bill by altering the level of use.” 2018-p.89, 2005-p.224 I verify that the statements here and the attachments are accurate to the best of my information and belief.
__________________________________________, record owner, dated: 5/12/2025 Linda G. Hillman, record owner
6357 Corte Tunitas
Camarillo, CA 93012
Attachments
Ventura City current rates
https://www.cityofventura.ca.gov/DocumentCenter/View/40640/2024-25-Rates Oxnard rates since 2021
https://www.oxnard.gov/wp-content/uploads/2023/12/Wastewater-Rate-Sheet.pdf Santa Barbara City rates
santabarbaraca.gov/sites/default/files/2022-06/FY23%20Sewer%20Rate%20and%20Fee%20Sche dule.pdf
5 San Luis Obispo City rates
slocity.org/government/department-directory/utilities-department/utility-billing/water-and-se wer-rates
San Luis Obispo sewer cap
slocity.org/government/department-directory/utilities-department/utility-billing/sewer-cap Los Angeles City rates
https://sanitation.lacity.gov/san/faces/home/portal/s-lsh-au/s-lsh-au-r/s-lsh-au-r-b?_adf.ctrl-stat e=vp1fcvlh4_5&_afrLoop=15944878649373412#!
Los Angeles City explanation of billing based on winter water use www.ladwp.com/account/customer-service/understanding-your-rates/residential-sewer-service-c harge
San Diego City rates
https://www.sandiego.gov/public-utilities/customer-support/sewer-billing-rates San Francisco rates are on page 13 (p.26 of pdf) in
https://www.sfpuc.gov/sites/default/files/accounts-and-services/Rates2024/2024-0625_1044_ Rates_Schedule_Water_Sewer_WEB.pdf
Cotati City FAQ on residential use https://www.cotaticity.gov/FAQ.aspx?QID=89 Denver City/County recommendations on residential use
https://www.denverwater.org/residential/efficiency-tip/how-efficient-are-you-indoors Attorney John Bakker’s advice in 2013 to CA League of Cities is on p.18 in cacities.org/UploadedFiles/LeagueInternet/95/9511e374-8da9-4aa5-96dd-807988485fd1.pdf Attorney John Bakker’s bio https://www.redwoodpubliclaw.com/john-d-bakker Camarillo 2017 sewer rate study by Raftelis (not publicly posted by city, obtained by public records request)
https://www.documentcloud.org/documents/25876235-camarillo-2017-wastewater-rate-study/ Ventura 2021 sewer rate study by Raftelis
cityofventura.ca.gov/DocumentCenter/View/26850/2021-Cost-of-Service-and-Rate-Design-St udy-Report
6 Customer Classification
Meter Size Monthly
3/4" # HCF Monthly Commercial Per HCF Fixed Charge
1" CAP * Rate Group 1: $6.21 $18.94

1.5" Single Family
2" Fixed Charge $18.94 A. Laundromats
HCF $ 3" Flow Charge 12 $4.46 B. Car Wash
0-6 3.58 4" C. Professional Offices
7-12 5.90 6" Multi Family D. Convalescent homes
>12 7.64 8" Fixed Charge $13.97 E. Wholesale Establishments 10" Flow Charge 10 $4.46 F. Offices
12" G. Retail Establishments
* Actual water use each monthly billing H. Public Buildings period (in HCF) subject to monthly cap. I. Barber & Beauty Shops HCF $ J. Gas Stations & Garages
0-5 3.58 Meter Size K. Bars w/out dining facilities
6-10 5.90 1" L. Theaters
>10 7.64 Churches M. Gyms
Fixed Charge $18.94 N. Hospitals
Flow Charge Per HCF $4.69 O. Grocery stores w/out garbage grinders Meter Size
1" Group 2 $6.58 $18.94
HCF $ 2"
Per HCF 5.56 3" Schools ($/100 ADA) $124.82 A . Hotels & Motels w/out dining facilities 4" B. Commercial laundries
6"
8" Industrial Group 3 $8.04 $18.94
10" Flow (per million gallons) $7,322.80
HCF $ 12" Chemical Oxygen Demand ** $203.50 A. Hotels w/dining facilities Per HCF 6.32 Suspended Solids ** $417.21
Automated Meter Infrastructure Opt-Out[1] Fee **per 1,000 lbs Group 4 $9.59 $18.94 Initial Fee (one-time) $75.00
Monthly Fee $10.00 A. Mortuaries
Misc. Fees[2] Fee B . Grocery stores with garbage grinders HCF $ Backflow Device Charges[2] Fee NSF Check=First Check $25.00 $35.00 Per HCF 3.78 Bkflow Mgmt Fee (per yr) $20.00 New Service (Turn On & Unlock Meter) $108.00 Group 5 $8.86 $18.94 Bkflow Non-Compliance $500.00 New Service (No Field Visit Required) $45.00 Post 10 Day Turnoff Notice $54.00 A. Bakeries
Temp Meter Charge[2] Rate Shut Off & Lock Service $108.00 B. Restaurants Temp Mtr Deposit $300.00 Conduct Flow Test $502.00 C. Multi-use shopping centers HCF $ Temp Mtr Set/Remove $354.00 Same Day Service $75.00 Per HCF 1.38 Temp Mtr Relocate $118.00 After Hours Charge $75.00 Group 6 $1.87 $18.94 Temp Mtr Daily Chg $2.00 Tampering Fee $150.00 A. Plant Nurseries 1 HCF = 748 gallons * Service Charges are based on Meter Size NOTE [1]: AMI Opt-Out Reduced Fees for Income Qualified - Initial Fee $10 (one-time) and Monthly Fee $5 NOTE [2]: Backflow Device Charges, Temp Meter Charges, and Misc. Fees Effective July 1, 2024 - Approved by CC 4/9/24 Water Usage
Untreated Water
Reclaimed Water
Water Usage
Non-Residential Irrigation
Water Usage
Water Usage
Ventura Water - FY 2024-2025 Water and Wastewater Rates FY 2024-2025 Wastewater Rates
Water Volume Rates
Single Family Residential
Water Service Charges * Customer Classification
Per Hundred Cubic Feet (HCF) Monthly Charge
$33.27
$22.66
FY 2024-2025 Water Rates
Water Usage
Monthly Charge
Water Usage
Multiple Family Residential
Non-Residential
Fire Line Service Charge *
Monthly Charge
$59.78
$340.83
$696.11
$1,279.42
$2,021.81
$2,658.14
Fire Line Service Charge *
$4.39
$91.60
$192.35
$494.50
$19.48
$33.88
All Other Customer Classes
Single Family Residential
$308.71
$11.13
$11.13
$85.54
$174.66
*** RATES EFFECTIVE JULY 1, 2024*** 4/23/2024

CITY OF OXNARD WATER AND WASTEWATER RATES
Effective September 1, 2021, respective utility rates have been reduced to reflect the temporaty removal of the Infrastructure Use Fee from rates, as approved by Council
WASTEWATER RATES AND CHARGES - EFFECTIVE SEPTEMBER 1, 2021 (monthly bill consists of base rate charge + volume rate of return charge)

MONTHLY BASE RATE
Single Family $35.79
Multi-Family Each of 1st 6 Units = $26.19 7+ Units = $13.06 Outside City-Residential $92.54
Outside City-Multi-Family $64.59
Non-Metered $61.42
VOLUME CHARGE PER HCF (RATE OF WATER RETURN %)
Single Family (80%) 0-9 $2.35 >9-18 $2.62 >18 $3.63
Single Family Large Lots (60%) 0-16 $2.35 >16-25 $2.62 >25 $3.63 Multi-Family - per unit (90%) 0-6 $1.91 >6-12 $2.13 >12 $2.97 Commercial (85%) Minimum Monthly Fee $23.77 *OR* whichever is greater 0-50 $4.19 >50-930 $5.23 >930 10.43
School (85%) Minimum Monthly Fee $83.42 *OR* whichever is greater 0-50 $4.19 >50-930 $5.23 >930 $10.43
Restaurant (80%) Minimum Monthly Fee $22.07 *OR* whichever is greater 0-20 $4.19 >20-160 $5.23 >160 $10.43
Laundry (90%) Minimum Monthly Fee 109.35 *OR* whichever is greater 0-105 $4.19 >105-525 $4.63 >525 $5.77
Las Posas Commercial 0-50 $7.60 >50-930 $9.47 >930 $18.91

MONTHLY RATES FOR USER CHARGE FORMULA
Wastewater Discharge/Millions of Gallons: p= $3,655.42
Biological Oxygen Demand (BOD) Discharge/Thousands of lbs: q= $832.95 Suspended Solids (SS) Discharge/Thousands of lbs: r=
Thousands of lbs: r=677.03
$658.75
WASTEWATER ODOR OR OTHER SERVICE ISSUES CALL 805-271-2200

SEWER RATES AND FEES
Title 14 of the Santa Barbara Municipal Code authorizesthe City Council to set water and sewer service charges;
Section 14.40.010 of the Santa Barbara Municipal Code authorizes the establishment by resolution of sewer service charges; and
Title 16 of the Santa Barbara Municipal Code authorizesthe City Council to control and regulate discharges into the sewer system and to establish quantity standards, fees, and controls for dischargers.

I. Definitions
Wherever used in this resolution, the following words shall have the meanings set forth beside them:

A. "Compositesample." Twoormorealiquotsamplestakenfromthesamewaste stream over a period longer than fifteen (15) minutes.

B. "Director." The Director of the City Public Works Department or his or her designatedrepresentative.

C. "Hcf." 100 cubic feet.

D. "Sewer" or "City sewer system." Any and all artificial conduits owned and operated by the City or any other public agency that are tributary to any wastewater treatment facility operated by the City.

E. “Person.” Any individual, partnership, co-partnership, firm, company, association, corporation, joint stock company, trust, estate, government entity, or any other legal entity, or their legal representatives, agents, or assigns. This definition includes all Federal, State, and Local government entities.

F. "Waste." Sewage and any and all other waste substances, liquid, solid, gaseous, or radioactive, associated with human habitation, or of human or animal origin, or from any producing, manufacturing, or processing operation of whatevernature.

G. "Wastewater." Waste or water, treated or untreated, which is dischargedinto or permitted to enter asewer.

H. “Connection” or “Wye.” The fitting or element of the sewer lateral that conveys the private sewage to the publicly maintained sewer.

II. Sewer ServiceRates
The following monthly rates and charges shall apply to use of sewers by the following categories of customers:

A. Residential ServiceCharges

1. Applicable to all accounts serving one detached dwelling unit:
i. Fixed charge:

Effective
July 2, 2024
Effective
July 1, 2025
Effective
July 1, 2026
Effective
July 1, 2027
Fixed Charge $29.90 $32.74 $35.85 $39.26
ii. Plus, charges based on the quantity of water consumed, upto the account cap:

Effective
July 2, 2024
Effective
July 1, 2025
Effective
July 1, 2026
Effective
July 1, 2027
Up to Cap $4.53/HCF $4.96/HCF $5.43/HCF $5.95/HCF
Over Cap
No
additional
charge
No
additional
charge
No
additional
charge
No
additional
charge
Cap 8 HCF 8 HCF 8 HCF 8 HCF

2. Applicable to all accounts serving two to four dwelling units, Accessory Dwelling Units served by their own City water meter, and all accounts serving a dwelling unit attached to no more than three additional dwelling units:
i. Fixed charge per dwelling unit on account:

Effective
July 2, 2024
Effective
July 1, 2025
Effective
July 1, 2026
Effective
July 1, 2027
Fixed Charge
(per Dwelling
Unit)
$29.90 $32.74 $35.85 $39.26
ii. Plus, charge based on the quantity of water consumed:

Effective
July 2, 2024
Effective
July 1, 2025
Effective
July 1, 2026
Effective
July 1, 2027
Volumetric
Charge $4.53/HCF $4.96/HCF $5.43/HCF $5.95/HCF

3. Applicable to all accounts serving five or more dwelling units, and to accounts serving a dwelling unit attached to four or more additional dwelling units. i. Fixed charge per dwelling unit on account:

Effective
July 2, 2024
Effective
July 1, 2025
Effective
July 1, 2026
Effective
July 1, 2027
Fixed Charge
(per Dwelling
Unit)
$29.90 $32.74 $35.85 $39.26
ii. Plus, charge based on the quantity of water consumed:

Effective
July 2, 2024
Effective
July 1, 2025
Effective
July 1, 2026
Effective
July 1, 2027
Volumetric
Charge $4.53/HCF $4.96/HCF $5.43/HCF $5.95/HCF

4. A residential accountserving a single detached dwelling unit that does not receive City water service shall be charged the maximum rate for the appropriate category, regardless of the quantity of water used, except to the extent that water usage for the account is reported to the City on a monthly basis by the water service providerin a manner prescribed by the City.

5. For residential properties that are City sewer customers but are not City water customers, and whose water service provider does not provide the City with monthly water usage data in a manner prescribed by the City, and who are classified as multi-unit residential because of the construction of additional dwelling units or accessory dwelling units that are not a part of the primary dwelling, the bill shall be calculated by multiplying the maximum bill for the single family residential class times the number of dwelling units on theproperty.

B. CommercialClass
Applicable to all light commercial uses, including, but not limited to, office/professional buildings, banks, institutional and public buildings, schools, colleges, day cares, churches, retail and department stores, utilities/water companies, light manufacturing, auto sales/repair/storage, car washes, warehouses, packing plants, parks, recreation, golf courses, auditorium/stadiums, clubs/lodge halls, parking lots, nurseries and greenhouses, rest homes, common areas of condominium projects, community apartment projects, and mobile home parks; mixed use (commercial and residential) projects; industrial condos, hotels; bed and breakfasts; service stations; miscellaneous industrial uses; construction-related activities; lumber yards/mills; heavy industry; mineral processing; self-service laundry; hospitals; tasting rooms that do not manufacture alcoholic beverages onsite; shopping centers, both regional and neighborhood, and self-service laundry facilities located within multi-family housing complexes provided that the discharge characteristics are limited to wastes typical of other uses in this class, the greater of:

1. Quantity of water consumed:

Effective
July 2, 2024
Effective
July 1, 2025
Effective
July 1, 2026
Effective
July 1, 2027
$/HCF $6.56 $7.18 $7.86 $8.61
Or

2. Charge based on water meter size:

Water
Meter Size
Effective
July 2, 2024
Effective
July 1, 2025
Effective
July 1, 2026
Effective
July 1, 2027
5/8” $53.28 $58.34 $63.88 $69.95
3/4” $79.92 $87.51 $95.82 $104.92
1” $93.24 $102.10 $111.79 $122.41
1 ½” $133.20 $145.85 $159.70 $174.87
2” $213.12 $233.36 $255.52 $279.79
3” $399.60 $437.55 $479.10 $524.61
4” $666.00 $729.25 $798.50 $874.36
6” $1,332.00 $1,458.50 $1,597.00 $1,748.72
8” $2,131.20 $2,333.60 $2,555.20 $2,797.94
10” $3,063.60 $3,354.55 $3,673.10 $4,022.04
C. High Strength and IndustrialClass
Applicable to all high strength commercial or industrial uses, including, but not limited to, food processing establishments, including bakeries; donut shops; butchers; restaurants (including fast food restaurants); delicatessens; hotels/motels with restaurants; industrial launderers; supermarkets/grocery stores; seafood processors; dairy processors; and alcoholic beverage producers, including breweries, wineries, and distilleries. Also applicable to mortuaries, cemeteries, and mausoleums; and other commercial establishments with waste characteristics similar to those included above.

The greater of:

1. Quantity of water consumed:

Effective
July 2, 2024
Effective
July 1, 2025
Effective
July 1, 2026
Effective
July 1, 2027
$/HCF $7.23 $7.92 $8.67 $9.49
Or

2. Charge based on water meter size:

Water
Meter Size
Effective
July 2,
2024
Effective
July 1, 2025
Effective
July 1, 2026
Effective July
1, 2027
5/8” $66.31 $72.61 $79.51 $87.06
3/4” $99.47 $108.92 $119.27 $130.59
1” $116.04 $127.07 $139.14 $152.36
1 ½” $165.78 $181.53 $198.78 $217.65
2” $265.24 $290.44 $318.04 $348.24
3” $497.33 $544.58 $596.33 $652.95
4” $828.88 $907.63 $993.88 $1,088.25
6” $1,657.75 $1,815.25 $1,987.75 $2,176.50
8” $2,652.40 $2,904.40 $3,180.40 $3,482.40
10” $3,812.83 $4,175.08 $4,571.83 $5,005.95
D. The quantity of "water consumed" refers to the quantity of metered water service, other than through irrigation meters, provided monthly to a parcel having one or more connections to the City sewersystem.

1. Where the quantity of wastewater which enters the sewer connection(s) to a particular parcel is substantially less than the quantity of metered service to the parcel, a sewer service customer shall be charged only for the quantity of wastewater discharged to the sewer connections to the customer's property, provided the customer demonstrates annually to the satisfaction of the Director the amount of wastewater actually discharged monthly and annually from the property to the City sewersystem.

2. Where the quantity of wastewater which enters the sewer connection(s) toa particular parcel is substantially more than the quantity of metered water service to the parcel, the sewer service customer shall be charged for the quantity of wastewater actually discharged to the sewer connections to the customer's property. The customer shall demonstrate monthly to the satisfaction of the Director the amount of wastewater actually discharged monthly and annually from the property to the City sewersystem.

The above sewer charges shall be billed (i) effective the date of the sewer connection or (ii) as otherwise provided by written agreement of the customer and the Director.

E. Wastewater Strength Surcharges($/LB)
If the City’s Water Resources Laboratory determines that a customer has exceeded the high strength discharge limitforBiochemicalOxygen (BOD), Total Suspended Solids (TSS), or Ammonia, a surcharge will be assessed for each constituent in excess of its relative limit.

Effective
July 2, 2024
Effective
July 1, 2025
Effective
July 1, 2026
Effective
July 1, 2027
BOD (>750
mg/l) $0.30 $0.33 $0.36 $0.39
TSS (>850 mg/l) $0.58 $0.64 $0.70 $0.77
Ammonia (>90
mg/l) $1.37 $1.50 $1.64 $1.80
F. An account holder may request a change to their customer classification by filing a written request with the Public Works Director. The request must identify the requested classification and contain a detailed statement supporting the change based on water use patterns, wastewater strength characteristics, or other sewer service characteristics. The Director will document a decision on the request in writing. Any change in classification approved by the Director will go in effect upon commencement of the next complete billing cycle. The decision of the Director is final and not subject to appeal. The Director may delegate the authority under thisprovision.

In the case an account classified as multi-unit residential (section II.A.2 or II.A.3) is approved to be reclassified to a single family residential account (section II.A.1), the fixed charge shall be equal to the fixed charge stated in II.A.1.i times the number of dwelling units on the account. The account cap shall be equal to the volume specified in II.A.1.ii multiplied by the numberof dwelling units on the account.

III. Industrial Waste Pretreatment Program Charges
Every Person required to obtain a permit under Title 16 of the Santa Barbara Municipal Code shall be required to pay fees and charges as set forth below:

A. For each permit application submitted, a permit application fee is applicable. The fee includes application processing, site visit, verification of submitted information, permit processing, reports, and invoicing.

1. $191 perpermit.

2. $119 additional fee will apply in the event of an incomplete application or resubmittal, a permit modification request, or if review from multiple departments isnecessary.

B. Tier III – Groundwater Dischargers (in addition to permit application fee):

1. $287 annual permitfee.

2. $191 perresample.

C. Tier II – Non-Significant Industrial Users (in addition to permit applicationfee):

1. $287 annual permitfee.

2. $191 perresample.

D. Tier I - Significant Industrial Users (in addition to permit applicationfee):

1. $2,076 annual permitfee.

2. $191 perresample.

IV. Sewer Service Connections
A. The City has three methods for the installation or replacement of sewerlateral connections. The three options are outlined below.

1. Option 1: Standard Sewer Connection Installation/Replacement. This option and associated charges are only for the replacement of the lateral connection by the City contractor after the property owner’s appropriately licensed/permitted contractor has excavated at the location of connection to the City main. The following charges cover the cost of the City’s contractor to make the replacement of the fitting from the private lateral to the City sewer system and shall apply for each connection of a sewer lateral to the City sewer system, and shall be in addition to any applicable capacitycharges:

Sewer Lateral
Diameter Sewer Main Diameter Fee
4” or 6”
6” or 8” $1,780
10” or greater $1,995
6” or 8” (rehab) $1,706
Applicants for such connections shall coordinate with City staff in advance of the appointed installation time to determine required site preparations. If City staff determines that such preparation is not complete at the scheduled start time, a rescheduling fee of $1,155 will be charged and the connection will be rescheduled upon payment of such fee.

2. Option 2: Complete Sewer Connection Installation/Replacement. This option and associated charges cover the complete cost of the new service connection installation or replacement, including all permits, coordination and project management, locating, excavation (up to 8 feet deep), and inspection services. The following charges shall be in addition to any applicable capacitycharges:

Sewer Lateral
Diameter Sewer Main Diameter Fee
4” or 6”
6” or 8” $8,925
10” or greater $9,686
6” or 8” (rehab) $9,266
For connections deeper than 8 feet deep, an additional $1,066 per four feet of depth will be added to the sewer installation fee charge.

If in the course of the scheduled wye replacement, an additional service connection is encountered and the property owner electsto replace it atthe time of excavation, the additional connection may be replaced for an additional $919 per connection, regardless of the lateral or mainsize.

3. Option3: Sewer Lateral Connection Rehabilitation: Forlateral connectionsthat are in a condition eligible for rehabilitation and are on a lined sewer main, or are part of a proposed capital improvement project, a “trenchless” sewer lateral connection sealing device can be installed by the City’s contractor. The cost for installing a lateral connection sealing device, including coordination and project management by City Staff: $1,985 per device.

B. If a sewer main is damaged during installation or replacement of a lateral or during other similar work affecting City sewer lines, an additional fee equal to the greater of:
$292 per lineal foot of sewer line needing repair or replacement, or $444 per hour plus the cost of materials including fifteen percent markup, shall be charged to the person(s) who caused such damage.

C. Sewer Lateral Connection Abandonments: This option and associated charges are only for the removal of the lateral connection by City contractor after the property owner’s appropriately licensed/permitted contractor has excavated at the location of connection to the City main. Cost for the City’s contractor to remove the lateral connection and replace it with a like piping ofthe Citymaintained sewer main $1,706 per abandonment.

V. Wastewater Discharge Other Than Through an Approved Sewer Connection.

The following service charge shall apply to all discharges of wastewater permitted pursuant to Municipal Code Section 16.04.080 and 16.04.090:

A. $15 per 100 gallons. Chargesshall be assessed on the metered discharge oron the rated capacityofthe tankdischarging thewastewaterif nometerisavailable.

B. Every Person required to obtain a temporary discharge permit under Title 16.08.120 of the Santa Barbara Municipal Code shall be required to pay fees and charges as set forth below.

A permit fee is applicable for each temporary discharge permit application submitted.

The fee includes application processing, site visit, verification of submitted information, permit processing, reports, and invoicing:

1. $191 perpermit.

2. $119 additional fee will apply in the event of incomplete application/resubmittal, permitmodification request, orif reviewfrommultiple departments isnecessary.

3. In the event of any unplanned or emergency discharges that are not incompliance with its permit conditions, additional fees or charges may apply (See Section VI.A.

Wastewater Miscellaneous Fees.)

4. Temporary Wastewater Discharge Permit Volume Charges Customer Class Effective
July 2, 2024
Effective
July 1, 2025
Effective
July 1, 2026
Effective
July 1, 2027
Commercial
Class1 $6.56/HCF $7.18/HCF $7.86/HCF $8.61/HCF
High Strength
and Industrial
Class2
$7.23/HCF $7.92/HCF $8.67/HCF $9.49
(1) See Section II.B. Sewer Service Rates for included businesses or activities. All Discharges must meet applicable Pretreatment Standards. (2) See Section II.C. Sewer Service Rates for included businesses or activities. All Discharges must meet applicable Pretreatment Standards.

VI. Wastewater Miscellaneous Fees
A. The following service charges shall apply for services of City wastewater staff upon application of a property owner, contractor, or other applicant, or where such services are deemed necessary by City staff to prevent or mitigate damage to the City collection system or violation of regulations related to the collectionsystem:

1. Hourly rate for a two-person crew with heavy duty equipment, including emergency response, containment, control and recovery, data input, and reporting related to a private sewer lateral overflow or a sanitary sewer overflow or blockage caused by a privatepartywhere that party can clearly be identified: $440 per hour.

2. Hourly rate for a two-person crew with light duty equipment to respond to priority sewer related requests that do not constitute an emergency response, including CCTV inspection, locatinganddye testing servicesfor a sewer main: $301 perhour.

B. Lateral Liner Inspection Fee: For applicants seeking to rehabilitate their private sewer laterals using cured in place pipe, or other lining technology, a $191 fee will be assessed for the lateral installation inspection and pre- and post-video review by City staff.

Applicants for such lateral liner installation shall coordinate with City staff in advance of the appointed installation time to determine required site preparations. If City staff determines that such preparation is not complete at the scheduled start time, a rescheduling fee of $64 will be assessed, and the installation will be rescheduled upon payment of such fee.

C. Sewer Lateral Video Review for Building Permits: When an applicant is required to complete a sewer lateral inspection video as a condition of a building permit, an $96 fee will be assessed for each video reviewed by Citystaff.

VII. Effective Date
The rates and charges specified herein shall be effective on July 1, 2024, unless otherwise noted. With respect to wastewater ratesthat are based on metered use of water, the Fiscal Year 2025 wastewater rates specified herein shall commence upon the customer’s first billing cycle where all water use occurs on or after July 2, 2024.

I WANT TO...

WATER AND SEWER RATES
The City is proposing water and sewer rate increases to ensure safe and reliable essential water and sewer services.

Rates support maintaining and replacing critical water and wastewater infrastructure, meeting public health regulations, purchasing and maintaining necessary equipment, paying the people who provide these essential services, and increased costs of doing business. The rate hearings for the proposed adjustments are scheduled for June 17, 2025 at 5:30 pm.

The Rate Setting Process
The City's water and sewer services are operated as enterprise funds which means revenues collected fully support operations, maintenance, and capital improvements. The City of San Luis Obispo hires an independent consultant to review and propose water and sewer rate needs every two years. This process occurs alongside the City's Financial Planning process. After the rate study has been completed, if rate adjustments are needed the City follows a legal process in accordance with Proposition 218 (https://www.lao.ca.gov/1996/120196_prop_218/ understanding_prop218_1296.html).

As a part of this process, the City mails every account holder and parcel owner a Prop 218 notice (below), which includes information on the proposed rates and how to protest the proposed adjustments. The City Council then holds a public hearing to consider proposed adjustments. The community has the opportunity to protest the proposed adjustments at or before the hearing. Traditionally, if approved, the proposed increases would take effect July 1st.

Current Proposition 218 Notice mailed April 2025: English Version (https://www.slocity.org/home/ showpublisheddocument/37302/638810786055570000) / Versión en Español (https://www.slocity.org/home/ showpublisheddocument/37312/638811110081070000)
Previous Proposition 218 Notice mailed in April 2023: English Version (https://www.slocity.org/home/ showpublisheddocument/34092/638173200766170000) / Versión en Español (https://www.slocity.org/home/ showpublisheddocument/34108/638179539677770000)
Current and Proposed Rates (click to expand)
Based on an updated rate analysis completed in March 2025, water rates are proposed to increase 5.5 percent and sewer rates are proposed to increase 6.5 percent in both Fiscal Year 2025-26 and 2026-27. If approved, the proposed water and sewer rates would become effective on July 1 of each fiscal year. A breakdown of the current and proposed rates for each rate classification are provided in the tables below.

Volumetric Sewer Rates
Usage (per unit cost) Current Proposed
Effective July 1,
2024

6.5% Increase
Effective July 1,
2025

6.5% Increase
Effective July 1,
2026
Water Rates +
Sewer Rates -
1 Water and Sewer Rates | City of San Luis Obispo, CA https://www.slocity.org/government/department-directory/utilities-depa... 1 of 4 5/9/2025, 10:25 AM
Single-Family & Multi-Family
Residential
(Up to Sewer Cap)
$9.82 $10.46 $11.14
Non-Residential
(For All Usage) $10.27 $10.94 $11.65
Monthly Sewer Base Fees
Base Fees
Current Proposed
Effective July 1, 2024

6.5% Increase
Effective July 1, 2025

6.5% Increase
Effective July 1, 2026
Single-Family Residential
Monthly Base Fee $24.52 $26.11 $27.81
Multi-Family and Non-Residential by Water Meter Size
≤ 0.75-inch meter $24.52 $26.11 $27.81
1-inch meter $40.95 $43.61 $46.44

1.5-inch meter $81.65 $86.96 $92.61
2-inch meter $130.70 $139.20 $148.25
3-inch meter $245.21 $261.15 $278.12
4-inch meter $408.76 $435.33 $463.63
6-inch meter $817.28 $870.40 $926.98
8-inch meter $1,307.70 $1,392.70 $1,483.23
10-inch meter $1,880.02 $2,002.22 $2,132.36
Notes:
• One unit of water = 1 CCF = 748 gallons
• Sewer usage is not billed by tier. The per-unit rate applies to all water usage up to Sewer Cap. • For multi-family accounts, the per-unit rate applies to all water usage up to the Sewer Cap. Nonresidential accounts do not have a sewer cap and are billed for each unit of water usage. 1 How am I billed? +
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I WANT TO...

SEWER CAP
SLO Residential Properties Can Save Money
It's that time again! The Sewer Cap Period for the 2024–2025 year (for residential properties only) is approximately December 3* through March 9. Your usage during this period will determine your sewer cap for the 2025–2026 year, so make sure to turn off your irrigation! During these months the days are shorter, the weather is typically cooler, and there is more moisture in the air. Even in years where there is less rain than usual, using these months is still the best measurement we have of calculating your average impact on the sewer system.

For more information on drought related impacts on winter water use, see Council Agenda Report (https:// www.slocity.org/home/showpublisheddocument/22966/636916340497270000) dated May 6, 2014 and Resolution No. 10587. (https://www.slocity.org/home/
showpublisheddocument/22968/636916340715070000)
Sewer Cap Process
You may have noticed that your bill contains consumption charges for both water and sewer. While the City measures all water consumption by metering the water that is delivered to each property, we are unable to meter the wastewater or sewer that is collected through the drains in your sinks, toilets and showers.

Since residential properties are restricted from having separate landscape meters, water consumption can be higher in the summer months due to landscaping and other outdoor, warm weather activities. In order to prevent charging residents for sewer usage for water that is used outdoors, the City of SLO caps units of sewer that can be charged based on minimum annual consumption.

How it Works
Determining the Sewer Cap
To compensate for this difference in usage, the City instituted the Sewer Cap for residential customers.* Water usage is tracked from December through February when irrigation systems are likely off. The usage is averaged to determine the sewer cap applicable for the upcoming year.** For example:

December Usage (January Meter Read) 4 units
January Usage (February Meter Read) 5 units
February Usage (March Meter Read) 7 units
Sewer Cap | City of San Luis Obispo, CA https://www.slocity.org/government/department-directory/utilities-depa... 1 of 2 5/11/2025, 11:12 PM
Average 16 units / 3 = 5.33
In this case, the Sewer Cap will be set at 5. Once the Sewer Cap is determined, it becomes effective July 1 of that year. This Sewer Cap will apply to the customer’s account for the entire year, until the following July, when the new sewer cap will be established anew.

Sewer Cap Implementation
The Sewer Cap sets the maximum that a customer will be charged for wastewater treatment (sewer) per month. The amount a customer is billed each month is based on their usage up to their cap. For example, using the sewer cap of 5 determined above:

Month  Water Cons Sewer Units Billed Cost
August 5 5 $47.20
September 7 5 $47.20
October 4 4 $37.76
* Sewer Caps apply only to residential properties. Commercial and industrial customers who are concerned they may be paying sewer costs for irrigation may opt for a dedicated landscape meter installed at their own expense.
** The Sewer Cap defaults to 5 units for new customers that do not yet have an established sewer cap (4 units applies per dwelling for multi-family properties like duplexes and apartment buildings on a single meter). (/government/department-directory/utilitiesdepartment/water-conservation) Want to lower your sewer cap?
(/government/departmentVisit our Water Conservation page for strategies on how to reduce your water use
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/ / / / Residential Sewer Service Char...

Understanding Your Rates
Residential Sewer Service Charge
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Connect
Account Customer Service Understanding Your Rates
The Sewer Service Charge (SSC) is based on metered water use and generates funds for constructing and maintaining wastewater facilities such as sewers and sewage treatment plants, and for treating the sewage that is discharged into the sewer system. The SSC applies to all residential and commercial customers, unless an exemption is granted by the City of Los Angeles Department of Public Works, Bureau of Sanitation (BOS).

Multiple Dwelling premises: When one meter serves �ve (5) or more dwelling units. These properties are billed in the same way as commercial properties.

Winter Water Use
Estimates of sewage volumes for residential premises are based on the method called "winter water use" (WWU).

Annually, your average daily sewage volume is calculated for the upcoming year, from July 1 through June 30, based on previous winter's lowest average daily sewage volume. The sewage volume is determined by evaluating the water usage for the premises during the rainy season review period .

The rainy season review period changes each year but generally begins in October or November and ends in April or May. After the average daily usage has been calculated, the SSC billed is more or less constant throughout the year, changing only slightly due to the number of days in each billing period. The SSC is not tied to the water consumption during each billing period.

The Dry Winter Compensation Factor (DWCF) is a number equaling 1.0 or less (usually about 0.9) selected after a study of the rainfall, pattern of rainfall and total water consumption that occurred during the previous rainy season. This study is also used to determine the rainy season review period.

Requesting an Adjustment
Customers can visit the BOS website and submit a request for a Residential Sewer Service Charge Adjustment .

NOTE: It takes up to three (3) regular billing periods for a SSC adjustment to be completed after the BOS approval.

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UNDERSTANDING YOUR BILL
In order ensure LA Sanitation's ability to maintain all aspects of its three core programs of Clean Water, Solid Resources, and Watershed Protection, each customer is billed applicable charges and fees.

Sewer Service Charge (SSC)
Sewer Service Charges (SSC) , per Section 64.41 of the Los Angeles Municipal Code (LAMC), are based on metered water usage, as measured per one hundred cubic feet (HCF) of water, and includes reduced rates for low-income households and a compensating surcharge for non-low income households and commercial customers. SSC revenue is used to cover the costs of wastewater operation and maintenance, capital improvements, and, debt coverage of the wastewater conveyance and treatment system.. This SSC fee is typically found on your Department
of Water and Power (DWP) bill.

The determination of the SSC for residential customers, including single family residences and multiple family dwellings up to four units, is based on winter water usage, which is established annually to determine each residential customer's minimum daily water consumption. The typical customer’s minimum daily water consumption is determined by �rst identifying the lowest water usage during the Rainy Season Review Period (RSRP) and then reducing that HCF by application of the Dry Winter Compensation Factor (DWCF). Once established, each residential customer's minimum daily water consumption is presumed to closely approximate the sewer discharge and will be used to compute the SSC for the ensuing Fiscal Year which runs from July 1 to June 30.

Qualifying low-income residential customers receive a 31 percent discount on the �rst 18 HCF of bimonthly wastewater volume. Low-income discounts are offset by a 0.84 percent surcharge applied to the base SSC of all other users who do not qualify as low income residential customers and by the City's General Fund.

The winter water use method does not apply to: multiple family dwellings of �ve or more units, commercial, industrial, governmental, and other non-residential users, who are all billed at the current HCF rate multiplied by a sewer return factor during �scal year 2024-25 of 93 percent of total metered water usage
For FY 2024-25:
• The current SSC rate is $5.80 per HCF.
• For premises that discharge to the wastewater system but the sewage is not treated by theCity, the rate paid for conveyance without treatment is 15% of the current SSC rate. • The Low-income Surcharge is 0.004736 of the SSC amount. • The RSRP is from November 23, 2023 to April 26, 2024. • The DWCF is 0.89.

Solid Resources Fee (SRF)
The Solid Resources Fee not only funds the collection of solid waste, it pays for salaries, direct and indirect overhead, equipment, ancillary equipment, refuse and recycling containers and vehicles, land�ll costs, whether for disposal or for resource recovery facilities or refuse to energy and fuel facilities or closure of City owned facilities, development, acquisition, construction, operation and maintenance of equipment, alternative fuel infrastructure, buildings or facilities used in the collection, recycling, recovery of waste resources and/or disposal of solid waste or storage of solid waste related equipment, transfer facilities, resource recovery facilities or transfer equipment, maintenance of transfer facilities or equipment, or for facilities and equipment used in the recovery of waste resources in the form of energy, alternative fuels or manufacturing feedstocks.

Since the Solid Resources Fee funds more than just refuse collection, the fee is still applied - even if your dwelling produces little or no refuse waste. SRF fees are automatically applied to your DWP utility bill or Each customer's City of San Diego sewer rate is made up of two parts:

1. The �xed monthly service charge (Base Fee), which is based on your customer class.

2. The sewer rate is the Sewer Service Charge, which is based on the amount and strength of the wastewater you discharge to the sewer system.

For an explanation of how the Sewer Service Charge is determined for single-family residential customers, please visit the Winter Monitoring Period information page (/public-utilities/customersupport/winter-monitoring-period). For multi-family customers, the Sewer Service Charge is determined each month based on a percentage of how much water is used.

Sewer charges vary by customer class and have been developed to ensure that each class pays its proportionate share of operating, maintaining, repairing and upgrading the sewer system.

To view current wastewater service charges, please review the information below your customer class:

Base Sewer Fee for Two Months $31.50
Sewer (rate per HCF**) $5.33
$127.48
• Water/
Wastewater
Customer
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* Rate is based on 95% of total water use on a month-to-month basis.

HCF (One Hundred Cubic Feet) = 748 Gallons.
*** The "New Customer Fee" is charged to single-family residential customers who have not established a winter month's water-use history in their current place of residence. It is based on the average single-family residential usage of 9 HCF/month.
* Rate is based on 95% of total water use on a month-to-month basis ** HCF (One Hundred Cubic Feet) = 748 Gallons.
* Rate re�ects percentage of metered water use returned to sewer and pollutant loading based on national estimates of wastewater generation by businesses in the same Standard Industrial Classi�cation (SIC) code as the business served. Where facility-speci�c values have been measured, they are used.

If you have
questions about
your water/
wastewater
account, call
619-515-3500
(tel:619-515-
3500).

Maximum Fee: Base + Sewer (fee capped at 20
HCF/month)
$244.78
Base Sewer Fee $15.75
Sewer $5.33 per HCF**
Base Fee $/month $15.75
Flow $/HCF WW ** $3.555
TSS $/lb $0.522
COD $/lb $0.232
Wastewater
Service (/publicutilities/
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Information (/
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** HCF (One Hundred Cubic Feet) = 748 Gallons.
* Rate applicable to contract customers and hauled waste customers.

Base fee is included in rates above and not charged separately; cost to serve is based on metered wastewater �ows and actual strengths. ** HCF (One Hundred Cubic Feet) = 748 Gallons.

Information about the regulatory fees for hauled waste program, as well as the Industrial Wastewater Control Program fees can be found on the program's web page (/public-utilities/permits-construction/ industrial-user-permits).

For questions or other information, please contact the Public Utilities Department at [email protected]
(mailto:[email protected]) or 619-515-3500.

Flow $/HCF WW** $3.493
TSS $/lb $0.522
COD $/lb $0.232
Feedback
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RATE SCHEDULES & FEES for Water and Sewer Service
Effective with meter readings made on or after
July 1, 2024 (Fiscal Year 2024-25),
July 1, 2025 (Fiscal Years 2024-25 and 2025-26)

RATE SCHEDULES & FEES
for Water and Sewer Service
Effective with meter readings made on or after
July 1, 2023 (Fiscal Year 2023-24), July 1, 2024 (Fiscal Year 2024-25), and July 1, 2025 (Fiscal Year 2025-26)
Table of Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i Your Dollars at Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i Retail Water and Sewer Rates, Charges, and Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii Rate and Fee Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii Water Rate Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii Sewer Rate Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii Drought Surcharge and Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii Water and Sewer Rate and Fee Resolutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii Manage your Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv Bill Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Water Rates Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Customer Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Class Determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Change in Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Schedule W-1A: Single-Family Residential Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Schedule W-1B: Multi-Family Residential Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Schedule W-1C: Commercial, Industrial, Public, and General Uses . . . . . . . . . . . . . . . . . . 4 Schedule W-2: Fire Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Schedule W-4: Docks and Shipping Supply within the City and County of San Francisco. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Schedule W-5: Hydrant Use for Temporary Water Supply . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Schedule W-24: Untreated Water Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Schedule W-25: Wholesale Use with Long-Term Contract . . . . . . . . . . . . . . . . . . . . . . . . . 10 Water Drought Surcharge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Wastewater Rates Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Customer Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Class Determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Change in Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Unmetered Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Schedule A: Residential Wastewater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Schedule B: Non-Residential Wastewater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Schedule C: Standard Stormwater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Schedule D: Simplified Residential Stormwater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Wastewater Drought Surcharge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Capacity Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Water Capacity Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Wastewater Capacity Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Water Service Connection and Miscellaneous Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Schedule W-40: Meter Resizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Schedule W-41A: Water Service Installation Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Water Installation Service Charges for Single Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Water Installation Service Charges for Multiple Services . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Additional Fees for Water Service Installations on Regulated Streets . . . . . . . . . . . . . . 25 Schedule W-41B: Water Service Connection Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Schedule W-42: Meter and Service Relocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Schedule W-43: Flow Restricting Installations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Schedule W-44: Billing and Service Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Schedule W-45: Land Use and Facility Rental and Use Fees . . . . . . . . . . . . . . . . . . . . . . 31 Schedule W-46: Water Enterprise Regulatory Compliance Fees . . . . . . . . . . . . . . . . . . 32 Introduction
Every day, the San Francisco Public Utilities Commission (SFPUC) delivers high-quality water to 2.7 million Bay Area customers, protects the environment and public health by treating wastewater and stormwater, and generates clean energy for San Francisco residents and businesses. Our mission is to provide our customers with high-quality, efficient, and reliable water, power, and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.

Learn more at sfpuc.gov.

As a not-for-profit public utility, our rates reflect the true cost of operating, maintaining, and upgrading our water, sewer, and power systems. This Rate Schedules and Fees document for Water and Sewer Services are a compilation of all rate schedules and fees charged to customers of the SFPUC.

Your Dollars at Work
The SFPUC is committed to providing customers with safe, reliable, and affordable drinking water and a combined sewer system that reduces flooding and protects the environment from pollution. These systems require ongoing maintenance and upgrades. Many parts of the SFPUC water system are nearly 100 years old, and the oldest parts of the sewer system date back to the Gold Rush. We need to continue to maintain and upgrade aging systems to prevent breaks, meet regulatory requirements, improve seismic safety, and adapt to storms as the climate changes. Your dollars pay for essential services and projects that protect public health.

The work performed by the SFPUC is almost exclusively funded by rate payer dollars and with this in mind, SFPUC is committed to setting rates that are cost-effective and equitable for our customers. Staff across our agency are proactively addressing the challenges our communities face in all areas of our work – climate change, improving seismic safety; regulatory requirements; making essential improvements to our complex infrastructure to ensure the long-term reliability of vital public assets; and, tackling affordability challenges head on by working to make utility services more affordable for communities that have faced systematic barriers and for customers experiencing financial hardship. Your dollars pay for essential services and projects that help ensure our systems 24 hours a day, 7 days a week.
i. Introduction
Retail Water and Sewer Rates, Charges, and Fees
Rate and Fee Changes
In May 2023, the Commission approved three years of water and wastewater service rates for the fiscal years 2023-24, 2024-25, and 2025-

26. Rates, charges, and fees for FY 2024-25 and FY 2025-26 will become effective July 1, 2024 and July 1, 2025, respectively.

Water Rate Structure
The water rate structure of the SFPUC is made up of two components:
(1) a fixed monthly service charge based on meter size and (2) a variable charge based on water volumetric usage
The variable charge for residential customers is a two-tier rate structure, while non-residential customers are charged a uniform commodity rate.

Sewer Rate Structure
The sewer rate structure of the SFPUC is made up of three components:
(1) a fixed monthly sewer service charge.
(2) a variable wastewater rate based on assumed percentage of metered water usage returned to the sewer system.

Single-family and multi-family residential variable charges are based on a flat rate per discharge unit, calculated from the rate components assuming domestic strength sewage. Non-residential customers are charged unique rates for discharged flows as well as sewage loading (Chemical Oxygen Demand, Total Suspended Solids, and Oils & Grease). The loading rates charged are based on the customer’s business type.
(3) a fixed monthly stormwater component based on the property size and/or parcel characteristics.

The Stormwater component of the sewer bill is assessed on a “simplified” three-tiered structure for residential customers, based on the net parcel size, with smaller parcels being assessed a lower charge that gradually increases for larger parcels. Non-residential, mixed-use, and large residential parcels (over 6,000 square feet or with more than six dwelling units) would be assessed using a “standard charge” based on their total permeable and impermeable surface area. ii. Introduction
Drought Surcharge and Conservation
The SFPUC may implement a temporary drought surcharge to cover its operating costs in the event of a declared water delivery reduction that results in decreased water sales. This would apply to the volumetric portions of both water and sewer rates (not to the monthly fixed service charge or stormwater component). The Commission will activate the temporary drought surcharge when it imposes delivery reductions per the Retail Water Shortage Allocation Plan and for either voluntary or mandatory water reduction. At that time, SFPUC will estimate the revenue reduction resulting from water use savings, as well as the surcharge to retail rates necessary to meet the revenue requirement based on lower water sales. The Commission will remove the temporary surcharge when the water use reductions are lifted, per the Retail Water Shortage Allocation Plan.

Water and Sewer Rate and Fee Resolutions
The SFPUC Water and Sewer rates were approved by the following resolutions:
22-0044, approved February 22, 2022. Memorialized Customer Assistance Program.
23-0074, approved on April 11, 2023. Implemented Changes to the Water and Wastewater Customer Assistance Program.
23-0103, approved on May 23, 2023. Adopted three-year schedule of rates for retail water service in San Francisco and suburban areas (FY 2024 – FY 2026).
23-0104, approved on May 23, 2023. Adopted three-year schedule of rates for sewer service in San Francisco (FY 2024 – FY 2026).

Stormwater credits are available to customers who install green infrastructure projects to manage runoff from their property. 23-0105, approved on May 23, 2023. Adopted rules and regulations for stormwater credit program.
24-0090, approved on April 9, 2024. Adopted Water Miscellaneous Fee schedules.
24-0091, approved on April 9, 2024. Adopted Wastewater Miscellaneous Fee schedules.
24-0115, approved on May 14, 2024. Adopted FYE 2024-25 Wholesale Water rates.
iii. Introduction
Manage Your Account
Sign up for My Account to see your water usage at
www.myaccount-water.sfpuc.gov.

Bill Relief
Visit our website, www.sfpuc.gov/learning/conserve-water to learn about ways to save water and money through our water conservation programs.

For information on the Water and Wastewater Customer Assistance Program: www.sfpuc.gov/accounts-services/bill-relief/customer-assistanceprogram-waterwastewater Stormwater Component
More information about our Stormwater Component can be found on our Stormwater landing page, https://www.sfpuc.gov/accounts-services/waterpower-sewer-rates.

This website includes background information about the charge, a bill calculator, and resources available to customers interested in reducing their stormwater component.
iv. Introduction
Definitions
For this Schedule, the following definitions shall apply unless the context specifically dictates otherwise.
“City”
The City and County of San Francisco.
“COD”
Chemical Oxygen Demand (COD) is a quantitative measure of the amount of oxygen required for chemical oxidation of carbonaceous materials in wastewater using a strong chemical oxidant such as chromic acid (H2Cr2O7).
“Commission”
The San Francisco Public Utilities Commission.
“Customer”
Any person, firm, corporation, partnership, trust, or any other entity including, but not limited to, local, state, and federal governments utilizing the services of the City’s utility systems.
“Customer Class”
Users with the same or similar usage characteristics are grouped into Customer Classes for purposes of cost allocation and rate setting. “Discharge”
The Customer’s metered water use multiplied by the Customer’s applicable wastewater flow factor.
“Discharge Unit”
100 cubic feet of wastewater discharged to sewerage system. The quantity of wastewater shall be the amount metered, or, in the event quantity is not metered, shall be the metered water use multiplied by the wastewater flow factor.
“Domestic Wastes”
Water-carried human wastes from sanitary conveniences, including but not limited to toilets, sinks, bathtubs, and residential laundry facilities. v. Definition
“Dwelling Unit”
As defined in San Francisco Planning Code Section 102.7, a room or suite of two or more rooms that is designed for, or is occupied by, one family doing its own cooking therein and having only one kitchen. For the purposes of this resolution, “Dwelling Unit” shall not include a lodging house, rooming house, motel, or hotel, as defined in San Francisco Housing Code Section 410, or a live/work unit, as defined in Section 102.13 of the San Francisco Planning Code. “Flow Factor”
The percentage of metered water use returned to sewers and the Sewerage System as wastewater. For purposes of determining applicable charges, the percentage of water use returned to sewers is assumed to be 90% for single family Residential Users, 95% for multifamily Residential users and 90% for all other users. The General Manager may establish modified percentages by estimation or based on an inspection of the Residential User’s premises and water use. Residential Users may appeal their assigned flow factor pursuant to procedures set forth in applicable department regulations. “General Manager”
The General Manager of the Public Utilities Commission or his or her designee. “Hydrocarbon Oil and Grease”
Hydrocarbon oil and grease (O/G) is the measurement of that fraction of recoverable oil and grease of petroleum origin using a test specified in 40 CFR Part 136.
“Industrial Wastes”
Any solid, liquid, or gaseous wastes including cooling water resulting from any industrial, commercial, or manufacturing process or from the development, recovery, or processing of natural resources. “Impermeable Surfaces”
A surface that prevents the land’s natural ability to absorb and infiltrate rainfall or stormwater. Impervious surfaces include, but are not limited to building or structures, roof tops, impervious concrete and asphalt, and any other continuous watertight pavement or covering. Landscaped soil and pervious pavement, including pavers with pervious openings and seams, underlain with pervious soil or pervious storage material, are not impermeable surfaces.
vi. Definition
“Operations and Maintenance Costs”
Expenditures used for the storage, treatment, and delivery of Retail and Regional water including, but not limited to, the costs of personnel, materials and supplies, energy, and administration.
“Other Wastes”
All decayed wood, sawdust, shavings, bark, lime, refuse, ashes, garage, offal, oil, tar, chemicals, and all other substances except Sewage, Stormwater, and Industrial Wastes.
“Permeable Surface”
A surface that allows stormwater to infiltrate into the ground.

Examples include pasture, native vegetation areas, landscape areas, and permeable pavement.
“Residential Customer”
A Residential Customer is the owner or customer of record of any single-family or multiple-family dwelling unit.
“Sewage”
Water-carried human wastes or a combination of water-carried human or industrial wastes from residences, commercial buildings, institutions, and industrial establishments, together with such ground, surface, storm, or other wastes that may be present.
“Sewage System” or “Sewerage System”
The City’s wastewater system including all properties (real, personal, and tangible or intangible) owned, operated, maintained by and under the jurisdiction of the Commission used for collection, treatment, and disposal of sewage, including all future additions, extensions, replacements, and improvements to the system.
“Standard Industrial Classification” or “SIC”
A coding system established by the United States government to classify businesses and industries. SIC codes are assigned based on common characteristics shared in the products, services, production, and delivery system of a business.
“Stormwater”
Surface water originating from rainfall collected in the sewerage system. vii. Definition
“Total Suspended Solids”
The measurement of the amount of insoluble solids that either float on the surface of wastewater or are suspended in wastewater using a test specified in 40 CFR Part 136.
“Water System”
The City’s water system including all properties (real, personal, and tangible or intangible) owned, operated, maintained by and under the jurisdiction of the Commission used for the gathering, impounding, treatment, transmission, and distribution of water, including all future additions, extensions, replacements, and improvements to the system.

Unlawful Discharge
It shall be unlawful, except as herein provided, for any Customer to discharge Sewage, Stormwater, Industrial Wastes, or Other Wastes into the sewers or sewerage works of the City, unless such Customer shall pay the City its Sewer Service Charge as hereinafter provided.
viii. Definition
Water Rates Schedules
Customer Classification
Class Determination
Upon application for new service, each Customer shall be assigned to a Customer Class based on the City’s evaluation of the Customer’s usage characteristics in accordance with the requirements of SFPUC Commission Resolution 23-0103 and applicable laws and regulations. Such Customer Class determination shall be based on the Customer’s description of its current operation and use of the water facilities of the City. Such description shall be subject to verification by the City.

Change in Classification
Customers requiring or requesting a change in their classification shall do so in writing within 30 days of a change in operations.
1 Water Rate Schedules
Water Rates Schedules
SCHEDULE W-1A: Single-Family Residential Service
Applicable to single-family dwelling units inside and outside of the City and County of San Francisco served through a separate meter or bank of meters:

First: A Monthly Service Charge based on the size of the meter.

Meter
Size
FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
5/8 in $17.48 $18.36
3/4 in $22.19 $23.30
1 in $31.62 $33.21
1-1/2 in $55.19 $57.95
2 in $83.49 $87.67
3 in $158.92 $166.87
4 in $243.79 $255.98
6 in $479.54 $503.52
8 in $762.44 $800.57
10 in $1,186.78 $1,246.12
12 in $2,035.47 $2,137.25
16 in $3,544.25 $3,721.47
Second: A charge for all water delivered based on monthly meter reading.

FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
First 4 units per month* $10.85 $11.40
All additional units* $12.05 $12.66
*1 unit or 1 CCF (centi (hundred) cubic feet of measured water consumption is equal to 748 gallons.
2 Water Rate Schedules
SCHEDULE W-1B: Multi-Family Residential Service
Applicable to multi-family accounts within and outside of the City and County of San Francisco consisting of two or more dwelling units served through a separate meter or bank of meters:

First: A Monthly Service Charge based on the size of the meter.

Meter
Size
FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
5/8 in $17.48 $18.36
3/4 in $22.19 $23.30
1 in $31.62 $33.21
1-1/2 in $55.19 $57.95
2 in $83.49 $87.67
3 in $158.92 $166.87
4 in $243.79 $255.98
6 in $479.54 $503.52
8 in $762.44 $800.57
10 in $1,186.78 $1,246.12
12 in $2,035.47 $2,137.25
16 in $3,544.25 $3,721.47
Second: A charge for all water delivered based on monthly meter reading.

Multiple-Family
Residential
FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
First 3 CCF per month per
dwelling unit $10.70 $11.24
All additional units of water* $11.49 $12.07
*1 unit or 1 CCF (centi (hundred) cubic feet of measured water consumption is equal to 748 gallons.
3 Water Rate Schedules
SCHEDULE W-1C: Commercial, Industrial, Public, and General Uses Applicable to commercial, industrial, public buildings, parks, docks & ships, and other general uses within and outside of the City and County of San Francisco, excluding Wholesale customers, served through a separate meter or bank of meters.

For Street Sprinkling and Flushing when quantities are computed from records of tank wagons and billed as one amount: Schedule W-1C (no service charge to apply).

First: A Monthly Service Charge based on the size of the meter.

Meter
Size
FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
5/8 in $17.48 $18.36
3/4 in $22.19 $23.30
1 in $31.62 $33.21
1-1/2 in $55.19 $57.95
2 in $83.49 $87.67
3 in $158.92 $166.87
4 in $243.79 $255.98
6 in $479.54 $503.52
8 in $762.44 $800.57
10 in $1,186.78 $1,246.12
12 in $2,035.47 $2,137.25
16 in $3,544.25 $3,721.47
4 Water Rate Schedules
Second: A charge for all water delivered based on monthly meter reading.

FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
For all units* $11.68 $12.27
*1 unit of water = 100 cubic feet = 1 ccf = 748 gallons 5 Water Rate Schedules
SCHEDULE W-2: Fire Service
Applicable to private fire service within and outside of the City and County of San Francisco installed and maintained according to the rules, regulations, and Specifications of the San Francisco Water Enterprise.

First: A Monthly Service Charge based on the size of the service.

Service
Size
FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
1 in $8.86 $9.31
1-1/2 in $9.36 $9.83
2 in $10.22 $10.74
3 in $13.34 $14.01
4 in $18.72 $19.66
6 in $38.00 $39.90
8 in $71.28 $74.85
10 in $121.33 $127.40
12 in $190.71 $200.25
Second: If water is used for any purpose other than extinguishing accidental fires, the W-1C rates for water delivery shall apply.
6 Water Rate Schedules
SCHEDULE W-4: Docks and Shipping Supply within the City and County of San Francisco.

Applicable to special shipping service, including hose truck and other special services, from open docks through common hydrants where delivery is not through a service and meter for which the customer is responsible:

First: A Docks and Shipping Connection Charge: Schedule W-41B.

Second: A charge for all water delivered based on monthly meter reading:

Schedule W-1C.
7 Water Rate Schedules
SCHEDULE W-5: Hydrant Use for Temporary Water Supply
Applicable to temporary metered service connections through fire hydrants within the City and County of San Francisco:

First: A Builders and Contractors Connection Fee: Schedule W-41B.

Second: A Meter Rental Deposit: Schedule W-41B.

Third: A Monthly Service Charge based on the size of the meter.

Meter
Size
FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
5/8 in $17.48 $18.36
3/4 in $22.19 $23.30
1 in $31.62 $33.21
1-1/2 in $55.19 $57.95
2 in $83.49 $87.67
3 in $158.92 $166.87
4 in $243.79 $255.98
6 in $479.54 $503.52
8 in $762.44 $800.57
10 in $1,186.78 $1,246.12
12 in $2,035.47 $2,137.25
16 in $3,544.25 $3,721.47
Fourth: A charge for all water delivered based on monthly meter reading:

Schedule W-1C.

Fifth: Any customer who fails to report water consumption as required shall be assessed a non-reporting penalty equivalent to the cost of 25 units of water per month at the current Schedule W-1C volumetric rate. 8 Water Rate Schedules
SCHEDULE W-24: Untreated Water Service
Applicable inside and outside the City and County of San Francisco for untreated water service when the customer furnishes all facilities necessary to convey the untreated water from the San Francisco Water Enterprise’s water supply reservoirs to the customer’s point of use.

First: A Monthly Service Charge based on the size of the meter.

Meter
Size
FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
5/8 in $17.48 $18.36
3/4 in $22.19 $23.30
1 in $31.62 $33.21
1-1/2 in $55.19 $57.95
2 in $83.49 $87.67
3 in $158.92 $166.87
4 in $243.79 $255.98
6 in $479.54 $503.52
8 in $762.44 $800.57
10 in $1,186.78 $1,246.12
12 in $2,035.47 $2,137.25
16 in $3,544.25 $3,721.47
Second: A charge for all water delivered based on monthly meter reading.

FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
For all units
of water* $1.89 $1.99
*1 unit or 1 CCF (centi (hundred) cubic feet of measured water consumption is equal to 748 gallons.
9 Water Rate Schedules
SCHEDULE W-25: Wholesale Use with Long-Term Contract
For service to municipalities, water districts, and others who under long-term contracts, purchase water for resale:

First: A Monthly Service Charge based on the type and size of the meter.

Meter Size
Turbine
Meters
(C-701, Class II)
Electronic
Meters
(C-715, Class II)
Displacement
Meters
(C-700, Class II)
2 in - - $143
3 in $391 $314 -
4 in $674 $539 -
6 in $1,438 $719 -
8 in $2,517 $1,798 -
10 in $3,775 $2,697 -
12 in - $3,596 -
16 in $7,012 - -
The meter types have been re-labeled to align with its respective AWWA reference. Displacement meters were previously labeled as “Compound/Disc” meters. Electronic Meters refer to
“Electromagnetic/Ultrasonic” meters.

Second: A charge for water delivered based on one-month of meter readings:
$2,469.47 per acre-foot or $5.67 per 100 cubic foot
Third: An Untreated Wholesale Water Rate Discount Factor for customers receiving untreated water, based on monthly meter readings:
$(169.88) per acre-foot or $(0.39) per 100 cubic foot
10 Water Rate Schedules
Water Drought Surcharge
If the Commission, at a publicly noticed meeting, adopts a resolution declaring a stage of water delivery reduction in accordance with the Retail Water Shortage Allocation Plan (i.e., Stage 1, Stage 2, or Stage 3), the following schedule of drought surcharges shall be applied to the volumetric portion of retail water rates as of the date of the Commission resolution or any effective date designated by the Commission. For residential customers, the surcharges shall assume that the overall demand reduction is split evenly between Tier 1 and Tier 2. Each non-residential customer shall incur the percent drought surcharge uniformly. The overall required surcharge is based on the final formula: surcharge ($ per CCF) = Water Revenue Shortfall from reduced flow/ Reduced Water Flow.

Water Shortage
Contingency Plan Stage
Target Water Usage
Reduction
Drought Surcharge on
Volumetric Water Rates
Stages 1 - 3 5% Up to 5%
Stage 4 5-18% Up to 18%
Stages 5 - 6 18-32% Up to 32%
The drought surcharges shall remain in effect until the Commission adopts a resolution to rescind the water delivery reduction.
11 Water Rate Schedules
Wastewater Rates Schedules
Customer Classification
Class Determination
Upon application for new service, each Customer shall be assigned to a Customer Class based on the City’s evaluation of the Customer’s waste discharge characteristics in accordance with the requirements of SFPUC Commission Resolutions 23-0104 and applicable laws and regulations.

Such Customer Class determination shall be based on the Customer’s description of its current operation and use of the collection, treatment, and disposal facilities of the City. Such description shall be subject to verification by the City.

Change in Classification
Customers requiring or requesting a change in their classification shall do so in writing within 30 days of a change in operations.

Unmetered Service
In circumstances where a Customer’s discharge is not measured by metered water consumption, the General Manager is authorized to implement appropriate requirements and procedures for determining a Customer Charge consistent with the requirements of this resolution and applicable state and federal laws.
12 Wastewater Rate Schedules
SCHEDULE A: Residential Wastewater
Applicable to Single-Family and Multi-Family Residential wastewater customers. The rates under this schedule are based upon the typical strengths for Domestic Wastes (SIC Group 4), as determined by the SFPUC.

The charges based on discharge units for all Residential wastewater users are as follows:

FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
Monthly
Service Charge $5.28 $5.76
Volume per
Discharge Unit* $17.80 $18.72
*1 unit or 1 CCF (centi (hundred) cubic feet of measured water consumption is equal to 748 gallons.

A discharge unit shall be based on the customer’s metered water use multiplied by the flow factor and represents the quantity of metered water use returned to the sewage system as wastewater. By default, residential single-family customers are assumed to have a flow factor of 90% and multi-family residential customers are assumed to have a flow factor of 95%.

Customers whose usage of water varies from typical patterns may apply for an adjusted flow factor.
13 Wastewater Rate Schedules
14 Wastewater Rate Schedules
SCHEDULE B: Non-Residential Wastewater
Users other than Residential wastewater users charged under Schedule A (i.e., Non-Residential), shall be charged the cost for each parameter according to the following:

FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
Monthly Service Charge $5.28 $5.76
Volume per Discharge
Unit* $10.09 $10.43
PLUS
Chemical Oxygen Demand
(COD) per Pound
$0.925 $0.994
PLUS
Total Suspended Solids
(TSS) per Pound
$1.808 $1.944
PLUS
Oil and Grease (O/G)
per Pound
$1.142 $1.239
*1 unit or 1 CCF (centi (hundred) cubic feet of measured water consumption is equal to 748 gallons.

A discharge unit shall be based on the customer’s metered water use multiplied by the flow factor and represents the quantity of metered water use returned to the sewage system as wastewater. By default, non-residential customers are assumed to have a flow factor of 90%. Customers whose usage of water varies from typical patterns may apply for an adjusted flow factor.

Those users whose parameter loadings of COD, TSS, and O/G are not based on periodic sampling shall be charged on the basis of standard parameter loadings established by the General Manager for each SIC code in accordance with applicable state and federal laws and regulations, and as summarized in the table below.

SIC Group SIC Group Description COD (lb/
Unit)
TSS (lb/
Unit)
O/G (lb/
Unit)
SIC Group 2 Hotel without Eating 1.2111 0.3496 0.1623
SIC Group 3 Nursing and
Personal Care 3.9954 1.4920 0.3933
SIC Group 4 Domestic and
General Uses 4.2701 1.7417 0.5306
SIC Group 5 Hotel with Eating 4.0016 1.3984 0.5369
SIC Group 6 Fish & Seafood 2.4721 0.3683 0.6243
SIC Group 7 Coin-Op Laundry 8.6588 1.0675 0.6992
SIC Group 8 Commercial and
Power Laundry 9.6077 1.1299 0.7803
SIC Group 9 Sausage Manufacturing 10.0884 1.7730 0.8553 SIC Group 10
Restaurant/Kitchen,
Default or with HydroMechanical Grease
Interceptor

7.1979 1.8916 1.5669
SIC Group 11 Wholesale Bakery 30.7208 8.5589 3.4897
SIC Group 12
Restaurant/Kitchen with
Automatic Grease Removal
Device or Gravity Grease
Interceptor

4.4636 1.8916 0.6243
15 Wastewater Rate Schedules
16 Wastewater Rate Schedules
SCHEDULE C: Standard Stormwater
This schedule shall apply to all non-residential parcels, mixed use parcels, lots without wastewater service, residential parcels greater than 6,000 square feet of net parcel area and/or having more than 6 dwelling units, and/or any other parcels which do not meet the eligibility criteria for Schedule D. Net parcel area is the gross parcel area recorded with the San Francisco Assessor’s Office less any excluded area that does not drain to the SFPUC combined sewer system.

The designation of a parcel as non-residential or residential will be based on the presence of wastewater accounts billed under Schedules A and B, above.

Parcels meeting the criteria of the standard stormwater component will be assessed on a per 1,000 square foot basis for all permeable and impermeable area on their property as follows:

FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
Stormwater Component
of Sewer Bill per month
Permeable Area per
1,000 square feet $0.41 $0.67
Impermeable Area per
1,000 square feet $4.11 $6.72
Permeable and impermeable areas are determined for each parcel using geospatial analysis. Customers may submit evidence of their measured areas if they believe the data for their property should be modified.

In the event that multiple accounts share one Parcel, the charge will be calculated for the total parcel area and shared equally by the number of accounts. The shares charged to each account may be adjusted with written agreement of all account holders on a Parcel.

Customers who install green infrastructure projects to manage stormwater on their property may apply for a stormwater credit and reduce their monthly charge.
17 Wastewater Rate Schedules
SCHEDULE D: Simplified Residential Stormwater
This schedule shall apply to Single-Family and Multi-Family Residential wastewater customers with 6,000 square feet or less net parcel area and with 6 or fewer dwelling units as recorded in the San Francisco Public Utilities Commission’s billing records. Net parcel area is the gross parcel area recorded with the San Francisco Assessor’s Office less any excluded area that does not drain to the SFPUC combined sewer system. The designation of a parcel as non-residential or residential will be based on the presence of wastewater accounts billed under Schedules A and B, above.

The amounts under this schedule are based upon the average permeable and impermeable square footage of parcels within each tier group and the respective rate for parcel area as shown in Schedule C, as determined by the General Manager.

FY 2024-25
Effective
7/1/24
FY 2025-26
Effective
7/1/25
Stormwater Component
of Sewer Bill per month
Tier 1: 0 – 1,700
square feet parcel area $5.04 $8.24
Tier 2: 1,701 – 3,300
square feet parcel area $7.84 $12.82
Tier 3: 3,301 – 6,000
square feet parcel area $11.79 $19.27
In the event that multiple wastewater accounts share one Parcel, the assessed amount will be calculated for the total parcel area and shared equally by the number of accounts. The shares charged to each account may be adjusted with written agreement of all account holders on a Parcel.

Customers who install green infrastructure projects to manage stormwater on their property may apply for a stormwater credit and reduce the monthly stormwater component of their sewer bill.

Wastewater Drought Surcharge
If the Commission, at a publicly noticed meeting, adopts a resolution declaring a stage of water delivery reduction in accordance with the Retail Water Shortage Allocation Plan (i.e., Stage 1, Stage 2, or Stage 3), the following schedule of drought surcharges shall be applied to the volumetric portion of retail water rates as of the date of the Commission resolution or any effective date designated by the Commission. The overall required surcharge is based on the final formula:
surcharge ($ per CCF) = Wastewater Revenue Shortfall from reduced flow/ Reduced Wastewater Flow.

Water Shortage
Contingency Plan
Stage
Target Water Usage
Reduction
Drought Surcharge
on Volumetric
Wastewater Rates
Stages 1 - 3 5% Up to 5%
Stage 4 5-18% Up to 18%
Stages 5 - 6 18-32% Up to 32%
The drought surcharges shall remain in effect until the Commission, at a publicly noticed meeting, adopts a resolution rescinding the water delivery reduction. 18 Wastewater Rate Schedules
19 Capacity Charges
Capacity Charges
Water Capacity Charge
Any customer request for a new connection, added collection or treatment capacity, or to change an existing connection shall pay a capacity charge.

The customer may not sell, trade, or convey in a manner the capacity charge to another site or customer. The capacity charge does not convey or imply ownership in or of any facilities of the Water System. Customers shall pay the water capacity charges as follows:

Meter Size Charges
5/8 in $2,266
3/4 in $3,400
1 in $5,666
1-1/2 in $11,328
2 in $18,129
3 in $36,255
4 in $56,650
6 in $113,302
8 in $181,281
10 in $283,251
12 in $487,193
16 in $849,758
The SFPUC will adjust the capacity charge by the annual change in the 20 City Average Construction Cost Index (CCI) published by ENR Magazine.

Customers subject to payment of the water capacity charge shall receive a prior use credit equal to the equivalent charge for past usage without regard to any time limit for such credit.

Customers subject to payment of the water capacity charge shall pay the fee prior to issuance of the applicable building permit. Any plan changes will result in a revised capacity charge payment.

Assessment of the applicable capacity charge will be based on the date that the SFPUC receives the final permit application and building plans.

If the customer does not make the full payment, the new or added water services will not be approved.
20 Capacity Charges
Wastewater Capacity Charge
Any customer request for a new connection, added collection or treatment capacity, or to change an existing connection shall pay a capacity charge.

The customer may not sell, trade, or convey in a manner the capacity charge to another site or customer. The capacity charge does not convey or imply ownership in or of any facilities of the Sewer System. Customers shall pay the sewer capacity charges as follows:

SIC Groups 2-5
Meter Size SIC Group 2 SIC Group 3 SIC Group 4 SIC Group 5 5/8 in $4,856 $5,699 $5,948 $5,868
3/4 in $7,284 $8,549 $8,922 $8,802
1 in $12,140 $14,248 $14,870 $14,670
1-1/2 in $24,278 $28,495 $29,740 $29,341
2 in $38,845 $45,589 $47,583 $46,946
3 in $77,693 $91,178 $95,171 $93,891
4 in $121,397 $142,465 $148,704 $146,704
6 in $242,793 $284,933 $297,406 $293,411
8 in $388,471 $455,891 $475,851 $469,459
10 in $606,986 $712,330 $743,518 $733,528
12 in $1,044,016 $1,225,205 $1,278,851 $1,261,667
16 in $1,820,956 $2,136,989 $2,230,552 $2,200,586
SIC Groups 6-8
Meter Size SIC Group 6 SIC Group 7 SIC Group 8
5/8 in $5,619 $6,658 $6,898
3/4 in $8,426 $9,985 $10,346
1 in $14,045 $16,643 $17,244
1-1/2 in $28,087 $33,284 $34,490
2 in $44,944 $53,252 $55,183
3 in $89,884 $106,505 $110,365
4 in $140,443 $166,414 $172,448
6 in $280,887 $332,830 $344,895
8 in $449,419 $532,526 $551,833
10 in $702,216 $832,073 $862,237
12 in $1,207,810 $1,431,167 $1,483,049
16 in $2,106,648 $2,496,222 $2,586,712
21 Capacity Charges
SIC Groups 9-11
Meter Size SIC Group 9 SIC Group 10 SIC Group 11
5/8 in $7,154 $7,686 $14,323
3/4 in $10,732 $11,529 $21,485
1 in $17,886 $19,215 $35,808
1-1/2 in $35,773 $38,434 $71,614
2 in $57,238 $61,495 $114,583
3 in $114,477 $122,990 $229,163
4 in $178,870 $192,169 $358,069
6 in $357,743 $384,339 $716,138
8 in $572,387 $614,939 $1,145,821
10 in $894,352 $960,842 $1,790,348
12 in $1,538,286 $1,652,650 $3,079,397
16 in $2,683,059 $2,882,525 $5,371,042
The capacity charge shall be adjusted on July 1st of each year by the annual change in the 20 City Average Construction Cost Index (CCI) published by ENR Magazine.

Customers subject to payment of the wastewater capacity charge shall receive a prior use credit equal to the equivalent charge for past usage without regard to any time limit for such credit.

Customers subject to payment of the wastewater capacity charge shall pay the fee prior to the issuance of the applicable building permit. Any plan changes will result in a revised capacity charge payment.

Assessment of the applicable capacity charge will be based on the date that the SFPUC receives the final permit application and building plans.

If the customer does not make the full payment, the new or added wastewater services will not be approved.

Water Service Connection and Miscellaneous Fees
SCHEDULE W-40: Meter Resizing
Meter resizing made at the customer’s request except when such resizing is required to maintain service pressure or meet flow requirements:

Charge Type FY 2024-25
Effective 7/1/24
Decrease
From an existing 2" meter to a 1-1/2" meter or
From an existing 1" meter to a 3/4" or 5/8" meter or
From an existing 3/4" to a 5/8" meter $2,075
Increase
From an existing 5/8" to a 3/4" meter or
From an existing 3/4" to a 1" meter or
From an existing 1-1/2" to a 2" meter
Reset 2" or smaller meter $1,584
The SFPUC must approve a change in meter size. These rates do not apply if the change in meter size results in the need for a change in service line size.

The Customer Service Bureau shall consider requests to resize meters and may determine necessity based on the current fixture count for the property and whether a resized meter will deliver adequate flow.

The City Distribution Division will estimate the cost for all requests for meter decrease from services 3 inches and larger to something lesser. The estimate will be either the cost to resize the meter or to install a new meter based on the age, location, and meter configuration of the existing service.

For meter resizing not covered in the above, or when any unusual conditions result in costs more than 15% of scheduled costs, the SFPUC may require the payment of actual costs.
22 Water Service Connection and Miscellaneous Fees
SCHEDULE W-41A: Water Service Installation Fees
Applicable to all water customers for service installations made at the customer’s request.
23 Water Service Connection and Miscellaneous Fees
Water Installation Service Charges for Single Service
Service Size Service Type FY 2024-25
Effective 7/1/24
1 in. Standard Service $13,169
1 -1/2 in. Standard Service $18,503
2 in. Standard Service $18,503
3 in. Standard Service $52,916
4 in. Standard Service $52,916
6 in. Standard Service $62,117
8 in. Standard Service $71,220
1 -1/2 in. Fire Service $17,616
2 in. Fire Service $17,616
4 in. Fire Service $34,770
6 in. Fire Service $41,181
8 in. Fire Service $47,264
1 in. Combination Service $13,169
1 -1/2 in. Combination Service $18,503
2 in. Combination Service $18,503
1 in. Non-Standard Service $13,169
1 -1/2 in. Non-Standard Service $18,503
2 in. Non-Standard Service $18,503
Water Installation Service Charges for Multiple Services Service Size Service Type
FY 2024-25
Effective 7/1/24
Primary Secondary
1 in. Standard Service $10,775 $5,258
1 -1/2 in. Standard Service $12,862 $7,039
2 in. Standard Service $12,862 $7,039
3 in. Standard Service $54,991 $45,040
4 in. Standard Service $54,991 $45,040
6 in. Standard Service $64,821 $54,991
8 in. Standard Service $74,378 $63,961
1 -1/2 in. Fire Service $14,361 $8,500
2 in. Fire Service $14,361 $8,500
4 in. Fire Service $35,617 $25,946
6 in. Fire Service $42,399 $32,716
8 in. Fire Service $48,947 $39,229
1 in. Combination Service $10,775 $5,258
1 -1/2 in. Combination Service $12,862 $7,039
2 in. Combination Service $12,862 $7,039
1 in. Non-Standard Service $10,775 $5,258
1 -1/2 in. Non-Standard Service $12,862 $7,039
2 in. Non-Standard Service $12,862 $7,039
(i) The charge for setting each additional meter on an existing or new service for residential and small commercial use, and (ii) the charge for resetting a meter on an existing usable service, shall be established in the same manner as above.

For installations not covered in the above or when, in the opinion of the General Manager, any unusual conditions may result in costs more than 15% greater than the scheduled costs, the SFPUC may require payments based on actual costs.

All pipes, valves, fittings, equipment, materials, meters, any other facilities, up to and including the outlet equipment, shall remain the property of the SFPUC, and no part of the cost will be refunded.
24 Water Service Connection and Miscellaneous Fees
Additional Fees for Water Service Installations on
Regulated Streets
Applicable to water service installations in Schedule W-41A when the installation is located on a street or streets identified by the SFPUC, in consultation with the Municipal Transportation Agency and the Department of Public Works, as requiring extra permitting and additional paving costs.

Fee FY 2024-25
Effective 7/1/24
Special Streets Additional Fee $2,912
Moratorium Streets Additional Fee $4,779
Additional Fees for Water Service Installations with
Backflow Inspection
Applicable to water service installations in Schedule W-41A when the installation includes a backflow prevention device, and the Water Quality Division must perform a backflow inspection. This charge will be assessed per applicant.

Charge Type FY 2024-25
Effective 7/1/24
Backflow Inspection Fee $610
25 Water Service Connection and Miscellaneous Fees
SCHEDULE W-41B: Water Service Connection Fees
Temporary Hydrant Connection Fee $292
Customers who temporarily connect to the system will be assessed a connection charge.

Temporary Hydrant Meter Rental Deposit
Customers that temporarily connect to the system, in addition to payment of a temporary hydrant connection fee, shall also pay a meter deposit of $2,510 for a 1-inch meter and $4,710 for a 3-inch meter plus a charge equivalent to 50 units (CCF) of water at the current Schedule W-1C water rate, which will be $584.00 for FY 2024-25. The deposit will be refunded when the account is closed.

Temporary Hydrant Non-Reporting Penalty Fee
Customers that do not report meter reads according to the meter reading schedule, will be assessed a penalty fee equivalent to 25 units (CCF) of water at the effective Schedule W-5 water rate, which will be $292.00 per every delinquent month during FY 2024-25.

Docks and Shipping Connection Fee $1,164
Docks and Shipping customers who connect to the system will pay a connection fee to cover the administrative costs for setting up a billing account and field work to provide connecting equipment.

Hydrant Flushing Fee $777
When customers use a portable meter to connect to a hydrant for potable uses which require flushing and water quality testing prior to use, a fee will be assessed for this service plus a charge equivalent to 13 units (CCF) of water at the current Schedule W-5 water rate, which will be $151.84 for FY 2024-25.

After-Hours Temporary Service Water Shut Down Fee
Any customer who requests an after-hours temporary water shut down on water services 3 inches or larger will be assessed either a 4-hour standby fee of $1,519 or an 8-hour standby fee of $2,686.

If the work requested exceeds 4 hours, it will automatically be assessed as an 8-hour fee. This service is provided at no charge when the request is scheduled to occur during normal operating hours.
26 Water Service Connection and Miscellaneous Fees
SCHEDULE W-42: Meter and Service Relocations
Customer requested meter and service relocations. The City Distribution Division shall determine the location of the meter:

Charge Type FY 2024-25
Effective 7/1/24
Relocation of meter no more than 2' on existing
2" copper service $4,779
Relocation of meter no more than 2' on existing
1" copper or plastic service $2,912
If the SFPUC determines that the relocation of an active meter and/or service connection is required because of the operations of the SFPUC or because of modifications to a street or right-of-way by a public agency, the relocation will be done at no cost to the customer.

If the meter or service to be relocated is not active, the SFPUC may elect to sever the service connection and remove the meter without relocating it. If the SFPUC approves a customer request to relocate or remove the meter, the customer shall pay the greater of the standard charge as described above or the actual cost incurred by the Water Enterprise.

For relocations not covered in the above, or when any unusual conditions result in costs of more than 15% of scheduled costs, the SFPUC may require payment of the actual costs.
27 Water Service Connection and Miscellaneous Fees
SCHEDULE W-43: Flow Restricting Installations
Except as noted, the following service fees apply to all customers except wholesale customers.

Security Deposit
The SFPUC may require a customer to make a refundable security deposit equal to the greater of two months of estimated water charges or $123. This deposit is refundable after twelve months of satisfactory payment history or termination of service and settlement of the final bill, whichever occurs first.

Late Payment Penalty
Any charge or fee not paid within 30 days shall be subject to a late payment penalty equal to one-half of one percent (0.5%) for each 30 days or fraction thereof on the amount owed. This late payment penalty shall also apply to wholesale customers.

Returned Check Charge $50
A returned check charge shall be applied to any account whose payment is not honored by the customer’s bank. This charge will apply to every occurrence.

Broken Lock Penalty Fee $25
Any customer whose service is shut-off for non-payment will be charged for the cost of a meter lock installed per Water Enterprise regulations.

Meter Test Fee
Any customer who requests to test the accuracy of their water meter will be assessed a fee based on its meter size, as follows:

Meter Size FY 2024-25
Effective 7/1/24
5/8" Test $460
3/4" Test $480
1" Test $520
1 1/2" Test $1,060
2" Test $1,200
3" Test $1,540
4" Test $1,740
6" Test $2,040
If the meter registers more than the limit of error specified in the ‘Water Rules and Regulations Governing Water Service to Customers,’ the fee will be returned.
28 Water Service Connection and Miscellaneous Fees
Manual Meter-Reading Fee $28
Any customer who opted out of automatic meter reads will pay a manual meter-reading charge.

Lien Fee
Any account with an outstanding balance greater or equal to $50 and which is delinquent by more than one billing cycle may be recorded as a lien against the property. A lien fee will be assessed as provided in the Administrative Code of the City and County of San Francisco.

Lead Test Fee $25 per sample
At the customer’s request, the Water Enterprise will provide lead testing of water samples taken from a customer’s home or business. The fee covers sample bottle drop-off and pick-up, as well as the analytical tests.

Laboratory Fees
Laboratory Fee Schedule (sfpuc.gov)
www.sfpuc.gov/documents/laboratory-fee-schedule
Each year, the SFPUC will adjust the fees in Schedules W-40 through W-43 by the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco. The Returned Check Charge, Lead Test Fee and Lab Fees will not change.
29 Water Service Connection and Miscellaneous Fees
SCHEDULE W-44: Land Use and Facility Rental and Use Fees Charges for access to or rental of lands, facilities, or right-of-way (ROW) owned by the SFPUC. Customers may lease facilities not listed here based on negotiated contracts.

Fee Name FY 2024-25
ROW and Land Access Fee Base Fee: $902
Per-Day Fee: $302
Sunol and Pulgas Facility Rental (Wedding) $700 per two hours O’Shaughnessy Cottage 1 Rental Fee (per night) $597
O’Shaughnessy Cottage 2 Rental Fee (per night) $240
O’Shaughnessy Bunkhouse Rental Fee (per night) $303
O’Shaughnessy Meal Fee - Breakfast $18
O’Shaughnessy Meal Fee - Lunch $20
O’Shaughnessy Meal Fee - Dinner $36
Encroachment Permit $125
Each fiscal year, the SFPUC will adjust the ROW and Land Access Permit Fee in Schedule W-44 by the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco.

The O’Shaughnessy Rental and Meal fees will become effective at the start of the 2025 Calendar Year, on January 1st, 2025. Each calendar year, the O’Shaughnessy Meal Fees will be updated to reflect the latest U.S General Services Administration (GSA) reported meals and incidentals per diem rates for Yosemite. All other fees in Schedule W-44 will not change. 30 Water Service Connection and Miscellaneous Fee
SCHEDULE W-45: Water Enterprise Regulatory Compliance Fees Backflow Tag Fee
Backflow tag fees for customers who are required to conduct an annual inspection of backflow prevention assemblies per Article 12A of the San Francisco Health Code.

FY 2024-25
Effective 7/1/24
FY 2025-26
Effective 7/1/25
$27 $30
Auxiliary Water System Cross-Connection Test Fee
Buildings with auxiliary water systems required to undergo cross-connection testing.

Building Fixture Count FY 2024-25
Effective 7/1/24
Up to 320 Fixtures $2,200
321 to 640 Fixtures $3,600
641 to 1,280 Fixtures $6,390
1,281 to 1,920 Fixtures $9,180
1,921 to 2,560 Fixtures $11,970
2,561 to 3,200 Fixtures $18,000
3,201 to 3,840 Fixtures $20,790
Over 3,840 Fixtures Contact Water Quality Division
Each year, the SFPUC will adjust the Auxiliary Water System Cross-Connection Test fee by the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco.
31 Water Service Connection and Miscellaneous Fees
Wastewater Service Connection and
Miscellaneous Fees
SCHEDULE W-46: Water Enterprise Regulatory Compliance Fees Pretreatment Permit Application Fees
Applicable to permit applications for Batch Discharge Permits, Industrial User Permits, and Construction Site Runoff Permits (including both Erosion and Sediment Control Plans and Stormwater Pollution Prevention Plans).

Charge Type FY 2024-25
Effective 7/1/24
Initial Fee $1,100
Renewal or Modification of Permit Fee $630
The Initial Fee will be charged to first-time customers applying for a Pretreatment Permit and will recover costs to review the application and perform the initial onsite visits and inspections. The Renewal/Modification Fee is assessed for any subsequent requests to alter their permit or to issue any required annual or bi-annual renewal.

Pretreatment Facility Re-Inspection Fee $470
Applicable to permitted wastewater discharge inspections exceeding the required annual or bi-annual facilities inspection(s) for:
• Batch Discharge Permits
• Industrial User Permits
• Food Service Establishment General Wastewater Discharge Permits • Mobile Washer General Wastewater Discharge Permits
32 Wastewater Connection and Miscellaneous Fees
SCHEDULE W-46: Wastewater Enterprise Regulatory Compliance Fees (Contd.)
Stormwater Control Plan Review Fee
Applicable to projects regulated by the Stormwater Management Ordinance. The assessment of the Initial Submittal Fee is for the review of the Preliminary Stormwater Control Plan. The Subsequent Review Fee is assessed for the review of the Final Stormwater Control Plan and any additional reviews needed.

Project Size Initial Submittal Subsequent Review
Small Project
(<25,000 gsf) $3,163 $2,940
Medium Project
(25,000 – 250,000 gsf) $4,184 $3,451
Large Project
(>250,000 gsf) $5,546 $4,302
Each year, the SFPUC will adjust the fees in Schedules W-46 by the Consumer Price Index released by the Controller’s Office of the City and County of San Francisco.
33 Wastewater Service Connection and Miscellaneous Fees

525 Golden Gate Avenue
San Francisco, CA 94102-3220
sfpuc.gov
Updated June 30, 2024
▪ All Categories
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▪ Home - FAQs
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Home water use varies based on the
number of occupants, habits, and the
e�ciency level of water using �xtures
installed. Home water use also
�uctuates seasonally based on the
size and type of irrigated landscape,
with outdoor use accounting for
approximately 50 percent of annual
water use for single-family residences
even though most irrigation occurs
only during the six months from May
through October.

Indoor water use can typically be met
using no more than 50 gallons per
person per day, with more e�cient
homes using as little as 25 to 30
gallons per person per day. For a
family of four, average indoor use
ranges from around 3,000 gallons to
6,000 gallons per month. Even if you
aren't sure about your usage per day,
you can help us achieve our critical
goal of reducing water use
community-wide by 20%. Please visit
our Water Conservation here for a list
of tips and rebates to help you
eliminate water waste, reduce water
use, and improve water use e�ciency.

Water for landscapes can double
water use from May to October. We
o�er weather-based watering
recommendations and can complete a
Water Smart outdoor assessment to
help you irrigate more e�ciently. We
also o�er rebates for some irrigation
system improvements and for
converting turf grass to low water use
landscaping. Contact us at
707-665-3638 before starting a project
to make sure it meets the
requirements to be eligible for a
rebate.

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FAQs • What is considered efficient water use? https://www.cotaticity.gov/FAQ.aspx?QID=89 2 of 4 5/9/2025, 10:40 AM
Cotati City

555 12th Street, Suite 1500
Oakland, CA 94607
510.808.2000
www.meyersnave.com
Recent Developments: Proposition 218’s
Fees and Charges Provisions
The Meaning of Proposition 218’s Fees and Charges Provisions Remains Murky Despite a Seemingly Definitive Supreme Court Decision Presented by:

John D. Bakker, Esq.

Assistant City Attorney
Cities of Milpitas and Union City
Proposition 218’s Requirements for
Property-Related Fees
Procedural Requirements
• Majority Protest procedure requires:
– Notice to each property owner of the amount of the fee proposed to be charged
– Majority protest exists if a majority of property owners protest • Voter Approval
– The fee must receive either, at the agency’s option, a majority vote of the property owners or a two-thirds vote of the electorate. – Fees for sewer, water, and refuse collection services are exempt Proposition 218’s Requirements for
Property-Related Fees
Substantive Requirements. Property-related fees and
charges may not:
• Generate revenues in excess of the cost of providing the service for which the fee charged.
• Be used for a purpose other than the service for which charged. • Exceed the proportional cost of the service attributable to the parcel. • Be imposed unless the service for which the fee is charged is used by or immediately available to the property owner to whom it is charged. • Be imposed for “general governmental services,” such as police & fire.

What is a Property-Related Fee?
– “upon a parcel or”
– “upon a person as an incident of property ownership,” • “including a user fee or charge for a property related service.”
– “‘Property-related service’ means a public service having a direct relationship to property ownership.”
Proposition 218’s Text:
“‘Fee’ or ‘charge’ means any levy other than an ad valorem tax, a special tax, or an assessment, imposed by an agency”
Apartment Association of
Los Angeles County
The California Supreme Court states this bright-line rule:

Fees imposed upon a person as an incident of property
ownership include only such fees as are imposed “directly on property owners in their capacity as such.”
Thus, the residential rental-inspection fee imposed by L.A. and at issue in the case “is not imposed solely because a person owns property. Rather, it is imposed because the property is being rented. It ceases along with the business operation, whether or not ownership remains in the same hands.”
Apartment Association of
Los Angeles County
Shades of Gray in Apartment Association?
• Distinguishes the ballot materials statement that Proposition 218 applies to sewer, water, and refuse collection fees. Court notes that the ballot materials did not refer to levies linked “more indirectly” to property ownership.
• Distinguishes the rental inspection fee from the subordinate clause (including user fees for public services having a direct relationship with property ownership). Asserts that indirect because overlain by the requirement that the property must be rented.
• Taxpayer advocates argue these passages limit the core holding
Apartment Association of
Los Angeles County
But Court Makes Clear that Plain Language Controls
Despite the incongruities in Proposition 218’s text and the ballot materials, the court makes clear that the text of the measure controls.
• Specifically notes that reliance on ballot materials is forbidden because language of measure is unambiguous.
• Rejects for same reason argument that exemptions for electric and gas fees support broader reading.

Howard Jarvis Taxpayers
Assoc. v. City of Roseville
• Concerns Roseville’s practices of charging its three utilities (water, sewer, and refuse collection) an in-lieu of franchise fee of 4% of gross revenues. • Water fee imposed on property owners, on unmetered, flat-rate basis • Sewer fee (at least in some cases) imposed on users on a flat-rate basis depending on type of use on the parcel (e.g. $15.50/mo. for single family residential).
• Refuse fee included a fixed minimum charge to each occupier of a dwelling.

Howard Jarvis Taxpayers
Assoc. v. City of Roseville
Concludes that the in-lieu fee, because it is not
dependent on quantity of service used, is imposed on
a person as an incident of property ownership.
• Appears inconsistent with facts, since even the City’s flat-rate fee components are based on usage
Howard Jarvis Taxpayers
Assoc. v. City of Roseville
Concludes that imposed on property owners as
property owners.
• Distinguishes Apartment Association because the in-lieu fee is charged because property is being owned
• Inconsistent with Apartment Association because the rental inspection fee was only imposed on owners. Roseville fees only charged if service used.

Howard Jarvis Taxpayers
Assoc. v. City of Roseville
Relies heavily on the subordinate clause and ballot
materials
• Distinguishes Apartment Association because fees for sewer, water, and refuse collection are directly tied to property ownership. • Also notes that in-lieu fee not overlain by requirement that property be rented, and therefore not indirect
• Analysis inconsistent with Apartment Association because goes beyond the plain language of Proposition 218’s text
Howard Jarvis Taxpayers
Assoc. v. City of Roseville
Also relies heavily on exemptions and partial
exemptions for various utility fees in text of
Proposition 218
• Argues that there is no point in exempting these fees if not subject to Proposition 218
• Analysis inconsistent with Apartment Association because the Supreme Court specifically states that the “exemptions may have been included in an abundance of caution in case court interpretations of article XIII D similar to the Court of Appeal’s should prevail” Howard Jarvis Taxpayers
Association v. City of Salinas
• Concludes that Salinas’s stormwater-utility fee is a propertyrelated fee that is not exempt from the voter-approval requirement.
• Fee imposed on each “developed parcel” in the City and the owners and occupiers thereof.
• The fee did not apply to undeveloped parcels and was
reduced to the extent a property owner could demonstrate that the property did not contribute all of its stormwater to the City’s stormwater system
Howard Jarvis Taxpayers
Association v. City of Salinas
Court’s focus is on the fact that the service is in
its view a “property-related service.”
• The key for the court is that the amount of the fee is not based on consumption or services requested but on the
physical characteristics of property.
• This appears inconsistent with Apartment Association since the fee is designed to be based, not on ownership in and of itself, but on usage of the stormdrain system.

Howard Jarvis Taxpayers
Association v. City of Salinas
Court rejects the argument that the fee was not
imposed “solely by virtue of property ownership.”
• Reasserts belief that a “property related service.”
• Rejects factual premise that the fee can be avoided
• Notes that characteristics of property and not actions of owner determine amount of the reduction
• Again, seems inconsistent with Apartment Association because the fee can be avoided by not contributing storm water in excess of properly in its natural state.

Howard Jarvis Taxpayers
Association v. City of Salinas
Note that by its terms the fee in Salinas was actually
imposed on property. This is one way to distinguish the case from Apartment Association.

Options for Dealing with Utility Fees
Under Proposition 218
Apply Apartment Association literally
• Its core holding is straightforward, broad, and easily applied.

If the fee can be avoided by something short of selling one’s property, it is not a property-related fee.
• It is difficult to reconcile Apartment Association with Roseville and Salinas
• Not without risks, of course, but both Roseville and Salinas can be explained by their unique facts
• Avoid simple repeals of existing fees; preclude class actions for refunds
Options for Dealing with Utility Fees
Under Proposition 218
Shore up existing fees by avoiding these pitfalls:
• Make clear that service can be cancelled.
• Draft ordinances to require tenants to pay for utility services. • Allow persons that are not associated with a parcel to obtain service.
• If possible, impose charges based on actual use not estimated use.
• If possible, avoid fees that calculate charges based on “physical characteristics” of property
• Avoid flat-rate and minimum charges unless the use-based justification is explained in detail.

Comply with Proposition 218
• Water, sewer and refuse collection fees are only subject to the majority-protest requirement.
• Other fees are subject to voter approval.

Options for Dealing with Utility Fees
Under Proposition 218
Sell your utility to a private company
• Private utilities are not subject to Proposition 218, and City can receive franchise fees
• Also requires voter approval
Options for Dealing with Utility Fees
Under Proposition 218
Richmond v.

Shasta Community Services Dist.

Does Proposition 218 Apply to Fees Predating its

Enactment?
This Court of Appeal decision for which review has been granted holds (among other things) that the substantive provisions of Proposition 218 apply to fees that were in existence prior to Proposition 218’s enactment
Currently briefed and awaiting argument in Calif. Supreme Court
Richmond v.

Shasta Community Services Dist.

The argument has marginal textual support
• Heading of substantive is labeled “Requirements for
Existing, New or Increased Fees and Charges.”
• States that beginning July 1, 1997, all fees shall comply with this section.
• Court also cites ballot materials that state that passage would require reduction or elimination of some fees.

Richmond v.

Shasta Community Services Dist.

The argument is inconsistent with the operative
language in the substantive provisions
• The substantive provisions only apply to fees that are “extended, imposed, or increased.”
• Extended and increased are defined in Omnibus Proposition 218 Implementation Act
• “Imposed” is undefined, but usage in Proposition 218 strongly suggest that it only applies to the act of creating a new fee and not the annual or monthly act of levying an existing fee
John D. Bakker
John D. Bakker https://www.redwoodpubliclaw.com/john-d-bakker 1 of 4 5/9/2025, 10:57 AM
John D. Bakker https://www.redwoodpubliclaw.com/john-d-bakker 2 of 4 5/9/2025, 10:57 AM
John D. Bakker https://www.redwoodpubliclaw.com/john-d-bakker 3 of 4 5/9/2025, 10:57 AM
Direction:
409 13th St., Suite 600
Oakland, CA 94612
Contact:
(510) 721-3210
[email protected]
John D. Bakker https://www.redwoodpubliclaw.com/john-d-bakker 4 of 4 5/9/2025, 10:57 AM
John D. Bakker
▪
John D. Bakker https://www.redwoodpubliclaw.com/john-d-bakker 1 of 2 5/9/2025, 10:59 AM
Direction:
409 13th St., Suite 600
Oakland, CA 94612
Contact:
(510) 721-3210
[email protected]
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John D. Bakker https://www.redwoodpubliclaw.com/john-d-bakker 2 of 2 5/9/2025, 10:59 AM

Wastewater Cost of Service and
Rate Study
September 15, 2017

CAMARILLO

SANITARY DISTRICT

445 S. Figueroa Street
Suite #2270
Los Angeles, CA 90071
Phone 213.262.9300
Fax 213.262.9303
www.raftelis.com
September 15, 2017
Genie Rocha
Director of Finance
City of Camarillo
601 Carmen Drive
Camarillo, CA 93010
Subject: Wastewater Cost of Service and Rate Study
Dear Ms. Rocha,
Raftelis Financial Consultants, Inc. (Raftelis) is pleased to provide this Wastewater Cost of Service and Rate Study Report for the Camarillo Sanitary District (CSD or City), which develops a financial plan and updated cost of service for the Wastewater enterprise for fiscal years 2018 to 2022 and provides resulting rate adjustment recommendations.

This report details the updates to the financial plan, including adjustments to the capital improvement plan (CIP), operating budgets, customer data, and wastewater generation assumptions for the study period. Raftelis also conducted a cost of service analysis, with the details of the approach and resulting rates and rate structures included in this report.

It has been a pleasure working with you, and we thank Mark Uribe, Lucie McGovern, and other City staff for the support they provided during this study.

Sincerely,
Raftelis Financial Consultants, Inc.

Sanjay Gaur Kevin Kostiuk
City of Camarillo Wastewater Cost of Service and Rate Study

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY ................................................................ 1

1.1 STUDY BACKGROUND .............................................................................. 1

1.2 RESULTS & RECOMMENDATIONS ........................................................... 1

1.2.1 Reserve Policy .................................................................................................................1

1.2.2 Proposed Financial Plan .................................................................................................2

1.2.3 Proposed Two-Year Rates ...............................................................................................5

2. INTRODUCTION ............................................................................ 7

2.1 STUDY BACKGROUND .............................................................................. 7

2.2 LEGAL FRAMEWORK ................................................................................ 7

2.2.1 California Constitution – Article XIII D, Section 6 (Proposition 218) ...........................7

2.3 COST-BASED RATE-SETTING METHODOLOGY ..................................... 8

3. WASTEWATER SYSTEM .............................................................. 9

3.1 SYSTEM FACILITIES .................................................................................. 9

3.2 EQUIVALENT DWELLING UNITS AND ACCOUNTS ................................. 9

3.3 COMMODITY CHARGES .......................................................................... 10

3.4 CURRENT RATES .................................................................................... 10

3.4.1 Monthly Service Charges .............................................................................................. 11

3.4.2 Commodity Rates .......................................................................................................... 11

4. FINANCIAL PLAN ........................................................................ 12

4.1 OPERATING & MAINTENANCE EXPENSES ........................................... 12

4.1.1 Inflationary Assumptions .............................................................................................. 12

4.1.2 Projected O&M ............................................................................................................... 12

4.2 CAPITAL IMPROVEMENT PLAN ............................................................. 13

4.3 DEBT SERVICE ......................................................................................... 13

4.3.1 Current Debt Service ..................................................................................................... 13

4.4 RESERVE POLICY .................................................................................... 14

4.5 CURRENT FINANCIAL PLAN ................................................................... 14

4.6 PROPOSED FINANCIAL PLAN ................................................................ 15 City of Camarillo Wastewater Cost of Service and Rate Study

5. COST OF SERVICE ..................................................................... 20

5.1 PLANT MASS-BALANCE ANALYSIS ...................................................... 20

5.1.1 Estimated Residential Flow Generation ....................................................................... 22

5.2 REVENUE REQUIREMENT ...................................................................... 23

5.3 UNIT COST DERIVATION ......................................................................... 24

5.3.1 Functional Costs to Cost Components ........................................................................ 24

5.3.2 Units of Service .............................................................................................................. 29

5.3.3 Unit Costs of Service ..................................................................................................... 30

5.3.4 Customer Class Cost of Service ................................................................................... 30

6. RATES AND CHARGES DERIVATION ....................................... 33

6.1 PROPOSED TWO-YEAR RATES ............................................................. 33

6.1.1 Residential Service Charges ......................................................................................... 33

6.1.2 Non-Residential Service Charges ................................................................................. 34

6.1.3 Non-Residential Commodity Rates .............................................................................. 35

6.1.4 Single Family Residential Wastewater Bill Comparison ............................................. 37 City of Camarillo Wastewater Cost of Service and Rate Study

LIST OF TABLES
Table 1-1: Reserve Policies ................................................................................................................... 2 Table 1-2: Proposed Revenue Adjustments ......................................................................................... 2 Table 1-3: Proposed Financial Plan ...................................................................................................... 3 Table 1-4: Proposed FY 2018 and 2019 Residential Service Charges ................................................ 5 Table 1-5: Proposed FY 2018 and 2019 Non-Residential Service Charges ........................................ 6 Table 1-6: Proposed FY 2018 and 2019 Residential Volumetric Rates ............................................... 6 Table 3-1: Residential EDUs .................................................................................................................. 9 Table 3-2: Non-Residential Accounts ................................................................................................. 10 Table 3-3: FY 2018 Non-Residential Water Use (hcf) ......................................................................... 10 Table 3-4: 2017 Residential Monthly Service Charges ...................................................................... 11 Table 3-5: 2017 Non-Residential Monthly Service Charges .............................................................. 11 Table 3-6: 2017 Non-Residential Commodity Rates .......................................................................... 11 Table 4-1: Inflation Factors.................................................................................................................. 12 Table 4-2: FY 2018-2022 Projected O&M ............................................................................................ 12 Table 4-3: Detailed Capital Improvement Plan ................................................................................... 13 Table 4-4: Current Debt Service .......................................................................................................... 14 Table 4-5: Reserve Policies ................................................................................................................. 14 Table 4-6: Current Financial Plan........................................................................................................ 15 Table 4-7: Proposed FY 2018-2022 Revenue Adjustments ............................................................... 16 Table 4-8: Proposed Debt Service Terms ........................................................................................... 16 Table 4-9: Proposed Debt Service Issuance ...................................................................................... 16 Table 4-10: Proposed Financial Plan .................................................................................................. 17 Table 5-1: 2016 Plant Balance Analysis ............................................................................................. 21 Table 5-2: Residential Flows by Class ................................................................................................ 22 Table 5-3: FY 2016 Residential GPCD by Class ................................................................................. 23 Table 5-4: FY 2018 CSD Revenue Requirement ................................................................................. 24 Table 5-5: Allocation of FY 2018 WW O&M Expenses by Function to Cost Components .............. 26 Table 5-6: Allocation of FY 2018 WW O&M Expenses by Function to Cost Components .............. 26 Table 5-7: Allocation of WW Asset by Function ................................................................................ 28 Table 5-8: Allocation of WW Asset by Function ................................................................................ 28 Table 5-9: FY 2018 Customer Class Service Units ............................................................................ 29 Table 5-10: Development of Unit Cost of Service .............................................................................. 30 Table 5-11: Cost of Service by Customer Classes ............................................................................ 31 Table 5-12: Cost of Service by Customer Class ................................................................................ 32 Table 6-1: Residential Rates Derivation ............................................................................................. 33 Table 6-2: Proposed FY 2018 and 2019 Residential Service Charges .............................................. 33 Table 6-3: Non-Residential Revenue Recovery – Fixed and Variable .............................................. 34 Table 6-4: Meter Equivalencies Calculation ....................................................................................... 34 Table 6-5: Cost per Equivalent Meter Calculation ............................................................................. 35 Table 6-6: Non-Residential Service Charge Derivation ..................................................................... 35 Table 6-7: Proposed FY 2018 and 2019 Non-Residential Service Charges ...................................... 35 City of Camarillo Wastewater Cost of Service and Rate Study Table 6-8: Non-Residential Unit Cost of Flow Calculation ($/hcf) ..................................................... 36 Table 6-9: Strength Class Flow Cost Calculation ($/hcf) ................................................................... 36 Table 6-10: Non-Residential Commodity Rate Derivation ($/hcf) ..................................................... 37 Table 6-11: Proposed FY 2018 and 2019 Non-Residential Commodity Charges ............................. 37

LIST OF FIGURES
Figure 1-1: Proposed Financial Plan .................................................................................................... 4 Figure 1-2: Fund Balance under Proposed Financial Plan .................................................................. 4 Figure 1-3: Capital Improvement Program ........................................................................................... 5 Figure 4-1: Current vs. Proposed Financial Plan ............................................................................... 18 Figure 4-2: Total Fund Balance ........................................................................................................... 18 Figure 4-3: Revenue Adjustments and Debt Coverage ..................................................................... 19 Figure 4-4: Capital Improvement Program ......................................................................................... 19 Figure 6-1: Monthly Bill Comparisons for Neighboring Wastewater Services ................................ 38

City of Camarillo Wastewater Cost of Service and Rate Study This page intentionally left blank to facilitate two-sided printing.

Wastewater Cost of Service and Rate Study | 1

1. EXECUTIVE SUMMARY

1.1 STUDY BACKGROUND
The Camarillo Sanitary District (CSD) is a special district that provides wastewater services to most of the City of Camarillo (City). The service area is different from the City boundaries. CSD is governed by a five member Board of Directors (which are City Council members) and run by the District Manager (City of Camarillo City Manager). Some of the staff involved in the running the City of Camarillo are jointly employed by the City and Camarillo Sanitary District.

Managing wastewater systems requires balancing the need for reliable systems with the need to meet user demand while minimizing the impact on the ratepayers. In finding this balance, key issues include rate stability, affordability, equity, and defensibility. With capital-intensive plans in an environment of costly, fluctuating capital costs and increasing regulatory demand, the CSD is subject to these pressures.

Raftelis Financial Consultants (Raftelis) conducted the CSD’s previous cost of service analysis in 2012. The most recent rate study was completed in 2015, with financial plan updates and recommended adjustments in 2016. This study consists of financial plan development, cost of service analysis, and rate design. We develop projections for a five-year financial planning horizon, including two years of proposed rates.

The objectives of the Study include:

1. Develop a financial plan and propose revenue adjustments for the Wastewater enterprise to ensure financial sufficiency, adequate reserves, and funding for capital improvements,

2. Conduct a cost-of-service (COS) analysis for the wastewater system,

3. Develop wastewater rates that fairly and equitably recover costs from all customer classes, maintaining compliance with the requirements of Proposition 218.

1.2 RESULTS & RECOMMENDATIONS

1.2.1 Reserve Policy
A reserve policy is a written document that establishes reserve goals/targets. It provides guidelines for sound financial management with an overall long-term goal of maintaining financial solvency and mitigating financial risks associated with revenue instability, volatile capital costs, and emergencies. Adopting and adhering to a sustainable reserve policy helps utilities achieve and maintain a favorable credit rating for future debt issues.

The appropriate amount of reserves and reserve types are determined by a variety of factors, such as the size of the operating budget, planned capital improvements, the amount of debt, the type of rate structure, frequency of customer billing, and risk of natural disaster. Typically, reserves fall into the following categories:
operations & maintenance (O&M), capital, rate stabilization, debt service, and emergency reserve. Reserves can offset unanticipated reductions in revenues, fluctuations in costs of providing services, and fiscal emergencies such as revenue shortfalls, asset failures, and natural disasters. Capital reserves set funds aside for replacement of capital assets as they age, as well as for new capital projects. 2 | City of Camarillo
The CSD’s primary reserve funds include an operating fund (Operating Fund 871) and capital fund (Capital Projects Fund 873). The CSD has an additional reserve for its debt obligation (Debt Service Fund 872) as required by the bond indenture. The proposed target reserves for the wastewater enterprise are summarized in Table 1-1 below. The current reserve policies were adopted by City Council in 1992 and amended in 20071.

Table 1-1: Reserve Policies
Fund Policy Reserve Target FY 2018
Operating Fund 871 Six months of O&M expenses $4.4 million Capital Projects Fund 873 No minimum, funded by rate revenues in excess of Operating Fund 871 target None
Debt Service Fund 872 Reserve established by bond covenants2 $1.31 million

1.2.2 Proposed Financial Plan
Based on meetings with City/CSD staff and workshops with the Utilities Committee and City Council/CSD Board, Raftelis recommends no revenue adjustment in the current fiscal year and a 2.0% annual revenue adjustment in FY 2019-2022 to meet inflating operating expenses across the Study period. The recommendation proposes a $10 million debt issuance in FY 2020 to partially fund capital projects in that year. Revenue adjustments are proposed to be effective on January 1 of each fiscal year.

Table 1-2: Proposed Revenue Adjustments
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Revenue Adjustment 0.0% 2.0% 2.0% 2.0% 2.0%
Debt Issue $10,000,000
Applying these adjustments results in the proposed financial plan in Table 1-3. The City generates sufficient revenue to meet its operating requirement, fund the CIP, and achieve reserve targets in all years. The primary capital projects are the Flood Improvement project at the WWTP ($9.8 million) and the Pleasant Valley Forcemain ($18 million). The City will fund these improvements with rate revenues through existing cash reserves, debt issuance, and grant revenues where possible.

1 City of Camarillo “City Council Policy” document number 3.05, subject “Reserve Level” adopted May 27, 1992 and amended May 9, 2007
2 Camarillo PFA 2005 Wastewater Revenue Bonds Official Statement specifies a reserve of one year of debt service Wastewater Cost of Service and Rate Study | 3
Table 1-3: Proposed Financial Plan
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Operating Revenues
Revenue from Existing Rates $12,960,745 $12,960,745 $12,960,745 $12,960,745 $12,960,745 Total Revenue Adjustments $0 $129,607 $391,414 $658,458 $930,842 Total Rate Revenue $12,960,745 $13,090,352 $13,352,159 $13,619,203 $13,891,587 Non-Rate Revenue
Charges for Service $233,340 $238,007 $242,767 $247,623 $252,575 Fines/Assessments $110,471 $112,681 $114,934 $117,233 $119,577 Investments-Contributions $68,175 $68,857 $69,545 $70,936 $72,355 Other Revenues $94,874 $95,823 $96,781 $98,717 $100,691 Grants $0 $0 $0 $0 $0
Total Non-Rate Revenue $506,861 $515,367 $524,028 $534,509 $545,199 Total Operating Revenue $13,467,606 $13,605,720 $13,876,188 $14,153,711 $14,436,785 O&M Expenditures
Finance - Customer Service $485,963 $498,865 $512,121 $525,740 $539,733 Administration $2,920,602 $2,429,165 $2,490,792 $2,554,042 $2,618,961 Pumping Station $531,007 $546,545 $562,598 $579,183 $596,321 Collection System $1,775,273 $1,820,354 $1,866,625 $1,914,116 $1,962,862 Reclamation Plant $3,099,338 $3,188,888 $3,281,311 $3,376,710 $3,475,190 Total O&M Expenses $8,812,183 $8,483,818 $8,713,446 $8,949,791 $9,193,068 Revenues Less Operating Expenses $4,655,423 $5,121,901 $5,162,741 $5,203,920 $5,243,718 Replacement Capital Projects $7,636,818 $1,554,067 $29,498,809 $9,751,980 $911,883 Debt Issues $0 $0 $10,204,082 $0 $0
Issuance Costs $0 $0 $204,082 $0 $0
Debt Proceeds $0 $0 $10,000,000 $0 $0
Debt Funded (Remaining Proceeds) $0 $0 $0 $0 $0
Debt Service $1,305,844 $1,306,044 $1,972,584 $1,968,584 $1,970,184 Current Debt Service $1,305,844 $1,306,044 $1,308,794 $1,304,794 $1,306,394 Proposed Debt Service $0 $0 $663,790 $663,790 $663,790
Net Cash Change ($4,287,239) $2,261,791 ($16,308,651) ($6,516,644) $2,361,651 Beginning Balance $32,049,333 $27,762,094 $30,023,885 $13,715,233 $7,198,589 Ending Balance $27,762,094 $30,023,885 $13,715,233 $7,198,589 $9,560,240 Target $5,711,935 $5,547,953 $6,329,307 $6,443,480 $6,566,718 Debt Coverage 357% 392% 262% 264% 266%
Target Coverage 120% 120% 120% 120% 120%
Figure 1-1 shows that the proposed revenue adjustments allow the City to adequately fund O&M expenses and reserves for capital improvements, while achieving reserve targets. 4 | City of Camarillo
Figure 1-1: Proposed Financial Plan
Figure 1-2 shows the total balance of the wastewater fund’s reserves. The significant drop in fund balance in FY 2020 results from expenditures for the Flood Improvement projects at the WWTP and the Pleasant Valley Forcemain. Despite these major expenses, the reserves achieve reserve targets and guard against uncertain timing and cost volatility in operating and capital expenses.in all years of the study period.

Figure 1-2: Fund Balance under Proposed Financial Plan
Figure 1-3 shows the five year capital program. FY 2019 reflects expenditures related to the Pleasant Valley Road Forcemain and Flood Improvement projects. Capital expenditures are anticipated to be funded with cash reserves and a $10 million debt issue in FY 2020, shown in Figure 1-3 in orange.

Wastewater Cost of Service and Rate Study | 5
Figure 1-3: Capital Improvement Program

1.2.3 Proposed Two-Year Rates

1.2.3.1 Residential Service Charges
Two years of wastewater rates are proposed for adoption by the City. Applying the rate adjustments in Table 1-2 for FY 2018 and FY 2019 to the current residential service charges results in the proposed rates in Table 1-4.

The updated cost of service analysis groups residential users based on water use characteristics and household demographics. This simplifies the residential rate structure and makes rates more equitable between classes. The existing customer class distinctions are retained since these pertain to customers’ water service classifications. The proposed rates group similar customer classes together in rate classes.

Table 1-4: Proposed FY 2018 and 2019 Residential Service Charges Customer Class Rate Class Current FY 2018 FY 2019 $ Change FY 2018
% Change
FY 2018
Single Family Residential SFR3 $51.04 $53.65 $54.73 $2.61 5% Multi-Family Residential MFR4$36.36 $37.10 $37.85 $0.74 2% Duplex MFR $38.51 $37.10 $37.85 ($1.41) -4%
Triplex MFR $37.67 $37.10 $37.85 ($0.57) -2%
Condos/Cluster Housing MFR $40.33 $37.10 $37.85 ($3.23) -8% Mobile Home Parks Age Restricted $32.00 $20.87 $21.29 ($11.13) -35% Qualifying Low-Income Senior* Age Restricted $29.78 $20.87 $21.29 ($8.91) -30% Age Restricted Age Restricted $31.07 $20.87 $21.29 ($10.20) -33% Outside CSD - SFR Outside CSD $63.80 $67.06 $68.41 $3.26 5%

3 SFR stands for Single Family Residential
4 MFR stands for Multi-Family Residential
6 | City of Camarillo

1.2.3.2 Non-Residential Service Charges
Applying the rate adjustments in Table 1-2 for FY 2018 and FY 2019 to the current fixed monthly service charges results in the proposed rates in Table 1-4.

Table 1-5: Proposed FY 2018 and 2019 Non-Residential Service Charges Meter Size Current FY 2018 FY 2019 $ Change
FY 2018
% Change
FY 2018
5/8"/3/4" $32.50 $31.29 $31.92 ($1.21) -4%
1" $70.68 $68.04 $69.41 ($2.64) -4%
1 1/2" $134.36 $129.34 $131.93 ($5.02) -4%
2" $210.74 $202.87 $206.93 ($7.87) -4%
3" $388.98 $374.44 $381.93 ($14.54) -4%
4" $643.62 $374.44 $381.93 ($269.18) -42%
6" $1,280.16 $374.44 $381.93 ($905.72) -71%
8" $2,044.03 $374.44 $381.93 ($1,669.59) -82%

1.2.3.3 Non-Residential Commodity Charges
The volumetric rates for FY 2018 and FY 2019 are shown in Table 1-6. Similarly to the changes to residential user classes, Raftelis proposes that the City consolidate the existing combination of strength classes and user classes to strength classes of Low, Medium, and High. This change simplifies the rate structure and better reflects each user’s burden on the wastewater system.

Table 1-6: Proposed FY 2018 and 2019 Residential Volumetric Rates Customer Class Strength
Class Current FY 2018 FY 2019 $ Change FY 2018
% Change
FY 2018
Low Strength Commercial Low $3.73 $3.91 $3.99 $0.18 5%
Medium Strength Commercial Medium $4.98 $4.81 $4.91 ($0.17) -3% High Strength Commercial High $6.23 $5.61 $5.73 ($0.62) -10% Churches Low $3.59 $3.91 $3.99 $0.32 9%
Schools Low $3.59 $3.91 $3.99 $0.32 9%
Hospitals/Convalescent Low $3.84 $3.91 $3.99 $0.07 2%
Public/City Low $3.56 $3.91 $3.99 $0.35 10%
Industrial High $5.25 $5.61 $5.73 $0.36 7%
Wastewater Cost of Service and Rate Study | 7

2. INTRODUCTION

2.1 STUDY BACKGROUND
Most of the City of Camarillo (City) is served by the Camarillo Sanitary District (CSD) for wastewater services.

The service area is different from the City boundaries. CSD is governed by a five member Board of Directors (which are City Council members) and run by the District Manager (City of Camarillo City Manager). Some of the staff involved in the running the City of Camarillo are jointly employed by the City and Camarillo Sanitary District.

Managing wastewater systems presents unique challenges in balancing system reliability to be able to meet user demand while minimizing the impact on the ratepayers. In finding this balance, issues that are often considered include rate stability, affordability, equity, and defensibility. With capital-intensive plans in an environment of costly, fluctuating capital costs and increasing regulatory demand, CSD is subject to these pressures.

Raftelis conducted that last cost of service analysis for the CSD in 2012. The last rate study was completed in 2015, with financial plan updates and recommended adjustments in 2016 for FY 2017. This study consists of financial plan development, a cost of service analysis, and rate design. The 2017 study encompasses a fiveyear financial planning horizon with two years of proposed rate adoption for FYs 2018 and 2019. These rate adjustments will prompt Proposition 218 procedures.

The objectives of the Study include:

1. Develop a financial plan and propose revenue adjustments for the wastewater enterprise to ensure financial sufficiency, adequate reserves, and funding for capital improvements,

2. Conduct a cost-of-service (COS) analysis for the wastewater system,

3. Develop fair and equitable wastewater rates compliant with the requirements of Proposition 218 that fairly and equitably recover costs from all customer classes.

2.2 LEGAL FRAMEWORK

2.2.1 California Constitution – Article XIII D, Section 6 (Proposition 218)
Proposition 218, reflected in the California Constitution as Article XIII D, was enacted in 1996 to ensure that rates and fees are reasonable and proportional to the cost of providing service. The principal requirements for fairness of the fees, as they relate to public wastewater service are as follows:

1. A property-related charge (such as water and sewer rates) imposed by a public agency on a parcel shall not exceed the costs required to provide the property related service.

2. Revenues derived by the charge shall not be used for any purpose other than that for which the charge was imposed.

3. The amount of the charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel.

4. No charge may be imposed for a service unless that service is actually used or immediately available to the owner of property.
8 | City of Camarillo

5. A written notice of the proposed charge shall be mailed to the record owner of each parcel at least 45 days prior to the public hearing, when the agency considers all written protests against the charge.

At the public hearing CSD Board may not adopt revenue increases above those stated in the Proposition 218 notice.

2.3 COST-BASED RATE-SETTING METHODOLOGY
Proposition 218 requires that wastewater rates and charges should be recovered from classes of customers in proportion to the cost of serving those customers.” It also requires that wastewater not be arbitrary and capricious, meaning that the rate-setting methodology must be sound and that there must be a nexus between the costs and the rates charged. Raftelis follows industry standard rate setting methodologies set forth by the Water Environment Federation (WEF) Manual of Practice No. 27, Financing and Charges for Wastewater Systems, 2004 to ensure this study meets Proposition 218 requirements.

To develop utility rates that comply with Proposition 218 and industry standards while meeting other emerging goals and objectives of the utility, there are four major steps discussed below. 1) Calculate Revenue Requirement
The rate-making process starts by determining the test year revenue requirement, which for this study is FY 2018. The revenue requirement should sufficiently fund the utility’s O&M, debt service, capital expenses, and reserve funding.
2) Cost of Service Analysis (COS)
The annual cost of providing wastewater service is distributed among customer classes commensurate with their service requirements. A COS analysis involves the following:

1. Functionalize costs. Examples of functions are collection, treatment, and customer service.

2. Allocate functionalized costs to cost components. Cost components include wastewater flow, biological oxygen demand (BOD), and total suspended solids (TSS).

3. Distribute the cost components. Distribute cost components, using unit costs, to customer classes in proportion to their burden on the wastewater system. 3) Rate Design and Calculations
Rates do more than simply recover costs. Within the legal framework and industry standards, properly designed rates should support and optimize a blend of various utility objectives, such as affordability for essential needs and revenue stability. Rates may also act as a public information tool in communicating these objectives to customers.
4) Rate Adoption
Rate adoption is the last step of the rate-making process to comply with Proposition 218. Raftelis documented the rate study results in this Study Report to serve as the City’s administrative record and to help educate the public about the proposed changes, the rationale and justifications behind the changes, and their anticipated financial impacts in lay terms.

Wastewater Cost of Service and Rate Study | 9

3. WASTEWATER SYSTEM
This section briefly describes the City’s wastewater system, customer account and water use data, and current rates and rate structure for FY 2018. The revenue calculated for each of the fiscal years in the Financial Plan is a function of the number of accounts, account growth, wastewater generation, and existing rates.

3.1 SYSTEM FACILITIES
The District’s infrastructure consists of a collection system which extends throughout most of the City and one wastewater treatment plant (WWTP). The plant treats on average 3.5 million gallons per day (MGD) of influent. It is built to serve a maximum capacity of 7.25 MGD. The collection system consists of four pump stations and approximately 160 miles of pipeline. The CSD produces recycled water, sold to a handful of irrigation customers, with the remainder discharged to Conejo Creek. Collected solids are transported to Kern County to support soil improvement efforts in the region.

3.2 EQUIVALENT DWELLING UNITS AND ACCOUNTS
The City charges residential customers a fixed monthly service charge. The service charge is assessed per equivalent dwelling unit (EDU). For example, Single Family Residential (SFR) homes are a single dwelling unit; a duplex equals two dwelling units; a housing complex with 12 apartment units equals 12 dwelling units. Table 3-1 lists the total residential EDUs, including the 120 residential Outside CSD customers. Note, the financial plan assumes no increase in total residential EDUs during the Study Period.

Table 3-1: Residential EDUs
Residential Customer Class Equivalent
Dwelling Units
Single Family Residential 10,384
Multi-Family Residential 4,128
Duplex 132
Triplex 39
Condos/Cluster Housing 2,442
Mobile Home Parks 756
Qualifying Low-Income Senior* 0
Age Restricted 0
Outside CSD - SFR 120
Total Residential EDUs 18,001
Non-residential customers pay a fixed monthly service charge based on the size of the water meter serving the account. Table 3-2 provides the accounts listed by potable water meter size. Note that the CSD also has one Outside District Non-Residential customer. New residential construction is currently in the planning stages, and to provide a conservative estimate, the financial plan does not assume any increase in accounts during the Study Period. Raftelis works with CSD staff to re-evaluate all of the components of the financial plan on an annual basis and updates the estimates accordingly.
10 | City of Camarillo
Table 3-2: Non-Residential Accounts
Meter Size Accounts
Inside CSD Non-Residential
3/4" 270
1" 158
1 1/2" 193
2" 208
3" 28
4" 8
6" 2
8" 0
Inside CSD Non-Residential Subtotal 867
Outside CSD Non-Residential
6" 1
Outside CSD Non-Residential Subtotal 1
Total Non-Residential Accounts 868

3.3 COMMODITY CHARGES
Non-Residential customers are charged a volumetric rate based on water use. As with account growth, the financial plan does not assume increases in wastewater generation by non-residential customers in the Study Period. Table 3-3 shows the non-residential water use for FY 2018.

Table 3-3: FY 2018 Non-Residential Water Use (hcf)
Customer Class HCFs
Inside CSD Non-Residential
Low Strength Commercial 223,937
Medium Strength Commercial 87,032
High Strength Commercial 62,211
Churches 13,824
Schools 20,368
Hospitals/Convalescent 32,486
Public/City 5,599
Industrial 23,879
Inside CSD Non-Residential Water Use 469,336
Outside CSD Non-Residential
Low Strength Commercial 7,402
Outside CSD Non-Residential Water Use 7,402
Total Non-Residential Water Use 476,738

3.4 CURRENT RATES
The current fixed monthly service charges and volumetric rates are described in this section. The revenues generated from existing rates and charges are assessed for the ability to meet the enterprise’s projected revenue requirements. This will serve for the basis for any required revenue adjustments for the study period.

Wastewater Cost of Service and Rate Study | 11

3.4.1 Monthly Service Charges
The City charges residential customers a monthly service charge, for each dwelling unit, based on customer class. Non-residential customers are charged a monthly service charge based on the size of the customer’s water meter. Current monthly service charges are listed in Table 3-4 and Table 3-5 .

Table 3-4: 2017 Residential Monthly Service Charges
Residential Customer Class Charge
Single Family Residential $51.04
Multi-Family Residential $36.36
Duplex $38.51
Triplex $37.67
Condos/Cluster Housing $40.33
Mobile Home Parks $32.00
Qualifying Low-Income Senior* $29.78
Age Restricted $31.07
Outside CSD - SFR $63.80
Table 3-5: 2017 Non-Residential Monthly Service Charges Meter Size Charge
5/8" or 3/4" $32.50
1" $70.68
1 1/2" $134.36
2" $210.74
3" $388.98
4" $643.62
6" $1,280.16
8" $2,044.03

3.4.2 Commodity Rates
Non-residential customers pay commodity rates on their water use as most commercial water use returns to the sewer collection system. Existing non-residential commodity rates are shown in Table 3-6.

Table 3-6: 2017 Non-Residential Commodity Rates
Customer Class HCFs
Low Strength Commercial $3.73
Medium Strength Commercial $4.98
High Strength Commercial $6.23
Churches $3.59
Schools $3.59
Hospitals/Convalescent $3.84
Public/City $3.56
Industrial $5.25
12 | City of Camarillo

4. FINANCIAL PLAN
This section describes the assumptions used in projecting operating and capital expenses as well as reserve coverage requirements that determine the overall revenue adjustments required to ensure the financial health of the enterprise. Developing a financial plan includes an analysis of annual operating revenues under the current rates, O&M expenses, capital expenditures, transfers between funds, and reserve requirements.

Revenue adjustments represent the average increase in rates for the enterprise as a whole; rate changes for individual classes and customers will depend on the cost of service analysis.

4.1 OPERATING & MAINTENANCE EXPENSES

4.1.1 Inflationary Assumptions
To ensure that future costs are reasonably projected, we make informed assumptions about inflation factors.

Table 4-1 shows the inflationary assumptions incorporated in the five-year Financial Plan. Each expense was assigned the most applicable inflation factor. Percentages were informed by the Consumer Price Index (CPI), Construction Cost Index (CCI), estimated increases in utility energy costs, and City staff input.

Table 4-1: Inflation Factors
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
General Inflation 2% 2% 2% 2% 2%
Salary 3% 3% 3% 3% 3%
Benefits 3% 3% 3% 3% 3%
Energy 5% 5% 5% 5% 5%
Capital 4% 4% 4% 5% 5%
Other Operating Revenues 2% 2% 2% 2% 2%
Interest 1% 1% 1% 2% 2%

4.1.2 Projected O&M
O&M expenses include the costs of operating and maintaining the wastewater collection, treatment, and disposal facilities, as well as the costs of providing technical services such as laboratory services and other administrative costs of the wastewater system such as customer service and billing. The projected O&M shown in Table 4-2 is based on the FY 2018 budget inflated by the factors in Table 4-1.

Table 4-2: FY 2018-2022 Projected O&M
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Finance - Customer Service $485,963 $498,865 $512,121 $525,740 $539,733 Administration $2,920,602 $2,429,165 $2,490,792 $2,554,042 $2,618,961 Pumping Station $531,007 $546,545 $562,598 $579,183 $596,321 Collection System $1,775,273 $1,820,354 $1,866,625 $1,914,116 $1,962,862 Reclamation Plant $3,099,338 $3,188,888 $3,281,311 $3,376,710 $3,475,190 Total O&M $8,812,183 $8,483,818 $8,713,446 $8,949,791 $9,193,068 Wastewater Cost of Service and Rate Study | 13

4.2 CAPITAL IMPROVEMENT PLAN
Table 4-3 provides the detailed CIP for the Study Period. The CIP is funded through rate revenues, developer fees, and proposed debt. The developer fees are shown in Table 4-3 as an offset to the total CIP funding requirement.

Table 4-3: Detailed Capital Improvement Plan
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Daily Drive Sewer $0 $0 $0 $3,080,000 $0
Dawson Drive to Metrolink Station Sewer $150,000 $500,000 $0 $0 $0 Flood Improvements @ WWTP $800,000 $0 $9,000,000 $0 $0
Lewis Road to Flynn Road Sewer $1,680,000 $0 $0 $0 $0
Mission Oaks Sewer Replacement $0 $1,000,000 $0 $0 $0
Pleasant Valley Road Sewer Forcemain $0 $1,000,000 $17,000,000 $0 $0 Ponderosa Drive Sewer $0 $0 $0 $4,600,000 $0
Pump Station #3 Rehabilitation $3,100,000 $0 $0 $0 $0
Renewable Energy Project Implementation $1,000,000 $0 $0 $0 $0 Sewer Improvements per SSMP $0 $0 $0 $0 $0
Sewer Improvements per SSMP $0 $0 $0 $0 $0
Sewer Improvements per SSMP $200,000 $0 $0 $0 $0
Sewer Improvements per SSMP $0 $1,000,000 $0 $0 $0
Sewer Improvements per SSMP $0 $0 $1,000,000 $0 $0
Sewer Improvements per SSMP $0 $0 $0 $1,000,000 $0
Sewer Improvements per SSMP $0 $0 $0 $0 $1,000,000
Sewer Improvements per SSMP - Manhole
Rehabilitation $1,250,000 $0 $0 $0 $0
Sterling Hills Golf Course Sewer Access Road $200,000 $0 $0 $0 $0 Closeout Projects $0 $0 $0 $0 $0
AB 1600/Developer Fee Revenue -$743,182 -$2,019,936 -$243,711 -$255,873 -$249,792 Total $7,636,818 $1,480,064 $26,756,289 $8,424,127 $750,208 Total Capital Projects (INFLATED) $7,636,818 $1,554,067 $29,498,809 $9,751,980 $911,883

4.3 DEBT SERVICE

4.3.1 Current Debt Service
CSD has one outstanding debt issuance from wastewater revenue bonds issued in 2005, and refunded in 2015.

The current debt service schedule for the Study period is shown in Table 4-4. 14 | City of Camarillo
Table 4-4: Current Debt Service
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Camarillo PFA 2005 Wastewater
Revenue Bonds/ 2015 Refunding
Principal $620,000 $645,000 $680,000 $710,000 $740,000
Interest $685,844 $661,044 $628,794 $594,794 $566,394
Total Camarillo PFA 2005 Wastewater
Revenue Bonds/2015 Refunding $1,305,844 $1,306,044 $1,308,794 $1,304,794 $1,306,394

4.4 RESERVE POLICY
A reserve policy is a written document that establishes reserve goals/targets. It provides guidelines for sound financial management with an overall long-term goal of maintaining financial solvency and mitigating financial risks associated with revenue instability, volatile capital costs, and emergencies. Additionally, adopting and adhering to a sustainable reserve policy helps to achieve and maintain a favorable credit rating for future debt issues.

The appropriate amount of reserves and reserve types are determined by a variety of factors, such as the size of the operating budget, planned capital improvements, the amount of debt, the type of rate structure, frequency of customer billing, and risk of natural disaster. Typically, reserves for wastewater utilities fall into the following categories: operations & maintenance (O&M), capital, debt service, and emergency. Reserves can offset unanticipated reductions in revenues, fluctuations in costs of providing services, and fiscal emergencies such as revenue shortfalls, asset failures, and natural disasters. Capital reserves set funds aside for replacement of capital assets as they age, as well as for new capital projects.

The City’s primary reserve funds are an operating fund (Operating Fund 871), debt service (Debt Service Fund 872) and a CIP fund (Capital Projects Fund 873). Reserves in the CIP Fund are designated for planned capital projects. The proposed target reserves for the District are summarized in Table 4-5 below. The current reserve targets were adopted by City Council in 1992 and amended in 2007.

Table 4-5: Reserve Policies
Fund Policy Reserve Target FY 2018
Operating Fund 871 Six months of O&M expenses $4.4 million Capital Projects Fund 873 No minimum, funded by rate revenues in excess of Operating Fund 871 target None
Debt Service Fund 872 Reserve established by bond covenants5 $1.31 million

4.5 CURRENT FINANCIAL PLAN
Table 4-6 shows the current financial plan based on the projected O&M, CIP expenses, and debt service, with no revenue adjustments. Under the current rates, the City generates sufficient revenue for operations, but does

5 Camarillo PFA 2005 Wastewater Revenue Bonds Official Statement specifies a reserve of one year of debt service Wastewater Cost of Service and Rate Study | 15
not generate sufficient revenue to meet CIP expenses in FYs 2018, 2020, and 2021. This is due to the significant amount of capital projects scheduled in these years. In FY 2020 the enterprise balance drops below target and in FY 2021 the fund balance turns negative.

Table 4-6: Current Financial Plan
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Operating Revenues
Revenue from Existing Rates $12,960,745 $12,960,745 $12,960,745 $12,960,745 $12,960,745 Total Revenue Adjustments $0 $0 $0 $0 $0
Total Rate Revenue $12,960,745 $12,960,745 $12,960,745 $12,960,745 $12,960,745 Non-Rate Revenue
Charges for Service $233,340 $238,007 $242,767 $247,623 $252,575 Fines/Assessments $110,471 $112,681 $114,934 $117,233 $119,577 Investments-Contributions $68,175 $68,857 $69,545 $70,936 $72,355 Other Revenues $94,874 $95,823 $96,781 $98,717 $100,691 Grants $0 $0 $0 $0 $0
Total Non-Rate Revenue $506,861 $515,367 $524,028 $534,509 $545,199 Total Operating Revenue $13,467,606 $13,476,112 $13,484,773 $13,495,254 $13,505,944 O&M Expenditures
Finance - Customer Service $485,963 $498,865 $512,121 $525,740 $539,733 Administration $2,920,602 $2,429,165 $2,490,792 $2,554,042 $2,618,961 Pumping Station $531,007 $546,545 $562,598 $579,183 $596,321 Collection System $1,775,273 $1,820,354 $1,866,625 $1,914,116 $1,962,862 Reclamation Plant $3,099,338 $3,188,888 $3,281,311 $3,376,710 $3,475,190 Total O&M Expenses $8,812,183 $8,483,818 $8,713,446 $8,949,791 $9,193,068 Revenues Less Operating Expenses $4,655,423 $4,992,294 $4,771,327 $4,545,462 $4,312,876 Replacement Capital Projects $7,636,818 $1,554,067 $29,498,809 $9,751,980 $911,883 Debt Issues $0 $0 $0 $0 $0
Current Debt Service $1,305,844 $1,306,044 $1,308,794 $1,304,794 $1,306,394 Net Cash Change ($4,287,239) $2,132,183 ($26,036,276) ($6,511,312) $2,094,600 Beginning Balance $32,049,333 $27,762,094 $29,894,277 $3,858,001 ($2,653,310) Ending Balance $27,762,094 $29,894,277 $3,858,001 ($2,653,310) ($558,711) Target $5,711,935 $5,547,953 $5,665,517 $5,779,689 $5,902,928 Debt Coverage 357% 382% 365% 348% 330%
Target Coverage 120% 120% 120% 120% 120%

4.6 PROPOSED FINANCIAL PLAN
Raftelis held extensive discussions with the Utilities Committee and City staff in developing a sound financial plan. In order for the enterprise to meet operational expenses, fund capital projects, comply with bond 16 | City of Camarillo
covenants, and achieve reserve targets Raftelis recommends that CSD implement the revenue adjustments in Table 4-7. Each revenue adjustment is intended to be effective January 1 of each fiscal year.

Table 4-7: Proposed FY 2018-2022 Revenue Adjustments
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

0.0% 2.0% 2.0% 2.0% 2.0%
In addition, Raftelis recommends CSD issue $10,000,000 in bonds in FY 2020 to fund a portion of the five-year CIP. Table 4-8 summarizes the terms used in estimating costs of the proposed debt service and Table 4-9 shows the total estimated cost of new debt. The proposed debt service for the Study Period is $633,790 per year.

Table 4-8: Proposed Debt Service Terms
Terms
Interest Rate 5%
Years 30
Issuance Cost 2%
Table 4-9: Proposed Debt Service Issuance
Line No. Debt Funding
Line 1 Proceeds Amount $10,00,000
Line 2 =
Line 1 * 2.0% Issuance Cost $204,082
Line 3=1+2 Total Proposed Debt $10,204,082
Line 4 Annual Debt Service $663,790
Applying the proposed revenue adjustments from Table 4-7 and the debt issue in Table 4-9 ensures sufficient funding of operating and capital expenses through FY 2022. The proposed financial plan in Table 4-10 uses cash reserves over the five year horizon drawing down the total fund balance by the end of the period to near the reserve targets.

Wastewater Cost of Service and Rate Study | 17
Table 4-10: Proposed Financial Plan
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Operating Revenues
Revenue from Existing Rates $12,960,745 $12,960,745 $12,960,745 $12,960,745 $12,960,745 Total Revenue Adjustments $0 $129,607 $391,414 $658,458 $930,842 Total Rate Revenue $12,960,745 $13,090,352 $13,352,159 $13,619,203 $13,891,587 Non-Rate Revenue
Charges for Service $233,340 $238,007 $242,767 $247,623 $252,575 Fines/Assessments $110,471 $112,681 $114,934 $117,233 $119,577 Investments-Contributions $68,175 $68,857 $69,545 $70,936 $72,355 Other Revenues $94,874 $95,823 $96,781 $98,717 $100,691 Grants $0 $0 $0 $0 $0
Total Non-Rate Revenue $506,861 $515,367 $524,028 $534,509 $545,199 Total Operating Revenue $13,467,606 $13,605,720 $13,876,188 $14,153,711 $14,436,785 O&M Expenditures
Finance - Customer Service $485,963 $498,865 $512,121 $525,740 $539,733 Administration $2,920,602 $2,429,165 $2,490,792 $2,554,042 $2,618,961 Pumping Station $531,007 $546,545 $562,598 $579,183 $596,321 Collection System $1,775,273 $1,820,354 $1,866,625 $1,914,116 $1,962,862 Reclamation Plant $3,099,338 $3,188,888 $3,281,311 $3,376,710 $3,475,190 Total O&M Expenses $8,812,183 $8,483,818 $8,713,446 $8,949,791 $9,193,068 Revenues Less Operating Expenses $4,655,423 $5,121,901 $5,162,741 $5,203,920 $5,243,718 Replacement Capital Projects $7,636,818 $1,554,067 $29,498,809 $9,751,980 $911,883 Debt Issues $0 $0 $10,204,082 $0 $0
Issuance Costs $0 $0 $204,082 $0 $0
Debt Proceeds $0 $0 $10,000,000 $0 $0
Debt Funded (Remaining Proceeds) $0 $0 $0 $0 $0
Debt Service $1,305,844 $1,306,044 $1,972,584 $1,968,584 $1,970,184 Current Debt Service $1,305,844 $1,306,044 $1,308,794 $1,304,794 $1,306,394 Proposed Debt Service $0 $0 $663,790 $663,790 $663,790
Net Cash Change ($4,287,239) $2,261,791 ($16,308,651) ($6,516,644) $2,361,651 Beginning Balance $32,049,333 $27,762,094 $30,023,885 $13,715,233 $7,198,589 Ending Balance $27,762,094 $30,023,885 $13,715,233 $7,198,589 $9,560,240 Target $5,711,935 $5,547,953 $6,329,307 $6,443,480 $6,566,718 Debt Coverage 357% 392% 262% 264% 266%
Target Coverage 120% 120% 120% 120% 120%
18 | City of Camarillo
Figure 4-1 compares the current and proposed financial plans. As shown by the blue line, the proposed financial plan is able to sufficiently fund operations and reserves, while the current plan (black line) falls short as the Study Period progresses.

Figure 4-1: Current vs. Proposed Financial Plan
Figure 4-2 below shows the total fund balance for the CSD. FY 2020 shows a significant drawdown due to capital expenditures in that year, with a continued decline in FY 2021. In FY 2022 the enterprise is able to achieve its existing reserve targets.

Figure 4-2: Total Fund Balance
Wastewater Cost of Service and Rate Study | 19
Figure 4-3 shows that CSD’s debt coverage ratio continues to exceed the coverage required determined by bond covenants. The drop in the ratio in FY 2020 is due to the issuance of new debt above the current debt.

Figure 4-3: Revenue Adjustments and Debt Coverage
Figure 4-4 shows the five year capital program. FY 2019 reflects expenditures related to the Pleasant Valley Road Forcemain and Flood Improvement projects. Capital expenditures are anticipated to be funded with cash reserves and a $10 million debt issue in FY 2020, shown in Figure 4-4 in orange.

Figure 4-4: Capital Improvement Program
20 | City of Camarillo

5. COST OF SERVICE
This section of the Report discusses the allocation of O&M expenses and capital costs to cost components (consistent with industry standards), the determination of unit costs, and calculation of wastewater costs by customer class.

Costs of providing wastewater service are largely dependent on the quantity (flows) and quality (strengths) of the wastewater. Quality of wastewater flows are measured by the presence of pollutants to be removed during the treatment process under the National Pollutant Discharge Elimination System (NPDES) permit.

These pollutants are classified as biological oxygen demand (BOD) and total suspended solids (TSS).

To determine the cost of serving the various customer classes, costs first need to be allocated to the appropriate wastewater parameters. The following sections describe the allocation of operating and capital costs to the appropriate parameters of the wastewater system. We analyze the total costs of wastewater service by system function in order to equitably distribute costs of service to the various customer classes.

For this analysis, we allocate wastewater utility costs of service in a manner consistent with the guidelines of the Water Environment Federation (WEF) Manual of Practice No. 27, Financing and Charges for Wastewater Systems, 2004. The wastewater COS analysis consists of seven major steps, as outlined below:

1. Determine non-residential customer flow and strength loadings based on water usage

2. Estimate the flow and strength of the residential customer class using plant balance analysis, which takes into consideration infiltration and inflow (I&I)

3. Functionalize O&M and capital costs into functional categories such as Collection, Treatment, and Billing and Customer Service

4. Allocate each functional category into cost components such as Flow, Strength, and Billing and Customer Service

5. Develop customer class characteristics (units of service) by cost component

6. Calculate the cost component rates by dividing the total cost in each cost component in Step 4 by the customer class unit of service in Step 5

7. Calculate the cost by customer class by multiplying the unit cost in Step 6 by the customer class units of service in Step 5

5.1 PLANT MASS-BALANCE ANALYSIS
A plant balance analysis is used to estimate and validate the wastewater loadings (flow and strength) generated by each customer class. While wastewater discharged into the sewer collection system is not metered, we do have data on the flow and strength of influent entering the treatment plant. Additionally, while non-residential customer flows and strengths can be estimated based on their water usage; nonresidential customer strength concentrations are estimated according to industry standards6. The remaining loadings, net of the total influent flow to the treatment plant (row 2), infiltration and inflow (I&I) (row 3), and non-residential (row 15), are assigned to residential customers (row 17 of Table 5-1). Based on this

6 Estimated using available City of Los Angeles and Los Angeles County Sanitation District (LACSD) wastewater generation and strength loading data.

Wastewater Cost of Service and Rate Study | 21
mass-balance analysis, the estimated residential flow is determined to be 56 gallons per capita per day, which is a reasonable estimate of the amount of indoor water usage per person. The estimated residential strength concentration is 277 and 333 milligrams per liter (mg/l) of BOD and TSS (see Equation 5-1), respectively, which is a reasonable estimate of residential strength concentration.

Table 5-1: 2016 Plant Balance Analysis
Flow
(MGD)
BOD
(mg/L)
TSS
(mg/L)
Flow
(hcf/yr)
BOD
(lbs/yr)
TSS
(lbs/yr)
1 WW Treatment Plant A B C D E F
2 Influent Flow 3.69 286 299 1,798,571 3,213,102 3,355,876 3 I&I (0.18) 14 15 (89,929) (8,033) (8,390)
4 NET PLANT 3.50 301 314 1,708,643 3,205,069 3,347,486
5 6 NON-RESIDENTIAL
FLOW
7 Low Strength
Commercial 0.41 150 150 201,543 188,594 188,594
8 Medium Strength
Commercial 0.16 575 375 78,329 280,968 183,240
9 High Strength
Commercial 0.11 1,000 600 55,990 349,283 209,570
10 Churches 0.03 130 100 12,442 10,090 7,761
11 Schools 0.04 130 100 18,331 14,866 11,436
12 Hospitals/Convalescent 0.06 250 100 29,237 45,598 18,239 13 Public/City 0.01 130 80 5,039 4,087 2,515
14 Industrial 0.04 669 420 21,491 89,692 56,309
15 TOTAL NONRESIDENTIAL FLOW 0.87 N/A N/A 422,402 983,177 677,663 16 17 RESIDENTIAL WW
FLOWS 2.64 N/A N/A 1,286,240 2,221,891 2,669,823
Table 5-1 also shows the estimated loadings by customer class, including the estimated BOD and TSS loadings for non-residential flows. Los Angeles County Sanitation Districts (LACSD) and the City of Los Angeles detailed standard loadings by user category. The loadings used a combination of actual field studies, literature surveys, and water consumption analysis to establish the average values for flow, bio-chemical oxygen demand (BOD), and total suspended solids (TSS) for various user categories. The standard loadings (BOD and TSS) are recorded as milligrams per liter (mg/L). All commercial low strength flows together with public/city, school, and church are assumed with standard loadings of a regular business office with average BOD and TSS around 130 mg/L. Medium strength flows are assumed similar to light manufacturing, warehouse, lumber yard, or similar with average BOD less than 575 mg/L and TSS less than 375 mg/L. High 22 | City of Camarillo
strength flows are assumed similar to a supermarket or a restaurant with average BOD around 1,000 mg/L and TSS around 600 mg/L. BOD loadings in lbs/yr are equal to flow in MGD (A) multiplied by BOD concentration in mg/L (column B), multiplied by 365 for the number of days in the year, and converting unit of 8.34 lbs/MGD. The domestic (i.e. residential) strength concentration in mg/L are calculated from net plant loadings less the non-domestic loadings and domestic flow in MGD and converting factors.

Equation 5-1 shows the calculation steps in determining BOD and TSS concentrations.

Equation 5-1: Domestic Strength Concentration Calculations  /

= 8,781 − 2,694 = 6,087 /

 /

= 9,171 − 1,857 = 7,315 /

 

/
= 6,087 /

÷ 2.64 "# ÷ 8.34 /"# = 277

/
 

/
= 7,315 /

÷ 2.64 "# ÷ 8.34 /"# = 333

/

5.1.1 Estimated Residential Flow Generation
Raftelis estimated residential wastewater flows (1,286,240 hcf per year from Table 5-1) by residential customer class using actual FY 2016 billed water use. The estimates use low winter water use so as to remove any outdoor irrigation water. The relative proportion of winter water use by class (class winter use relative to total residential winter use) is then apportioned to the net residential flow of 1,286,240 hcf per year. The table uses reorganized customer classes which are further discussed in Section 5.3.4.1.

Table 5-2: Residential Flows by Class
FY 2016 Data
(Jul 2015 – Jun 2016)
Billed WW
Flows
(Low Winter Use)
Net
Residential
WW Flow
Net WW
Flows
(Class Share)
Net BOD
(Class Share)
Net TSS
(Class Share)
SFR7 277,314 1,286,240 858,301 1,482,656 1,781,558
MFR8/Condo/Apartment 129,696 1,286,240 401,415 693,417 833,209 Mobile Home/Age Restricted 8,570 1,286,240 26,525 45,819 55,057 Total Billed Residential Flows 415,580 1,286,240 2,221,891 2,669,823 Table 5-3 shows the calculation for residential class gallons per capita per day (GPCD). Net residential flows from Table 5-2 is divided by the respective number of dwelling units for each class and by 365 which yields hcf per day. The value is multiplied by 748 to convert hcf/day to gallons per day (GPD). Utilizing the most recent available housing demographic information from the US Census bureau, Raftelis estimates GPCD for each residential user group by dividing the calculated GPD by the respective household density,

7 SFR stands for Single Family Residential
8 MFR stands for Multi-Family Residential
Wastewater Cost of Service and Rate Study | 23
Table 5-3: FY 2016 Residential GPCD by Class
FY 2016 Data
(Jul 2015 – Jun 2016)
Net WW
Flows
(Class Share)
Dwelling
Units
GPD/
Dwelling
Unit
Household
Density9
GPCD
SFR 858,301 10,384 169 2.67 63
MFR/Condo/Apartment 401,415 6,741 122 2.58 47
Mobile Home/Age Restricted 26,525 756 72 2.00 36
Total Billed Residential Flows 1,286,240 17,881 14710 5611

5.2 REVENUE REQUIREMENT
Proposition 218 requires a nexus between billed service charges and the costs of providing service. Based on the proposed financial plan, the cost of service analysis translates this requirement into actual rates. The first step in the cost of service analysis is to determine the amount of revenue required to be collected from rates.

As part of the cost of service analysis, we adjust for revenues from sources other than rates and charges (e.g. revenues from miscellaneous services and income) which are deducted from the total. Table 5-4 shows the total revenue required from rates for the rate-setting year of FY 2018.

9 2010 US Census Bureau data for housing demographics for the City of Camarillo 10 Estimated average per dwelling unit for all residential users 11 Estimated GPCD for all residential users using average household density for the City of Camarillo 24 | City of Camarillo
Table 5-4: FY 2018 CSD Revenue Requirement
Descriptions Operating
Requirement
Capital
Requirement
FY 2018
Total
1 REVENUE REQUIREMENTS
2 Finance - Customer Service $485,963 $485,963
3 Administration $2,920,602 $2,920,602
4 Pumping Station $531,007 $531,007
5 Collection System $1,775,273 $1,775,273
6 Reclamation Plant $3,099,338 $3,099,338
7 Debt Service Transfer $1,305,844 $1,305,844
9 SUBTOTAL REVENUE REQUIREMENTS $8,812,183 $1,305,844 $10,118,027 10 11 LESS OTHER REVENUES
12 Charges for Service $233,340 $233,340
13 Fines/Assessments $110,471 $110,471
14 Investments-Contributions $68,175 $68,175
15 Other Revenues $94,874 $94,874
17 SUBTOTAL OTHER REVENUES $506,861 $0 $506,861
18 19 ADJUSTMENTS
20 Adjustment for Annual Cash Balance $3,349,579 $3,349,579 21 Adjustment for Annualized Increases $0 $0
22 SUBTOTAL ADJUSTMENTS $0 $3,349,579 $3,349,579
23 24 TOTAL REVENUE FROM WW RATES $8,305,322 $4,655,423 $12,960,745

5.3 UNIT COST DERIVATION

5.3.1 Functional Costs to Cost Components
The wastewater utility is comprised of various facilities, each designed and operated to fulfill a given function. In order to provide adequate service to its customers at all times, the utility must be capable of collecting the total amount of wastewater generated, as well as treating and removing various pollutants from wastewater. Separating costs by function allows allocation of costs to cost components.

In order to allocate costs of service to the different customer classes, we develop unit costs of service for various system functions. O&M expenses and capital costs are functionalized as collection, treatment, billing, administrative, etc. These functional costs are then allocated to cost components—flow, BOD, TSS, customer costs, and general costs based on the design of each facility. Collection system and pumping station costs are allocated 100 percent to the flow cost component since the collection system is designed to handle Wastewater Cost of Service and Rate Study | 25
wastewater flows. Treatment costs (Reclamation Plant in Table 5-5) are allocated 60 percent to flow, 20 percent to BOD, and 20 percent to TSS, which is consistent with industry design standards. The treatment allocations were confirmed by City staff based on their estimates of the treatment plant’s characteristics.

Finance –Customer Service is allocated 100 percent to the customer cost component. Administration costs are allocated 100 percent to the general component which is subsequently redistributed based on the pro rata share of all other cost components. Table 5-5 shows the FY 2018 O&M expenses percentage allocations by the different functional categories. Table 5-6 translates the percentage allocations to total dollars to each cost component.
26 | City of Camarillo
Table 5-5: Allocation of FY 2018 WW O&M Expenses by Function to Cost Components WW O&M Expenses FY 2018 Flows BOD TSS Customer General
WW Functions A B C D E F
Finance - Customer Service $485,963 100%Administration $2,920,602 100%Pumping Station $531,007 100%Collection System $1,775,273 100%Reclamation Plant $3,099,338 60% 20% 20%Total O&M Expenses $8,812,183 Table 5-6: Allocation of FY 2018 WW O&M Expenses by Function to Cost Components WW O&M Expenses FY 2018 Flows BOD TSS Customer General
WW Functions A B C D E F
Finance - Customer Service $485,963 $0 $0 $0 $485,963 $0 Administration $2,920,602 $0 $0 $0 $0 $2,920,602 Pumping Station $531,007 $531,007 $0 $0 $0 $0 Collection System $1,775,273 $1,775,273 $0 $0 $0 $0 Reclamation Plant $3,099,338 $1,859,603 $619,868 $619,868 $0 $0 Total O&M Expenses $8,812,183 $4,165,883 $619,868 $619,868 $485,963 $2,920,602 O&M Allocation % 100% 47.3% 7.0% 7.0% 5.6% 33.1% Wastewater Cost of Service and Rate Study | 27
Wastewater capital assets are also functionalized and distributed to the same cost components. Table 5-12 summarizes the total value of CSD assets, by function, in terms of their replacement costs. Asset costs and depreciation values were provided by City staff and analyzed by Raftelis. To reduce rate variability from year to year, the allocation of fixed assets to the cost components is used to approximate long-term capital requirements to repair and replace the wastewater system. This allows the capital-related portion of the revenue requirement to be allocated to cost components. 28 | City of Camarillo
Table 5-7: Allocation of WW Asset by Function
Capital Assets
FY 2015
Replacement
Costs
Flows BOD TSS Customer General
Asset Functions A B C D E F
Building and Land $7,552 50% 50%Improvements $248,364 50% 50%Equipment $5,519,754 30% 5% 5% 30% 30%Collection System $42,324,654 100%Reclamation Plant $15,818,681 60% 20% 20%Total Asset Value $63,919,007 Capital Allocation % Table 5-8: Allocation of WW Asset by Function
Capital Assets
FY 2015
Replacement
Costs
Flows BOD TSS Customer General
Asset Functions A B C D E F
Building and Land $7,552 $0 $0 $0 $3,776 $3,776 Improvements $248,364 $0 $0 $0 $124,182 $124,182 Equipment $5,519,754 $1,655,926 $275,988 $275,988 $1,655,926 $1,655,926 Collection System $42,324,654 $42,324,654 $0 $0 $0 $0 Reclamation Plant $15,818,681 $9,491,209 $3,163,736 $3,163,736 $0 $0 Total Asset Value $63,919,007 $53,471,790 $3,439,724 $3,439,724 $1,783,885 $1,783,885 Capital Allocation % 100% 83.6% 5.4% 5.4% 2.8% 2.8% Wastewater Cost of Service and Rate Study | 29

5.3.2 Units of Service
In order to allocate costs of service to different customer classes, we calculate unit costs of service for each cost component using the following general formula:
$%&' ()' )* +,-&.+ =
)'

%%/
 .)
0)%+%' .)'
)'

%%/
 +,-&.+ /%&'
This calculation is completed for all cost components (flow, BOD, TSS, and customer costs). General costs are distributed to flow, BOD, TSS, and customer in proportion to these other costs. Table 5-9 shows the service units, such as annual flow, total pounds of BOD and TSS, number of accounts, and dwelling units for each customer class. These service units are determined from the plant balance and from customer and billing data. The units of service become the denominator in the equation to determine unit costs for each cost component.

Table 5-9: FY 2018 Customer Class Service Units
Customer Classes Flow
(hcf/yr)
BOD
(lbs/yr)
TSS
(lbs/yr) Accounts Dwelling Units
Residential
Single Family Residential 858,301 1,482,656 1,781,558 10,384 10,384 Multi-Family Residential 245,815 424,629 510,234 353 4,128 Duplex 7,860 13,578 16,316 67 132
Triplex 2,322 4,012 4,821 13 39
Condos/Cluster Housing 145,417 251,198 301,839 2,117 2,442 Mobile Home Parks 26,525 45,819 55,057 3 756
Total Residential 1,286,240 2,221,891 2,669,823 12,937 17,881 Non-Residential
Low Strength Commercial 201,543 188,594 188,594
86112
N/A
Medium Strength Commercial 78,329 280,968 183,240 N/A
High Strength Commercial 55,990 349,283 209,570 N/A
Churches 12,442 10,090 7,761 29 N/A
Schools 18,331 14,866 11,436 16 N/A
Hospitals/Convalescent 29,237 45,598 18,239 9 N/A
Public/City 5,039 4,087 2,515 37 N/A
Industrial 21,491 89,692 56,309 22 N/A
Total Non-Residential 422,402 983,177 677,663 974 N/A
Total CSD 1,708,643 3,205,069 3,347,486 13,911 17,881

12 In total 861 non-residential accounts are currently categorized as low, medium, or high strength. 30 | City of Camarillo

5.3.3 Unit Costs of Service
After developing unit costs we distribute the cost components to each user class. The unit cost for each component is equal to the total cost divided by the total units of service. To determine the total costs for each component, the operating and capital revenue requirement from Table 5-4 is distributed using the percentages identified in Table 5-6 and Table 5-8. General costs are apportioned relative to the total cost of each yielding the total cost of service for each component. The revenue requirement for each cost component is then divided by the respective units of service derived in Table 5-9. Flow revenue requirements are divided by total wastewater flows (1,708,643 hcf/yr) to yield the unit cost of service $5.89/hcf. BOD costs are divided by 3,205,069 lbs/yr and TSS costs by 3,347,486 lb/yr yielding the strength unit costs. Customer costs are divided by 166,932 (13,911 accounts over 12 months) to yield the customer cost per bill generated.

Table 5-10: Development of Unit Cost of Service
Flow BOD TSS Customer General Total

A B C D E F
Operating Cost $3,926,269 $584,214 $584,214 $458,011 $2,752,614 $8,305,322 Capital Cost $3,894,519 $250,526 $250,526 $129,926 $129,926 $4,655,423 Total Cost $7,820,788 $834,740 $834,740 $587,937 $2,882,540 $12,960,745 Allocation of General $2,236,880 $238,750 $238,750 $168,160 ($2,882,540) Cost of Service $10,057,668 $1,073,490 $1,073,490 $756,097 $0 $12,960,745 78% 8% 8% 6%
hcf/yr lb/yr lb/yr bills/yr
Units of Service 1,708,643 3,205,069 3,347,486 166,93213

Unit Cost $5.89 $0.33 $0.32 $4.53

5.3.4 Customer Class Cost of Service
The unit cost of each component in Table 5-10 is applied to the projected FY 2018 service units of each customer class (Table 5-9), to derive the cost to serve each class. This is shown in Table 5-11. Total costs are shown in column F, furthest right in the table.

13 13,911 CSD accounts multiplied by 12 billing periods equals 166,932 annual bills generated.

Wastewater Cost of Service and Rate Study | 31
Table 5-11: Cost of Service by Customer Classes
Customer Classes Flow
(hcf/yr)
BOD
(lbs/yr)
TSS
(lbs/yr) Customer Total Cost

B C D E F
Unit Cost $5.89 $0.33 $0.32 $4.53
Unit $/hcf $/lbs $/lbs $/bill/month
Residential
Single Family Residential $5,052,259 $496,593 $571,319 $564,396 $6,684,568 Multi-Family Residential $1,446,955 $142,223 $163,625 $19,186 $1,771,989 Duplex $46,269 $4,548 $5,232 $3,642 $59,691
Triplex $13,670 $1,344 $1,546 $707 $17,266
Condos/Cluster Housing $855,975 $84,135 $96,795 $115,064 $1,151,969 Mobile Home Parks $156,133 $15,347 $17,656 $163 $189,298 Total Residential $7,571,260 $744,189 $856,173 $703,158 $9,874,781 Non-Residential
Low Strength Commercial $1,186,354 $63,167 $60,479
$46,79714
$1,356,798
Medium Strength Commercial $461,071 $94,106 $58,762 $613,939 High Strength Commercial $329,576 $116,987 $67,206 $513,769 Churches $73,236 $3,379 $2,489 $1,576 $80,680
Schools $107,904 $4,979 $3,667 $870 $117,420
Hospitals/Convalescent $172,102 $15,272 $5,849 $489 $193,712 Public/City $29,662 $1,369 $806 $2,011 $33,848
Industrial $126,504 $30,041 $18,057 $1,196 $175,798
Total Non-Residential $2,486,408 $329,301 $217,317 $52,939 $3,085,964 Total CSD $10,057,668 $1,073,490 $1,073,490 $756,097 $12,960,745

5.3.4.1 Class Consolidation Recommendation
Raftelis recommends consolidating customer classes for both residential and non-residential users. The consolidation more appropriately reflects similarities between classes and the cost to serve each, while simplifying the rate structure for ease of administration and customer understanding.

The proposed consolidation identifies four residential classes: Single Family Residential, Multi-Family Residential, Mobile Home/Senior/Age Restricted, and Outside CSD. Multi-Family Residential will include the existing Multi-Family Residential, Duplex, Triplex, and Condo/Cluster Housing.

14 Represents the share of customer costs for the 861 low, medium, or high strength accounts in total. 32 | City of Camarillo
Raftelis recommends similar consolidation to the non-residential wastewater classes. Currently the commodity charge designations are a combination of strength classes and land use classes. Raftelis’ proposal assigns the existing land use classifications into one of the three strength class designations of low, medium, and high. Churches, schools, hospitals/convalescent homes, and public/city are assigned to low strength based on their strength concentrations; industrial users are assigned to the medium strength category. This change will create parity among the user groups while simplifying the rate structure.

Additionally, Raftelis recommends a modification to the non-residential monthly fixed service charge. The fixed charge is based on the size of the meter serving the account. However, the relationship between meter size and wastewater flow generation is not necessarily strong at larger meter sizes, and is instead dependent upon the primary use of the facility. For example, a brewery may have a large potable water meter, yet the majority of water delivered goes into products and not to the sewer collection system. To promote equity among non-residential users of varying meter sizes, Raftelis proposes to consolidate the largest meter sizes into a single grouping of 3” and above. Table 5-12 shows the revised residential classes and costs of service, as well as the revised non-residential commodity classes and costs of service. The revision to the non-residential monthly fixed charge is discussed in the subsequent rate design section.

Table 5-12: Cost of Service by Customer Class
Customer Classes Flow
(hcf/yr)
BOD
(lbs/yr)
TSS
(lbs/yr) Customer Total Cost

B C D E
Single Family Residential $5,052,259 $496,593 $571,319 $564,396 $6,684,568 Multi-Family Residential $2,362,868 $232,250 $267,198 $138,599 $3,000,915 Mobile/Senior/Age Restricted $156,133 $15,347 $17,656 $163 $189,298 Outside CSD $0 $0 $0 $0 $0
Total Residential $7,571,260 $744,189 $856,173 $703,158 $9,874,781 Non-Residential
Low Strength Commercial $1,569,257 $88,166 $73,291 $51,744 $1,782,458 Medium Strength Commercial $587,575 $124,147 $76,820 $1,196 $789,737 High Strength Commercial $329,576 $116,987 $67,206 $0 $513,769 Total Non-Residential $2,486,408 $329,301 $217,317 $52,939 $3,085,964 Total CSD $10,057,668 $1,073,490 $1,073,490 $756,097 $12,960,745 Wastewater Cost of Service and Rate Study | 33

6. RATES AND CHARGES DERIVATION

6.1 PROPOSED TWO-YEAR RATES
The proposed rates for the Study period follow from the cost of service analysis in Section 5. The proposed rates incorporates the customer class changes discussed in Section 5.3.4.1. Rates for FY 2018 reflect the updated cost of service – a reallocation of costs between customer classes with no overall revenue increase.

Proposed rates for FY 2019 reflect FY 2018 rates, increased by the FY 2019 revenue adjustment.

6.1.1 Residential Service Charges
To derive the monthly residential charges, we divide the costs to serve each class from Table 5-12 by the respective number of dwelling units and billing periods in the year (12) to determine the rate for FY 2018.

Outside City rates use the existing methodology, as determined by City staff, of 1.25 times inside CSD rates.

All rates are rounded up to the nearest whole penny. As there is no increase in revenue proposed for FY 2018, the COS rates in Table 6-1 represent the rates for adoption effective January 1, 2018.

Table 6-1: Residential Rates Derivation
Total COS Dwelling Units Months COS Rate
Residential Service Charges ($/Month)
Single Family Residential $6,684,568 10,384 12 $53.65
Multi-Family Residential $3,000,915 6,741 12 $37.10
Mobile Homes/Age Restricted $189,298 756 12 $20.87
Outside CSD - SFR N/A N/A 12 $67.06
The proposed FY 2018 residential service charges are increased by the proposed FY 2019 revenue adjustments (Table 4-7) for FY 2019 (2%) for rates effective in January 1, 2019. Rates are rounded up to the nearest whole penny.

Table 6-2: Proposed FY 2018 and 2019 Residential Service Charges Customer Class Rate Class Current FY 2018 FY 2019 $ Change FY 2018
%
Change
FY 2018
Revenue Adjustment 0% 2%
Single Family Residential SFR $51.04 $53.65 $54.73 $2.61 5% Multi-Family Residential MFR $36.36 $37.10 $37.85 $0.74 2% Duplex MFR $38.51 $37.10 $37.85 ($1.41) -4%
Triplex MFR $37.67 $37.10 $37.85 ($0.57) -2%
Condos/Cluster Housing MFR $40.33 $37.10 $37.85 ($3.23) -8% Mobile Home Parks Age Restricted $32.00 $20.87 $21.29 ($11.13) -35% Qualifying Low-Income Senior*15 Age Restricted $29.78 $20.87 $21.29 ($8.91) -30% Age Restricted Age Restricted $31.07 $20.87 $21.29 ($10.20) -33% Outside CSD - SFR Outside CSD $63.80 $67.06 $68.41 $3.26 5%

15 Low income seniors must meet certain age and income criteria and use no more than 10 units of water per month 34 | City of Camarillo

6.1.1.1 Fixed and Variable Revenue Recovery
Non-residential wastewater charges are divided between a monthly fixed charge based on meter size and a commodity charge based on billed water use. To determine the rates for each, Raftelis first must determine the amount to be collected from fixed (service) and the amount to be collected from variable (commodity) charges.

The proposed fixed and variable revenue recovery maintains the existing methodology used by the City in previous analyses. This allows us to utilize the results of the new cost of service analysis for non-residential users while minimizing the potential impacts of rate structure changes.

A percentage of total costs for customer, flow, BOD, and TSS are recovered through the service charge. 100 percent of customer costs, 40 percent of flow costs, and 30 percent of strength costs (BOD and TSS) are recovered on the fixed charge. The remainder of costs will be collected through commodity charges. Table 6-3 shows the distribution of costs and amount recovered from each source.

Table 6-3: Non-Residential Revenue Recovery – Fixed and Variable Component $ COS % Recovered
Service Charge
Service Charge
($)
Commodity
($)
Non-Residential Customer $52,939 100% $52,939 $0
Non-Residential Flow $2,486,408 40% $994,563 $1,491,845 Non-Residential BOD $329,301 30% $98,790 $230,510
Non-Residential TSS $217,317 30% $65,195 $152,122
Total $3,085,964 $1,211,488 $1,874,477

6.1.2 Non-Residential Service Charges
Because the non-residential service charges are based upon meter size, the first step in deriving the charges is to identify meter equivalents in the system. This allows us to calculate costs per equivalent meter. Table 6-4 shows the count of meters at each size. It also shows the existing cost ratio between each meter size at current rates with the smallest size of 3/4" representing the base meter with ratio of 1.00. The count at each size is multiplied by the respective ratio to determine the total equivalents at each size. Equivalents are summed across meter sizes to calculate total meter equivalents of 3,227.

Table 6-4: Meter Equivalencies Calculation
Meter Size Meter Count Current Cost Ratio Equivalents
3/4" 270 1.00 270
1" 158 2.17 343
1 1/2" 193 4.13 798
2" 208 6.48 1,349
3"+ 39 11.97 467
Meter Equivalents 3,227
Using the total meter equivalents from Table 6-4 and the total service charge costs to be recovered from Table 6-3, we calculate the monthly cost per equivalent meter, shown in Table 6-5. We then multiply this Wastewater Cost of Service and Rate Study | 35
cost ($31.29) by the respective cost ratios to determine the cost for each meter size. This results in the cost of service-based service charges (COS Rate) in Table 6-6. Note that the table shows the consolidation of meter sizes of 3” to 8” to 3”+, consistent with the recommended changes in Section 5.3.4.1. Rates are rounded up to the nearest whole penny. As there is no increase in revenue proposed for FY 2018 the COS rates in Table 6-6 represent the rates for adoption effective January 1, 2018.

Table 6-5: Cost per Equivalent Meter Calculation
Meter Size Equivalents
Service Charge Costs $1,211,488
Total Equivalencies 3,227
Billing Periods 12
Cost per Equivalent Meter ($/month) $31.29
Table 6-6: Non-Residential Service Charge Derivation
Meter Size Meter Count Current Cost
Ratio $/Equivalent COS Rate
3/4" 270 1.00 $31.29 $31.29
1" 158 2.17 $31.29 $68.04
1 1/2" 193 4.13 $31.29 $129.34
2" 208 6.48 $31.29 $202.87
3"+ 39 11.97 $31.29 $374.44
The proposed FY 2018 non-residential service charges are increased by the proposed FY 2019 revenue adjustments (Table 4-7) for FY 2019 (2%) for rates effective in January 1, 2019. The rates are rounded up to the nearest whole penny.

Table 6-7: Proposed FY 2018 and 2019 Non-Residential Service Charges Current FY 2018 FY 2019 $ Change
FY 2018
%
Change
FY 2018
Revenue Adjustment 0% 2%
Non-Residential Service/Fixed Charges
($/Month)
3/4" $32.50 $31.29 $31.92 ($1.21) -4%
1" $70.68 $68.04 $69.41 ($2.64) -4%
1 1/2" $134.36 $129.34 $131.93 ($5.02) -4%
2" $210.74 $202.87 $206.93 ($7.87) -4%
3"+ $388.98 $374.44 $381.93 ($14.54) -4%

6.1.3 Non-Residential Commodity Rates
Commodity charges are based upon billed water use. Therefore, we calculate a rate per hcf for each strength class. To do so, we derive unit costs for flow, BOD, and TSS, in a similar manner to the unit cost calculations 36 | City of Camarillo
in Table 5-10. First, annual flow and strength loadings are gathered from Table 5-9 and grouped by strength class (low, medium, and high). We also group the existing land use classifications into low, medium, or high strength, based on the recommendation in Section 5.3.4.1. We then divide the total costs of flow, BOD, and TSS, as identified in Table 6-3, by the total amounts of each to determine the unit cost. Calculated unit costs are shown in Table 6-8.

Table 6-8: Non-Residential Unit Cost of Flow Calculation ($/hcf) Flows
(hcf)
BOD
(lbs/yr)
TSS
(lbs/yr)
Revenue Required from Flow Charges $1,491,845 $230,510 $152,122 Low Strength Commercial 266,593 263,235 228,545
Medium Strength Commercial 99,820 370,660 239,549
High Strength Commercial 55,990 349,283 209,570
Total Units of Service 422,402 983,177 677,663
Unit Cost $3.53 $0.23 $0.22
Next, we multiply the unit costs by their respective units of service, and sum them together to determine the total cost of service for each of the three strength classes. The total cost for each class becomes the numerator in developing the commodity rates.

Table 6-9: Strength Class Flow Cost Calculation ($/hcf) Water Usage
(hcf) BOD (lbs) TSS (lbs) Total Cost
Unit Costs $3.53 $0.23 $0.22
Low Strength Units 303,616 263,235 228,545
Low Strength Total $1,072,314 $61,717 $51,304 $1,185,334 Medium Strength Units 110,911 370,660 239,549
Medium Strength Total $391,717 $86,903 $53,774 $532,393 High Strength Units 62,211 349,283 209,570
High Strength Total $219,717 $81,891 $47,044 $348,653
Lastly, we divide the costs for each class by the water use estimates for FY 2018 to determine the cost of service rates for FY 2018. All rates are rounded up to the nearest whole penny. As there is no increase in revenue proposed for FY 2018 the COS rates in Table 6-10 represent the rates for adoption effective January 1, 2018.

Wastewater Cost of Service and Rate Study | 37
Table 6-10: Non-Residential Commodity Rate Derivation ($/hcf) Total Costs Water Use (hcf) COS Rate
($/hcf)
Low Strength Commercial $1,185,334 303,616 $3.91
Medium Strength Commercial $532,393 110,911 $4.81
High Strength Commercial $348,653 62,211 $5.61
Table 6-11 shows the proposed non-residential commodity charges. The proposed FY 2018 non-residential commodity charges are increased by the proposed FY 2019 revenue adjustments (Table 4-7) for FY 2019 (2%) to determine the rates effective in January 1, 2019. The existing land use-based customer classes are shown for completeness and comparative purposes. The rates in Table 6-11 are rounded up to the nearest whole penny.

Table 6-11: Proposed FY 2018 and 2019 Non-Residential Commodity Charges Customer Class Strength
Class Current FY 2018 FY 2019
$
Change
FY 2018
%
Change
FY 2018
Rate Adjustments Current 0% 2% 2% 2%
Low Strength Commercial Low $3.73 $3.91 $3.99 $0.18 5%
Medium Strength Commercial Medium $4.98 $4.81 $4.91 ($0.17) -3% High Strength Commercial High $6.23 $5.61 $5.73 ($0.62) -10% Churches Low $3.59 $3.91 $3.99 $0.32 9%
Schools Low $3.59 $3.91 $3.99 $0.32 9%
Hospitals/Convalescent Low $3.84 $3.91 $3.99 $0.07 2%
Public/City Low $3.56 $3.91 $3.99 $0.35 10%
Industrial Medium $5.25 $5.61 $5.73 $0.36 7%

6.1.4 Single Family Residential Wastewater Bill Comparison The City requested a wastewater bill survey to visualize where CSD’s current and proposed rates fall relative to neighboring agencies. As shown below in Figure 6-1, both the current and proposed rates result in monthly single-family bills near the median. The proposed rates do not change CSD’s rank in the distribution. It is important to note that these comparison rates are at this point in time. Other agencies will likely increase rates over the two-year proposed rate horizon.
38 | City of Camarillo
Figure 6-1: Monthly Bill Comparisons for Neighboring Wastewater Services 2021 Water and Wastewater Cost of Service and
Rate Design Study
Final Report / March 16, 2021
Ventura
Water

445 S Figueroa St, Suite 1925
Los Angeles CA 90071
www.raftelis.com
March 16, 2021
Ms. Susan Rungren
General Manager
Ventura Water
336 Sanjon Road
Ventura, CA 93002
Subject: 2021 Water and Wastewater Cost of Service and Rate Design Study Dear Ms. Rungren, Raftelis is pleased to provide this 2021 Water and Wastewater Cost of Service and Rate Design Study Report to Ventura Water. The overall purpose of the study was to develop a proposed five-year schedule of water and wastewater rates for Fiscal Year (FY) 2021/22 through FY 2025/26 that is fair, equitable, and in compliance with Proposition 218 requirements.

The major goals of the study were to: » Develop a ten-year financial plan for the City’s Water and Wastewater Enterprises to ensure financial sufficiency, meet operating costs, fund long-term capital needs including VenturaWaterPure, and maintain prudent reserves. » Conduct water and wastewater cost of service analyses to ensure a strong nexus between proposed rates and the cost to provide services to customers. » Develop five years of water and wastewater rates in compliance with Proposition 218 requirements.

This report details results and recommendations related to the development of the proposed financial plans, cost of service analyses, and proposed rate calculations. It has been a pleasure working with you and we thank you and other Ventura Water staff for the support provided to Raftelis during this study.

Sincerely,
Sanjay Gaur Kevin Kostiuk Charles Diamond
Project Director Project Manager Lead Analyst
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY Table of Contents

1. EXECUTIVE SUMMARY................................................................................................................... 1

1.1. Study Overview ................................................................................................................................. 1

1.2. Rate Study Process........................................................................................................................... 1

1.3. Proposed Water Financial Plan......................................................................................................... 2

1.4. Proposed Water Rates ...................................................................................................................... 4

1.5. Proposed Water Shortage Surcharges ............................................................................................. 8

1.6. Proposed Wastewater Financial Plan ............................................................................................. 10

1.7. Proposed Wastewater Rates........................................................................................................... 13

1.8. Combined Monthly Bill Impacts....................................................................................................... 15

2. INTRODUCTION ............................................................................................................................. 17

2.1. Agency Overview............................................................................................................................. 17

2.2. Study Overview ............................................................................................................................... 17

3. LEGAL REQUIREMENTS AND RATE SETTING METHODOLOGY............................................ 20

3.1. Legal Requirements ........................................................................................................................ 20

3.2. Rate-Setting Methodology............................................................................................................... 21

4. WATER RATE STUDY ................................................................................................................... 23

4.1. Key Inputs and Assumptions........................................................................................................... 23

4.1.1. Current Water Rates........................................................................................................................ 23

4.1.2. Water Enterprise Financial Assumptions ........................................................................................ 25

4.1.3. Projected Water Service Connections ............................................................................................ 26

4.1.4. Projected Water Sales..................................................................................................................... 27

4.1.5. Projected Water Supply................................................................................................................... 29

4.2. Water Financial Plan ....................................................................................................................... 30

4.2.1. Water Enterprise Revenue under Current Rates ............................................................................ 30

4.2.2. Water Enterprise Operations & Maintenance Expenses ................................................................ 34

4.2.3. Water Enterprise Debt..................................................................................................................... 38

4.2.4. Water Enterprise Capital Improvement Plan................................................................................... 38

4.2.5. Water Enterprise Financial Policies ................................................................................................ 42

4.2.6. Status Quo Water Financial Plan .................................................................................................... 43

4.2.7. Proposed Water Financial Plan....................................................................................................... 45

4.3. Water Cost of Service Analysis ....................................................................................................... 48

4.3.1. Methodology .................................................................................................................................... 48

4.3.2. Water Rate Revenue Requirement ................................................................................................. 49

4.3.3. Water System Peaking Factors....................................................................................................... 50

VENTURA WATER

4.3.4. Functionalization and Allocation of Expenses................................................................................. 50

4.3.5. Water Enterprise O&M Expense Allocation .................................................................................... 53

4.3.6. Water Enterprise Capital Allocation ................................................................................................ 55

4.3.7. Preliminary Water Cost of Service Allocation ................................................................................. 57

4.3.8. Allocation of Fire Protection Costs .................................................................................................. 58

4.3.9. Peaking Units of Service ................................................................................................................. 60

4.3.10. Adjusted Water Cost of Service ...................................................................................................... 62

4.3.11. Water Cost Allocation to Customer Classes ................................................................................... 64

4.4. Proposed Water Rate Structure Modifications................................................................................ 65

4.5. Proposed Water Rates .................................................................................................................... 67

4.5.1. Water Service Charges (Test Year FY 2020-21)............................................................................ 67

4.5.2. Fire Line Service Charges (Test Year FY 2020-21)........................................................................ 69

4.5.3. Water Volume Rates (Test Year FY 2020-21)................................................................................ 70

4.5.4. Proposed Five-Year Water Rate Schedule..................................................................................... 79

4.6. Proposed Water Shortage Surcharges ........................................................................................... 81

4.6.1. Water Shortage Event Contingency Plan Update........................................................................... 81

4.6.2. Proposed Changes to Water Shortage Rate Structure................................................................... 81

4.6.3. Calculation of Proposed Water Shortage Surcharges .................................................................... 82

5. WASTEWATER RATE STUDY ...................................................................................................... 86

5.1. Key Inputs and Assumptions........................................................................................................... 86

5.1.1. Current Wastewater Rates .............................................................................................................. 86

5.1.2. Wastewater Enterprise Financial Assumptions............................................................................... 88

5.1.3. Projected Wastewater Billing Units of Service ................................................................................ 89

5.2. Wastewater Financial Plan.............................................................................................................. 89

5.2.1. Wastewater Enterprise Revenue under Current Rates .................................................................. 90

5.2.2. Wastewater Enterprise Operations & Maintenance Expenses ....................................................... 93

5.2.3. Wastewater Enterprise Debt ........................................................................................................... 94

5.2.4. Wastewater Enterprise Capital Improvement Plan ......................................................................... 94

5.2.5. Wastewater Enterprise Financial Policies ....................................................................................... 97

5.2.6. Status Quo Wastewater Financial Plan........................................................................................... 97

5.2.7. Proposed Wastewater Financial Plan ............................................................................................. 99

5.3. Wastewater Cost of Service Analysis ........................................................................................... 103

5.3.1. Methodology .................................................................................................................................. 103

5.3.2. Wastewater Rate Revenue Requirement...................................................................................... 104

5.3.3. Functionalization and Allocation of Expenses............................................................................... 105

5.3.4. Wastewater Enterprise O&M Expense Allocation......................................................................... 106 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY

5.3.5. Wastewater Enterprise Capital Allocation..................................................................................... 107

5.3.6. Wastewater Cost of Service Allocation ......................................................................................... 109

5.3.7. Mass Balance Analysis.................................................................................................................. 110

5.3.8. Wastewater Unit Costs.................................................................................................................. 112

5.3.9. Wastewater Cost Allocation to Customer Classes........................................................................ 112

5.4. Proposed Wastewater Rate Structure Modifications .................................................................... 114

5.5. Proposed Wastewater Rates......................................................................................................... 115

5.5.1. Proposed Wastewater Rates (Test Year FY 2020-21) ................................................................. 116

5.5.2. Proposed Five-Year Wastewater Rate Schedule ......................................................................... 118

6. CUSTOMER BILL IMPACTS........................................................................................................ 119

6.1. Monthly Water Bill Impacts............................................................................................................ 119

6.2. Monthly Wastewater Bill Impacts .................................................................................................. 120

6.3. Combined Water & Wastewater Monthly Bill Impacts................................................................... 121

6.4. Combined Water & Wastewater Monthly Bill Comparisons.......................................................... 122

7. APPENDIX A: VENTURAWATERPURE ..................................................................................... 123

7.1. VenturaWaterPure Background .................................................................................................... 123

7.2. VenturaWaterPure Capital Costs .................................................................................................. 123

7.3. VenturaWaterPure Capital Financing Plan ................................................................................... 126

7.4. VenturaWaterPure Capital Cost Allocation ................................................................................... 129

7.5. VenturaWaterPure Operating Costs ............................................................................................. 137

7.6. VenturaWaterPure Operating Cost Allocation .............................................................................. 137

7.7. VenturaWaterPure Cost Contribution to Financial Plans.............................................................. 138

8. APPENDIX B: TEN-YEAR WATER ENTERPRISE FINANCIAL PLAN...................................... 139

9. APPENDIX C: TEN-YEAR WASTEWATER ENTERPRISE FINANCIAL PLAN ........................ 142

VENTURA WATER
List of Tables
Table 1-1: Proposed Water Revenue Adjustments ......................................................................................................2 Table 1-2: Proposed Changes to Residential Tier Allotments......................................................................................5 Table 1-3: Proposed Five-Year Water Rate Schedule – Base Rates Only ..................................................................7 Table 1-4: Proposed Five-Year Schedule of Water Shortage Surcharges...................................................................9 Table 1-5: Proposed Wastewater Revenue Adjustments...........................................................................................10 Table 1-6: Proposed Changes to Residential Wastewater Flow Charge Cap............................................................13 Table 1-7: Proposed Five-Year Wastewater Rate Schedule......................................................................................14 Table 4-1: Current Water Rates..................................................................................................................................24 Table 4-2: Current Residential Tier Allotments for Water Volume Rates ...................................................................25 Table 4-3: Water Enterprise Inflationary Assumptions ...............................................................................................25 Table 4-4: Additional Water Enterprise Financial Assumptions..................................................................................26 Table 4-5: Number of Water Meters and Fire Lines ...................................................................................................26 Table 4-6: Projected Water Use Under Existing Rate Structure.................................................................................28 Table 4-7: Projected Water Supply Mix ......................................................................................................................29 Table 4-8: Projected Fixed Charge Revenue from Existing Rates .............................................................................30 Table 4-9: Projected Commodity Charge Revenues Under Current Water Rates .....................................................31 Table 4-10: Projected Miscellaneous Rate Revenues................................................................................................32 Table 4-11: Other Water Enterprise Revenues ..........................................................................................................33 Table 4-12: Summary of Projected Water Enterprise Revenues Under Current Rates .............................................34 Table 4-13: Projected Water Supply Expenses – Groundwater Excluding Saticoy Country Club .............................35 Table 4-14: Projected Water Supply Expenses – Saticoy Country Club Groundwater..............................................36 Table 4-15: Projected Water Supply Expenses – Casitas Municipal Water District...................................................36 Table 4-16: Projected Water Enterprise O&M Expenses ...........................................................................................37 Table 4-17: Water Enterprise Debt Service ................................................................................................................38 Table 4-18: Water Enterprise – Use of Debt Proceeds ..............................................................................................38 Table 4-19: Water Enterprise Capital Improvement Plan Excluding VenturaWaterPure ...........................................39 Table 4-20: Water Enterprise Capital Improvement Plan - VenturaWaterPure..........................................................40 Table 4-21: Water Enterprise Capital Improvement Plan Proposed Funding ............................................................41 Table 4-22: Water Enterprise Financial Policies.........................................................................................................42 Table 4-23: Projected Water Enterprise Reserve Targets..........................................................................................42 Table 4-24: Water Operating Cash Flow (Fund 52) – Status Quo Financial Plan......................................................43 Table 4-25: Status Quo Water Financial Plan Pro Forma (Funds 52 & 72) ...............................................................44 Table 4-26: Proposed Water Revenue Adjustments ..................................................................................................45 Table 4-27: Water Operating Cash Flow (Fund 52) – Proposed Financial Plan ........................................................45 Table 4-28: Proposed Water Financial Plan Pro Forma (Funds 52 & 72)..................................................................46 Table 4-29: FY 2020-21 Water Rate Revenue Requirement .....................................................................................49 Table 4-30: Water System Peaking Factor Allocations ..............................................................................................50 Table 4-31: Allocation of Functional Categories to Water Cost Causation Components ...........................................52 Table 4-32: Summary of Water Enterprise O&M Expenses by Functional Category.................................................53 Table 4-33: Allocation of Water Enterprise O&M Expenses to Cost Causation Components ...................................54 Table 4-34: Summary of Water Enterprise Capital Assets by Functional Category...................................................55 Table 4-35: Allocation of Functionalized Water Capital Assets to Cost Causation Components...............................56 Table 4-36: Preliminary Water Cost of Service Allocation (Test Year FY 2020-21)...................................................58 Table 4-37: Equivalent Fire Demand ..........................................................................................................................60 Table 4-38: Fire Protection Allocation Basis...............................................................................................................60 Table 4-39: Peaking Units by Customer Class ...........................................................................................................61 Table 4-40: Peaking Units for Fire Protection.............................................................................................................61 Table 4-41: Allocation of Peaking Units to Public and Private Fire Protection ...........................................................62 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY Table 4-42: Summary of Total Peaking Units .............................................................................................................62 Table 4-43: Adjusted Cost of Service Allocation (Test Year FY 2020-21) .................................................................64 Table 4-44: Recovery of Cost Causation Components by Charge Type ...................................................................64 Table 4-45: Cost to Serve by Water Customer Class.................................................................................................65 Table 4-46: Proposed Changes to Residential Tier Allotments..................................................................................66 Table 4-47: Projected FY 2020-21 Residential Water Use by Tier – Current versus Proposed ................................67 Table 4-48: Number of Equivalent Meters (Test Year FY 2020-21)...........................................................................67 Table 4-49: Water Service Charge Unit Charge Calculation (Test Year FY 2020-21)...............................................68 Table 4-50: Water Service Charge Calculation (Test Year FY 2020-21) ...................................................................68 Table 4-51: Fire Line Service Charge Unit Charge Calculation (Test Year FY 2020-21) ..........................................69 Table 4-52: Fire Line Service Charge Calculation (Test Year FY 2020-21)...............................................................69 Table 4-53: Allocation of Unit Costs to Customer Classes.........................................................................................70 Table 4-54: Preliminary Water Supply Unit Rate........................................................................................................70 Table 4-55: Residential Water Supply Cost Allocation by Tier (Test Year FY 2020-21)............................................72 Table 4-56: Residential Water Supply Unit Rates by Tier ..........................................................................................74 Table 4-57: Water Supply Unit Rates by Customer Class and Tier ...........................................................................74 Table 4-58: Base Delivery Unit Rate ..........................................................................................................................74 Table 4-59: Peaking Unit Costs ..................................................................................................................................75 Table 4-60: Peaking Unit Rates..................................................................................................................................75 Table 4-61: Preliminary Conservation Unit Rate ........................................................................................................76 Table 4-62: Residential Conservation Unit Rates by Tier...........................................................................................76 Table 4-63: Conservation Unit Rates by Customer Class and Tier............................................................................77 Table 4-64: Revenue Offset Unit Rate........................................................................................................................77 Table 4-65: Untreated Offset Unit Rate ......................................................................................................................78 Table 4-66: Water Volume Rates Calculation (Test Year FY 2020-21) .....................................................................79 Table 4-67: Proposed Five-Year Water Rate Schedule .............................................................................................80 Table 4-68: Current versus Updated Water Shortage Stages....................................................................................81 Table 4-69: Projected Water Use Reduction by Water Shortage Stage (FY 2020-21) ..............................................83 Table 4-70: Calculation of Water Shortage Surcharges (Test Year FY 2020-21)......................................................84 Table 4-71: Calculated Water Shortage Stage Surcharges per HCF (Test Year FY 2020-21)..................................84 Table 4-72: Proposed Five-Year Schedule of Water Shortage Surcharges...............................................................85 Table 5-1: Current Wastewater Rate Schedule ..........................................................................................................87 Table 5-2: Current Wastewater Commercial Customer Classification .......................................................................88 Table 5-3: Wastewater Enterprise Inflationary Assumptions......................................................................................88 Table 5-4: Additional Wastewater Enterprise Financial Assumptions ........................................................................88 Table 5-5: Projected Wastewater Billing Units Under Existing Rate Structure...........................................................89 Table 5-6: Projected Rate Revenues under Current Wastewater Rates....................................................................91 Table 5-7: Other Wastewater Enterprise Revenues...................................................................................................92 Table 5-8: Summary of Projected Wastewater Enterprise Revenues Under Current Rates......................................92 Table 5-9: Projected Wastewater Enterprise O&M Expenses....................................................................................93 Table 5-10: Wastewater Enterprise Debt Service.......................................................................................................94 Table 5-11: Wastewater Enterprise – Use of Debt Proceeds.....................................................................................94 Table 5-12: Wastewater Enterprise Capital Improvement Plan Excluding VenturaWaterPure..................................95 Table 5-13: Wastewater Enterprise Capital Improvement Plan - VenturaWaterPure ................................................95 Table 5-14: Wastewater Enterprise Capital Improvement Plan Proposed Funding...................................................96 Table 5-15: Wastewater Enterprise Financial Policies ...............................................................................................97 Table 5-16: Projected Wastewater Enterprise Reserve Targets ................................................................................97 Table 5-17: Wastewater Operating Cash Flow (Fund 51) – Status Quo Financial Plan ............................................98 Table 5-18: Status Quo Wastewater Financial Plan Pro Forma (Funds 51, 71, & 75)...............................................99 Table 5-19: Proposed Wastewater Revenue Adjustments.......................................................................................100

VENTURA WATER
Table 5-20: Wastewater Operating Cash Flow (Fund 51) – Proposed Financial Plan.............................................100 Table 5-21: Proposed Wastewater Financial Plan Pro Forma (Funds 51, 71, & 75) ...............................................101 Table 5-22: FY 2020-21 Wastewater Rate Revenue Requirement..........................................................................104 Table 5-23: Allocation of Functional Categories to Wastewater Cost Causation Components ...............................106 Table 5-24: Summary of Wastewater Enterprise O&M Expenses by Functional Category .....................................106 Table 5-25: Allocation of Wastewater Enterprise O&M Expenses to Cost Causation Components ........................107 Table 5-26: Summary of Wastewater Enterprise Capital Assets by Functional Category .......................................107 Table 5-27: Allocation of Functionalized Wastewater Capital Assets to Cost Causation Components ...................108 Table 5-28: Wastewater Cost of Service Allocation (Test Year FY 2020-21) ..........................................................109 Table 5-29: FY 2018-19 Mass Balance Analysis......................................................................................................111 Table 5-30: Wastewater Unit Costs (Test Year FY 2020-21)...................................................................................112 Table 5-31: Wastewater Cost Allocation to Customer Classes (Test Year FY 2020-21).........................................113 Table 5-32: Cost to Serve by Wastewater Customer Class .....................................................................................114 Table 5-33: Proposed Changes to Residential Wastewater Flow Charge Cap........................................................115 Table 5-34: Projected FY 2020-21 Residential Variable Billing Units – Current versus Proposed ..........................115 Table 5-35: Proposed Wastewater Rate Calculation (Test Year FY 2020-21).........................................................117 Table 5-36: Proposed Five-Year Wastewater Rate Schedule..................................................................................118 Table 6-1: FY 2018-19 Water Use per Account - Single Family Residential............................................................119 Table 6-2: Commercial Water Bill Impacts (FY 2021-22).........................................................................................120 Table 6-3: Single Family Residential Variable Billing Units – Current versus Proposed..........................................121 Table 6-4: Commercial Wastewater Bill Impacts (FY 2021-22)................................................................................121 Table 7-1: VenturaWaterPure Capital Costs ............................................................................................................125 Table 7-2: VenturaWaterPure Debt Financing Assumptions....................................................................................126 Table 7-3: VenturaWaterPure Capital Funding Sources ..........................................................................................127 Table 7-4: VenturaWaterPure Funding Summary ....................................................................................................127 Table 7-5: VenturaWaterPure Financing Costs ........................................................................................................128 Table 7-6: VenturaWaterPure Capital Cost Allocation Basis....................................................................................129 Table 7-7: VenturaWaterPure Capital Cost Allocation to Water Enterprise .............................................................130 Table 7-8: VenturaWaterPure Capital Cost Allocation to Wastewater Enterprise....................................................131 Table 7-9: VenturaWaterPure Funding Sources for Water Enterprise Capital Allocation ........................................132 Table 7-10: VenturaWaterPure Funding Sources for Wastewater Enterprise Capital Allocation.............................133 Table 7-11: VenturaWaterPure Funding Sources for Wastewater Enterprise Capital Allocation.............................134 Table 7-12: VenturaWaterPure Water Enterprise Financing Costs..........................................................................135 Table 7-13: VenturaWaterPure Wastewater Enterprise Financing Costs ................................................................136 Table 7-14: VenturaWaterPure Additional O&M Expenses......................................................................................137 Table 7-15: VenturaWaterPure Additional O&M Expenses......................................................................................137 Table 7-16: VenturaWaterPure Cost Contribution to Water Enterprise Financial Plan............................................138 Table 7-17: VenturaWaterPure Cost Contribution to Wastewater Enterprise Financial Plan ..................................138 Table 8-1: Ten-Year Water Enterprise Financial Plan Assumptions ........................................................................139 Table 9-1: Ten-Year Wastewater Enterprise Financial Plan Assumptions...............................................................142 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY List of Figures
Figure 1-1: Water Enterprise Capital Improvement Plan..............................................................................................2 Figure 1-2: Proposed vs. Status Quo Water Financial Plan .........................................................................................3 Figure 1-3: Proposed Water Financial Plan – Projected Ending Balances ..................................................................3 Figure 1-4: Proposed Water Financial Plan - Debt Coverage ......................................................................................4 Figure 1-5: Single Family Residential Monthly Water Bill Impacts (FY 2021-22).......................................................10 Figure 1-6: Wastewater Enterprise Capital Improvement Plan ..................................................................................11 Figure 1-7: Proposed vs. Status Quo Wastewater Financial Plan..............................................................................11 Figure 1-8: Proposed Wastewater Financial Plan – Projected Ending Balances.......................................................12 Figure 1-9: Proposed Wastewater Financial Plan - Debt Coverage...........................................................................12 Figure 1-10: Single Family Residential Monthly Wastewater Bill Impacts (FY 2021-22) ...........................................15 Figure 1-11: Five-Year Combined Monthly Bill Impacts for Single Family Residential (9 HCF/Month) .....................15 Figure 1-12: Combined Monthly Bill Comparison for Single Family Residential (9 HCF/Month) ...............................16 Figure 4-1: Water Enterprise Capital Improvement Plan............................................................................................41 Figure 4-2: Proposed Water Financial Plan - Debt Coverage ....................................................................................47 Figure 4-3: Proposed Water Financial Plan – Projected Ending Balances ................................................................47 Figure 4-4: Proposed vs. Status Quo Water Financial Plan .......................................................................................48 Figure 5-1: Wastewater Enterprise Capital Improvement Plan ..................................................................................96 Figure 5-2: Proposed Wastewater Financial Plan - Debt Coverage.........................................................................102 Figure 5-3: Proposed Wastewater Financial Plan – Projected Ending Balances.....................................................102 Figure 5-4: Proposed vs. Status Quo Wastewater Financial Plan............................................................................103 Figure 6-1: Single Family Residential Monthly Water Bill Impacts (FY 2021-22).....................................................119 Figure 6-2: Single Family Residential Monthly Wastewater Bill Impacts (FY 2021-22) ...........................................120 Figure 6-3: Five-Year Combined Monthly Bill Impacts for Single Family Residential (9 HCF/Month) .....................121 Figure 6-4: Combined Monthly Bill Comparison for Single Family Residential (9 HCF/Month) ...............................122 Figure 8-1: 10-Year Water Enterprise Capital Improvement Plan (incl. VenturaWaterPure) ...................................140 Figure 8-2: 10-Year Water Enterprise Debt Coverage Projections ..........................................................................140 Figure 8-3: 10-Year Water Enterprise Projected Ending Balances ..........................................................................141 Figure 8-4: 10-Year Water Enterprise Operating Financial Plan ..............................................................................141 Figure 9-1: 10-Year Wastewater Enterprise Capital Improvement Plan (incl. VenturaWaterPure)..........................143 Figure 9-2: 10-Year Wastewater Enterprise Debt Coverage Projections .................................................................143 Figure 9-3: 10-Year Wastewater Enterprise Projected Ending Balances.................................................................144 Figure 9-4: 10-Year Wastewater Enterprise Operating Financial Plan.....................................................................144

VENTURA WATER
List of Abbreviations
ADA: Average Daily Attendance
AF: Acre-feet
AFY: Acre-feet per year
AWWA: American Water Works Association
AWPF: Advance Water Purification Facility
BOD: Biological Oxygen Demand
Casitas MWD: Casitas Municipal Water District
CIP: Capital Improvement Plan
City: City of San Buenaventura
COS: Cost of Service
CPI: Consumer Price Index
FY: Fiscal year
GPCD: Gallons per capita per day
GPM: Gallons per minute
GW: Groundwater
HCF: One hundred cubic feet
K: Thousand
Lbs: Pounds
M: Million
Manual M1: American Water Works Association’s Principles of Water Rates, Fees, and Charges: Manual of Water Supply Practices - M1 Seventh Edition
Max Day: Maximum day water demand
Max Hour: Maximum hour water demand
MG: One million gallons
Mg/L: Milligrams per Liter
MGD: One million gallons per day
NPDES Permit: National Pollutant Discharge Elimination System Permit O&M: Operations and maintenance
PPM: Parts per million
R&R: Repair and replacement
RCLD: Replacement cost less depreciation
SCADA: Supervisory control and data acquisition
SRF Loan: Clean Water State Revolving Fund Loan
SS: Suspended Solids
Study Period: the rate-setting period of this study which extends through fiscal year 2025-26 Ventura Water: The City of San Buenaventura’s water and wastewater department VWP: VenturaWaterPure
VWRF: Ventura Water Reclamation Facility
WEF: Water Environment Federation
WIFIA: Water Infrastructure Finance and Innovation Act
WWTP: Wastewater treatment plant
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY Fund Structure

VENTURA WATER
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2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 1

1.Executive Summary

1.1.Study Overview
Public water and wastewater utilities in California typically perform a cost of service analysis every five to ten years to ensure that customers are appropriately charged for service commensurate with the cost to provide service.

Ventura Water last conducted a water and wastewater cost of service study in 2014, which established proposed rates over a four-year period through Fiscal Year (FY) 2017-18. No rate increases have been implemented since the last year of adopted rates went into effect in July 2017. Ventura Water engaged Raftelis to conduct a water and wastewater cost of service study to establish a proposed five-year schedule of water and wastewater rates through FY 2025-26. Note that proposed rates cannot be implemented until formally adopted by City Council after a public hearing, absent a majority protest by parcels served by the City. Proposition 218 requires that Ventura Water customers be mailed a public hearing notice detailing proposed rate changes no fewer than 45 days before the public hearing.

The major objectives of this study are to: » Develop a ten-year financial plan that sufficiently funds Ventura Water’s water and wastewater operations and maintenance (O&M) expenses, debt service payments, and capital expenditures while adequately funding reserves and achieving debt coverage requirements. » Conduct cost of service analyses that establishes a clear nexus between the cost to serve water and wastewater customers and the rates charged to customers, per Proposition 218 and industry standards. » Review Ventura Water’s existing water and wastewater rate structures and recommend changes as necessary to ensure that proposed rates achieve the financial and policy objectives of the agency. » Develop a five-year schedule of water and wastewater rates that are fair, equitable, and compliant with Proposition 218. » Develop a five-year schedule of water shortage rates that consider the City’s Water Shortage Event Contingency Plan.

1.2.Rate Study Process
This study was conducted using industry-standard principles outlined by the American Water Works Association’s Manual M1 and the Water Environment Federation’s Financing and Charges for Wastewater Systems. The overall process outlined below applies to the development of both water and wastewater rates.

1. Financial Plan: Develop cash flow projections for the Water and Wastewater Enterprise to determine the amount of revenue required from water and wastewater rates.

2. Cost of Service Analysis: Allocate costs to system components and then to various customer classes based on user characteristics.

3. Rate Design: Develop rates that generate sufficient revenues based on the results of the financial plan and cost of service analyses and communicate the policy preferences of the agency. 4. Administrative Record Preparation: Develop an administrative record (this Study report) to document the results of the rate study.

5. Rate Adoption: Proposed rates may be adopted by City Council only after holding a public hearing in accordance with Proposition 218 requirements.
2 VENTURA WATER

1.3.Proposed Water Financial Plan
Raftelis conducted a status quo cash flow analysis to evaluate whether existing water rates adequately fund the Water Enterprise’s various expenses over the five-year study period. Annual projections of revenues, O&M expenses, debt service payments, and capital expenditures through FY 2025-26 were developed with Ventura Water, Public Works, and Finance staff. Projected operating and capital costs resulting from VenturaWaterPure (VWP) are accounted for in the financial plan. Raftelis projects that with no rate increases over the five-year study period, the Water Enterprise’s reserves will fall below the target reserve policy by FY 2024-25 and fail to meet minimum debt coverage in all years beginning in FY 2021-22. This demonstrates a clear need for revenue adjustments (i.e. gross water rate revenue increases relative to existing rate revenues). Raftelis worked with Ventura Water staff and the Water Commission to develop the following proposed revenue adjustments over the five-year study period (see Table 1-1).

Table 1-1: Proposed Water Revenue Adjustments
Description FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Effective Date July 1, 2021 July 1, 2022 July 1, 2023 July 1, 2024 July 1, 2025 Revenue Adjustment 7.0% 7.0% 7.0% 7.0% 7.0%
Key factors influencing the need for proposed revenue adjustments include: » Cost inflation: Operating costs continue to increase year over year due to inflationary pressures. » Reduction in baseline water demand: Water sales are significantly lower relative to pre-drought years, resulting in lower baseline variable water rate revenues. » Planned capital expenditures: CIP project expenditures through FY 2025-26, including substantial repair and replacement (R&R) capital projects as well as VenturaWaterPure, the State Water Interconnection Project, and the Eastside to Westside Waterline Interconnection Projects, total approximately $34.5 million (M) per year on average.

Figure 1-1 shows the proposed CIP financing plan over the study period. All CIP exclusive of VenturaWaterPure is assumed to be funded by cash reserves. VenturaWaterPure CIP is assumed to be funded by a mix of low interest State and Federal government loans, revenue bonds, grants, and cash reserves.

Figure 1-1: Water Enterprise Capital Improvement Plan
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 3 Figure 1-2 shows the proposed versus status quo Water Enterprise operating financial plan. Revenues under the proposed financial plan and status quo financial plan are represented by the dark blue and red dashed lines, respectively. Revenue requirements including O&M expenses, debt service, and reserve funding for CIP/other purposes are represented by the various stacked bars. Revenue adjustments are required to generate additional revenue to recover O&M expenses and debt service payments over the study period.

Figure 1-2: Proposed vs. Status Quo Water Financial Plan Figure 1-3 shows the Water Enterprise’s projected fiscal year-end balance under the proposed financial plan. The light blue bars indicate the ending balance on June 30 of each year. The total reserve target is represented by the red dashed line. The Water Enterprise is projected to continue to draw down its reserves through FY 2024-25 to fund substantial repair and replacement (R&R) capital projects exclusive of VenturaWaterPure (VWP). At the end of the rate-setting period, the Water Enterprise’s reserves are projected to remain above the target amount with the proposed rate increases. Maintaining reserves above the target amount is necessary as additional drawdown of reserves beyond FY 2025-26 is anticipated to fund substantial R&R and VWP CIP from FY 2026-27 through FY 2029-30.

Figure 1-3: Proposed Water Financial Plan – Projected Ending Balances 4 VENTURA WATER
Figure 1-4 shows projected debt coverage (blue line) relative to the debt coverage requirement (red line) over the study period. Debt coverage is expected to drop sharply in FY 2021-22 due to new debt issuances to finance a portion of VenturaWaterPure CIP project costs. This demonstrates the need for revenue adjustments early on in the study period to ensure sufficient debt capacity to finance VenturaWaterPure. Failure to meet debt service coverage results in a technical default, which without foreseeable remedial action such as implementing rate increases, could result in a downgrade of credit rating, higher costs in future debt issuance, or even denial of credit.

Figure 1-4: Proposed Water Financial Plan - Debt Coverage

1.4.Proposed Water Rates
Ventura Water’s existing water rate structure consists of fixed Water Service Charges (based on meter size), fixed Fire Line Service Charges (based on fire line size), and variable Water Volume Rates (per hundred cubic feet [HCF] of water delivered). Raftelis worked closely with Ventura Water staff and the Water Commission to evaluate potential changes to the existing water rate structure. The following changes are proposed: » Adjust Rate Schedule to Reflect Monthly Billing Basis: Ventura Water plans to transition from billing on a bimonthly basis (every two months) to a monthly basis beginning in July 2021. » Customer Class Consolidation: Raftelis recommends that the Institutional/Interruptible customer class and Non-Residential Irrigation customer classes are consolidated into a single Non-Residential Irrigation customer class. » Eliminate Outside City Limits Surcharge. » Refinement to Fire Line Service Charges: Private fire lines associated with single family residential accounts do not receive a separate bill for the Fire Line Service Charge. Therefore, Raftelis recommends that single family residential customers with U-branch fire lines are charged a unique rate to properly offset billing costs already paid by those customers via the Water Service Charge. » Update Residential Tier Allotments: Raftelis recommends that the rate structure for residential Water Volume Rates be consolidated from four tiers down to three tiers for both base rates and water shortage 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 5 rates. Current and proposed residential monthly tier allotments are shown below in Table 1-2. Current bimonthly allotments are shown in monthly terms to relate to proposed billing frequency changes. The current monthly allotment tier structure reflects the City’s existing four-tier water shortage rate structure, which has been in effect since 2015. Table 1-2: Proposed Changes to Residential Tier Allotments Description
Current Monthly
Allotment
(per Dwelling Unit)
Proposed Monthly
Allotment
(per Dwelling Unit)
Single Family Residential
Tier 1 0-3 HCF 0-6 HCF
Tier 2 4-7 HCF 7-12 HCF
Tier 3 8-15 HCF >12 HCF
Tier 4 >15 HCF N/A
Multiple Family Residential
Tier 1 0-3 HCF 0-5 HCF
Tier 2 4-5 HCF 6-10 HCF
Tier 3 6-8 HCF >10 HCF
Tier 4 >8 HCF N/A
6 VENTURA WATER
Table 1-3 shows proposed Water Service Charges, Fire Line Service Charges, and Water Volume Rates through FY 2025-26. All fixed charges and tier allotments are shown on a monthly basis, as Ventura Water plans to transition to monthly billing beginning in July 2021. Current fixed charges are shown on a monthly basis. Current Water Volume Rates are Water Shortage Stage 2 rates. Proposed rates reflect non-shortage / new baseline supply and demand conditions.
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 7 Table 1-3: Proposed Five-Year Water Rate Schedule – Base Rates Only Description Current Proposed
July 2021
Proposed
July 2022
Proposed
July 2023
Proposed
July 2024
Proposed
July 2025
Monthly Water Service Charge
3/4-inch water meter $16.85 $18.50 $19.79 $21.18 $22.66 $24.25 1-inch water meter $25.52 $27.16 $29.06 $31.09 $33.27 $35.59

1.5-inch water meter $47.19 $48.80 $52.21 $55.87 $59.78 $63.96 2-inch water meter $73.21 $74.77 $80.00 $85.60 $91.60 $98.01 3-inch water meter $155.59 $157.02 $168.01 $179.77 $192.35 $205.81 4-inch water meter $276.99 $278.22 $297.69 $318.53 $340.83 $364.69 6-inch water meter $567.49 $568.24 $608.01 $650.57 $696.11 $744.84 8-inch water meter $1,044.42 $1,044.39 $1,117.50 $1,195.72 $1,279.42 $1,368.98 10-inch water meter $1,651.43 $1,650.40 $1,765.93 $1,889.54 $2,021.81 $2,163.34 12-inch water meter $2,171.72 $2,169.84 $2,321.73 $2,484.25 $2,658.14 $2,844.21 Monthly Fire Line Service Charge
1-inch single family residential U- branch fire line $4.40 $3.58 $3.83 $4.10 $4.39 $4.69 1-inch fire line $4.40 $9.09 $9.73 $10.41 $11.13 $11.91 2-inch fire line $4.40 $9.09 $9.73 $10.41 $11.13 $11.91 3-inch fire line $12.75 $15.90 $17.02 $18.21 $19.48 $20.84 4-inch fire line $27.15 $27.65 $29.59 $31.66 $33.88 $36.25 6-inch fire line $78.84 $69.83 $74.72 $79.95 $85.54 $91.53 8-inch fire line $168.01 $142.58 $152.56 $163.24 $174.66 $186.89 10-inch fire line $302.13 $252.00 $269.64 $288.52 $308.71 $330.32 12-inch fire line $488.01 $403.66 $431.92 $462.15 $494.50 $529.11 Water Volume Rates (per HCF)
Single Family Residential
Tier 1 (Current: 0-3 HCF per month /
Proposed: 0-6 HCF per month) $2.77 $2.92 $3.13 $3.34 $3.58 $3.83 Tier 2 (Current: 4-7 HCF per month /
Proposed: 7-12 HCF per month) $3.12 $4.82 $5.16 $5.52 $5.90 $6.31 Tier 3 (Current: 8-15 HCF per month
/ Proposed: >12 HCF per month) $4.62 $6.24 $6.67 $7.14 $7.64 $8.17 Tier 4 (Current: >15 HCF per month
/ Proposed: N/A) $7.73 N/A N/A N/A N/A N/A
Multiple Family Residential
Tier 1 (Current: 0-3 HCF per month /
Proposed: 0-5 HCF per month) $2.77 $2.92 $3.13 $3.34 $3.58 $3.83 Tier 2 (Current: 4-5 HCF per month /
Proposed: 6-10 HCF per month) $3.12 $4.82 $5.16 $5.52 $5.90 $6.31 Tier 3 (Current: 6-8 HCF per month /
Proposed: >10 HCF per month) $4.62 $6.24 $6.67 $7.14 $7.64 $8.17 Tier 4 (Current: >8 HCF per month /
Proposed: N/A per month) $7.73 N/A N/A N/A N/A N/A
Non-Residential $3.98 $4.54 $4.85 $5.19 $5.56 $5.94
Non-Residential Irrigation $4.25 $5.16 $5.52 $5.91 $6.32 $6.76 Institutional/Interruptible $3.29 N/A N/A N/A N/A N/A
Untreated Water $3.44 $3.08 $3.30 $3.53 $3.78 $4.04
Reclaimed Water $0.95 $1.16 $1.23 $1.31 $1.38 $1.47
Outside City Limits Surcharge (per HCF)
All Customer Classes $0.60 N/A N/A N/A N/A N/A
8 VENTURA WATER

1.5.Proposed Water Shortage Surcharges
Ventura Water conducted a Water Shortage Rate Study in 2015 to implement a schedule of increasing Water Volume Rates during declared water shortage stages. This was necessary to recover revenue shortfalls resulting from reduced water sales during the recent drought. Water shortage stages are currently declared based on criteria outlined in Ventura Water’s 2015 Water Shortage Event Contingency Plan. Ventura Water is in the process of updating the 2015 Water Shortage Event Contingency Plan, which will incorporate updated criteria for declaring water shortage stages. The 2020 Water Shortage Event Contingency Plan compares current supply and current demand, instead of current supply and normal supply as was done in the 2015 Water Shortage Event Contingency Plan. Current demand will be estimated using the most recent five years of customer demands plus projected demands due to annual growth. The key impact of the update will be that water shortage stages are less likely to be declared under the new criteria. Based on new baseline water demand and projected supply conditions, it is anticipated that the current Stage 2 declaration will be rescinded, and no Water Shortage rates will be implemented in FY 2021-22. Raftelis recommends that Ventura Water update the existing Water Shortage Rates. Under the current system of Water Shortage Rates, Water Volume Rates increase with each subsequent water shortage stage beginning with Stage 2. In place of adjusting Water Volume Rates with each stage, Raftelis recommends that Ventura Water maintain the base-condition Water Volume Rates at each stage, and communicate the shortage conditions as Water Shortage Surcharges during Stages 2-6. This change does not affect the revenue needs during shortage conditions; it is recommended to more clearly communicate to customers the impact of water shortage conditions on each bill. Additionally, Raftelis recommends harmonizing the tier allotments in shortage and non-shortage rates to simplify the schedule of shortage surcharges and to improve customer understanding. It also aligns with the cost of service analysis behind the updated tier breakpoints, which is explained in later sections of this report. Currently, in shortage conditions, the first Residential tier is split in to two tiers, which yields a four-tier rate structure in shortage and a three-tier structure in non-shortage. The proposed Water Shortage Surcharges maintain the same three-tier structure and the same allotments in shortage and non-shortage conditions. Table 1-4 shows proposed Water Shortage Surcharges for water shortage stage through FY 2025-26. 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 9 Table 1-4: Proposed Five-Year Schedule of Water Shortage Surcharges Proposed Water Shortage Surcharges
(per HCF)
Proposed
July 2021
Proposed
July 2022
Proposed
July 2023
Proposed
July 2024
Proposed
July 2025
Revenue Adjustment 7.0% 7.0% 7.0% 7.0% 7.0%
Stage 1 (10% Voluntary Reduction)
Residential Tier 1 $0.00 $0.00 $0.00 $0.00 $0.00
Residential Tier 2 $0.00 $0.00 $0.00 $0.00 $0.00
Residential Tier 3 $0.00 $0.00 $0.00 $0.00 $0.00
Non-Residential $0.00 $0.00 $0.00 $0.00 $0.00
Non-Residential Irrigation $0.00 $0.00 $0.00 $0.00 $0.00 Untreated $0.00 $0.00 $0.00 $0.00 $0.00
Stage 2 (10% Mandatory Reduction)
Residential Tier 1 $0.31 $0.33 $0.36 $0.38 $0.41
Residential Tier 2 $0.51 $0.55 $0.59 $0.63 $0.67
Residential Tier 3 $0.66 $0.71 $0.76 $0.81 $0.87
Non-Residential $0.48 $0.52 $0.55 $0.59 $0.63
Non-Residential Irrigation $0.55 $0.59 $0.63 $0.67 $0.72 Untreated $0.33 $0.35 $0.38 $0.40 $0.43
Stage 3 (20% Mandatory Reduction)
Residential Tier 1 $0.68 $0.73 $0.78 $0.83 $0.89
Residential Tier 2 $1.12 $1.19 $1.28 $1.37 $1.46
Residential Tier 3 $1.44 $1.54 $1.65 $1.77 $1.89
Non-Residential $1.05 $1.12 $1.20 $1.29 $1.38
Non-Residential Irrigation $1.20 $1.28 $1.37 $1.46 $1.57 Untreated $0.72 $0.77 $0.82 $0.88 $0.94
Stage 4 (30% Mandatory Reduction)
Residential Tier 1 $1.19 $1.27 $1.36 $1.45 $1.55
Residential Tier 2 $1.96 $2.09 $2.24 $2.39 $2.56
Residential Tier 3 $2.53 $2.71 $2.90 $3.10 $3.31
Non-Residential $1.84 $1.97 $2.11 $2.25 $2.41
Non-Residential Irrigation $2.09 $2.24 $2.40 $2.56 $2.74 Untreated $1.25 $1.34 $1.43 $1.53 $1.64
Stage 5 (40% Mandatory Reduction)
Residential Tier 1 $1.88 $2.01 $2.15 $2.30 $2.46
Residential Tier 2 $3.09 $3.31 $3.54 $3.79 $4.05
Residential Tier 3 $4.00 $4.28 $4.58 $4.90 $5.25
Non-Residential $2.91 $3.12 $3.33 $3.57 $3.82
Non-Residential Irrigation $3.31 $3.55 $3.79 $4.06 $4.34 Untreated $1.98 $2.12 $2.27 $2.43 $2.59
Stage 6 (50% Mandatory Reduction)
Residential Tier 1 $2.61 $2.80 $2.99 $3.20 $3.42
Residential Tier 2 $4.31 $4.61 $4.94 $5.28 $5.65
Residential Tier 3 $5.58 $5.97 $6.39 $6.83 $7.31
Non-Residential $4.06 $4.34 $4.65 $4.97 $5.32
Non-Residential Irrigation $4.62 $4.94 $5.29 $5.66 $6.05 Untreated $2.76 $2.95 $3.16 $3.38 $3.62
10 VENTURA WATER
Figure 1-5 shows sample monthly water bills for single family residential customers with a 3/4-inch water meter at varying levels of water use under both current rates and proposed FY 2021-22 rates. Note that approximately 95 percent of single family residential customers have a 3/4-inch water meter. The five water use levels shown are representative of single family residential customer monthly water use at the 10th, 25th, 50th, 75th, and 90th percentile.

Figure 1-5: Single Family Residential Monthly Water Bill Impacts (FY 2021-22)

1.6.Proposed Wastewater Financial Plan
Raftelis conducted a status quo cash flow analysis to evaluate whether existing wastewater rates adequately fund the Wastewater Enterprise’s various expenses over the rate-setting period. Projected operating and capital costs resulting from VenturaWaterPure are accounted for in the financial plan analysis. Raftelis projects that with no rate increases over the five-year study period, the Wastewater Enterprise’s reserves will fall below the target reserve policy by FY 2023-24 and fail to meet its debt coverage requirement beginning in FY 2024-25. This demonstrates a need for revenue adjustments for the Wastewater Enterprise. Raftelis worked with Ventura Water, Public Works, and Finance staff and the Water Commission to develop the following schedule of proposed revenue adjustments over the five-year study period (see Table 1-5).

Table 1-5: Proposed Wastewater Revenue Adjustments
Description FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Effective Date July 1, 2021 July 1, 2022 July 1, 2023 July 1, 2024 July 1, 2025 Revenue Adjustment 6.0% 6.0% 6.0% 6.0% 6.0%
Key factors influencing the need for proposed Wastewater Enterprise revenue adjustments include: » Cost inflation: Operating costs continue to increase year over year due to inflationary pressures. 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 11 » Planned capital expenditures: CIP projects through FY 2025-26, including substantial repair and replacement (R&R) capital projects as well as VenturaWaterPure, total approximately $22.9M per year on average.

Figure 1-6 shows the proposed CIP financing plan over the study period. All CIP exclusive of VenturaWaterPure is assumed to be funded by cash reserves. VenturaWaterPure CIP is assumed to be funded by a mix of low interest State and Federal government loans, revenue bonds, grants, and cash reserves.

Figure 1-6: Wastewater Enterprise Capital Improvement Plan Figure 1-7 shows the proposed versus status quo Wastewater Enterprise operating financial plan. Revenues under the proposed financial plan and status quo financial plan are represented by the dark blue and red dashed lines, respectively. Revenue requirements including O&M expenses, debt service, and reserve funding for CIP/other purposes are represented by the various stacked bars. Revenue adjustments are required to generate sufficient revenue to recover O&M expenses and debt service payments over the study period.

Figure 1-7: Proposed vs. Status Quo Wastewater Financial Plan 12 VENTURA WATER
Figure 1-8 shows the Wastewater Enterprise’s projected fiscal year-end balance under the proposed financial plan.

The light blue bars indicate the ending balance on June 30 of each year. The total reserve target is represented by the red dashed line. The Wastewater Enterprise is projected to draw down its reserves through FY 2023-24 to fund substantial R&R capital projects exclusive of VenturaWaterPure (VWP). By the end of the rate-setting period, the Wastewater Enterprise’s reserves are projected to remain above the target amount with the proposed rate increases. Maintaining reserves above the target amount is necessary as additional drawdown of reserves beyond FY 2025-26 is anticipated to fund substantial R&R and VWP CIP from FY 2026-27 through FY 2029-30.

Figure 1-8: Proposed Wastewater Financial Plan – Projected Ending Balances Figure 1-9 shows projected debt coverage (blue line) relative to the debt coverage requirement (red line) over the study period. Fluctuations in debt coverage over the study period are largely due to new debt service assumed to finance VenturaWaterPure CIP project costs. Debt coverage remains above the requirement throughout the study period.

Figure 1-9: Proposed Wastewater Financial Plan - Debt Coverage 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 13

1.7.Proposed Wastewater Rates
Ventura Water’s wastewater rate structure currently consists of Fixed Charges and Flow Charges for most customer classes including residential, commercial, and churches. Schools are subject to a Fixed Charge only based on average daily attendance (ADA). Industrial customers are charged based on actual flow and strength measurements of wastewater discharge. Raftelis worked closely with Ventura Water staff and the Water Commission to evaluate potential changes to the existing wastewater rate structure. Raftelis recommends the following proposed changes: » Adjust Rate Schedule to Reflect Monthly Billing Basis: Ventura Water plans to transition from billing on a bimonthly basis to a monthly basis beginning in July 2021. » Eliminate Estuary Protection Charge: Raftelis recommends that Ventura Water eliminate the current Estuary Protection Charge. This proposed change was supported by the Water Commission as a means to simplify the wastewater rate structure and improve customer understanding. Note that there is no net revenue impact resulting from this proposed change, as the proposed rates are designed to collect additional revenue to offset the loss of Estuary Protection Charge revenue. » Update Residential Flow Charge Basis: Raftelis recommends that Ventura Water modify existing Flow Charge basis for residential customers. Proposed changes to the residential Flow Charge basis are described in detail in Table 1-6. Table 1-6: Proposed Changes to Residential Wastewater Flow Charge Cap Residential Wastewater Flow Charge Current Bimonthly
Billing Units
Proposed Monthly
Billing Units
Single Family Residential Prior year winter average water use for two full bimonthly billing
cycles from approximately
February-May (in HCF) subject
to 30 HCF bimonthly cap.

Actual water use each monthly
billing period (in HCF) subject to
12 HCF monthly cap.

Multiple Family Residential Prior year winter average water use for two full bimonthly billing
cycles from approximately
February-May (in HCF) subject
to 24 HCF per dwelling unit
bimonthly cap.

Actual water use each monthly
billing period (in HCF) subject to
10 HCF per dwelling unit
monthly cap.

Table 1-7 shows proposed wastewater rates through FY 2025-26. All Fixed Charges and residential wastewater flow caps are shown on a monthly basis, as Ventura Water plans to transition to monthly billing beginning in July 2021.
14 VENTURA WATER
Table 1-7: Proposed Five-Year Wastewater Rate Schedule
Description Current1 Proposed
July 2021
Proposed
July 2022
Proposed
July 2023
Proposed
July 2024
Proposed
July 2025
Single Family Residential
Monthly Fixed Charge $12.84 $15.91 $16.86 $17.87 $18.94 $20.08 Flow Charge (per HCF)2 $3.76 $3.75 $3.97 $4.21 $4.46 $4.73 Multiple Family Residential
Monthly Fixed Charge
(per dwelling unit) $9.51 $11.73 $12.43 $13.17 $13.97 $14.80 Flow Charge (per HCF)3 $3.76 $3.75 $3.97 $4.21 $4.46 $4.73 Commercial
Monthly Fixed Charge $12.84 $15.91 $16.86 $17.87 $18.94 $20.08 Flow Charge (per HCF)
Group 1 $4.94 $5.22 $5.53 $5.86 $6.21 $6.59
Group 2 $5.63 $5.53 $5.86 $6.21 $6.58 $6.98
Group 3 $7.24 $6.75 $7.16 $7.59 $8.04 $8.53
Group 4 $8.94 $8.05 $8.53 $9.04 $9.59 $10.16
Group 5 $7.94 $7.44 $7.88 $8.36 $8.86 $9.39
Group 6 $1.73 $1.57 $1.66 $1.76 $1.87 $1.98
Churches
Monthly Fixed Charge $12.84 $15.91 $16.86 $17.87 $18.94 $20.08 Flow Charge (per HCF) $3.70 $3.94 $4.17 $4.43 $4.69 $4.97 Schools
Monthly Charge (per ADA) $100.64 $104.80 $111.09 $117.76 $124.82 $132.31 Industrial
Flow (per million gallons) $5,814.85 $6,148.36 $6,517.26 $6,908.30 $7,322.80 $7,762.16 Chemical Oxygen Demand
(per 1,000 lbs.) $224.18 $170.87 $181.12 $191.99 $203.50 $215.71 Suspended Solids
(per 1,000 lbs.) $484.93 $350.30 $371.32 $393.59 $417.21 $442.24 Estuary Protection Charge
All Customer Classes
(% of WW Bill) 10% N/A N/A N/A N/A N/A
1All current rates shown on a monthly basis to provide a direct comparison to proposed rates. 2 Single family residential wastewater customers are currently charged based on average winter water usage subject to a cap of 15 HCF per month. Beginning in FY 2021-22 it is proposed that single family residential wastewater customers will be charged based on actual water usage each billing period subject to a cap of 12 HCF per month. 3 Multiple family residential wastewater customers are currently charged based on average winter water usage subject to a cap of 12 HCF per dwelling unit per month. Beginning in FY 2021-22 it is proposed that single family residential wastewater customers will be charged based on actual water usage each billing period subject to a cap of 10 HCF per dwelling unit per month. 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 15 Figure 1-10 shows sample monthly wastewater bills for single family residential customers at varying levels of water use under both current rates and proposed FY 2021-22 rates. Current Flow Charges are based on prior year winter average water use subject to a 15 HCF monthly cap, while proposed Flow Charges are based on actual period monthly water use subject to a 12 HCF monthly cap. Note that actual single family customer impacts in FY 2021-22 may vary based on each customer’s water use characteristics during winter months versus individual months. Figure 1-10: Single Family Residential Monthly Wastewater Bill Impacts (FY 2021-22)

1.8.Combined Monthly Bill Impacts
Figure 1-11 shows combined monthly water and wastewater bills for a single family residential customer over the rate-setting period. Figure 1-12 shows a comparison of sample single family residential combined monthly water and wastewater bills with neighboring utilities. The monthly bills shown are based on a single family residential customer with a 3/4-inch water meter using 9 HCF of water per month.

Figure 1-11: Five-Year Combined Monthly Bill Impacts for Single Family Residential (9 HCF/Month) 16 VENTURA WATER
Figure 1-12: Combined Monthly Bill Comparison for Single Family Residential (9 HCF/Month) 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 17

2.Introduction

2.1.Agency Overview
The City of San Buenaventura’s (Ventura) water and wastewater department (Ventura Water) provides water and wastewater service to a population of over 109,000 people through about 30,000 metered water connections and sewer connections. Most Ventura Water customers are located within city limits. Additionally, about 1,000 metered water connections served by Ventura Water are located outside of city limits, mainly within the City’s Sphere of Influence. Ventura Water’s water system consists of three water treatment plants, 385 miles of distribution pipelines, over 20 pump stations, and over 30 storage reservoirs. The wastewater system consists of a wastewater treatment plant, 290 miles of collection pipelines, 10 miles of sewer mains, and over 10 lifts stations.

Ventura Water’s current potable water supply sources include the Ventura River at Foster Park, Mound Groundwater Bain, Oxnard Plain Groundwater Basin, Santa Paula Groundwater Basin, and treated water from Casitas Municipal Water District (Casitas MWD). Future supply sources will include imported water from the State Water Project upon completion of the State Water Interconnection Project and indirect potable reuse upon completion of the VenturaWaterPure project. Ventura Water customers significantly reduced water demand through conservation and efficiency measures in response to pervasive drought conditions since 2015. Water demand has been consistent at lower levels through 2019. Ventura Water also maintains a wastewater collection system which transports wastewater discharge from customers to its Ventura Water Reclamation Facility (VWRF), which provides tertiary wastewater treatment. A portion of treated wastewater is delivered to reclaimed water customers for non-potable Non-Residential Irrigation and the remainder is discharged to the Santa Clara River Estuary. To meet regulatory wastewater discharge requirements (both the VWRF National Pollutant Discharge Elimination System (NPDES) Permit and Tertiary Treated Flows Federal Consent Decree (Consent Decree)), Ventura Water is planning to construct a new Advanced Water Purification Facility (AWPF) over the next five years as part of its VenturaWaterPure Program. Upon completion, tertiary treated wastewater currently discharged to the Santa Clara River Estuary will be treated to a higher standard through a multi-stage purification process before being conveyed to local injection sites into the local groundwater basin. This program – VenturaWaterPure - will achieve the requirements of the VWRF NPDES Permit and the Consent Decree while adding an additional source of local and reliable potable water supply. 2.2. Study Overview
Public water and wastewater utilities in California typically perform a cost of service analysis every five to ten years to ensure that customers are appropriately charged for service commensurate with the cost to provide service.

Ventura Water last conducted a water and wastewater cost of service study in 2014, which established proposed rates over a four-year period through Fiscal Year (FY) 2017-18. Additionally, Ventura Water conducted a water shortage rate study in 2015 to establish water shortage rates to recover sufficient rate revenue during periods of drought or other water supply shortages. No rate increases have been implemented since the last year of adopted rates went into effect in July 2017.

Ventura Water engaged Raftelis in 2020 to conduct a water and wastewater cost of service study to establish a proposed five-year schedule of water and wastewater rates through FY 2025-26. The results of the study are documented within this report. Note that proposed rates cannot be implemented until formally adopted by City 18 VENTURA WATER
Council after a public hearing. Proposition 218 requires that Ventura Water customers must be mailed a public hearing notice detailing any proposed rate changes no fewer than 45 days before the public hearing. The notice includes a customer’s right to protest the rate proposal.

Study Objectives
The major objectives of this study are to: » Develop a ten-year financial plan that sufficiently funds Ventura Water’s water and wastewater operations and maintenance (O&M) expenses, debt service payments, and capital expenditures while adequately funding reserves and achieving debt coverage requirements. » Conduct cost of service analyses that establish a clear nexus between the cost to serve water and wastewater customers and the rates charged to customers, per Proposition 218 and industry standards. » Review Ventura Water’s existing water and wastewater rate structures to ensure that proposed rates achieve the financial and policy objectives of the agency. » Develop a five-year schedule of water and wastewater rates that are fair, equitable, and compliant with Proposition 218 requirements. » Develop a five-year schedule of updated water shortage rates that consider the City’s Water Shortage Event Contingency Plan.

Key Changes Since Prior Rate Study
Reduction in baseline water demand: Since the prior cost of service study was conducted in 2014, Ventura Water operations have undergone substantial changes. Most notably, drought conditions through 2016 in California resulted in significant reductions in baseline water demand. Total water demand in FY 2019-20 was approximately 18 percent lower than in FY 2012-13 (which water demand projections in the 2014 rate study were based on). Ventura Water collects approximately 70 percent of its water rate revenues through Water Volume Rates charged per unit of water delivered and 75 percent of its wastewater rate revenues though Flow Charges based on water use. Reductions in baseline water demand therefore result in the need to increase variable rates to offset reductions in variable billing units. Water shortage rates in effect over the last five years mitigated the impact of reduced water demand on rate revenues. Because water demand has hardened because of changes in customer water conservation practices since 2015, proposed water and wastewater rates are designed to reflect new normal water demand.

Capital Expenditures: Ten-year projected water and wastewater capital expenditures (through FY 2029-30) in this study are over $16.8M higher per year than the prior study’s ten-year projected capital expenditures (through FY 2022-23). This represents greater than a 50 percent increase in annual average water and wastewater capital expenditures relative to the prior study (which current rates are based on). Slightly over half of ten-year projected water and wastewater capital expenditures through FY 2029-30 are associated with the VenturaWaterPure Program components. A significant portion of the remaining R&R capital program represents a backlog of delayed projects.

VenturaWaterPure Program: In the interim years since the last rate study the VenturaWaterPure Program has been selected by the City as the preferred alternative project to achieve the requirements of the VWRF NPDES Permit and the Consent Decree. As designed, the multi-benefit program has an estimated value of approximately $260M across all project components and phases (Phases 1a and 1b). The project components consist of several capital improvement projects including land acquisition for the Advanced Water Purification Facility (AWPF), Advanced Water Purification Facility, Brine line and Ocean Outfall, Aquifer Storage and Recovery, pipelines, 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 19 pump stations and Wetlands Improvements. The program is larger in scale and value than the alternatives modeled in the prior rate study because it is now a multi-benefit program comprised of several project components. The multi-benefits include meeting the City’s regulatory and legal requirements, improved system water quality, and a new drought-resilient water supply source. Moderating the effects of this change are current favorable terms and interest rates for public debt and low-interest government loans. 20 VENTURA WATER

3.Legal Requirements and
Rate Setting Methodology

3.1.Legal Requirements
California Constitution - Article XIII D, Section 6 (Proposition 218) Proposition 218, reflected in the California Constitution as Article XIII D, was enacted in 1996 to ensure that rates and fees are reasonable and proportional to the cost of providing service. The principal requirements, as they relate to public water and wastewater service are as follows:

1. A property-related charge (which include water or wastewater rates) imposed by a public agency on a parcel shall not exceed the costs required to provide the property-related service.

2. Revenues derived by the charge shall not be used for any purpose other than that for which the charge was imposed.

3. The amount of the charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel.

4. No charge may be imposed for a service unless that service is actually used or immediately available to the owner of the property.

5. A written notice of the proposed charge shall be mailed to both the customer of record and owner of record of each parcel at least 45 days prior to the public hearing, when the agency considers all written protests against the charge.

As stated in the American Water Works Association’s (AWWA) Principles of Water Rates, Fees, and Charges: Manual of Water Supply Practices - M1 Seventh Edition (Manual M1), “water rates and charges should be recovered from classes of customers in proportion to the cost of serving those customers.” Raftelis follows industry standard rate setting methodologies set forth by the AWWA’s Manual M1 to ensure the water cost of service analysis presented in this study meets Proposition 218 requirements and establishes rates that do not exceed the proportionate cost of providing water services on a parcel basis. The methodology in the Manual M1 is a nationally recognized industry ratemaking standard which courts have recognized as consistent with Proposition 218. Similarly, the wastewater cost of service presented in this study was conducted in accordance with principles established by the Water Environment Federation (WEF) and described in Financing and Charges for Wastewater Systems. California Constitution Article X, Section 2 California Constitution Article X, Section 2 mandates that water resources be put to beneficial use and that the waste or unreasonable use of water be prevented. Section 106 of the Water Code declares that the highest priority use of water is for domestic purposes, with Non-Residential Irrigation the next highest priority. Thus, management of water resources is part of the property-related service provided by public water suppliers to ensure the resource is available over time. Ventura Water currently has inclining tiered (also known as inclining block) water rates to incentivize residential customers to conserve water. The inclining tiered rates must be based on the proportionate costs incurred to provide water to customers to achieve compliance with Proposition 218. “Inclining” tiered rate structures (which are synonymous with “increasing” tier rate structures and “tiered” rates), when properly designed, allow a water utility to send conservation price signals to customers. Due to heightened interest in water conservation and efficiency of water use, tiered water rates have gained widespread use, especially in relatively 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 21 water-scarce regions like Southern California. Tiered rates meet the requirements of Proposition 218 as long as they reasonably reflect the proportionate cost of providing service for each tier.

3.2.Rate-Setting Methodology
This study was conducted using industry-standard principles outlined by the AWWA’s Manual M1 and WEF’s Financing and Charges for Wastewater Systems. The process and approach Raftelis utilized in the study to determine rates is informed by Ventura Water’s policy objectives, the current system of rates, and the legal requirements in California (namely, Proposition 218). The resulting financial plans, cost of service analyses, and rate design process follows five key steps, outlined below, to determine proposed rates that fulfill Ventura Water’s objectives, meet industry standards, and comply with relevant regulations. The overall process outlined below applies to the cost of service analyses for both water and wastewater.

1. Financial Plan: The first study step is to develop a multi-year financial plan that projects the Water and Wastewater Enterprises’ revenues, expenses, capital project financing, annual debt service, and reserve funding. The financial plan is used to determine revenue adjustments needed to recover adequate revenues to fund expenses and reserves.

2. Revenue Requirement Determination: After completing the financial plan, the rate-making process begins with the determination of the revenue requirement for the test year, also known as the cost-of service year.

The test year for this study is FY 2020-21. The revenue requirement should sufficiently fund the Water and Wastewater Enterprises’ operating costs, annual debt service (including coverage requirements), capital expenditures, and reserve funding needs.

3. Cost of Service Analysis: The annual cost of providing water or wastewater service (i.e. the revenue requirement) is then distributed to customer classes commensurate with their use of and burden on the system. A cost of service analysis involves the following steps: » Functionalize costs – the different components of the revenue requirement are categorized into functions such as supply, transmission, storage, customer service, etc. (for water) and collection, treatment, customer, etc. (for wastewater) » Allocate to cost causation components – the functionalized costs are then allocated to cost causation components such as supply, base delivery, peaking, etc. (for water) and flow, strength, etc. (for wastewater) » Develop unit costs – unit costs for each cost causation component are determined using units of service » Distribute cost components – the cost components are allocated to each customer class and tier using the unit costs in proportion to their demand and burden on the system. A water cost of service analysis considers both the average water demand and peak demand. Peaking, or extra-capacity, costs are incurred during periods of peak consumption, most often coinciding with summer water use. There are additional capacity-related costs associated with designing, constructing, operating, maintaining, and replacing facilities to meet peak demand. Patterns of use impose additional costs on a water utility and are used to determine the cost burden on peaking-related facilities. Similarly, a wastewater cost of service analysis considers the amount of wastewater treatment plant influent contributed by each customer class in order to account for customer differences in the quantity and strength of wastewater discharges.
22 VENTURA WATER

4. Rate Design: After allocating the revenue requirement to each customer class, the rate design and calculation process can begin. Rates do more than simply recover costs; within the legal framework and industry standards, properly designed rates should support and optimize Ventura Water’s policy objectives. Rates also act as a public information tool in communicating policy objectives to customers. This process also includes a bill impact analysis.

5. Administrative Record Preparation and Rate Adoption: The final step in a rate study is to develop the administrative record in conjunction with the rate adoption process. This report serves as the administrative record for this study. The administrative record documents the study results and presents the methodologies, rationale, justifications, and calculations used to determine the proposed rates. A thorough and methodological administrative record serves two important functions: maintaining defensibility in a stringent legal environment and communicating the rationale for revenue adjustments and proposed rates to customers and key stakeholders.
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 23

4.Water Rate Study

4.1.Key Inputs and Assumptions
Raftelis developed a water rate model in Microsoft Excel to project financial calculations over the next ten fiscal years with projections shown in this report through the five-year rate-setting period of FY 2025-26 (i.e. the “study period”). Please refer to Appendix B for ten-year financial plan projections through FY 2029-30. The City’s fiscal year spans from July 1 through June 30. Projections in future years were generally made based on actual or estimated data for FY 2018-19 or FY 2019-20 or the adopted budget for FY 2020-21 using key assumptions outlined below. Assumptions were discussed with, and reviewed by, Ventura Water, Public Works, and Finance staff to ensure that the City water system’s unique characteristics are accurately accounted for. Note that most table values shown throughout this report are rounded to the last digit shown and may therefore not sum precisely to the totals shown.

4.1.1.CURRENT WATER RATES
Table 4-1 shows the rates currently in effect in FY 2020-21, which were developed during the prior rate study in 2014. Customers are currently billed bimonthly for two primary charges: 1) Water Service Charges and 2) Water Volume Rates per hundred cubic feet (HCF)4 of water delivered. The Water Service Charge is a fixed bimonthly charge that varies based on meter size. Additionally, customers with private fire lines are subject to a fixed bimonthly Fire Line Service Charge. Water Volume Rates vary based on customer classes. Residential customers are subject to a four-tiered Water Volume Rate structure. All other customer classes are subject to a uniform Water Volume Rate. Base water rates have not changed since July 2017. However, Water Volume Rates were reduced at end of FY 2019-20 when a Stage 3 water shortage was downgraded to Stage 2. Current Water Volume Rates shown throughout this study reflect Stage 2 shortage rates. All current rates and tier allotments are shown on a bimonthly basis. However, Ventura Water plans to transition from bimonthly to monthly billing beginning in July 2021. All proposed rates and tier allotments presented in subsequent sections of this report are therefore shown in monthly terms.
4 One HCF equals approximately 748 gallons.
24 VENTURA WATER
Table 4-1: Current Water Rates
Description FY 2020-21
Bimonthly Water Service Charge
3/4-inch water meter $33.69
1-inch water meter $51.03

1.5-inch water meter $94.38
2-inch water meter $146.42
3-inch water meter $311.18
4-inch water meter $553.98
6-inch water meter $1,134.97
8-inch water meter $2,088.84
10-inch water meter $3,302.85
12-inch water meter $4,343.44
Bimonthly Fire Line Service Charge
1-inch fire line $8.79
2-inch fire line $8.79
3-inch fire line $25.49
4-inch fire line $54.29
6-inch fire line $157.68
8-inch fire line $336.01
10-inch fire line $604.25
12-inch fire line $976.02
Stage 2 Water Volume Rates (per HCF)
Single Family Residential
Tier 1 (0-6 HCF per bimonthly billing period) $2.77
Tier 2 (7-14 HCF per bimonthly billing period) $3.12
Tier 3 (15-30 HCF per bimonthly billing period) $4.62
Tier 4 (>30HCF per bimonthly billing period) $7.73
Multiple Family Residential
Tier 1 (0-6 HCF per bimonthly billing period) $2.77
Tier 2 (7 -10 HCF per bimonthly billing period) $3.12
Tier 3 (11-16HCF per bimonthly billing period) $4.62
Tier 4 (>16 HCF per bimonthly billing period) $7.73
Non-Residential $3.98
Non-Residential Irrigation $4.25
Institutional/Interruptible $3.29
Untreated Water $3.44
Reclaimed Water $0.95
Outside City Limits Surcharge (per HCF)
All Customer Classes $0.60
Current residential tier allotments are shown in Table 4-2. For single family residential customers: the first 6 HCF used each bimonthly billing period is charged at the lowest rate (Tier 1), the next 8 HCF at a higher rate (Tier 2), the next 16 HCF at an even higher rate (Tier 3), and any additional use at the highest rate (Tier 4). For multiple family residential customers: the first 6 HCF used per dwelling unit each bimonthly billing period is charged at the lowest rate (Tier 1), the next 4 HCF at a higher rate (Tier 2), the next 6 HCF at an even higher rate (Tier 3), and 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 25 any additional use at the highest rate (Tier 4). Multiple family residential customers have smaller tier allotments due to smaller average household size and reduced outdoor water use on a per dwelling unit basis. Table 4-2: Current Residential Tier Allotments for Water Volume Rates Bimonthly Tier
Allotments
Single Family
Residential
Multiple Family
Residential
(per Dwelling Unit)
Tier 1 0-6 HCF 0-6 HCF
Tier 2 7-14 HCF 7-10 HCF
Tier 3 15-30 HCF 11-16 HCF
Tier 4 >30 HCF >16 HCF
Some water utilities include elevation electricity surcharges for customer parcels in elevated zones, but only if warranted by the water system’s design, if the costs applicable to the elevated zones can feasibly be calculated and assigned with relative certainty and consistent with cost of service principles, and if the relative differential costs are not outweighed by the administrative costs of evaluating and administering the elevation surcharge. Most utilities in California do not have these surcharges due to their complexity. Ventura Water’s existing water rate structure does not include electricity surcharges for Ventura Water’s elevated distribution zones and we do not recommend that they be added for this study period. Raftelis reviewed the issue with Ventura Water staff and confirmed that it is not feasible to reasonably assign electrical costs to specific zones due the complex nature of the City’s water system and its 16 pressure zones, and the movement of water throughout that system. Additionally, the lower pressure zones receive a storage benefit from the storage in tanks and reservoirs in the elevated zones, especially in the event of an emergency. Finally, it is anticipated that any modest cost differential that might exist if an elevation electricity surcharge could be calculated is outweighed by the administrative costs of determining, administering, and applying such a surcharge.

4.1.2.WATER ENTERPRISE FINANCIAL ASSUMPTIONS
Inflationary assumptions shown in Table 4-3 are used to escalate projected non-rate revenues and operations and maintenance (O&M) expenses beyond FY 2020-21. For O&M expenses, the general inflation rate is consistent with long-term changes in the Consumer Price Index (CPI). Salary and benefit inflationary increases were provided by Ventura Water and Finance staff, as water utility personnel cost increases are typically agency-specific. All other O&M expense inflationary assumptions were developed by Raftelis based on professional judgement and available industry indices. The capital inflation factor is used to adjust uninflated capital project cost estimates provided to Raftelis by Ventura Water and Public Works staff. Table 4-3: Water Enterprise Inflationary Assumptions Inflationary Categories FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Non-Rate Revenues
Miscellaneous 0.00% 0.00% 0.00% 0.00% 0.00%
Expenses
General 3.00% 3.00% 3.00% 3.00% 3.00%
Salaries 5.38% 3.87% 3.53% 3.53% 1.08%
Benefits 5.38% 3.87% 3.53% 3.53% 1.08%
Utilities 5.00% 5.00% 5.00% 5.00% 5.00%
Chemicals 5.00% 5.00% 5.00% 5.00% 5.00%
Water Supply 3.00% 3.00% 3.00% 3.00% 3.00%
Capital 4.00% 4.00% 4.00% 4.00% 4.00%
26 VENTURA WATER
Additional financial assumptions relating to interest earnings are shown in Table 4-4. Interest earnings on cash reserves are projected assuming a one percent annual interest rate.

Table 4-4: Additional Water Enterprise Financial Assumptions Description Value
Interest Earnings
Annual Interest Rate 1.0%

4.1.3.PROJECTED WATER SERVICE CONNECTIONS
Water connection growth projections are necessary to estimate water demand and rate revenues over the study period. Ventura Water staff provided Raftelis with the number of water meters and fire lines by size for FY 2019-20.

Raftelis then applied a 0.54% annual account growth rate5to all connection types to project the number of water meters and fire lines in each year over the study period (see Table 4-5).

Table 4-5: Number of Water Meters and Fire Lines
Description Actual
FY 2019-20
Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Projected Annual Growth N/A 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% Number of Water Meters
3/4-inch water meter 25,063 25,198 25,334 25,471 25,609 25,747 25,886 1-inch water meter 2,487 2,500 2,514 2,528 2,541 2,555 2,569

1.5-inch water meter 951 956 961 966 972 977 982
2-inch water meter 734 738 742 746 750 754 758
3-inch water meter 115 116 116 117 118 118 119
4-inch water meter 70 70 71 71 72 72 72
6-inch water meter 74 74 75 75 76 76 76
8-inch water meter 7 7 7 7 7 7 7
10-inch water meter 2 2 2 2 2 2 2
12-inch water meter 0 0 0 0 0 0 0
Temporary meters on
hydrant
69 69 70 70 71 71 71
Total 29,572 29,732 29,892 30,054 30,216 30,379 30,543
Number of Fire Lines
1-inch fire line 2,451 2,464 2,478 2,491 2,504 2,518 2,531 2-inch fire line 27 27 27 27 28 28 28
3-inch fire line 2 2 2 2 2 2 2
4-inch fire line 328 330 332 333 335 337 339
6-inch fire line 267 268 270 271 273 274 276
8-inch fire line 117 118 118 119 120 120 121
10-inch fire line 16 16 16 16 16 16 17
12-inch fire line 0 0 0 0 0 0 0
Total 3,208 3,225 3,243 3,260 3,278 3,296 3,313
5 From Ventura Water’s 2020 Comprehensive Water Resources Report. The growth rate is provided to Ventura Water staff by Planning staff and is based on the Department of Finance historical data for population. 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 27

4.1.4.PROJECTED WATER SALES
Ventura Water staff provided Raftelis with total annual water use data by customer class for FY 2016-17 through FY 2019-20. Raftelis worked closely with Ventura Water staff to develop water use projections over the study period. Water demand projections depend on two key assumptions: new connection growth and water demand per connection. Beginning in FY 2020-21, annual water use was projected at the customer class level by increasing prior year water use based on both assumed connection growth and water demand per connection. Table 4-6 shows projected water use by customer class over the study period based on the current water rate structure. A five percent increase in demand per connection is assumed in FY 2020-21 because of the downgrade from a Stage 3 water shortage to Stage 2 at the end of FY 2019-20. It is assumed that after FY 2020-21 there will be no further increases in water demand per connection. Total water use is shown in both hundred cubic feet and acre-feet (AF). 28 VENTURA WATER
Table 4-6: Projected Water Use Under Existing Rate Structure Description Actual
FY 2019-20
Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Growth Assumptions
Account Growth N/A 0.54% 0.54% 0.54% 0.54% 0.54% 0.54%
Demand per Connection N/A 5.00% 0.00% 0.00% 0.00% 0.00% 0.00% Water Sales Increase6 N/A 5.57% 0.54% 0.54% 0.54% 0.54% 0.54% Water Sales (HCF) - Inside City Limits
Residential Tier 1 1,511,080 1,595,202 1,603,816 1,612,477 1,621,184 1,629,939 1,638,740 Residential Tier 2 1,078,603 1,138,649 1,144,798 1,150,980 1,157,195 1,163,444 1,169,727 Residential Tier 3 745,692 787,204 791,455 795,729 800,026 804,346 808,690 Residential Tier 4 211,416 223,185 224,390 225,602 226,820 228,045 229,277 Non-Residential 1,363,580 1,439,490 1,447,264 1,455,079 1,462,936 1,470,836 1,478,779 Non-Residential
Irrigation 5,994 6,328 6,362 6,396 6,431 6,465 6,500
Institutional/Interruptible 150,475 158,852 159,710 160,572 161,439 162,311 163,188 Untreated Water 0 0 0 0 0 0 0
Reclaimed Water 244,429 258,036 259,430 260,831 262,239 263,655 265,079 Casitas Direct 4 4 4 4 4 4 4
Other7 987 1,042 1,048 1,053 1,059 1,065 1,070
Subtotal 5,312,260 5,607,994 5,638,277 5,668,723 5,699,334 5,730,111 5,761,053 Water Sales (HCF) - Outside City Limits excluding Saticoy Country Club System Residential Tier 1 35,367 37,336 37,538 37,741 37,944 38,149 38,355 Residential Tier 2 26,886 28,383 28,536 28,690 28,845 29,001 29,157 Residential Tier 3 22,443 23,692 23,820 23,949 24,078 24,208 24,339 Residential Tier 4 19,092 20,155 20,263 20,373 20,483 20,593 20,705 Non-Residential 96,152 101,504 102,053 102,604 103,158 103,715 104,275 Non-Residential
Irrigation 1,717 1,813 1,822 1,832 1,842 1,852 1,862
Untreated Water 25,260 26,666 26,810 26,955 27,101 27,247 27,394 Casitas Direct 33,953 35,843 36,037 36,231 36,427 36,624 36,821 Other1 5,009 5,288 5,316 5,345 5,374 5,403 5,432
Subtotal 265,879 280,680 282,196 283,720 285,252 286,792 288,341 Water Sales (HCF) - Saticoy Country Club System
Residential Tier 1 5,704 6,022 6,054 6,087 6,120 6,153 6,186 Residential Tier 2 5,018 5,297 5,325 5,354 5,383 5,412 5,441 Residential Tier 3 3,713 3,920 3,941 3,962 3,984 4,005 4,027 Residential Tier 4 3,848 4,062 4,084 4,106 4,128 4,150 4,173 Non-Residential
Irrigation 3,396 3,585 3,605 3,624 3,644 3,664 3,683
Golf Course8 113,612 113,612 113,612 113,612 113,612 113,612 113,612 Subtotal 135,291 136,497 136,621 136,745 136,870 136,996 137,122 Total Water Sales (HCF) 5,713,429 6,025,171 6,057,093 6,089,188 6,121,456 6,153,899 6,186,516 Total Water Sales (AF) 13,116 13,832 13,905 13,979 14,053 14,127 14,202 6 Equal to the compounded percent increase from both account growth and demand per connection. 7 Other includes water use associated with fire training and other miscellaneous water use. 8 Growth assumptions are not applied to water use associated with The Saticoy Club’s golf course. 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 29

4.1.5.PROJECTED WATER SUPPLY
Table 4-7 shows the water supply mix projected to meet water demand over the study period. Ventura Water staff provided Raftelis with the anticipated amount of water available from each source of supply over the study period.

Raftelis then determined the projected supply mix based on the amount of water supply required to satisfy demand, after water loss (due to physical leakage and apparent losses). Water supply availability is not shown for reclaimed water (which is supplied by the Ventura Water Reclamation Facility) or for the Saticoy Country Club System (which is supplied by the Saticoy Country Club System wells and which cannot physically receive water from other sources). The remaining potable water supply mix was determined based on the following assumed prioritization:
first VenturaWaterPure (no production until FY 2025-26), then groundwater production from the three basins, then Ventura River - Foster Park, and lastly Casitas Municipal Water District (Casitas). State Water is anticipated to be available by FY 2025-26. Due to the uncertainty of the allocation from year to year, Table 4-7 does not include State Water in the total available supply amounts. State Water will be used to make up for losses in other supply sources and to improve water quality when available. Ventura Water’s supply mix can vary significantly from year to year and is not based on a rigid prioritization policy. However, simplifying assumptions are necessary to develop reasonable supply mix projections over the study, assuming normal conditions on average. Table 4-7: Projected Water Supply Mix Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Potable Water Supply Availability (AF)
Ventura River - Foster Park 1,573 1,298 1,573 1,573 1,573 1,573 Groundwater - Mound 2,400 4,000 4,000 4,000 4,000 4,000 Groundwater - Santa Paula 2,450 2,450 2,450 3,041 3,041 3,041 Groundwater - Oxnard Plain 4,827 4,700 4,573 4,446 4,319 4,192 Purchased Water - Casitas 3,858 3,922 3,985 4,049 4,071 4,094 VenturaWaterPure 0 0 0 0 0 2,800
State Water Project 0 0 0 0 0 0
Total (AF) 15,108 16,370 16,581 17,109 17,004 19,700
Water Supply Required to Meet Demand
Water Demand (AF) 13,832 13,905 13,979 14,053 14,127 14,202 Water Loss 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Required Water Supply (AF)9 14,873 14,952 15,031 15,111 15,191 15,271 Projected Water Supply Mix (AF)
Reclaimed Water 637 640 644 647 651 654
Surface Water - Foster Park 1,573 1,298 1,573 1,573 1,573 155 Groundwater - Mound 2,400 4,000 4,000 4,000 4,000 4,000 Groundwater - Santa Paula 2,450 2,450 2,450 3,041 3,041 3,041 Groundwater - Oxnard Plain 4,827 4,700 4,573 4,446 4,319 4,192 Groundwater – Saticoy CC 337 337 338 338 338 338
Purchased Water - Casitas Direct 88 89 89 90 90 91
Purchased Water – Casitas Other 2,561 1,437 1,364 976 1,178 0 VenturaWaterPure 0 0 0 0 0 2,800
State Water Project 0 0 0 0 0 0
Total (AF) 14,873 14,952 15,031 15,111 15,191 15,271
9 Equal to water demand divided by (100%-7%)
30 VENTURA WATER

4.2.Water Financial Plan
Section 4.2 details the development of a proposed Water Enterprise financial plan for Ventura Water over the study period. The following subsections include estimates and projections of annual revenues, O&M expenses, debt service payments, capital expenditures, and reserve funding through FY 2025-26. The overall purpose of the financial plan is to determine annual water rate revenues required to achieve sufficient cash flow, maintain adequate reserves, and meet debt coverage requirements.

4.2.1.WATER ENTERPRISE REVENUE UNDER CURRENT RATES
The Water Enterprise’s revenue sources consist of water rates, developer fees, miscellaneous fees, interest earnings on cash reserves, and other non-rate revenues. The rate revenue projections shown in this section assume that current FY 2020-21 water rates are effective throughout the study period, and therefore represent estimated revenues in the absence of any water rate increases. This status quo scenario provides a baseline from which Raftelis evaluated the need for revenue adjustments (i.e. gross rate revenue increases).

Calculated Water Rate Revenues
Raftelis projected annual water rate revenues from Water Service Charges, Fire Line Service Charges, and Water Volume Rates over the study period based on current FY 2020-21 water rates (from Table 4-1), projected number of water meters/private fire lines (from Table 4-5), and projected annual water use (from Table 4-6). Table 4-8 shows projected Water Service Charge and Fire Line Service Charge revenues under current rates over the study period, calculated as follows:

Fixed Charge Revenue = [ FY 2020-21 bimonthly charge] × [Number of connections] × [6 Bills per year] Table 4-8: Projected Fixed Charge Revenue from Existing Rates Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Water Service Charges
3/4-inch water meter $5,093,592 $5,121,098 $5,148,752 $5,176,555 $5,204,508 $5,232,613 1-inch water meter $765,582 $769,716 $773,872 $778,051 $782,253 $786,477

1.5-inch water meter $541,440 $544,364 $547,304 $550,259 $553,231 $556,218 2-inch water meter $648,316 $651,817 $655,336 $658,875 $662,433 $666,010 3-inch water meter $215,874 $217,039 $218,211 $219,390 $220,574 $221,766 4-inch water meter $233,928 $235,191 $236,461 $237,738 $239,022 $240,313 6-inch water meter $506,648 $509,384 $512,134 $514,900 $517,680 $520,476 8-inch water meter $88,205 $88,681 $89,160 $89,642 $90,126 $90,612 10-inch water meter $39,848 $40,063 $40,280 $40,497 $40,716 $40,936 12-inch water meter $0 $0 $0 $0 $0 $0
Subtotal $8,133,433 $8,177,354 $8,221,511 $8,265,907 $8,310,543 $8,355,420 Fire Line Service Charges
1-inch fire line $129,964 $130,666 $131,371 $132,081 $132,794 $133,511 2-inch fire line $1,432 $1,439 $1,447 $1,455 $1,463 $1,471 3-inch fire line $308 $309 $311 $313 $314 $316
4-inch fire line $107,420 $108,000 $108,583 $109,169 $109,759 $110,351 6-inch fire line $253,967 $255,339 $256,718 $258,104 $259,498 $260,899 8-inch fire line $237,153 $238,433 $239,721 $241,015 $242,317 $243,625 10-inch fire line $58,321 $58,636 $58,953 $59,271 $59,591 $59,913 12-inch fire line $0 $0 $0 $0 $0 $0
Subtotal $788,564 $792,822 $797,104 $801,408 $805,736 $810,086 Total $8,921,997 $8,970,176 $9,018,615 $9,067,315 $9,116,279 $9,165,507 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 31 Table 4-9 shows projected Water Volume Rate revenue under current rates over the study period, calculated as follows:

Water Volume Rate Revenue = [ FY 2020-21 rate per HCF] × [Annual Water Use in HCF] Table 4-9: Projected Commodity Charge Revenues Under Current Water Rates Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Water Sales Revenue - Inside City Limits
Residential Tier 1 $4,418,710 $4,442,571 $4,466,561 $4,490,680 $4,514,930 $4,539,310 Residential Tier 2 $3,552,586 $3,571,770 $3,591,057 $3,610,449 $3,629,945 $3,649,547 Residential Tier 3 $3,636,884 $3,656,523 $3,676,268 $3,696,120 $3,716,079 $3,736,146 Residential Tier 4 $1,725,222 $1,734,538 $1,743,905 $1,753,322 $1,762,790 $1,772,309 Non-Residential $5,729,172 $5,760,110 $5,791,214 $5,822,487 $5,853,928 $5,885,540 Non-Residential
Irrigation
$26,893 $27,038 $27,184 $27,331 $27,478 $27,627
Institutional/Interruptible $522,623 $525,445 $528,282 $531,135 $534,003 $536,887 Untreated Water $0 $0 $0 $0 $0 $0
Reclaimed Water10 N/A N/A N/A N/A N/A N/A
Casitas Direct11 N/A N/A N/A N/A N/A N/A
Other N/A N/A N/A N/A N/A N/A
Subtotal $19,612,089 $19,717,994 $19,824,471 $19,931,524 $20,039,154 $20,147,365 Water Sales Revenue - Outside City Limits excluding Saticoy Country Club System Residential Tier 1 $125,823 $126,503 $127,186 $127,873 $128,563 $129,258 Residential Tier 2 $105,583 $106,153 $106,726 $107,303 $107,882 $108,465 Residential Tier 3 $123,674 $124,342 $125,014 $125,689 $126,367 $127,050 Residential Tier 4 $167,888 $168,794 $169,706 $170,622 $171,544 $172,470 Non-Residential $464,890 $467,401 $469,925 $472,462 $475,013 $477,578 Non-Residential
Irrigation
$8,791 $8,839 $8,886 $8,934 $8,982 $9,031
Untreated Water $107,732 $108,313 $108,898 $109,486 $110,077 $110,672 Casitas Direct N/A N/A N/A N/A N/A N/A
Other N/A N/A N/A N/A N/A N/A
Subtotal $1,104,381 $1,110,345 $1,116,341 $1,122,369 $1,128,430 $1,134,523 Water Sales Revenue – Saticoy Country Club System
Residential Tier 1 $20,293 $20,403 $20,513 $20,624 $20,735 $20,847 Residential Tier 2 $19,704 $19,811 $19,918 $20,025 $20,133 $20,242 Residential Tier 3 $20,462 $20,572 $20,683 $20,795 $20,907 $21,020 Residential Tier 4 $33,835 $34,018 $34,202 $34,386 $34,572 $34,759 Non-Residential
Irrigation
$16,421 $16,510 $16,599 $16,689 $16,779 $16,869
Golf Course Unmetered N/A N/A N/A N/A N/A N/A
Subtotal $110,716 $111,314 $111,915 $112,520 $113,127 $113,738 Total $20,827,187 $20,939,653 $21,052,728 $21,166,412 $21,280,711 $21,395,627 10 Reclaimed water sales revenue is included within the City’s Wastewater Operating Fund (Fund 51). It is therefore accounted for in the wastewater financial plan rather than the water financial plan. 11 Casitas Direct customers are subject to Casitas Municipal Water District pass-through rates only. 32 VENTURA WATER
Table 4-10 shows additional miscellaneous rate revenue projections associated with Casitas Direct customers and temporary meters. Casitas Direct customers receive water directly off of Ventura Water’s transmission line from Casitas, and are only charged by Ventura Water for the direct pass-through of Casitas MWD wholesale costs.

Temporary meters are largely associated with construction uses. Casitas Direct pass-through rates and temporary meter charges are outside of the scope of this rate study, and are therefore not included with other rate revenues.

Table 4-10: Projected Miscellaneous Rate Revenues
Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Casitas Direct Meter
Charge12 $36,843 $41,258 $43,321 $45,487 $47,761 $50,149 Casitas Direct Adjudication
Impact Charge13 $9,783 $9,783 $9,783 $9,783 $9,783 $9,783 Casitas Direct Variable
Rates
14 $49,828 $56,224 $62,180 $68,768 $76,053 $84,110
Temporary Meter Charges15 $50,642 $50,915 $51,190 $51,467 $51,745 $52,024 Total $147,095 $158,180 $166,474 $175,504 $185,342 $196,066 12 Casitas Direct customers assumed to be responsible for 10% of City’s Casitas MWD Meter Charges (from Table 4-15). 13 Casitas Direct customers assumed to be responsible for 10% of City’s Casitas MWD Casitas Adjudication Impact Charges (from Table 4-15). 14 Casitas Direct customers variable charges equal to annual water use in HCF (from Table 4-6) multiplied by the projected Casitas Commodity Charge rate per HCF (from Table 4-15). 15 Annual temporary meter charge revenue is calculated based on the existing rate of $2 per day multiplied by number of temporary meters (from Table 4-5) multiplied by 365 days per year. 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 33 Other Water Enterprise Revenues
Table 4-11 shows all other Water Enterprise revenues. All FY 2020-21 other revenues are based on the City’s FY 2020-21 budget and escalated annually by the miscellaneous inflation rate (from Table 4-3), except where noted otherwise. Interest revenue is estimated in the financial plan model beginning in FY 2020-21 based on projected fund balances and the assumed interest rate (from Table 4-4).

Table 4-11: Other Water Enterprise Revenues
Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Water Operating Fund (52) – Other Revenues
Miscellaneous Fees $700,000 $700,000 $700,000 $700,000 $700,000 $700,000 Interest Earnings $296,934 $295,961 $305,642 $336,811 $380,014 $422,061 Transfer from WW Operating
Fund (51)16 $3,934,978 $3,876,665 $3,965,365 $3,955,373 $4,076,293 $4,020,055 SWP Recoverable Expenditures $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Other Miscellaneous Revenue $230,000 $230,000 $230,000 $230,000 $230,000 $230,000 Subtotal $6,161,912 $6,102,626 $6,201,007 $6,222,184 $6,386,307 $6,372,116 Water Capital Fund (72) – Other Revenues
Water Connection Fees17 $596,351 $596,351 $596,351 $596,351 $596,351 $596,351 Water Net Zero Fees18 $786,947 $786,947 $786,947 $786,947 $786,947 $786,947 Transfer from WW Capital
Fund (71)19 $2,200,000 $0 $0 $0 $0 $0
The Saticoy Club Capital
Contribution20 $363,333 $738,400 $0 $0 $0 $0
Interest Earnings $560,863 $412,743 $242,245 $102,558 $9,529 $0 Subtotal $4,507,495 $2,534,442 $1,625,543 $1,485,856 $1,392,827 $1,383,299 Total $10,669,407 $8,637,068 $7,826,550 $7,708,040 $7,779,134 $7,755,415 16 Based on projected transfers from five-year Wastewater Enterprise O&M projections to cover the Wastewater Enterprise’s share of administrative and billing costs accounted for within the Water Operating Fund (Fund 52). 17 Water connection fees and net zero fee projections equal the annual average of actuals over the last four fiscal years through FY 2019/20. 18 Net Zero fee projections equal the annual average of actuals over the last four fiscal years through FY 2019-20. 19 Non-recurring transfer for Wastewater Enterprise share of Water Enterprise capital expenditures associated with advanced metering infrastructure. 20 The Saticoy Club (formerly Saticoy Country Club) is responsible for 2/3 of capital project costs associated with the Saticoy Country Club Water System (projects include emergency generators and Well No.2 rehabilitation) pursuant to a co-ownership agreement of the System with the City.
34 VENTURA WATER
Summary of Projected Water Enterprise Revenues
Table 4-12 shows a summary of all projected Water Enterprise revenues under current rates over the study period.

This includes all projected revenues shown in Table 4-8 through Table 4-11. This revenue summary represents expected revenues in the absence of any rate increase over the study period.

Table 4-12: Summary of Projected Water Enterprise Revenues Under Current Rates Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Water Operating Fund (52) – Revenues
Water Service Charges $8,133,433 $8,177,354 $8,221,511 $8,265,907 $8,310,543 $8,355,420 Fire Line Service Charges $788,564 $792,822 $797,104 $801,408 $805,736 $810,086 Water Volume Rates $20,827,187 $20,939,653 $21,052,728 $21,166,412 $21,280,711 $21,395,627 Miscellaneous Rate Revenue $147,095 $158,180 $166,474 $175,504 $185,342 $196,066 Miscellaneous Fees $700,000 $700,000 $700,000 $700,000 $700,000 $700,000 Interest Earnings $296,934 $295,961 $305,642 $336,811 $380,014 $422,061 Transfer from WW Operating
Fund (51) $3,934,978 $3,876,665 $3,965,365 $3,955,373 $4,076,293 $4,020,055 SWP Recoverable Expenditures $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Other Miscellaneous Revenue $230,000 $230,000 $230,000 $230,000 $230,000 $230,000 Subtotal $36,058,191 $36,170,636 $36,438,823 $36,631,415 $36,968,638 $37,129,316 Water Capital Fund (72) – Revenues
Water Connection Fees $596,351 $596,351 $596,351 $596,351 $596,351 $596,351 Water Net Zero Fees $786,947 $786,947 $786,947 $786,947 $786,947 $786,947 Transfer from WW Capital
Fund (71) $2,200,000 $0 $0 $0 $0 $0
The Saticoy Club Capital
Contribution $363,333 $738,400 $0 $0 $0 $0
Interest Earnings $560,863 $412,743 $242,245 $102,558 $9,529 $0 Subtotal $4,507,495 $2,534,442 $1,625,543 $1,485,856 $1,392,827 $1,383,299 Total $40,565,686 $38,705,077 $38,064,367 $38,117,272 $38,361,466 $38,512,615

4.2.2.WATER ENTERPRISE OPERATIONS & MAINTENANCE EXPENSES Ventura Water staff provided annual Water Enterprise O&M expense projections over the study period in current dollars. For most O&M expenses, Raftelis adjusted Ventura Water staff’s five-year projections using inflationary factors (from Table 4-3). However, Raftelis developed detailed projections of O&M expenses related to groundwater assessments and Casitas MWD wholesale water supply costs. Table 4-13 through Table 4-15 show detailed calculations of groundwater assessments (excluding Saticoy Country Club), Saticoy Country Club groundwater assessments, and Casitas MWD wholesale costs, respectively. All unit costs shown were either provided by Ventura Water staff or inflated by the water supply inflationary factor (from Table 4-3). All units shown are based on the projected water supply mix (from Table 4-7). 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 35 Table 4-13: Projected Water Supply Expenses – Groundwater Excluding Saticoy Country Club Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Water Production (63141) > UTILITIES - GROUND WATER EXTRACTION (53111) United Water Conservation District - Mound & Santa Paula Basin: Zone A=M&I Water Conservation Fund Charge Unit Rate ($/AF) $187.56 $206.32 $226.95 $249.64 $274.61 $302.07 Units (AF)21 4,850 6,450 6,450 7,041 7,041 7,041
Projected Charges $909,666 $1,330,738 $1,463,812 $1,757,732 $1,933,505 $2,126,856 United Water Conservation District - Oxnard Plain: Zone A=M&I Water Conservation Fund Charge Unit Rate ($/AF) $187.56 $206.32 $226.95 $249.64 $274.61 $302.07 Units (AF) 4,827 4,700 4,573 4,446 4,319 4,192
Projected Charges $905,352 $969,685 $1,037,831 $1,109,910 $1,186,026 $1,266,266 United Water Conservation District - Oxnard Plain: Zone B=M&I Freeman Diversion Charge Unit Rate ($/AF) $111.98 $123.18 $135.50 $149.05 $163.95 $180.34 Units (AF) 4,827 4,700 4,573 4,446 4,319 4,192
Projected Charges $540,527 $578,937 $619,622 $662,656 $708,100 $756,006 Fox Canyon Groundwater Management Agency – Oxnard Plain: Groundwater Extraction Fee Unit Rate ($/AF) $6.00 $6.00 $6.00 $6.00 $6.00 $6.00
Units (AF) 4,827 4,700 4,573 4,446 4,319 4,192
Projected Charges $28,962 $28,200 $27,438 $26,676 $25,914 $25,152 Fox Canyon Groundwater Management Agency – Oxnard Plain: Groundwater Sustainability Fee Unit Rate ($/AF) $14.00 $14.00 $16.00 $16.00 $19.00 $19.00 Units (AF) 4,827 4,700 4,573 4,446 4,319 4,192
Projected Charges $67,578 $65,800 $73,168 $71,136 $82,061 $79,648 Oxnard Plain Groundwater Sustainability Agency Pump/Extraction Fee Unit Rate ($/AF) $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 Units (AF) 4,827 4,700 4,573 4,446 4,319 4,192
Projected Charges $482,700 $470,000 $457,300 $444,600 $431,900 $419,200 Mound Groundwater Sustainability Agency Pump/Extraction Fee Unit Rate ($/AF) $19.00 $18.00 $17.00 $17.00 $17.00 $17.00 Units (AF) 2,400 4,000 4,000 4,000 4,000 4,000
Projected Charges $45,600 $72,000 $68,000 $68,000 $68,000 $68,000 Total Charges $2,980,386 $3,515,360 $3,747,172 $4,140,710 $4,435,506 $4,741,127 % Change 17.9% 6.6% 10.5% 7.1% 6.9%
21 Equal to projected water supply from Mound Groundwater Basin and Santa Paula Groundwater Basin. 36 VENTURA WATER
Table 4-14: Projected Water Supply Expenses – Saticoy Country Club Groundwater Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Workorder-Saticoy Country Club (63133) > UTILITIES - GROUND WATER EXTRACTION (53111) United Water Conservation District – Saticoy Country Club: Zone A=M&I Water Conservation Fund Charge Unit Rate ($/AF) $187.56 $206.32 $226.95 $249.64 $274.61 $302.07 Units (AF) 337 337 338 338 338 338
Projected Charges $63,197 $69,579 $76,607 $84,344 $92,864 $102,245 United Water Conservation District - Saticoy Country Club: Zone B=M&I Freeman Diversion Charge Unit Rate ($/AF) $111.98 $123.18 $135.50 $149.05 $163.95 $180.34 Units (AF) 337 337 338 338 338 338
Projected Charges $37,731 $41,541 $45,737 $50,357 $55,443 $61,044 Fox Canyon Groundwater Management Agency – Saticoy Country Club: Groundwater Extraction Fee Unit Rate ($/AF) $6.00 $6.00 $6.00 $6.00 $6.00 $6.00
Units (AF) 337 337 338 338 338 338
Projected Charges $2,022 $2,023 $2,025 $2,027 $2,029 $2,031 Fox Canyon Groundwater Management Agency – Saticoy Country Club: Groundwater Sustainability Fee Unit Rate ($/AF) $14.00 $14.00 $16.00 $16.00 $19.00 $19.00 Units (AF) 337 337 338 338 338 338
Projected Charges $4,717 $4,721 $5,401 $5,406 $6,425 $6,431 Total Charges $107,666 $117,865 $129,770 $142,134 $156,761 $171,750 % Change 9.5% 10.1% 9.5% 10.3% 9.6%
Table 4-15: Projected Water Supply Expenses – Casitas Municipal Water District Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Water Purification (63151) > UTILITIES - WATER (53103)
Casitas Municipal Water District Charge
Projected Charges $368,430 $412,581 $433,210 $454,871 $477,614 $501,495 Casitas Municipal Water District Commodity Charge
Unit Rate ($/HCF) $1.39 $1.56 $1.72 $1.89 $2.08 $2.28
Units (HCF) 1,153,949 664,794 633,196 464,125 552,673 39,598 Projected Charges $1,603,989 $1,037,078 $1,086,564 $876,083 $1,147,548 $90,441 Adjudication Impact Charge
Projected Charges $97,825 $97,825 $97,825 $97,825 $97,825 $97,825 Upper Ventura Pump/Extraction Fee (for Casitas Water)
Unit Rate ($/AF) $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 Units (AF) 2,649 1,526 1,454 1,065 1,269 91
Projected Charges $211,928 $122,093 $116,289 $85,239 $101,501 $7,272 Total Charges $2,282,172 $1,669,577 $1,733,888 $1,514,017 $1,824,488 $697,033 % Change -26.8% 3.9% -12.7% 20.5% -61.8%
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 37 Table 4-16 shows a summary of all Water Enterprise O&M expenses over the study period. It is projected that O&M expenses will increase by approximately 3.3 percent per year on average over the study period. Groundwater assessments and Casitas MWD wholesale costs shown are from Raftelis’ detailed projections in Table 4-13 through Table 4-15. All other O&M expense projections were provided by Ventura Staff in current dollars and adjusted by Raftelis for estimated future inflation. Additional Water Enterprise O&M expenses associated with VenturaWaterPure are shown in detail in Appendix A. Note the approximate $3.5M increase in additional O&M in FY 20225-26 when VenturaWaterPure is anticipated to begin operations. Table 4-16: Projected Water Enterprise O&M Expenses O&M Expenses Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Rev Mgmt-Water (22052) $500,000 $515,000 $530,450 $546,364 $562,754 $579,637 Ventura Water GM (63051) $1,385,434 $1,450,220 $1,609,443 $1,670,817 $1,557,716 $1,583,394 Ventura Water Support (63052) $1,873,597 $1,954,439 $2,020,235 $1,976,119 $2,040,086 $2,083,684 Customer Care (63053) $1,599,676 $1,614,444 $1,696,471 $1,792,621 $1,896,558 $1,987,900 Water Conservation (63080) $920,000 $360,520 $371,357 $382,519 $394,018 $405,863 Water Operations (63101) $3,299,689 $3,449,268 $3,564,520 $3,681,598 $3,802,558 $3,911,256 Ventura Water SCADA (63102) $917,200 $957,469 $990,917 $1,023,645 $1,303,795 $1,090,308 Water Distribution (63130) $4,179,649 $4,455,200 $4,499,585 $4,645,934 $4,797,007 $4,897,235 Workorder-City (63131) $50,000 $51,500 $53,045 $54,636 $56,275 $57,964 Workorder-Saticoy CC (63133) $157,666 $169,365 $129,770 $142,134 $156,761 $171,750 GW Supply (Saticoy CC) $107,666 $117,865 $129,770 $142,134 $156,761 $171,750 Other Workorder–Saticoy CC) $50,000 $51,500 $0 $0 $0 $0 Water Production (63141) $6,230,656 $7,128,002 $7,506,487 $8,050,265 $8,501,594 $8,949,572 GW Supply (excl. Saticoy CC) $2,980,386 $3,515,360 $3,747,172 $4,140,710 $4,435,506 $4,741,127 Other Water Production $3,250,270 $3,612,642 $3,759,315 $3,909,555 $4,066,089 $4,208,445 Water Purification (63151) $7,998,095 $6,338,992 $5,503,180 $5,085,776 $5,521,322 $4,489,287 Casitas MWD Supply $2,282,172 $1,669,577 $1,733,888 $1,514,017 $1,824,488 $697,033 Other Water Purification $5,715,923 $4,669,415 $3,769,292 $3,571,758 $3,696,833 $3,792,254 Water resource planning (63170) $2,168,620 $2,117,574 $2,082,652 $2,040,714 $2,106,932 $2,151,358 State Waterline (63171)22 $2,110,000 $3,080,000 $3,060,000 $3,034,000 $3,060,000 $3,010,000 VenturaWaterPure O&M $49,981 $271,273 $281,302 $290,943 $300,908 $3,842,678 Total O&M Expenses $33,440,262 $33,913,267 $33,899,413 $34,418,084 $36,058,286 $39,211,887 % Change 1.4% 0.0% 1.5% 4.8% 8.7%
22 Costs incurred to maintain State Water Project entitlement share of 10,000 AFY. 38 VENTURA WATER

4.2.3.WATER ENTERPRISE DEBT
Table 4-17 shows the Water Enterprise’s projected debt service obligations over the study period. Existing debt service consists of the City’s 2020 Water Refunding Bonds, which were recently issued to refinance the City’s 2012 Water Revenue Bonds, 2014 Water Revenue Bonds, and 2005 State Drinking Water Loan . This refinancing of existing bonds is projected to reduce the Water Enterprise’s existing debt service payments by approximately $556K per year over the study period. Proposed Water Enterprise debt service associated with VenturaWaterPure is also shown (see Appendix A for details). Note that proposed debt service for VenturaWaterPure represents preliminary projections based on the best information available at the time this study.

Table 4-17: Water Enterprise Debt Service
Debt Service FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Existing Debt Service
2020 Water Revenue
Refunding Bonds - Series A $1,598,783 $4,446,677 $4,448,045 $4,449,443 $4,446,672 $3,717,610 Subtotal $1,598,783 $4,446,677 $4,448,045 $4,449,443 $4,446,672 $3,717,610 Proposed Debt Service for VenturaWaterPure
WIFIA Loan $0 $119,101 $288,224 $463,303 $1,233,859 $1,233,859 SRF Loan $0 $0 $0 $0 $97,723 $780,871
Revenue Bond $0 $0 $0 $0 $0 $615,313
Subtotal $1,598,783 $119,101 $288,224 $463,303 $1,331,582 $2,630,044 Total $1,598,783 $4,565,778 $4,736,270 $4,912,746 $5,778,254 $6,347,653 Table 4-18 shows existing debt proceeds available to fund capital expenditures (excluding VenturaWaterPure) and proposed debt proceeds to fund VenturaWaterPure Program projects (see Appendix A for details). Amounts are shown in the year the proceeds are assumed to be spent to fund capital projects.

Table 4-18: Water Enterprise – Use of Debt Proceeds
Use of Debt Proceeds FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Existing Debt Proceeds $4,965,902 $2,880,720 $0 $0 $0 $0 Proposed Debt Proceeds
for VenturaWaterPure $0 $5,772,000 $8,440,000 $8,940,000 $43,427,115 $43,427,115 Total $4,965,902 $8,652,720 $8,440,000 $8,940,000 $43,427,115 $43,427,115

4.2.4.WATER ENTERPRISE CAPITAL IMPROVEMENT PLAN
Table 4-19 shows Ventura Water’s planned capital improvement plan (CIP) for the Water Enterprise excluding VenturaWaterPure, amounting to approximately $16.9M per year on average over the study period. Significant CIP expenditures exclusive of VenturaWaterPure are anticipated to continue over the next ten years, highlighting the need to maintain adequate reserves to fund substantial CIP projects beyond FY 2025-26.

Table 4-20 shows the Water Enterprise’s share of VenturaWaterPure Program CIP project costs, amounting to approximately $21.1M per year on average over the study period. VenturaWaterPure capital projects include injection/extraction wells, pump stations, a new advanced water purification facility, conveyance pipelines, ocean outfall, and land acquisitions to site the new treatment plant (see Appendix A for details). 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 39 Table 4-19: Water Enterprise Capital Improvement Plan Excluding VenturaWaterPure CIP # Project Description FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024- 25 FY 2025- 26
97969 Emergency Generators - Saticoy Country Club $400,000 $416,000 $0 $0 $0 $0 97968 Emergency Generators - Various Sites $950,000 $988,000 $0 $0 $0 $0 97962 Waterline Replacement - Alley, Wells to Campanula $200,000 $2,204,800 $0 $0 $0 $0 97961 Waterline Replacement - Main St/Valentine Ave $150,000 $3,120,000 $0 $0 $0 $0 97956 Waterline - Eastside to Midtown Interconnection $380,000 $2,017,600 $4,196,608 $0 $0 $0 97955 Waterline - Midtown to Westside Interconnection $166,000 $1,732,640 $3,785,600 $0 $0 $0 97951 Well - Mound Well No. 3 (Back-Up Well for Mound Basin) $3,415,000 $1,560,000 $0 $0 $0 $0 97945 Well - Repair and Restoration of Intake Structure $250,000 $936,000 $0 $0 $0 $0 97941 Waterline Replacement - Pierpont Lanes $800,000 $0 $0 $0 $0 $0 97938 Automated Meter Reading Installation - Citywide $5,500,000 $2,600,000 $0 $0 $0 $0 97923 Well - Mound Well No.2 (Replaces Victoria Well #1) $1,715,000 $5,098,080 $0 $0 $0 $0 97965 Treatment - State Water Blending Station $290,000 $676,000 $1,081,600 $1,124,864 $333,410 $0 97959 Water Treatment -Saticoy Conditioning Facility Upgrades $0 $0 $0 $0 $0 $0 97958 Well - Saticoy Well No. 4 (Replaces Saticoy Well #2) $110,000 $468,000 $378,560 $3,149,619 $3,275,604 $0 97949 State Water Interconnection Project $1,810,000 $1,320,800 $9,545,120 $11,220,518 $2,690,675 $0 73116 Pump Station - Relocate Day Rd BPS to Bailey $150,000 $962,000 $1,000,480 $0 $0 $0 97921 Well - Foster Park Wellfield Production Restoration $0 $0 $0 $0 $0 $0 97896 Well - Golf Course Booster Pump Station & Wells Upgrade $0 $260,000 $162,240 $0 $0 $0 73119 SCADA Improvements $55,000 $536,640 $442,374 $0 $0 $0 97967 Pump Station - 210/260 Boundary Adjustment $60,000 $176,800 $183,872 $1,349,837 $1,345,337 $0 97963 Well - Saticoy Country Club Well No. 2 Rehabilitation $145,000 $691,600 $0 $0 $0 $0 97966 Pump Station - Kalorama Replacement $50,000 $272,480 $1,460,160 $1,895,396 $0 $0 97964 Well - Victoria Well No. 3 (Replaces Victoria Well #2) $0 $0 $0 $0 $0 $0 97960 Treatment - Bailey Plant Modification $0 $0 $0 $337,459 $409,450 $2,767,885 97954 Waterline Replacement-Harbor/Peninsula to Beachmont $0 $0 $0 $0 $0 $0 97950 Waterline - Olivas Park Drive Extension $0 $0 $0 $0 $0 $0 97942 Treatment - Avenue Plant Membrane Module Replacement $0 $1,456,000 $0 $0 $1,637,802 $0 97933 Well - Foothill Well $0 $0 $0 $0 $0 $0
73121 Waterline - Abandon 8-inch Bike Path Line $160,000 $1,144,000 $0 $0 $0 $0 73117 Tank - 860 Zone Storage $100,000 $0 $0 $0 $0 $0
76001 enQuesta Upgrade $800,000 $0 $0 $0 $0 $0
Bailey Reservoir Rehab $0 $780,000 $270,400 $0 $0 $0
Total $17,656,000 $29,417,440 $22,507,014 $19,077,693 $9,692,278 $2,767,885 40 VENTURA WATER
Table 4-20: Water Enterprise Capital Improvement Plan - VenturaWaterPure CIP # Project Description FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 97934 Injection/Extraction Wells $700,000 $1,000,000 $2,000,000 $2,500,000 $11,500,000 $11,500,000 73122 Pump Stations $37,500 $250,000 $350,000 $350,000 $1,700,000 $1,700,000 96945 Advanced Water Purification Facility $725,000 $2,500,000 $3,500,000 $3,500,000 $21,000,000 $21,000,000 96940 Pipelines $636,500 $1,072,000 $1,340,000 $1,340,000 $8,040,000 $8,040,000 96939 Wetlands Improvements $0 $0 $0 $0 $0 $0
96938 Outfall $375,000 $950,000 $1,250,000 $1,250,000 $7,000,000 $7,000,000 96935 Land $100,000 $2,367,500 $0 $0 $0 $0
Total $2,574,000 $8,139,500 $8,440,000 $8,940,000 $49,240,000 $49,240,000 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 41 Table 4-21 shows the assumed funding sources for Water Enterprise CIP projects over the study period. Estimated grant funding for the Water Enterprise’s share of VenturaWaterPure CIP is included in FY 2024-25 and FY 2025- 26 (see Appendix A for details). Existing debt proceeds (from Table 4-18) are assumed to fund CIP projects exclusive of VenturaWaterPure in FY 2020-21 and FY 2021-22. Proposed debt proceeds (from Table 4-18) are assumed to fund most of the Water Enterprise’s VenturaWaterPure Program CIP projects over the next five years.

All remaining CIP not funded by grants or debt is assumed to be funded by Water Enterprise cash reserves generated from rates (i.e. pay-as-you-go funding). Figure 4-1 shows a summary of total Water Enterprise CIP expenditures (including VenturaWaterPure) by funding source over the study period.

Table 4-21: Water Enterprise Capital Improvement Plan Proposed Funding Description FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Capital Improvement Plan Excluding VenturaWaterPure
Grant Funded $0 $0 $0 $0 $0 $0
Debt Funded $4,965,902 $2,880,720 $0 $0 $0 $0
Pay-as-you-go $12,690,098 $19,182,360 $16,880,261 $14,308,270 $7,269,209 $2,075,914 Subtotal $17,656,000 $22,063,080 $16,880,261 $14,308,270 $7,269,209 $2,075,914 Capital Improvement Plan - VenturaWaterPure
Grant Funded $0 $0 $0 $0 $5,812,885 $5,812,885
Debt Funded $0 $5,772,000 $8,440,000 $8,940,000 $43,427,115 $43,427,115 Pay-as-you-go $2,574,000 $2,367,500 $0 $0 $0 $0
Subtotal $2,574,000 $8,139,500 $8,440,000 $8,940,000 $49,240,000 $49,240,000 Total $20,230,000 $30,202,580 $25,320,261 $23,248,270 $56,509,209 $51,315,914 Figure 4-1: Water Enterprise Capital Improvement Plan
42 VENTURA WATER

4.2.5.WATER ENTERPRISE FINANCIAL POLICIES
Required Debt Coverage
The Water Enterprise is required to meet debt service coverage requirements on its outstanding water revenue bonds. The required debt coverage ratio is 1.20, meaning that the Water Enterprise’s net operating revenues (i.e. total revenues less operating expenses) must amount to at least 1.20 times the amount of annual debt service.

Failure to meet debt service coverage results in a technical default, which without foreseeable remedial action such as implementing rate increases, could result in a downgrade of credit rating, higher costs in future debt issuance, or even denial of credit.

Reserve Targets
Adequate cash reserves are required to meet operating, capital, and debt service requirements. No changes are proposed to Ventura Water’s existing water reserve policies. Operating reserves provide funds to meet ongoing cash flow requirements related to operating expenses. The current operating reserve target is equal to 25 percent of annual O&M expenses, or three months of working capital. Capital reserves are maintained to provide available funds for CIP projects. Ventura Water’s current capital reserve target is equal to the ten-year annual average of CIP project costs (R&R projects only). No changes to the financial policies are recommended at this time. Table 4-22 summarizes the Water Enterprise’s key financial policies relevant to this rate study. Table 4-23 shows projected operating and capital reserve targets over the study period based on the policies outlined above.

Table 4-22: Water Enterprise Financial Policies
Financial Policy Target/Requirement
Debt Coverage
Target Debt Coverage Ratio 1.20
Reserve Targets
Operating Reserve Target 25% of annual O&M expenses
Capital Reserve Target Annual average capital expenditures (R&R only) Table 4-23: Projected Water Enterprise Reserve Targets
Reserve Target FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Operating Reserve23 $8,360,066 $8,478,317 $8,474,853 $8,604,521 $9,014,571 $9,802,972 Capital Reserve24 $14,178,021 $14,178,021 $14,178,021 $14,178,021 $14,178,021 $14,178,021 Total $22,538,087 $22,656,338 $22,652,874 $22,782,542 $23,192,592 $23,980,993 23 Equal to 25% of annual projected O&M expenses (from Table 4-16). 24 Equal to annual average projected Water Enterprise CIP expenditures through FY 2029-30 (excluding VenturaWaterPure CIP projects).
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 43

4.2.6.STATUS QUO WATER FINANCIAL PLAN
To evaluate the need for revenue adjustments (i.e. increases to gross rate revenues), Raftelis first developed a status quo financial plan. The status quo financial plan assumes that current FY 2020-21 rates remain unchanged over the study period. Table 4-24 combines projected Fund 52 revenues (from Table 4-12), O&M expenses (from Table 4-16), and debt service (from Table 4-17) to generate operating cash flow projections under the status quo. In the absence of any revenue adjustments, the Water Operating Fund (Fund 52) will fail to generate sufficient revenue to recover O&M expenses and debt service, and net cash generation becomes increasingly negative in subsequent years. Table 4-24: Water Operating Cash Flow (Fund 52) – Status Quo Financial Plan Line Description FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 1 Water Rate Revenue under Current Rates
2 Water Rates Subject to
Revenue Adjustments $29,749,184 $29,909,829 $30,071,342 $30,233,728 $30,396,990 $30,561,133 3 Water Rates not Subject to
Revenue Adjustments25 $147,095 $158,180 $166,474 $175,504 $185,342 $196,066 4 5 Revenue Adjustments
6 Fiscal Year Revenue
Adjustment
7 FY 2020-21 0.00% $0 $0 $0 $0 $0 $0
8 FY 2021-22 0.00% $0 $0 $0 $0 $0
9 FY 2022-23 0.00% $0 $0 $0 $0
10 FY 2023-24 0.00% $0 $0 $0
11 FY 2024-25 0.00% $0 $0
12 FY 2025-26 0.00% $0
13 Total Adjustments $0 $0 $0 $0 $0 $0
14 15 Revenue Summary
16 Water Rates (including
Revenue Adjustments) $29,896,279 $30,068,009 $30,237,817 $30,409,232 $30,582,331 $30,757,200 17 Other Fund 52 Revenue26 $6,161,912 $6,092,158 $6,158,178 $6,123,121 $6,204,998 $6,080,246 18 Total Revenue $36,058,191 $36,160,167 $36,395,995 $36,532,353 $36,787,329 $36,837,445 19 20 O&M Expenses $33,440,262 $33,913,267 $33,899,413 $34,418,084 $36,058,286 $39,211,887 21 22 Debt Service $1,598,783 $4,565,778 $4,736,270 $4,912,746 $5,778,254 $6,347,653 23 24 Net Operating Cash
Flow27 $1,019,146 ($2,318,878) ($2,239,688) ($2,798,478) ($5,049,211) ($8,722,095) 25 Includes Casitas Direct pass-through charges and Temporary Meter Daily Charges. 26 Status quo “other revenue” is less than what is shown in Table 4-12 (which reflects the proposed financial plan) to account for reduced interest earnings due to depletion of interest-bearing reserves. Interest earnings under the status quo and proposed financial plan scenarios are calculated by averaging the beginning and ending reserve balance in each year and then multiplying by the assumed interest rate. 27 Equal to [Line 18 – Line 20 – Line 22]. 44 VENTURA WATER
Table 4-25 shows projected reserve balances and debt coverage under the status quo financial plan for the entire Water Enterprise, including both the Water Operating Fund (Fund 52) and Water Capital Fund (Fund 72).

Sources of funds include revenues (from Table 4-12) as well as grants and debt proceeds (from Table 4-21). Use of funds include O&M expenses (from Table 4-16), debt service (from Table 4-17), and CIP expenditures (from Table 4-21). The FY 2020-21 beginning balance reflects actual Water Enterprise reserve balances as of July 1, 2020. All ending balance and debt coverage figures are projected values. Target reserve balances shown are from Table 4-23. Under the status-quo financial plan, reserves are projected to fall below target by the end of FY 2024-25. Debt coverage is projected to fall well below the required ratio in all years following FY 2020-21, in part due to significant increases in debt service for VenturaWaterPure. The status quo financial plan is insufficient to meet the Water Enterprise’s financial needs over the study period. This demonstrates a clear need for revenue adjustments over the study period to increase rate revenues and ensure financial sustainability. Table 4-25: Status Quo Water Financial Plan Pro Forma (Funds 52 & 72) Line Description FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 1 Beginning Balance $90,577,325 $80,839,868 $59,505,571 $42,011,166 $26,390,275 $15,464,683 2 3 Source of Funds
4 Water Rates (including
Revenue Adjustments) $29,896,279 $30,068,009 $30,237,817 $30,409,232 $30,582,331 $30,757,200 5 Other Fund 52 Revenue28 $6,161,912 $6,092,158 $6,158,178 $6,123,121 $6,204,998 $6,080,246 6 Other Fund 72 Revenue $4,507,495 $2,534,442 $1,625,543 $1,485,856 $1,392,827 $1,383,299 7 Grants $0 $0 $0 $0 $5,812,885 $5,812,885
8 Use of Debt Proceeds $4,965,902 $8,652,720 $8,440,000 $8,940,000 $43,427,115 $43,427,115 9 Total Source of Funds $45,531,587 $47,347,329 $46,461,538 $46,958,209 $87,420,156 $87,460,744 10 11 Use of Funds
12 O&M Expenses $33,440,262 $33,913,267 $33,899,413 $34,418,084 $36,058,286 $39,211,887 13 Debt Service $1,598,783 $4,565,778 $4,736,270 $4,912,746 $5,778,254 $6,347,653 14 Capital Improvement Plan
Expenditures $20,230,000 $30,202,580 $25,320,261 $23,248,270 $56,509,209 $51,315,914 15 Total Use of Funds $55,269,045 $68,681,625 $63,955,944 $62,579,100 $98,345,749 $96,875,455 16 17 Ending Balance29 $80,839,868 $59,505,571 $42,011,166 $26,390,275 $15,464,683 $6,049,972 18 Target Balance $22,538,087 $22,656,338 $22,652,874 $22,782,542 $23,192,592 $23,980,993 19 20 Debt Coverage
21 Net Revenue30 $7,125,423 $4,781,342 $4,122,125 $3,600,125 $2,121,871 ($991,143) 22 Debt Service $1,598,783 $4,565,778 $4,736,270 $4,912,746 $5,778,254 $6,347,653 23 Projected Debt Coverage31 4.46 1.05 0.87 0.73 0.37 -0.16 24 Required Debt Coverage 1.20 1.20 1.20 1.20 1.20 1.20 28 Status quo “other revenue” is less than what is shown in Table 4-12 (which reflects the proposed financial plan) to account for reduced interest earnings due to depletion of interest-bearing reserves. Interest earnings under the status quo and proposed financial plan scenarios are calculated by averaging the beginning and ending reserve balance in each year and then multiplying by the assumed interest rate. 29 Equal to [Line 1 + Line 9 – Line 15]
30 Equal to [( Sum of Lines 4-6) – Line 12]
31 Equal to [Line 21 ÷ Line 22]
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 45

4.2.7.PROPOSED WATER FINANCIAL PLAN
The Water Enterprise must increase its revenues from water rates over the study period to adequately fund its operating and capital expenditures, meet required debt coverage, and maintain sufficient reserve funding. Raftelis worked closely with Ventura Water staff to identify financial plan options for the Water Commission’s consideration. The selected option of proposed annual revenue adjustments are shown in Table 4-26. Revenue adjustments represent annual percent increases in total rate revenue relative to rate revenue generated by the prior year’s water rates. Table 4-26: Proposed Water Revenue Adjustments Description FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Effective Date July 1, 2021 July 1, 2022 July 1, 2023 July 1, 2024 July 1, 2025 Revenue Adjustment 7.0% 7.0% 7.0% 7.0% 7.0%
Table 4-27 combines projected Fund 52 revenues (from Table 4-12), O&M expenses (from Table 4-16), and debt service (from Table 4-17) to generate operating cash flow projections under the proposed financial plan. By implementing the proposed revenue adjustments, we project that the Water Operating Fund (Fund 52) will maintain sufficient operating cash flow through the end of the study period.

Table 4-27: Water Operating Cash Flow (Fund 52) – Proposed Financial Plan Line Description FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 1 Water Rate Revenue under Current Rates
2 Water Rates Subject to
Revenue Adjustments $29,749,184 $29,909,829 $30,071,342 $30,233,728 $30,396,990 $30,561,133 3 Water Rates not Subject to
Revenue Adjustments $147,095 $158,180 $166,474 $175,504 $185,342 $196,066 4 5 Revenue Adjustments32 6 Fiscal Year Revenue
Adjustment
7 FY 2020-21 0.00% $0 $0 $0 $0 $0 $0
8 FY 2021-22 7.00% $2,093,688 $2,104,994 $2,116,361 $2,127,789 $2,139,279 9 FY 2022-23 7.00% $2,252,344 $2,264,506 $2,276,735 $2,289,029 10 FY 2023-24 7.00% $2,423,022 $2,436,106 $2,449,261
11 FY 2024-25 7.00% $2,606,633 $2,620,709
12 FY 2025-26 7.00% $2,804,159
13 Total Adjustments $0 $2,093,688 $4,357,338 $6,803,889 $9,447,263 $12,302,437 14 15 Revenue Summary
16 Water Rates (including
Revenue Adjustments) $29,896,279 $32,161,697 $34,595,154 $37,213,120 $40,029,594 $43,059,637 17 Other Fund 52 Revenue $6,161,912 $6,102,626 $6,201,007 $6,222,184 $6,386,307 $6,372,116 18 Total Revenue $36,058,191 $38,264,324 $40,796,161 $43,435,304 $46,415,901 $49,431,753 19 20 O&M Expenses $33,440,262 $33,913,267 $33,899,413 $34,418,084 $36,058,286 $39,211,887 21 22 Debt Service $1,598,783 $4,565,778 $4,736,270 $4,912,746 $5,778,254 $6,347,653 23 24 Net Operating Cash Flow33 $1,019,146 ($214,722) $2,160,478 $4,104,474 $4,579,361 $3,872,213 32 The increase in rate revenues resulting from each year’s revenue adjustment is calculated individually in Lines 7-12. This is necessary to account for revenue increases resulting from prior year revenue adjustments. 33 Equal to [Line 18 – Line 20 – Line 22] 46 VENTURA WATER
Table 4-28 shows projected reserve balances and debt coverage under the proposed financial plan for the entire Water Enterprise, including both the Water Operating Fund (Fund 52) and Water Capital Fund (Fund 72).

Sources of funds include status quo revenues (from Table 4-12), revenue adjustments (from Table 4-27), and grants and debt proceeds (from Table 4-21). Use of funds include O&M expenses (from Table 4-16), debt service (from Table 4-17), and CIP expenditures (from Table 4-21). The FY 2020-21 beginning balance reflects actual Water Enterprise reserve balances as of July 1, 2020. All ending balance and debt coverage figures are projected values.

Target reserve balances shown are from Table 4-23. Under the proposed financial plan, reserve balances and debt coverage are projected to achieve target policies in all years of the rate-setting period.

Table 4-28: Proposed Water Financial Plan Pro Forma (Funds 52 & 72) Line Description FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 1 Beginning Balance $90,577,325 $80,839,868 $61,609,728 $48,515,488 $39,797,549 $38,500,528 2 3 Source of Funds
4 Water Rates (including
Revenue Adjustments) $29,896,279 $32,161,697 $34,595,154 $37,213,120 $40,029,594 $43,059,637 5 Other Fund 52 Revenue $6,161,912 $6,102,626 $6,201,007 $6,222,184 $6,386,307 $6,372,116 6 Other Fund 72 Revenue $4,507,495 $2,534,442 $1,625,543 $1,485,856 $1,392,827 $1,383,299 7 Grants $0 $0 $0 $0 $5,812,885 $5,812,885
8 Use of Debt Proceeds $4,965,902 $8,652,720 $8,440,000 $8,940,000 $43,427,115 $43,427,115 9 Total Source of Funds $45,531,587 $49,451,485 $50,861,704 $53,861,160 $97,048,729 $100,055,052 10 11 Use of Funds
12 O&M Expenses $33,440,262 $33,913,267 $33,899,413 $34,418,084 $36,058,286 $39,211,887 13 Debt Service $1,598,783 $4,565,778 $4,736,270 $4,912,746 $5,778,254 $6,347,653 14 Capital Improvement Plan
Expenditures $20,230,000 $30,202,580 $25,320,261 $23,248,270 $56,509,209 $51,315,914 15 Total Use of Funds $55,269,045 $68,681,625 $63,955,944 $62,579,100 $98,345,749 $96,875,455 16 17 Ending Balance34 $80,839,868 $61,609,728 $48,515,488 $39,797,549 $38,500,528 $41,680,126 18 Target Balance $22,538,087 $22,656,338 $22,652,874 $22,782,542 $23,192,592 $23,980,993 19 20 Debt Coverage
21 Net Revenue35 $7,125,423 $6,885,498 $8,522,291 $10,503,076 $11,750,443 $11,603,165 22 Debt Service $1,598,783 $4,565,778 $4,736,270 $4,912,746 $5,778,254 $6,347,653 23 Projected Debt Coverage36 4.46 1.51 1.80 2.14 2.03 1.83 24 Required Debt Coverage 1.20 1.20 1.20 1.20 1.20 1.20 34 Equal to [Line 1 + Line 9 – Line 15]
35 Equal to [( Sum of Lines 4-6) – Line 12]
36 Equal to [Line 21 ÷ Line 22]
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 47 Figure 4-2 shows projected debt coverage (blue line) relative to the debt coverage requirement (red line) over the study period. Debt coverage is expected to drop sharply in FY 2021-22 due to additional debt service from an anticipated Water Infrastructure Finance and Innovation Act (WIFIA) loan to finance a portion of VenturaWaterPure CIP project costs. Note that debt coverage is projected to drop sharply beyond FY 2025-26 due to the anticipated need for additional debt to finance CIP (see Appendix B for ten-year financial plan projections).

Figure 4-2: Proposed Water Financial Plan - Debt Coverage Figure 4-3 shows the Water Enterprise’s projected ending balance under the proposed financial plan. The light blue bars indicate the ending balance. The total reserve target is represented by the red dashed line. The Water Enterprise is projected to continue to draw down its reserves through FY 2024-25 to fund substantial R&R CIP projects exclusive of VenturaWaterPure. By the end of the study period, the Water Enterprise’s reserves are projected to remain above the target amount with the proposed rate increases. Maintaining reserves above the target amount is necessary as additional drawdown of reserves beyond FY 2025-26 is anticipated to fund substantial R&R CIP from FY 2026-27 through FY 2029-30 (see Appendix B for ten-year financial plan projections). Figure 4-3: Proposed Water Financial Plan – Projected Ending Balances 48 VENTURA WATER
Figure 4-4 shows the proposed versus status quo operating financial plan. Revenues under the proposed financial plan and status quo financial plan are represented by the green and red dashed lines, respectively. Revenue requirements including O&M expenses, debt service, and reserve funding for CIP/other purposes are represented by the various stacked bars. Revenue adjustments are required to generate sufficient revenue to recover O&M expenses and debt service payments over the study period.

Figure 4-4: Proposed vs. Status Quo Water Financial Plan

4.3.Water Cost of Service Analysis
Section 4.3 details the cost of service (COS) analysis performed for the Water Enterprise for FY 2020-21. The COS analysis allocates the overall rate revenue requirement to customer classes based on their proportion of use of and burden on the water system. This provides the basis for the development of proposed water rates through FY 2025-26.

4.3.1.METHODOLOGY
The first step in a COS analysis is to determine the revenue required from water rates. The total revenue requirement results from the financial plan in Section 4.2. The framework and methodology utilized to develop the COS analysis and to apportion the revenue requirement to each customer class and tier is informed by the processes outlined in the AWWA’s Manual M1. COS analyses are tailored to meet the specific needs of each water system. However, there are four distinct steps in every COS analysis to recover costs from customers in an accurate, equitable, and defensible manner:

1. Cost functionalization: O&M expenses and capital assets are categorized by their function in the system.

Sample functions may include water supply, treatment, distribution, transmission, customer service, etc. 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 49

2. Cost causation component allocation: Functionalized costs are then allocated to cost causation components based on their burden on the system. The cost causation components include water supply, base delivery, extra-capacity, meters, and customer, among others. The revenue requirement is allocated accordingly to the cost causation components and results in the total share of the revenue requirement attributable to each cost component.

3. Unit cost development: The revenue requirement for each cost causation component is divided by the appropriate units of service to determine the unit cost of each.

4. Revenue requirement distribution: The unit cost is utilized to distribute the revenue requirement for each cost causation component to customer classes based on each customer class’s individual service units.

This method of functionalizing costs is consistent with the AWWA’s Manual M1 and is widely used in the water industry to perform COS analyses.

4.3.2.WATER RATE REVENUE REQUIREMENT
Table 4-29 shows the rate revenue requirement for FY 2020-21 (also referred to as the test year). The revenue requirement is split into operating, capital, and revenue offset categories (Columns C-E), which are later allocated based on O&M expenses and capital assets. The revenue requirements (Lines 2-3) are equal to FY 2020-21 operating expenses plus debt service. The revenue offsets (Lines 7-8) include miscellaneous rate revenue not subject to revenue adjustments and all Fund 52 non-rate revenues. These revenues are applied as offsets to the final rate revenue requirement. The reserve transfer adjustment (Line 12) is equal to FY 2020-21 negative net operating cash flow and represents the additionalrate revenue required to build up operating reserves in FY 2020-21. All values are from the proposed financial plan operating cash flow (Table 4-27). The final rate revenue requirement (Line 15) is calculated as follows:

Total revenue required from rates (Line 15) = Revenue requirements (Line 4) - Revenue offsets (Line 9) - Adjustments (Line 13) Table 4-29: FY 2020-21 Water Rate Revenue Requirement
[A] [B] [C] [D] [E] [F]
Line Description
Operating
Revenue
Requirement
Capital
Revenue
Requirement
Revenue
Offsets Total
1 Revenue Requirements
2 O&M Expenses $33,440,262 $0 $0 33,440,262
3 Debt Service $0 $1,598,783 $0 $1,598,783
4 Total Revenue Requirements $33,440,262 $1,598,783 $0 $35,039,045 5 6 Less Revenue Offsets
7 Water Rates not Subject to
Revenue Adjustments $0 $0 $147,095 $147,095
8 Other Fund 52 Revenue $0 $0 $6,161,912 $6,161,912
9 Total Revenue Offsets $0 $0 $6,309,008 $6,309,008
10 11 Less Adjustments
12 Transfer from (to) Reserves $0 ($1,019,146) $0 ($1,019,146) 13 Total Adjustments $0 ($1,019,146) $0 ($1,019,146)
14 15 Water Rate Revenue Requirement $33,440,262 $2,617,929 ($6,309,008) $29,749,184 50 VENTURA WATER

4.3.3.WATER SYSTEM PEAKING FACTORS
A significant portion of the costs of the water system are based on the peaking characteristics of the different customer classes. A water system is designed to meet different requirements, including extra-capacity / peaking costs. Peaking costs are divided into maximum day (Max Day) and maximum hour (Max Hour) demand. The Max Day demand is the maximum amount of water used in a single day over a full year. The Max Hour demand is the maximum use in an hour on the Max Day. For example, storage and treatment components of the water system are designed to handle Max Day requirements while the distribution system is designed for Max Hour demands.

Table 4-30 shows system-wide peaking factors for Ventura Water’s water system, which are used to derive the cost component allocation bases for Base Delivery, Max Day, and Max Hour costs. Base Delivery use is considered average daily demand over one year, which has been normalized to a factor of 1.00 (Column C, Line 1). The Max Day peaking factor (Column C, Line 2) indicates that the Max Day demand is 1.52 times greater than the average daily demand. Similarly, the Max Hour peaking factor (Column C, Line 3) shows that the Max Hour demand is

3.97 times greater than average demand. The allocation bases (Columns D-F) are calculated using the equations outlined below. Columns are represented in these equations as letters, and lines are represented as numbers. For example, Column D, Line 2 is shown as D2.

The Max Day allocations are calculated as follows: » Base Delivery: C1 / C2 x 100% = D2 » Max Day: (C2 - C1) / C2 x 100% = E2 The Max Hour allocations are calculated as follows: » Base Delivery: C1 / C3 x 100% = D3 » Max Day: (C2 - C1) / C3 x 100% = E3 » Max Hour: (C3 - C2) / C3 x 100% = F3 Table 4-30: Water System Peaking Factor Allocations
[A] [B] [C] [D] [E] [F] [G]
Line Description Factor37 Base Max Day Max Hour Total
1 Base 1.00 100.0% 0.0% 0.0% 100.0%
2 Max Day 1.52 65.8% 34.2% 0.0% 100.0%
3 Max Hour 3.97 25.2% 13.1% 61.7% 100.0%

4.3.4.FUNCTIONALIZATION AND ALLOCATION OF EXPENSES
After determining the revenue requirement and systemwide peaking allocation basis, the next step of the water COS analysis is to allocate O&M expenses and capital assets to the following functional categories: » Water Supply: water supply costs relating to Ventura River - Foster Park water, groundwater production, Casitas MWD wholesale water purchases, the State Water Project, and VenturaWaterPure » Storage: costs related to water storage tanks and reservoirs » Treatment: costs associated with treating water to drinking water standards » Storage/Treatment: costs associated specifically with supervisory control and data acquisition (SCADA) » Transmission: costs associated with the water transmission system (pump stations, etc.) 37 From 2010 Water Master Plan.
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 51 » Distribution: costs related to delivering water to customers from storage facilities to the meter » Conservation: costs associated with water conservation, outreach, and efficiency programs » Customer: costs of meter reading, billing, and other customer service functions » Meters: costs of meter maintenance/repair and a share of extra capacity-related costs » Fire Protection: costs directly attributable to private fire protection » General/Admin: costs associated with general administration of the Water Enterprise (i.e. indirect costs) » General Operating: operating costs not directly attributable to the above functions are allocated based on the overall cost functionalization of the capital asset base The functionalization of costs allows for the allocation of costs to cost causation components. Some cost causation components correspond directly to a functional category listed above. The cost causation components include: » Water Supply: directly associated with the Water Supply functional category » Base Delivery: costs associated with providing water under average water demand conditions » Peaking (Max Day and Max Hour): extra-capacity costs associated with providing water during peak demand conditions » Conservation: directly associated with the Conservation functional category » Customer: directly associated with the Customer functional category » Meters: directly associated with the Meters functional category » Fire Protection: costs associated with providing water for private fire protection purposes » General: directly associated with the General/Admin functional category » Revenue Offsets: miscellaneous revenues applied as offsets to the rate revenue requirement Table 4-31 shows the basis for allocating each functional category to the various cost causation components. This provides the basis for allocating O&M and capital expenses in the following subsections. Most functional categories are allocated entirely to the corresponding cost causation component. The allocation basis for functional categories not allocated entirely to a single cost causation component is as follows: » Functional categories allocated based on Max Day demand: Storage, treatment, and transmission infrastructure is designed to accommodate maximum day water demand. Therefore, all Storage, Treatment, Storage/Treatment, and Transmission costs are allocated to the Base Delivery and Max Day cost causation components based on the Max Day allocation from Table 4-30. » Functional categories allocated based on Max Hour demand: Distribution infrastructure is designed to accommodate maximum hour water demand, therefore all Distribution costs are allocated to the Base Delivery, Max Day, and Max Hour cost causation components based on the Max Hour allocation from Table 4-30. » General Operating: General Operating costs are allocated based on the final capital allocation excluding Water Supply and Fire Protection (calculated subsequently in Table 4-35, Line 15). The functional breakdown of the Water Enterprise’s capital assets is used here as a proxy to allocate O&M costs that cannot be directly attributed to a specific cost causation factor. 52 VENTURA WATER
Table 4-31: Allocation of Functional Categories to Water Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L]
Line Functional Category Water
Supply
Base
Delivery Max Day Max Hour Conserv- ation Customer Meters FireProtection General Total 1 Water Supply 100.0% 100.0%
2 Storage
(Max Day basis) 65.8% 34.2% 0.0% 100.0%
3 Treatment
(Max Day basis) 65.8% 34.2% 0.0% 100.0%
4 Storage/Treatment
(Max Day basis) 65.8% 34.2% 0.0% 100.0%
5 Transmission
(Max Day basis) 65.8% 34.2% 0.0% 100.0%
6 Distribution
(Max Hour basis) 25.2% 13.1% 61.7% 100.0%
7 Conservation 100.0% 100.0%
8 Customer 100.0% 100.0%
9 Meters 100.0% 100.0%
10 Fire Protection 100.0% 100.0%
11 General/Admin 100.0% 100.0%
12 General Operating 0.0% 41.7% 21.7% 26.0% 0.0% 0.0% 5.2% 0.0% 5.5% 100.0% 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 53

4.3.5.WATER ENTERPRISE O&M EXPENSE ALLOCATION
The next step of the COS analysis is to develop an allocation basis for the operating revenue requirement based on the functionalization of the Water Enterprise’s O&M expenses. Raftelis worked with Ventura Water staff to assign O&M expenses, by line item, to the most closely associated functional category. Table 4-32 shows a summary of FY 2020-21 O&M expenses by functional category. This intermediate step is necessary to allocate total O&M expenses to individual cost causation components.

Table 4-32: Summary of Water Enterprise O&M Expenses by Functional Category [A] [B] [C] [D]
Line Functional Category FY 2020-21
O&M Expenses Percent of Total
1 Water Supply $7,598,205 22.7%
2 Storage $3,000 0.01%
3 Treatment $5,735,923 17.2%
4 Storage/Treatment $929,200 2.8%
5 Transmission $0 0.0%
6 Distribution $4,812,003 14.4%
7 Conservation $962,842 2.9%
8 Customer $1,599,676 4.8%
9 Meters $0 0.0%
10 Fire Protection $0 0.0%
11 General/Admin $3,648,189 10.9%
12 General Operating $8,151,225 24.4%
13 Total O&M Expenses $33,440,262 100.0%
Table 4-33 shows the allocation of FY 2020-21 O&M expenses by functional category to each cost causation component. The percentage allocation of each functional category (Columns C-K) to the various cost causation components was determined in Table 4-31. Total O&M expenses associated with each functional category (Column L) was determined in Table 4-32. The total dollar amount allocated to each cost causation component (Line 13) is determined by multiplying the total expense associated with each functional category by the corresponding percentage allocation and summing across all functional categories.

For example, 100 percent (Column C, Line 1) of Water Supply costs (Column L, Line 1) are allocated to the Water Supply cost causation factor total (Column C, Line 13). The same calculation is performed for the remaining functional categories (i.e. Column C × Column L in Lines 2-12). The subtotals of Column C × Column L in Lines 1-12 are summed to determine the total dollar amount allocated to the Water Supply cost causation factor (Column C, Line 13). The same calculations are repeated for the remaining cost causation components (Columns D-K) to determine the allocation of O&M expenses to each cost causation component (Line 13). The total operating revenue requirement (Column L, Line 13) equals the operating revenue requirement from Table 4-29, Column C, Line 15. The O&M allocation percentages (Line 15) represent the proportion of total O&M expenses allocated to each cost causation component (Line 13).
54 VENTURA WATER
Table 4-33: Allocation of Water Enterprise O&M Expenses to Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L]
Line Functional Category Water
Supply
Base
Delivery Max Day Max Hour Conserv- ation Customer Meters FireProtection General FY 2020-21O&M 1 Water Supply 100.0% $7,598,205
2 Storage 65.8% 34.2% 0.0% $3,000
3 Treatment 65.8% 34.2% 0.0% $5,735,923
4 Storage/Treatment 65.8% 34.2% 0.0% $929,200
5 Transmission 65.8% 34.2% 0.0% $0
6 Distribution 25.2% 13.1% 61.7% $4,812,003
7 Conservation 100.0% $962,842
8 Customer 100.0% $1,599,676
9 Meters 100.0% $0
10 Fire Protection 100.0% $0
11 General/Admin 100.0% $3,648,189
12 General Operating 0.0% 41.7% 21.7% 26.0% 0.0% 0.0% 5.2% 0.0% 5.5% $8,151,225 13 Total O&M $7,598,205 $8,995,767 $4,677,799 $5,085,054 $962,842 $1,599,676 $423,065 $0 $4,097,854 $33,440,262 14 15 O&M Allocation 22.7% 26.9% 14.0% 15.2% 2.9% 4.8% 1.3% 0.0% 12.3% 100.0% 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 55

4.3.6.WATER ENTERPRISE CAPITAL ALLOCATION
Capital assets are utilized in COS analyses to allocate the capital revenue requirement to the various cost causation components. The distribution of short-term CIP project costs can be heavily weighted to specific cost causation components based on the type of projects. Use of short-term plans to allocate capital costs may cause rates to fluctuate and result in customer confusion. The overall water asset base however is considerably stable in the long- term, and therefore is more representative of long-term capital investment in Ventura Water’s water system. Thus, functionalized capital assets are used to allocate capital costs.

Ventura Water staff provided Raftelis with a detailed asset listing that included the original cost of each individual asset. Raftelis calculated the replacement cost less depreciation (RCLD) of each asset based on net book value using the Engineering News-Record’s 20-City Average Cost Construction Index (CCI) to account for capital cost inflation. As part of the capital asset analysis, Raftelis assigned each individual asset to a functional category with the assistance of Ventura Water staff. Total water asset value (RCLD) by functional category is shown in Table 4-34. Percentages are rounded to the nearest one-tenth of one percent.

Table 4-34: Summary of Water Enterprise Capital Assets by Functional Category [A] [B] [C] [D]
Line Functional Category Asset Value
(RCLD) Percent of Total
1 Water Supply $13,702,285 7.7%
2 Storage $33,726,107 19.0%
3 Treatment $34,939,452 19.7%
4 Storage/Treatment $782,222 0.4%
5 Transmission $7,642,042 4.3%
6 Distribution $68,625,891 38.7%
7 Conservation $0 0.0%
8 Customer $0 0.0%
9 Meters $8,469,784 4.8%
10 Fire Protection $342,769 0.2%
11 General/Admin $9,002,312 5.1%
12 Total Asset Value (RCLD) $177,232,866 100.0%
Table 4-35 shows the allocation of capital assets by functional category to each cost causation component. The percentage allocation of each functional category (Columns C-K) to the various cost causation components was determined in Table 4-31. Total asset value associated with each functional category (Column L) was determined in Table 4-34. The total dollar amount allocated to each cost causation component (Line 12) is determined by multiplying the total asset value associated with each functional category by the corresponding percentage allocation and summing across all functional categories. This is consistent with the methodology used to determine the allocation of O&M expenses to cost causation components in Table 4-33 (described in detail in Section 4.3.5). The final capital allocation percentages (Line 14) represent the proportion of total capital assets allocated to each cost causation component (Line 12).

The capital allocation percentages (Line 14) are used to allocate the total capital revenue requirement. The total capital revenue requirement (Column L, Line 17) equals the capital revenue requirement from Table 4-29, Column D, Line 15. This total is allocated to each cost causation component (Columns C-K, Line 17) based on the final capital allocation percentages (Columns C-K, Line 14).
56 VENTURA WATER
Table 4-35: Allocation of Functionalized Water Capital Assets to Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L]
Line Functional
Category
Water
Supply
Base
Delivery Max Day Max Hour Conserv- ation Customer Meters FireProtection General Asset Value(RCLD) 1 Water Supply 100.0% $13,702,285
2 Storage 65.8% 34.2% 0.0% $33,726,107
3 Treatment 65.8% 34.2% 0.0% $34,939,452
4 Storage/
Treatment 65.8% 34.2% 0.0% $782,222
5 Transmission 65.8% 34.2% 0.0% $7,642,042
6 Distribution 25.2% 13.1% 61.7% $68,625,891
7 Conservation 100.0% $0
8 Customer 100.0% $0
9 Meters 100.0% $8,469,784
10 Fire
Protection 100.0% $342,769
11 General/
Admin 100.0% $9,002,312
12 Total Assets $13,702,285 $68,003,109 $35,361,616 $42,350,991 $0 $0 $8,469,784 $342,769 $9,002,312 $177,232,866 13 14 Capital
Allocation 7.7% 38.4% 20.0% 23.9% 0.0% 0.0% 4.8% 0.2% 5.1% 100.0% 15 General
Operating38 N/A 41.7% 21.7% 26.0% 0.0% 0.0% 5.2% N/A 5.5% 100.0% 16 17
Capital
Revenue
Requirement
$202,398 $1,004,482 $522,331 $625,572 $0 $0 $125,108 $5,063 $132,974 $2,617,929 38 Equal to the percent of total assets allocated to each cost causation component excluding Water Supply and Fire Protection. These percentages are used to allocate O&M expenses assigned to the General Operating functional category (in Table 4-33, Line 12) 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 57

4.3.7.PRELIMINARY WATER COST OF SERVICE ALLOCATION
Table 4-36 shows the preliminary allocation of the total FY 2020-21 rate revenue requirement to the various cost causation components. The preliminary COS allocations (Column G) are subject to further adjustments based on additional reallocations developed in the following subsections. The results shown in Table 4-36 are calculated as follows based on intermediate results developed in the preceding subsections:

1. Operating Revenue Requirement (Column C): The total operating revenue requirement consists solely of the Water Enterprise’s O&M expenses. The allocation of the total operating revenue requirement to each cost causation component was previously determined in Table 4-33, Columns C-K, Line 13. 2. Capital Revenue Requirement (Column D): The total capital revenue requirement consists of debt service and reserve funding for future CIP. The allocation of the total capital revenue requirement to each cost causation component was previously determined in Table 4-35, Columns C-K, Line 17).

3. Revenue Offsets (Column E): Total revenue offsets (from Table 4-29, Column E, Line 15) are allocated fully to a Revenue Offsets cost causation factor (Column E, Line 10). Note that the Revenue Offsets cost causation factor was not included within the operation or capital revenue requirement allocation, as it pertains exclusively to miscellaneous revenues used to offset the total revenue required from rates.

4. Reallocation of General Costs (Column F): The total General cost allocation equals the operating revenue requirement (Column C, Line 9) and capital revenue requirement (Column D, Line 10) allocated to the General cost causation component. The total General revenue requirement (Column, F, Line 13) is fully reallocated to all other cost causation components on a pro rata basis39 (Column F, Lines 2-8) excluding the Water Supply and Revenue Offsets cost causation components (which General costs do not pertain to).

Note that the reallocation results in a shifting of costs between cost causation components but does not change the total rate revenue requirement.

5. Preliminary Cost of Service Allocation (Column G): The preliminary COS allocation to each cost causation component (Column G, Lines 1-10) equals the sum of Columns C-F. Note that the total COS allocation (Column G, Line 11) equals the total FY 2020-21 rate revenue requirement (from Table 4-29, Column F, Line 15). 39 The operating (Column C) and capital (Column D) revenue requirements are summed for each cost causation component shown in Lines 2-8. The percentage of the sum falling within each cost causation component (Lines 2-8) is multiplied by total reallocated General costs (Column F, Line 9) to determine the share of General costs reallocated to each cost causation component (Column F, Lines 2-8).
58 VENTURA WATER
Table 4-36: Preliminary Water Cost of Service Allocation (Test Year FY 2020-21) [A] [B] [C] [D] [E] [F] [G]
Line Cost Causation
Component
Operating
Revenue
Requirement
Capital
Revenue
Requirement
Revenue
Offsets
Reallocation
of General
Costs
Preliminary
COS
Allocation
1 Water Supply $7,598,205 $202,398 $7,800,603
2 Base Delivery $8,995,767 $1,004,482 $1,760,926 $11,761,175 3 Max Day $4,677,799 $522,331 $915,681 $6,115,811
4 Max Hour $5,085,054 $625,572 $1,005,574 $6,716,200
5 Conservation $962,842 $0 $169,545 $1,132,387
6 Customer $1,599,676 $0 $281,684 $1,881,361
7 Meters $423,065 $125,108 $96,527 $644,700
8 Fire Protection $0 $5,063 $892 $5,955
9 General $4,097,854 $132,974 ($4,230,829) $0
10 Revenue Offset ($6,309,008) ($6,309,008)
11 Total $33,440,262 $2,617,929 ($6,309,008) $29,749,184 $29,749,184

4.3.8.ALLOCATION OF FIRE PROTECTION COSTS
Water systems provide two types of fire protection: fire flows for fire protection from fire hydrants for firefighting; and fire flows from fire lines for private structures with fire suppression sprinkler systems. In 2020, Senate Bill No. 1386 was enacted into California law, and it added Section 53750.5 to the part of the California Government Code known as the Proposition 218 Omnibus Implementation Act, and it reads as follows:
(a) The Legislature finds and declares all of the following:
(1) Fire service is a different and distinct service from water service, which is one of several other property-related services that aids in the provision of fire service provided to properties. (2) Hydrants are part of the system of public improvements described in subdivision (n) of Section 53750.
(3) Hydrants are generally designed, installed, and used to provide an immediately available water service to aid in extinguishing fires that threaten property served by a water service provider, and are generally not designed or installed to provide water service to aid in extinguishing fires that threaten property not served by a water service provider or wildfires. Hydrants are also used by a water service provider for water system operations and maintenance.
(4) Hydrants are generally located in proximity to properties served by a water service provider to facilitate water service to those properties. Hydrants and the water distributed through them have a direct relationship to property ownership because hydrants are generally sized based upon property use and then are installed when parcels are developed or connected to a water system. (5) Hydrants and the water distributed through them are not available to the public at large in substantially the same manner as they are to property owners served by a water service provider because hydrants are designed, installed, and used to serve properties receiving water service, and the public at large does not generally have access to water through those hydrants. Incidental or 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 59 other de minimis use of hydrants and the water distributed through them for other purposes does not change their essential character as a property-related service. (6) Hydrants and the water distributed through them are part of the property-related water service provided to all property owners served by a water service provider. Through hydrants, water is immediately available to those properties to aid in extinguishing a fire that directly threatens them.

The cost associated with this aspect of water service is proportionately allocable among properties that may receive a reasonably similar level of service from the immediate availability of water to aid in extinguishing fires that directly or indirectly threaten those properties. (7) Property-related water service costs may include, but are not limited to, any costs associated with constructing, maintaining, repairing, upgrading, and replacing hydrants, and costs associated with obtaining, treating, and distributing adequate volumes of water to meet the water demands of properties served by the water service provider, including water supplied for firefighting purposes.

The fees or charges related to those costs are imposed upon a parcel or person as an incident of property ownership.
(b) The fees or charges for property-related water service imposed or increased pursuant to Section 6 of Article XIII D of the California Constitution may include the costs to construct, maintain, repair, or replace hydrants as needed or consistent with applicable fire codes and industry standards, and may include the cost of water distributed through hydrants. In addition to any other method consistent with Section 6 of Article XIII D of the California Constitution, fees or charges for the aspects of water service related to hydrants and the water distributed through them may be fixed and collected as a separate fee or charge, or included in the other water rates and charges fixed and collected by a public agency, as provided for in Section 53069.9 of the Government Code. (c) For the purpose of this section, “hydrants” means all hydrants and other infrastructure used to distribute water that aids in the protection of property from fire, and all related or appurtenant infrastructure and facilities owned by a water service provider necessary or convenient for distributing water that aids in the protection of property from fire, including adequately sized and pressurized lines, pumps, and all appurtenances, but does not include privately owned hydrants or other private fire response related infrastructure.
(d) This section is declaratory of existing law.

This provision is declarative of existing law, and clarifies that the costs of water service chargeable to property owners include the cost of infrastructure, such as fire hydrants, that provide fire protection for nearby properties. Raftelis confirmed with Ventura Water staff that this provision is consistent with the City’s operations and use of fire hydrants.

Raftelis performed a fire demand analysis to determine the share of Fire Protection costs allocated to fire hydrants (hydrant fire flow) versus private fire lines (private fire). Ventura Water provided Raftelis with a count of fire hydrants connected to its water system. The projected number of private fire lines in FY 2020-21 was previously shown in Table 4-5. Table 4-37 shows the calculation of equivalent fire demand associated with fire hydrants and private fire lines.

Each connection size has a fire flow demand factor similar to the hydraulic capacity factor of a water meter. The 60 VENTURA WATER
diameter of the connection (in inches) is divided by 6 (to normalize to a 6-inch hydrant connection) and then raised to the power of 2.63 to determine the fire flow demand factor (Column C).40 The fire flow demand factor (Column C) is multiplied by the number of connections by size (Column D) to calculate equivalent fire demand (Column E).

Total equivalent fire demand is shown for fire hydrants and private fire lines in Lines 3 and 14 respectively.

Table 4-37: Equivalent Fire Demand
[A] [B] [C] [D] [E]
Line Connection Size Demand
Factor Unit Count EquivalentFire Demand
1 Public Hydrants
2 6-inch 1.00 3,341 3,341
3 Subtotal 3,341 3,341
4 5 Private Fire Lines
6 1-inch 0.06 2,464 137
7 2-inch 0.06 27 2
8 3-inch 0.16 2 0
9 4-inch 0.34 330 114
10 6-inch 1.00 268 268
11 8-inch 2.13 118 251
12 10-inch 3.83 16 62
13 12-inch 6.19 0 0
14 Subtotal 3,225 833
15 16 Total 6,566 4,174
Table 4-38 shows the number of equivalent fire demand units associated with fire hydrants and private fire lines (from Table 4-37). The proportional share of equivalent fire demand (Column D) provides the basis for which Fire Protection costs are allocated in subsequent steps of the COS analysis.

Table 4-38: Fire Protection Allocation Basis
[A] [B] [C] [D]
Line Connection Size Equivalent
Fire Demand
% of Equivalent
Fire Demand
1 Fire Hydrants 3,341 80.0%
2 Private Fire Lines 833 20.0%
3 Total 4,174 100.0%

4.3.9.PEAKING UNITS OF SERVICE
Peaking units of service are developed to calculate unit peaking costs (Max Day and Max Hour) for select customer classes and provide a basis to reallocate peaking costs to Fire Protection in subsequent steps of the COS analysis.

Fire hydrants and private fire lines contribute to system capacity-related costs (i.e. peaking costs), and therefore are reallocated a portion of Max Day and Max Hour costs.
40 Per the Hazen-Williams equation and AWWA Manual M1
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 61 Table 4-39 shows the calculation of peaking units of service for non-fire related water service. Note that reclaimed water use is excluded because the reclaimed water system functions as an independent water system. Additionally, reclaimed water costs are associated with the Wastewater Enterprise. Therefore, reclaimed water is subject to the wastewater cost of service analysis (see Section 5.3). Table 4-39 shows calculations used to attribute peaking costs to specific customer classes based on actual water use patterns. Raftelis estimates Max Day (Column E) and Max Hour (Column H) factors based on actual FY 2018-19 water use and systemwide peaking factors (from Table 4-30). Projected FY 2020-21 water use in Column C (from Table 4-6) 41 is divided by 365 days to determine average daily
water use (Column D). Average daily use in Column D is then multiplied by the Max Day factor (Column E) to determine Max Day demand (Column F). Max Day requirements (Column G) are determined by subtracting average daily water use (Column D) from Max Day demand (Column F). Max Hour requirements (Column J) are similarly calculated. Max Hour demand (Column I) equals average daily water use (Column D) multiplied by the Max Hour factor (Column H). Max Hour requirements (Column J) equal Max Hour demand (Column I) less Max Day demand (Column F).

Table 4-39: Peaking Units by Customer Class
[A] [B] [C] [D] [E] [F] [G] [H] [I] [J]
Line Customer
Class
Annual
Water
Use
(HCF)
Average
Daily
Water Use
(HCF)
Max
Day
Factor
Max Day
Demand
(HCF/Day)
Max Day
Require- ments
(HCF/Day)
Max
Hour
Factor
Max Hour
Demand
(HCF/Day)
Max Hour
Require- ments
(HCF/Day)
1 Residential
Tier 1 2,556,176 6,998 1.05 7,316 318 2.73 19,108 11,792 2 Residential
Tier 2 833,762 2,283 1.30 2,968 685 3.40 7,751 4,784
3 Residential
Tier 3 483,169 1,323 1.45 1,919 596 3.79 5,012 3,093
4 Non- Residential 1,544,580 4,229 1.43 6,037 1,809 3.73 15,769 9,731 5 Non- Residential
Irrigation42 166,992 457 1.65 753 295 4.30 1,966 1,213
6 Untreated 26,666 73 1.43 104 31 3.74 273 168
Table 4-40 shows the methodology43 used to calculate peaking units of service associated with fire protection based on assumptions regarding the duration and water flow rate in gallons per minute (gpm) associated with an urban fire:

Max Day Requirements (HCF/day) = Duration of Fire (hrs) × Water Use Rate (gpm) × 60 mins/hr ÷ 748.05 gallons/HCF Max Hour Requirements (HCF/day) = [Water Use Rate (gpm) × 60 mins/hr × 24 hrs/day ÷ 748.05 gallons/HCF] – Max Day Requirements (HCF/day)
Table 4-40: Peaking Units for Fire Protection
[A] [B] [C]
Line Description Value
1 Duration of Fire (Hours) 4.0
2 Water Use Rate (gallons per minute) 4,500
3 Max Day Requirements (HCF/Day) 1,444
4 Max Hour Requirements (HCF/Day) 7,219
41 Note Residential Tier 3 water use differs from the values shown in Table 4-6. The values shown account for proposed rate structure changes discussed in further detail in Section 4.4 (see Table 4-47). 42 Includes use from both Non-Residential Irrigation and Institutional/Interruptible (from Table 4-6), as the study proposes to consolidate these two customer classes into a single Non-Residential Irrigation class (see Section 4.4). 43 Per the AWWA Manual M1. 62 VENTURA WATER
Table 4-41 shows the distribution of Fire Protection Max Day and Max Hour requirements (from Table 4-40) to public hydrants versus private fire lines based on proportional equivalent fire demand (from Table 4-38).

Table 4-41: Allocation of Peaking Units to Public and Private Fire Protection [A] [B] [C]
Line Description Value
1 Max Day Requirements (HCF/Day) 1,444
2 Allocation to Hydrant Fire Protection (80.0%) 1,156
3 Allocation to Private Fire Protection (20.0%) 288
4 5 Max Hour Requirements (HCF/Day) 7,219
6 Allocation to Hydrant Fire Protection (80.0%) 5,778
7 Allocation to Private Fire Protection (20.0%) 1,441
Peaking units of service (from Table 4-39 and Table 4-41) are summarized below in Table 4-42. The percentage of Max Day and Max Hour Requirements attributed to each customer class is shown in Columns D and E respectively.

Table 4-42: Summary of Total Peaking Units
[A] [B] [C] [D] [E] [F]
Line Customer Class
Max Day
Requirements
(HCF/Day)
% of Max Day
Requirements
Max Hour
Requirements
(HCF/Day)
% of Max Hour
Requirements
1 Residential Tier 1 318 6.1% 11,792 31.0%
2 Residential Tier 2 685 13.2% 4,784 12.6%
3 Residential Tier 3 596 11.5% 3,093 8.1%
4 Non-Residential 1,809 34.9% 9,731 25.6%
5 Non-Residential
Irrigation 295 5.7% 1,213 3.2%
6 Untreated 31 0.6% 168 0.4%
7 Fire Hydrants 1,156 22.3% 5,778 15.2%
8 Private Fire Lines 288 5.6% 1,441 3.8%
9 Total 5,178 100.0% 38,000 100.0%

4.3.10.ADJUSTED WATER COST OF SERVICE
Table 4-43 shows the adjusted allocation of the water rate revenue requirement to the various cost causation components. The adjusted COS allocations (Column H) incorporates adjustments to the preliminary COS allocations developed in Section 4.3.7, and ultimately provides the underlying basis for FY 2020-21 rate calculations shown subsequently in Section 4.5. The results shown in Table 4-43 are calculated as follows based on intermediate results developed in the preceding subsections:

1. Preliminary Cost of Service Allocation (Column C): The preliminary COS allocations were previously developed in Section 4.3.7. (see Table 4-36, Column G, Lines 1-11). The General cost causation component is excluded because all General costs were previously reallocated to other cost causation components.
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 63

2. Reallocation of Fire Hydrant Costs (Column D): Fire protection costs associated with fire flow for fire hydrants are reallocated to the Meters cost causation component to recover these extra-capacity costs from all metered connections. Preliminary Max Day (Column C, Line 3) and Max Hour costs (Column C, Line 4) associated with fire hydrants are reallocated from Max Day (Column D, Line 3) and Max Hour (Column D, Line 4) to Meters (Column D, Line 7) based on the percentage of peaking units associated with fire flow for fire hydrants (Table 4-42, Column D and F, Line 7). Note that the reallocation results in a shifting of costs between cost causation components but does not change the total rate revenue requirement.

3. Reallocation of Private Fire Costs (Column E): Preliminary peaking costs (Column C, Lines 3-4) associated with private fire protection are reallocated from Max Day (Column E, Line 3) and Max Hour (Column E, Line 4) to Fire Protection (Column E, Line 8) based on the percentage of peaking units associated with private fire lines (Table 4-42, Column D and F, Line 8). Note that the reallocation results in a shifting of costs between cost causation components but does not change the total rate revenue requirement.

4. Reallocation of Peaking Costs to Meters (Column F): Ventura Water collects approximately 30 percent of its water rate revenues from fixed Water Service Charges and Fire Line Service Charges. Without any additional cost reallocation, this updated COS analysis would reduce the proportion of revenues from fixed charges to approximately 19 percent. This would reduce revenue stability and increase the risk of revenue insufficiency resulting from decreases in water sales. To maintain the existing proportion of 30 percent fixed (from Water Service Charges and Fire Line Service Charges) and 70 percent variable (from Water Volume Rates), Raftelis reallocates one third of Max Day costs (sum of Columns C-E, Line 3) and Max Hour costs (sum of Columns C-E, Line 4) from Max Day (Column F, Line 3) and Max Hour (Column F, Line 4) to Meters (Column F, Line 7). Utilities invest in, and continuously maintain, facilities to provide capacity to meet all levels of water consumption, including peak demand. These costs must be recovered regardless of the amount of water used during a given period, so peaking costs are generally considered as fixed water system costs. To balance between affordability and revenue stability, it is a common practice that a portion of peaking, or extra-capacity, costs are recovered by fixed charges, along with customer- related costs and meter-related costs.

5. Reallocation of Revenue Offsets (Column G): Revenue offsets directly related to water supply-related functions are reallocated from the Revenue Offsets cost causation component (Column G, Line 9) to the Water Supply cost causation component (Column G, Line 1). Water supply-related revenue offsets include State Water Project recoverable expenditures (from Table 4-12), Casitas Direct wholesale pass-through revenues (from Table 4-10), and The Saticoy Club’s estimated contribution to the golf course’s share of Saticoy Country Club System groundwater assessments.44 A portion of revenue offsets are also reallocated from the Revenue Offset cost causation component (Column G, Line 9) to the Untreated Offset cost causation component (Column G, Line 10). The addition of the Untreated Offset cost causation component is necessary to isolate a portion of revenue offsets for the specific purpose of offsetting treatments costs initially allocated to Untreated Water customers.45 44 Total Saticoy Country Club System groundwater supply costs (from Table 4-16) multiplied by the The Saticoy Club golf course’s projected share of total Saticoy Country Club System water use in FY 2020-21. The Saticoy Club golf course is not directly metered – their usage is calculated by Ventura Water staff by subtracting billed residential customer usage from total System usage measured from metered groundwater wells that serve the entire System; The Saticoy Club is invoiced directly by Ventura Water based on the total costs to operate and maintain the System, pursuant to the terms of a co-ownership agreement of the System with the City. 45 The reallocation of revenue offsets to the Untreated Offset is calculated by multiplying total projected Untreated Water use in FY 2020-21 (from Table 4-6) by the estimated average treatment cost per HCF (from Table 4-64). 64 VENTURA WATER

6. Adjusted Cost of Service Allocation (Column H): The final COS allocation (Column H) equals the sum of Columns C to G. This represents the final adjusted allocation of the total water revenue requirement (from Table 4-29, Column F, Line 15) to the various cost causation components.

Table 4-43: Adjusted Cost of Service Allocation (Test Year FY 2020-21) [A] [B] [C] [D] [E] [F] [G] [H]
Line Cost Causation
Component
Preliminary
COS
Allocation
Reallocation
of Fire
Hydrant
Costs
Reallocation
of Private
Fire Costs
Reallocation
of Peaking
to Meters
Reallocation
of Revenue
Offsets
Adjusted
COS
Allocation
1 Water Supply $7,800,603 ($1,186,068) $6,614,535
2 Base Delivery $11,761,175 $11,761,175
3 Max Day $6,115,811 ($1,364,889) ($340,372) ($1,470,183) $2,940,367 4 Max Hour $6,716,200 ($1,021,185) ($254,660) ($1,813,451) $3,626,903 5 Conservation $1,132,387 $1,132,387
6 Customer $1,881,361 $1,881,361
7 Meters $644,700 $2,386,074 $3,283,635 $6,314,410
8 Fire Protection $5,955 $595,032 $600,987
9 Revenue Offset ($6,309,008) $1,222,516 ($5,086,491)
10 Untreated Offset ($36,449) ($36,449)
11 Total $29,749,184 $0 $0 $0 $0 $29,749,184

4.3.11.WATER COST ALLOCATION TO CUSTOMER CLASSES
The final cost of service allocation determines how much revenue must be generated from Ventura Water’s water rates and charges. Each cost causation component is recovered by either a fixed charge or Water Volume Rate, by customer class (see Table 4-44). The basis for specific exclusions is described in further detail in Section 4.5. Table 4-44: Recovery of Cost Causation Components by Charge Type [A] [B] [C]
Line Cost Causation
Component Associated Charge
1 Water Supply Water Volume Rates (excluding reclaimed water) 2 Base Delivery Water Volume Rates (excluding reclaimed water) 3 Max Day Water Volume Rates (excluding reclaimed water) 4 Max Hour Water Volume Rates (excluding reclaimed water) 5 Conservation Water Volume Rates (excluding reclaimed water) 6 Customer Water Service Charges; Fire Line Service Charges 7 Meters Water Service Charges
8 Fire Protection Fire Line Service Charges
9 Revenue Offset Water Volume Rates (excluding reclaimed water) 10 Untreated Offset Untreated Water Volume Rates
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 65 Table 4-45 shows projected rate revenues by charge and customer class for FY 2020-21 (based on the prior COS analysis) and for FY 2020-21 (based on the updated COS analysis presented in this section). All proposed COS projections for FY 2020-21 are for illustrative purposes to demonstrate the impact of the updated COS allocations on each customer class. However, no changes to current rates will be implemented prior to FY 2021-22. Note that the results shown are based on detailed calculations that are dependent on rate design considerations addressed subsequently in Section 4.5. Table 4-45: Cost to Serve by Water Customer Class [A] [B] [C] [D] [E] [F]
Line Charge/Customer Class
Current COS
FY 2020-21
($)
Proposed COS
FY 2020-21
($)
Current COS
FY 2020-21
(%)
Proposed COS
FY 2020-21
(%)
1 Fixed Service Charges
2 Water Service Charges $8,133,433 $8,146,543 27.3% 27.4% 3 Fire Line Service Charges $788,564 $650,214 2.7% 2.2% 4 Subtotal $8,921,997 $8,796,757 30.0% 29.6%
5 6 Variable Water Volume Rates
7 Residential $13,950,665 $13,530,526 46.9% 45.5%
9 Non-Residential $6,210,484 $6,540,497 20.9% 22.0%
10 Non-Residential Irrigation &
Institutional/Interruptible $558,307 $804,682 1.9% 2.7% 11 Untreated Water $107,732 $76,722 0.4% 0.3%
12 Subtotal $20,827,187 $20,952,427 70.0% 70.4%
13 14 Total $29,749,184 $29,749,184 100.0% 100.0%

4.4.Proposed Water Rate Structure Modifications
Raftelis worked closely with Ventura Water staff and the Water Commission to evaluate potential changes to the existing water rate structure. All proposed water rates presented in subsequent sections incorporate the following recommended revisions to the existing water rate structure.

1. Adjust Rate Schedule to Reflect Monthly Billing Basis: Ventura Water plans to transition from billing on a bimonthly basis to a monthly basis beginning in July 2021. Therefore, all proposed fixed charges and residential tier allotments shown are on a monthly basis.

2. Consolidation of Non-Residential Irrigation and Institutional/Interruptible customer classes into a single Non-Residential Irrigation customer class: Institutional/Interruptible water use is associated with water accounts used exclusively for outdoor Non-Residential Irrigation purposes. Raftelis recommends that the Institutional/Interruptible customer class and Non-Residential Irrigation customer classes are consolidated into a single Non-Residential Irrigation customer class. This will simplify the rate structure and harmonize rates due to the existing similarities between the two customer classes in terms of their water use characteristics. Both existing classes’ water demands are for dedicated irrigation purposes (i.e. no indoor demands) which are distinct from other users whose metered connections are solely for indoor use (for example, certain master metered commercial and multi-family residential users) or for indoor and outdoor use (for example Single Family Residential connections). This approach to grouping like customer classes and differentiating unlike customer classes is consistent with cost of service principles, industry standards, and rate setting in California.
66 VENTURA WATER

3. Elimination of Outside City (County) Surcharge: Raftelis recommends that Ventura Water eliminate the current surcharge per HCF of water for customers residing outside of City Limits due to a reduced water cost differential compared to the previous Rate Study. This will simplify the rate structure and improve the defensibility and customer understanding of future water rates, while having a minimal effect on Inside City rates. 4. Differentiate Fire Line Service Charges for Single Family Residential Customers: Private fire lines associated with single family residential accounts do not receive a separate bill for the Fire Line Service Charge. Therefore, Raftelis recommends that single family residential customers with U-branch fire lines are charged a unique rate to properly offset billing costs already paid by those customers via the Water Service Charge.

5. Update Residential Tier Allotments: Raftelis recommends that the rate structure for residential Water Volume Rates be consolidated from four tiers to three tiers. A three-tier rate structure allows for tier allotments to be based on efficient indoor water use for Tier 1, average outdoor water demands for Tier 2, and all use greater than average outdoor use for Tier 3. A well-defined three-tier rate structure is typically easier for customers to understand and may result in less revenue volatility compared to a four-tier rate structure. Current and proposed residential monthly tier allotments and the underlying basis for each is described in detail in Table 4-46. Table 4-46: Proposed Changes to Residential Tier Allotments Description
Current
Monthly
Allotment
(per
Dwelling
Unit)
Current Basis
Proposed
Monthly
Allotment
(per
Dwelling
Unit)
Proposed Basis
Single Family Residential
Tier 1 0-3 HCF Essential minimal indoor water
needs for health and sanitation 0-6 HCF
Efficient indoor water use (based on single
family residential average monthly water
use during winter in FY 2018-19)
Tier 2 4-7 HCF Remaining indoor water use 7-12 HCF
Average peak summer water use (based
on single family residential average
monthly water use during summer peak in
FY 2018-19)
Tier 3 8-15 HCF Outdoor water use below Tier 4 >12 HCF All use in excess of Tier 2 Tier 4 >15 HCF Top 15% of water use targeted
for conservation N/A N/A
Multiple Family Residential
Tier 1 0-3 HCF Essential minimal indoor water
use
0-5 HCF
Proposed Single Family Residential Tier 1
modified to account for smaller average
household size, per dwelling unit
Tier 2 4-5 HCF Remaining indoor water use 6-10 HCF
Proposed Single Family Residential Tier 2
modified to account for smaller average
household size, per dwelling unit
Tier 3 6-8 HCF Outdoor water use below Tier 4 >10 HCF All use in excess of Tier 2 Tier 4 >8 HCF Top 10% of water use targeted
for conservation N/A N/A
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 67 Table 4-47 shows estimated residential water use by tier under the current four-tier rate structure and proposed three- tier rate structure. All projections are based on detailed account-level analysis of FY 2018-19 residential water use.

Raftelis projects that nearly two thirds of all residential water use will fall within Tier 1 under the proposed three-tier residential rate structure.

Table 4-47: Projected FY 2020-21 Residential Water Use by Tier – Current versus Proposed Description Current Water
Use by Tier (HCF)
Proposed Water
Use by Tier (HCF)
Current Water
Use by Tier (%)
Proposed Water
Use by Tier (%) % Change
Residential Tier 1 1,638,560 2,556,176 42.3% 66.0% 56.0% Residential Tier 2 1,172,329 833,762 30.3% 21.5% -28.9% Residential Tier 3 814,817 483,169 21.0% 12.5% -40.7%
Residential Tier 4 247,402 N/A 6.4% 0.0% -100.0%
Total 3,873,107 3,873,107 100.0% 100.0% 0.0%

4.5.Proposed Water Rates
Section 4.5 shows detailed calculations of proposed water rates through FY 2025-26. All proposed rates are first calculated directly from the results of the COS analysis (in Section 4.3) for FY 2020-21 (i.e. the “test year”). Note however that proposed rates will not be implemented until FY 2021-22. Therefore, all FY 2020-21 “COS” rates and charges shown represent intermediate results of the rate design process but will not actually be implemented during FY 2020-21. However, FY 2020-21 “COS” rates and charges must be calculated to provide a basis for proposed rates for FY 2021-22 through FY 2025-26 (shown in Section 0).

4.5.1.WATER SERVICE CHARGES (TEST YEAR FY 2020-21)
Table 4-48 shows the calculation of equivalent meters, which is necessary to differentiate Water Service Charges by meter size. Meter capacity ratios (Column D) are first calculated by dividing meter capacity (Column C) by 30 gallons per minute (gpm). Meter capacity ratios (Column D) are then multiplied by the number of water meters at each meter size in Column E (from Table 4-5) to determine equivalent meters (Column F). Equivalent meters in this study are based on AWWA-rated hydraulic capacities46 and are calculated to represent the potential demand on the water system relative to a base meter size.

Table 4-48: Number of Equivalent Meters (Test Year FY 2020-21) [A] [B] [C] [D] [E] [F]
Line Meter Size Meter Capacity
(gpm)
Meter Capacity
Ratio
Number of
Meters
Number of
Equivalent Meters
1 3/4-inch water meter 30 1.00 25,198 25,198
2 1-inch water meter 50 1.67 2,500 4,167
3 1.5-inch water meter 100 3.33 956 3,187
4 2-inch water meter 160 5.33 738 3,936
5 3-inch water meter 350 11.67 116 1,349
6 4-inch water meter 630 21.00 70 1,478
7 6-inch water meter 1,300 43.33 74 3,224
8 8-inch water meter 2,400 80.00 7 563
9 10-inch water meter 3,800 126.67 2 255
10 12-inch water meter 5,000 166.67 0 0
11 Total 29,662 43,357
46 From the AWWA’s Manual of Water Supply Practices M22: Sizing Water Service Lines and Meters (Third Edition). 68 VENTURA WATER
Water Service Charges are designed to recover costs associated with the Customer and Meters cost causation components. Table 4-49 shows the calculation of unit charges for the Customer and Meters cost causation components by dividing the total revenue requirement associated with each cost causation component (from Table 4-43, Column H) by the number of billing units.

Customer unit charges are calculated per customer bill. Meter unit charges are calculated per equivalent meter.

Equivalent meters are used to allocate meter-related costs appropriately and equitably. Larger meters impose larger demand, are more expensive to install, maintain, and replace than smaller meters, and have greater capacity potential within the water system.

Table 4-49: Water Service Charge Unit Charge Calculation (Test Year FY 2020-21) Description Customer Meters
COS Allocation $1,881,361 $6,314,410
Billing Units 365,512 Bills47 520,286 Annual Equivalent Meters48 Unit Charge (per Month) $5.15 per Bill $12.14 per Equivalent Meter Table 4-50 shows the detailed calculation of monthly Water Service Charges for the test year based on Customer and Meters unit charges. Customer costs do not vary by meter size. Therefore, the Customer unit rate is applied uniformly to all Water Service Charges (Column D). Because Meters costs vary by meter size based on hydraulic capacity, AWWA capacity ratios in Column C (from Table 4-48, Columns D) are used to differentiate Meters unit charges by meter size. The Meters charges (Column E) are calculated by multiplying the Meters unit charge (from Table 4-49) by the AWWA capacity ratio (Column C). COS monthly Water Service Charges (Column F) equal the sum of Columns D-E, and are compared to current FY 2020-21 charges in Columns G-I.

Table 4-50: Water Service Charge Calculation (Test Year FY 2020-21) [A] [B] [C] [D] [E] [F] [G] [H] [I]
Line Meter Size
Meter
Capacity
Ratio
Customer Meters
COS
Monthly
Charge
Current
Monthly
Charge
Difference
($)
Difference
(%)
1 3/4-inch water meter 1.00 $5.15 $12.14 $17.28 $16.85 $0.44 2.6% 2 1-inch water meter 1.67 $5.15 $20.23 $25.37 $25.52 ($0.14) -0.6% 3 1.5-inch water meter 3.33 $5.15 $40.45 $45.60 $47.19 ($1.59) -3.4% 4 2-inch water meter 5.33 $5.15 $64.73 $69.87 $73.21 ($3.34) -4.6% 5 3-inch water meter 11.67 $5.15 $141.59 $146.74 $155.59 ($8.85) -5.7% 6 4-inch water meter 21.00 $5.15 $254.86 $260.01 $276.99 ($16.98) -6.1% 7 6-inch water meter 43.33 $5.15 $525.91 $531.06 $567.49 ($36.43) -6.4% 8 8-inch water meter 80.00 $5.15 $970.91 $976.06 $1,044.42 ($68.36) -6.5% 9 10-inch water meter 126.67 $5.15 $1,537.28 $1,542.43 $1,651.43 ($109.00) -6.6% 10 12-inch water meter 166.67 $5.15 $2,022.73 $2,027.88 $2,171.72 ($143.84) -6.6% 47 Equal to [29,662 water meters plus 797 fire lines not associated with Single Family Residential accounts] multiplied by 12 monthly billing periods per year. 48 Equal to 43,357 equivalent meter units multiplied by 12 monthly billing periods per year. 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 69

4.5.2.FIRE LINE SERVICE CHARGES (TEST YEAR FY 2020-21)
Fire Service Charges are designed to recover costs associated with the Customer and Fire Protection cost causation components. Table 4-51 shows the calculation of unit charges for the Customer and Fire Protection cost causation components by dividing the total revenue requirement associated with each cost causation component (from Table 4-43, Column H) by the number of billing units.

Customer unit charges were previously calculated in Table 4-49 but are shown again below. Fire Protection unit charges are calculated per fire demand equivalent (from Table 4-37). Fire demand equivalents are used to allocate Fire Protection costs by connection size because larger connections are more expensive to install, maintain, and replace than smaller fire lines, and also have greater capacity potential on the water system.

Table 4-51: Fire Line Service Charge Unit Charge Calculation (Test Year FY 2020-21) Description Customer Fire Protection
COS Allocation $1,881,361 $600,987
Billing Units 365,512 Bills49 9,998 Fire Demand Equivalents50 Unit Charge (per Month) $5.15 per Bill $60.11 per Fire Demand Equivalents Table 4-52 shows the detailed calculation of monthly Fire Service Charges for the test year based on Customer and Fire Protection unit charges. U-branch fire lines associated with single family residential accounts do not receive separate bills specifically for the Fire Line Service Charge. Therefore, no Customer unit charge is applied to single family residential U-branch fire lines. All other fire lines are subject to the Customer unit charge, which is applied uniformly to all connection sizes (Column D). Because Fire Protection costs vary by connection size based on capacity, equivalent fire demand factors in Column C (from Table 4-37, Columns C) are used to differentiate Fire Protection unit charges by connection size. The Fire Protection charges (Column E) are calculated by multiplying the Fire Protection unit charge (from Table 4-51) by the equivalent fire demand factors (Column C). COS monthly Fire Line Service Charges (Column F) equal the sum of Columns D-E, and are compared to current FY 2020-21 charges in Columns G-I.

Table 4-52: Fire Line Service Charge Calculation (Test Year FY 2020-21) [A] [B] [C] [D] [E] [F] [G] [H] [I]
Line Connection Size
Equivalent
Fire
Demand
Customer Fire
Protection
COS
Monthly
Charge
Current
Monthly
Charge
Difference
($)
Difference
(%)
1 1-inch single
family residential
U-branch fire line

0.06 $0.00 $3.34 $3.34 $4.40 ($1.05) -23.9%
2 1-inch fire line 0.06 $5.15 $3.34 $8.49 $4.40 $4.10 93.2% 3 2-inch fire line 0.06 $5.15 $3.34 $8.49 $4.40 $4.10 93.2% 4 3-inch fire line 0.16 $5.15 $9.71 $14.86 $12.75 $2.11 16.6% 5 4-inch fire line 0.34 $5.15 $20.69 $25.84 $27.15 ($1.30) -4.8% 6 6-inch fire line 1.00 $5.15 $60.11 $65.26 $78.84 ($13.58) -17.2% 7 8-inch fire line 2.13 $5.15 $128.10 $133.24 $168.01 ($34.76) -20.7% 8 10-inch fire line 3.83 $5.15 $230.36 $235.51 $302.13 ($66.61) -22.0% 9 12-inch fire line 6.19 $5.15 $372.10 $377.25 $488.01 ($110.76) -22.7% 49 Equal to [29,662 water meters plus 797 fire lines not categorized as Single Family Residential U-branch lines] multiplied by 12 monthly billing periods per year. 50 Equal to 833 Fire Demand Equivalents multiplied by 12 monthly billing periods per year. 70 VENTURA WATER

4.5.3.WATER VOLUME RATES (TEST YEAR FY 2020-21)
Water Volume Rates are designed to recover the portion of the rate revenue requirement allocated to the following cost causation components: Water Supply, Base Delivery, Peaking (Max Day and Max Hour), Conservation, Revenue Offset, and Untreated Offset. However, the costs associated with each cost causation component listed above are not uniformly applied to each customer class. Customer classes are only subject to each unit cost if the service they receive contributes to the Water Enterprise incurring costs associated with that specific cost causation component. Table 4-53 shows which unit costs (Columns C-H) each customer class/tier (Lines 1-6) is subject to.

Note that reclaimed water rates (which are calculated in the wastewater rate study) are excluded from the proposed Water Volume Rate calculations shown in this section.

Table 4-53: Allocation of Unit Costs to Customer Classes [A] [B] [C] [D] [E] [F] [G] [H]
Line Customer Class/Tier Water
Supply
Base
Delivery Peaking Conser- vation
Revenue
Offset
Untreated
Offset
1 Residential Tier 1 ✓ ✓ ✓ ✓
2 Residential Tier 2 ✓ ✓ ✓ ✓ ✓
3 Residential Tier 3 ✓ ✓ ✓ ✓ ✓
4 Non-Residential ✓ ✓ ✓ ✓ ✓
5 Non-Residential
Irrigation ✓ ✓ ✓ ✓ ✓
6 Untreated ✓ ✓ ✓ ✓ ✓ ✓
Water Supply Unit Rate
Water supply unit rates are applied equally to all customer classes. Residential Water Supply unit rates are differentiated by tier, however. Table 4-54 shows the preliminary calculation of Water Supply unit rates before differentiation by residential tier. The revenue requirement associated with the Water Supply cost causation component (from Table 4-43, Column H, Line 1) is divided by total billed water use excluding reclaimed water (from Table 4-6) ) to determine the preliminary Water Supply unit rate.

Table 4-54: Preliminary Water Supply Unit Rate
Description Water Supply
COS Allocation $6,614,535
Billing Units 5,611,346 HCF
Unit Rate (per HCF) $1.179
Table 4-55 shows the differentiation of residential Water Supply unit rates by preferentially allocating less expensive water supplies to lower tiers. The Water Supply COS allocation is first broken down by supply source (Line 1). Revenue offsets reallocated to the Water Supply cost causation component (from Table 4-43, Column G, Line 1) are then applied (Line 2) to determine the net revenue requirement associated with each water supply source (Line 3). Unit costs per acre-foot (Line 13) are then calculated by dividing each supply source’s net revenue requirement (Line 3) by total water supply available to meet billed water use (Line 11).

The residential customer class is then allocated 68.9% of available supply from each source because residential water use is equal to 68.9% of total water use. The residential water supply Line (16) is then allocated to Tiers 1-3.

Tier 1 represents efficient indoor water use and is therefore preferentially allocated supplies from the cheapest 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 71 source (Ventura River - Foster Park) and then the next cheapest source (groundwater). Tier 2 represents average outdoor use of the class and is therefore allocated all remaining groundwater available to residential customers.

Tier 3 represents use greater than the average of the class and is therefore allocated water from the highest cost source of supply (Casitas MWD).

Residential water supply costs (Lines 25-28) are then calculated by multiplying unit costs (Line 13) by the water supply allocations by tier (Lines 19-21). Water supply costs associated with the State Water Project (Column F), VenturaWaterPure (Column G), and unbilled water use for fire training, etc. (Line 31) are uniformly allocated to all units of water regardless of customer class or tier. The adjusted water supply cost allocations by tier (Column H, Lines 40-42) is determined by adding unbilled water supply cost allocations (Lines 34-36) to water supply costs by tier (Lines 25-27). See Table 4-55 footnotes for additional information. 72 VENTURA WATER
Table 4-55: Residential Water Supply Cost Allocation by Tier (Test Year FY 2020-21) [A] [B] [C] [D] [E] [F] [G] [H]
Line Description Ventura River
(Foster Park) Groundwater Casitas MWD State WaterProject VenturaWaterP
ure
Total
1 Water Supply Revenue Requirement $0 $3,358,450 $2,282,172 $2,110,000 $49,981 $7,800,603 2 Water Supply Offset $0 ($89,614)51 ($96,453)52 ($1,000,000)53 $0 ($1,186,068) 3 Net Water Supply Revenue Requirement $0 $3,268,836 $2,185,718 $1,110,000 $49,981 $6,614,535 4 5 Water Supply
6 Water Supply (AF) 1,573 10,014 2,561 0 0 14,148
7 Assumed Water Loss 7.0% 7.0% 7.0% 7.0% 7.0% 7.0%
8 9 Water Supply after Loss (AF)54 1,463 9,313 2,381 0 0 13,157 10 Less Saticoy Country Club Golf Course
Demand (AF) 0 261 0 0 0 261
11 Water Supply after Loss excl. Saticoy
Country Club Golf Course (AF) 1,463 9,052 2,381 0 0 12,896 12 13 Unit Cost after Loss ($/AF) $0.00 $361.11 $917.84 $86.07 $3.88 $512.90 14 15 Residential Water Supply Allocation (%) 68.9% 68.9% 68.9% 68.9% 68.9% 68.9% 16 Residential Water Supply Allocation (AF) 1,009 6,241 1,642 0 0 8,891 17 18 Residential Water Supply55 19 Tier 1 1,009 4,860 0 0 0 3,590 20 Tier 2 0 1,381 533 0 0 1,171
21 Tier 3 0 0 1,109 0 0 678
22 Total (AF) 1,009 6,241 1,642 0 0 8,891
23 24 Residential Water Supply Costs
51 The Saticoy Club golf course’s estimated share of groundwater assessment costs. 52 Pass-through revenue from Casitas Direct customers. 53 State Water Project recoverable expenditures. 54 Equal to [Line 6 ÷ (100%-7%)] 55 Residential water use equals 68.9% of total water use, and is therefore allocated 68.9% of the supply from each source. 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 73 [A] [B] [C] [D] [E] [F] [G] [H]
Line Description Ventura River
(Foster Park) Groundwater Casitas MWD State WaterProject VenturaWaterP
ure
Total
25 Tier 1 $0 $1,754,852 $0 $505,076 $22,743 $2,282,671
26 Tier 2 $0 $498,847 $488,872 $164,744 $7,418 $1,159,881 27 Tier 3 $0 $0 $1,018,072 $95,470 $4,299 $1,117,840
28 Total $0 $2,253,699 $1,506,944 $765,290 $34,460 $4,560,392 29 30 Unbilled Water Use (AF)56 2 10 3 0 0 15
31 Unbilled Water Supply Costs $0 $3,683 $2,463 $1,251 $56 $7,453 32 33 Unbilled Water Supply Cost Allocation
34 Tier 1 (45.6% of total water use) $0 $1,678 $1,122 $570 $26 $3,395 35 Tier 2 (14.9% of total water use) $0 $547 $366 $186 $8 $1,107 36 Tier 3 (8.6% of total water use) $0 $317 $212 $108 $5 $642 37 Total $0 $2,542 $1,700 $863 $39 $5,144
38 39 Adjusted Water Supply Cost Allocation
40 Tier 1 $0 $1,756,529 $1,122 $505,646 $22,768 $2,286,066 41 Tier 2 $0 $499,395 $489,238 $164,929 $7,426 $1,160,989 42 Tier 3 $0 $317 $1,018,284 $95,577 $4,304 $1,118,482
44 Total $0 $2,256,241 $1,508,644 $766,153 $34,499 $4,565,536 56 Water use for fire training and other miscellaneous water uses not subject to billing 74 VENTURA WATER
Table 4-56 shows the calculation of residential Water Supply unit rates by tier. Each tier’s water supply cost allocation (from Table 4-55) is divided by the water use in the respective tier (from Table 4-47) to determine the Water Supply unit rate.

Table 4-56: Residential Water Supply Unit Rates by Tier Residential Tier
Water Supply
Cost
Allocation
Water Use
(HCF)
Water Supply
Unit Rate
(per HCF)
Tier 1 $2,286,066 2,556,176 $0.894
Tier 2 $1,160,989 833,762 $1.392
Tier 3 $1,118,482 483,169 $2.315
Table 4-57 summarizes the proposed Water Supply unit rates by customer class and tier based on Table 4-56 for residential customers and Table 4-54 for all other customer classes.

Table 4-57: Water Supply Unit Rates by Customer Class and Tier Customer Class/Tier
Water Supply
Unit Rate
(per HCF)
Residential Tier 1 $0.894
Residential Tier 2 $1.392
Residential Tier 3 $2.315
Non-Residential $1.179
Non-Residential Irrigation $1.179
Untreated $1.179
Base Delivery Unit Rate
Base Delivery unit rates are applied uniformly to all customer classes and tiers as these are costs for providing water during average daily demand conditions. Table 4-58 shows the calculation of Base Delivery unit rates. The revenue requirement associated with the Base Delivery cost causation component (from Table 4-43, Column H, Line 2) is divided by total billed water use excluding reclaimed water (from Table 4-6) to determine the Base Delivery unit rate.

Table 4-58: Base Delivery Unit Rate
Description Base Delivery
COS Allocation $11,761,175
Billing Units (HCF) 5,611,346
Unit Rate ($ / HCF) $2.096
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 75 Peaking Unit Rate
Peaking unit rates vary by customer class and tier based on peak water use characteristics. Before unit rates can be differentiated by customer class and tier, Table 4-59 shows the calculation of Max Day and Max Hour unit costs.

The revenue requirement associated with the Max Day and Max Hour cost causation components (from Table 4-43, Column H, Lines 3-4) is divided by total Max Day and Max Hour requirements not associated with fire protection (from Table 4-42, Columns C and E, Lines 1-6) to determine the Max Day and Max Hour unit costs .

Table 4-59: Peaking Unit Costs
Description Max Day Max Hour
COS Allocation $2,940,367 $3,626,903
Billing Units 3,734 HCF/Day 30,782 HCF/Day
Unit Cost (HCF/Day) $787.42 $117.83
Table 4-60 shows the development of Peaking unit rates for each customer class and tier. Total Max Day and Max Hour unit costs are allocated to each customer class and tier based on Max Day and Max Hour requirements, respectively. Max Day requirements in Column C (from Table 4-42, Column C) are multiplied by the Max Day unit cost (from Table 4-59) to determine allocated Max Day costs (Column D). Max Hour requirements in Column E (from Table 4-42, Column E) are multiplied by the Max Hour unit cost (from Table 4-59) to determine allocated Max Hour costs (Column F). Total allocated peaking costs (Column G) equal the sum of allocated Max Day costs (Column D) and allocated Max Hour costs (Column F). The Peaking unit rate (Column I) is calculated by dividing total allocated peaking costs (Column G) by projected FY 2020-21 water use in Column C (from Table 4-47 for residential customers and Table 4-6 for all other customer classes).

Table 4-60: Peaking Unit Rates
[A] [B] [C] [D] [E] [F] [G] [H] [I]
Line Customer
Class/Tier
Max Day
Require- ments
(HCF/Day)
Allocated
Max Day
Costs
Max Hour
Require- ments
(HCF/Day)
Allocated
Max Hour
Costs
Total
Allocated
Peaking
Costs
FY 2020-21
Water Use
(HCF)
Peaking
Unit Rate
($/HCF)
1 Residential Tier 1 318 $250,080 11,792 $1,389,444 $1,639,524 2,556,176 $0.641 2 Residential Tier 2 685 $539,444 4,784 $563,637 $1,103,081 833,762 $1.323 3 Residential Tier 3 596 $469,303 3,093 $364,423 $833,727 483,169 $1.726 4 Non-Residential 1,809 $1,424,175 9,731 $1,146,628 $2,570,803 1,544,580 $1.664 5 Non-Residential
Irrigation 295 $232,573 1,213 $142,925 $375,498 166,992 $2.249 6 Untreated 31 $24,791 168 $19,845 $44,636 26,666 $1.674 Conservation Unit Rate
Conservation unit rates are applied equally to all non-Residential customer classes. Residential Conservation unit rates are differentiated by tier, however. Table 4-61 shows the preliminary calculation of Conservation unit rates before differentiation by residential tier. The revenue requirement associated with the Conservation cost causation component (from Table 4-43, Column H, Line 5) is divided by total billed water use excluding reclaimed water (from Table 4-6) to determine the uniform Conservation unit rate. 76 VENTURA WATER
Table 4-61: Preliminary Conservation Unit Rate
Description Conservation
COS Allocation $1,132,387
Billing Units 5,611,346 HCF
Unit Rate (per HCF) $0.202
Conservation costs are applied to all customer classes, but are differentiated by residential tier. This is necessary because conservation efforts are generally aimed at curtailing outdoor water use that is represented by Tier 2 and Tier 3. Tier 1 use represents essential indoor use that conservation and efficiency efforts typically do not aim to address. Therefore, Raftelis recommends that no Conservation costs are allocated to Tier 1.The Water Commission expressed support for this recommendation. Table 4-62 shows the calculation of Conservation unit rates for the residential tiers. Because Conservation costs are allocated to all customer classes proportionally, the residential customer class must recover its fair share of Conservation costs based on total class water use. Total Single Family Residential water use in Line 5 (from Table 4-47) is multiplied by the uniform Conservation unit rate in Line 7 (from Table 4-61) to determine the total Conservation revenue requirement for residential customers (Line 9). Tier 1 water use (Line 1) is subtracted from total residential water use (Line 5) to determine the adjusted units of service (Line 11) subject to the Conservation component. The adjusted unit rate (Line 13) equals the residential Conservation revenue requirement (Line 9) divided by the adjusted units of service (Line 11). This represents the Conservation unit rate to be applied to Tier 2 and Tier 3 (Lines 16-17). Tier 1 is excluded from Conservation cost recovery (Line 15).

Table 4-62: Residential Conservation Unit Rates by Tier [A] [B] [C] [D]
Line Description FY 2020-21 Notes
1 Residential Water Use (HCF)
2 Tier 1 2,556,176
3 Tier 2 833,762
4 Tier 3 483,169
5 Total Residential Water Use (HCF) 3,873,107
6 7 Conservation Unit Cost (per HCF) $0.202
8 9 Residential Conservation Revenue Requirement $781,605 = Line 5 × Line 7 10 11 Adjusted Units of Service (Tier 2-3 Water Use only) 1,316,931 = Line 5 - Line 1 12 13 Adjusted Unit Rate (Tier 2-3 only) $0.594 = Line 9 ÷ Line 11 14 15 Tier 1 Conservation Unit Rate $0.000
16 Tier 2 Conservation Unit Rate $0.594 = Line 13
17 Tier 3 Conservation Unit Rate $0.594 = Line 13
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 77 Table 4-63 summarizes the proposed Conservation unit rates by customer class and tier based on Table 4-62 for residential customers and Table 4-61 for all other customer classes.

Table 4-63: Conservation Unit Rates by Customer Class and Tier Customer Class/Tier
Conservation
Unit Rate
(per HCF)
Residential Tier 1 $0.000
Residential Tier 2 $0.594
Residential Tier 3 $0.594
Non-Residential $0.202
Non-Residential Irrigation $0.202
Untreated $0.202
Revenue Offset Unit Rate
Revenue Offset unit rates are applied equally to all customer classes and tiers. Table 4-64 shows the calculation of Revenue Offset unit rates. The revenue requirement associated with the Revenue Offset cost causation component (from Table 4-43, Column H, Line 9) is divided by total billed water use excluding reclaimed water (from Table 4-6) to determine the Revenue Offset unit rate.

Table 4-64: Revenue Offset Unit Rate
Description Revenue
Offset
COS Allocation ($5,086,491)
Billing Units (HCF) 5,611,346
Unit Rate (per HCF) ($0.906)
Untreated Offset Unit Rate
The Untreated Offset unit rate is only applied to Untreated Water customers to offset any treatment-related costs allocated to the Untreated Water customer class via the Base Delivery, Max Day, and Max Hour cost causation components. Table 4-65 shows the calculation of the Untreated Offset unit rate. Total operating and capital revenue requirements assigned to the Treatment functional category are divided by total water sales requiring treatment by Ventura Water57 to determine an average unit cost of water treatment and therefore the Untreated Offset unit rate.
57 Water supplied by Casitas MWD is treated before delivery to Ventura Water’s water system. 78 VENTURA WATER
Table 4-65: Untreated Offset Unit Rate
Description Untreated Offset
Treatment Functional Category
O&M Revenue Requirement58 $5,735,923
Capital Revenue Requirement59 $516,095
Total $6,252,018
Water Sales (excl. Casitas Supply)60 4,574,021 HCF
Untreated Offset Unit Rate (per HCF) $1.367
Water Volume Rate Calculation (Test Year FY 2020-21)
Table 4-66 shows the calculation of Water Volume Rates for the test year. No revenue adjustments are incorporated into the COS rates shown, which are designed to collect the same amount of revenue as current water rates. Unit rates are applied to each customer class in accordance with Table 4-53. The COS rate (Column I) is calculated by summing the following unit rates (Columns C-H): » Water Supply Unit Rates (from Table 4-57) » Base Delivery Unit Rates (from Table 4-58) » Peaking Unit Rates (from Table 4-60) » Conservation Unit Rates (from Table 4-63) » Revenue Offset Unit Rates (from Table 4-64) » Untreated Offset Unit Rates (from Table 4-65) 58 From Table 4-32. 59 Equal to total capital revenue requirement in FY 2020-21 ($2,617,929) multiplied by percent of total asset value associated with the Treatment functional category (19.7%). 60 From Table 4-7. 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 79 Table 4-66: Water Volume Rates Calculation (Test Year FY 2020-21) [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L]
Line Customer Class Supply
Unit Rate
Base
Delivery
Unit Rate
Peaking
Unit Rate
Conserv- ation
Unit Rate
Revenue
Offset Unit
Rate
Untreated
Offset Unit
Rate
COS Rate
Per HCF
Current
Rate per
HCF
(Stage 2)
Difference
($)
Difference
(%)
1 Residential Tier 1 $0.894 $2.096 $0.641 $0.000 ($0.906) $0.000 $2.73 $2.77 ($0.04) -1.6% 2 Residential Tier 2 $1.392 $2.096 $1.323 $0.594 ($0.906) $0.000 $4.50 $3.12 $1.38 44.2% 3 Residential Tier 3 $2.315 $2.096 $1.726 $0.594 ($0.906) $0.000 $5.82 $4.62 $1.20 26.0% 4 Non-Residential $1.179 $2.096 $1.664 $0.202 ($0.906) $0.000 $4.23 $3.98 $0.25 6.4% 5 Non-Residential
Irrigation $1.179 $2.096 $2.249 $0.202 ($0.906) $0.000 $4.82 $4.25 $0.57 13.4% 6 Untreated Water $1.179 $2.096 $1.674 $0.202 ($0.906) ($1.367) $2.88 $3.44 ($0.56) -16.4% Proposed Five-Year Water Rate ScheduleTable 4-67 shows the proposed five-year schedule of water rates for FY 2021-22 to FY 2025-26. Proposed FY 2021-22 water rates were calculated by increasing COS Water Service Charges (from Table 4-49), Fire Line Service Charges (from Table 4-50), and Water Volume Rates (from Table 4-66) by the proposed FY 2021-22 revenue adjustment of 7 percent (from Table 4-26). All proposed rates in subsequent years are then increased by 7 percent per year based on the schedule of proposed revenue adjustments (from Table 4-26). All proposed rates are rounded up to the nearest cent to ensure adequate revenue recovery. Current FY 2020-21 water rates (from Table 4-1) are also shown. Current fixed charges are shown on a monthly basis. Current Water Volume Rates are Water Shortage Stage 2 rates. Proposed rates reflect non-shortage / new baseline supply and demand conditions. Note that Water Volume Rates for reclaimed water customers are presented in Table 4-67, but are calculated as part of the wastewater rate study in Section 5.
80 VENTURA WATER
Table 4-67: Proposed Five-Year Water Rate Schedule
Description Current Proposed
July 2021
Proposed
July 2022
Proposed
July 2023
Proposed
July 2024
Proposed
July 2025
Monthly Water Service Charge
3/4-inch water meter $16.85 $18.50 $19.79 $21.18 $22.66 $24.25 1-inch water meter $25.52 $27.16 $29.06 $31.09 $33.27 $35.59

1.5-inch water meter $47.19 $48.80 $52.21 $55.87 $59.78 $63.96 2-inch water meter $73.21 $74.77 $80.00 $85.60 $91.60 $98.01 3-inch water meter $155.59 $157.02 $168.01 $179.77 $192.35 $205.81 4-inch water meter $276.99 $278.22 $297.69 $318.53 $340.83 $364.69 6-inch water meter $567.49 $568.24 $608.01 $650.57 $696.11 $744.84 8-inch water meter $1,044.42 $1,044.39 $1,117.50 $1,195.72 $1,279.42 $1,368.98 10-inch water meter $1,651.43 $1,650.40 $1,765.93 $1,889.54 $2,021.81 $2,163.34 12-inch water meter $2,171.72 $2,169.84 $2,321.73 $2,484.25 $2,658.14 $2,844.21 Monthly Fire Line Service Charge
1-inch single family residential U- branch fire line $4.40 $3.58 $3.83 $4.10 $4.39 $4.69 1-inch fire line $4.40 $9.09 $9.73 $10.41 $11.13 $11.91 2-inch fire line $4.40 $9.09 $9.73 $10.41 $11.13 $11.91 3-inch fire line $12.75 $15.90 $17.02 $18.21 $19.48 $20.84 4-inch fire line $27.15 $27.65 $29.59 $31.66 $33.88 $36.25 6-inch fire line $78.84 $69.83 $74.72 $79.95 $85.54 $91.53 8-inch fire line $168.01 $142.58 $152.56 $163.24 $174.66 $186.89 10-inch fire line $302.13 $252.00 $269.64 $288.52 $308.71 $330.32 12-inch fire line $488.01 $403.66 $431.92 $462.15 $494.50 $529.11 Water Volume Rates (per HCF)
Single Family Residential
Tier 1 (Current: 0-3 HCF per month /
Proposed: 0-6 HCF per month) $2.77 $2.92 $3.13 $3.34 $3.58 $3.83 Tier 2 (Current: 4-7 HCF per month /
Proposed: 7-12 HCF per month) $3.12 $4.82 $5.16 $5.52 $5.90 $6.31 Tier 3 (Current: 8-15 HCF per month
/ Proposed: >12 HCF per month) $4.62 $6.24 $6.67 $7.14 $7.64 $8.17 Tier 4 (Current: >15 HCF per month
/ Proposed: N/A) $7.73 N/A N/A N/A N/A N/A
Multiple Family Residential
Tier 1 (Current: 0-3 HCF per month /
Proposed: 0-5 HCF per month) $2.77 $2.92 $3.13 $3.34 $3.58 $3.83 Tier 2 (Current: 4-5 HCF per month /
Proposed: 6-10 HCF per month) $3.12 $4.82 $5.16 $5.52 $5.90 $6.31 Tier 3 (Current: 6-8 HCF per month /
Proposed: >10 HCF per month) $4.62 $6.24 $6.67 $7.14 $7.64 $8.17 Tier 4 (Current: >8 HCF per month /
Proposed: N/A per month) $7.73 N/A N/A N/A N/A N/A
Non-Residential $3.98 $4.54 $4.85 $5.19 $5.56 $5.94
Non-Residential Irrigation $4.25 $5.16 $5.52 $5.91 $6.32 $6.76 Institutional/Interruptible $3.29 N/A N/A N/A N/A N/A
Untreated Water $3.44 $3.08 $3.30 $3.53 $3.78 $4.04
Reclaimed Water $0.95 $1.16 $1.23 $1.31 $1.38 $1.47
Outside City Limits Surcharge (per HCF)
All Customer Classes $0.60 N/A N/A N/A N/A N/A
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 81

4.6.Proposed Water Shortage Surcharges

4.6.1.WATER SHORTAGE EVENT CONTINGENCY PLAN UPDATE
Ventura Water conducted a Water Shortage Rate Study in 2015 to establish a system of implementing increased Water Volume Rates during declared water shortage stages. This was necessary to recover revenue shortfalls resulting from reduced water sales during the recent drought. Water shortage stages are currently declared based on criteria outlined in Ventura Water’s 2015 Water Shortage Event Contingency Plan. Stage 3 Water Volume Rates were implemented upon adoption of the 2015 Water Shortage Rate Study and were in effect until June 2020. Stage 2 rates have been effect since July 2020. Ventura Water is in the process of updating the 2015 Water Shortage Event Contingency Plan, which will incorporate updated criteria for declaring water shortage stages (see Table 4-68). The 2020 Water Shortage Contingency Plan compares current supply and current demand, instead of current supply and normal supply as was done in the 2015 Water Shortage Event Contingency Plan. Current demand will be estimated using the most recent five years of customer demands plus projected demands due to annual growth. The key impact of the 2020 Water Shortage Event Contingency Plan update will be that water shortage stages are less likely to be declared in the future. Based on new baseline water demand and projected supply conditions, it is anticipated that the current Stage 2 declaration will be rescinded, and no Water Shortage rates will be implemented in FY 2021-22.

Table 4-68: Current versus Updated Water Shortage Stages Water
Shortage
Stage
Demand
Reduction
Goal
Trigger
2015 Water Shortage Event Contingency Plan (Current supply and normal supply comparison) Stage 1 10% Voluntary Annual supply projection is 10% below baseline supply Stage 2 10% Mandatory Annual supply projection is 10-19% below baseline supply Stage 3 20% Mandatory Annual supply projection is 20-29% below baseline supply Stage 4 30% Mandatory Annual supply projection is 30-39% below baseline supply Stage 5 40% Mandatory Annual supply projection is 40-49% below baseline supply Stage 6 50% Mandatory Annual supply projection is below 50% baseline supply Updated Water Shortage Event Contingency Plan (Current supply and current demand comparison) Stage 1 10% Voluntary Annual supply projection is between 0 and 10% below demand projection Stage 2 10% Mandatory Annual supply projection is greater than or equal to 10% and less than 20% below demand projection
Stage 3 20% Mandatory Annual supply projection is greater than or equal to 20% and less than 30% below demand projection
Stage 4 30% Mandatory Annual supply projection is greater than or equal to 30% and less than 40% below demand projection
Stage 5 40% Mandatory Annual supply projection is greater than or equal to 40% and less than 50% below demand projection
Stage 6 50% Mandatory Annual supply projection is greater than or equal to 50% below demand projection

4.6.2.PROPOSED CHANGES TO WATER SHORTAGE RATE STRUCTURE Raftelis recommends that Ventura Water update its existing structure of Water Shortage Rates to account for updates to the 2015 Water Shortage Event Contingency Plan and also to simplify the existing water shortage rate structure. Under the current schedule of Water Shortage Rates, Water Volume Rates increase with each subsequent 82 VENTURA WATER
water shortage stage beginning with Stage 2. In place of adjusting Water Volume Rates with each stage, Raftelis recommends that Ventura Water maintain the same base condition Water Volume Rates (from Table 4-67) at each stage, and communicate the shortage conditions as Water Shortage Surcharges, assessed separately during Shortage Stages 2-6. This change does not affect the revenue needs in shortage; it is recommended to more clearly communicate to customers the impact of water shortage conditions on each bill.

Additionally, Raftelis recommends harmonizing the tier allotments in shortage and non-shortage to simplify the schedule of shortage surcharges and to improve customer understanding. Currently, in shortage conditions, the first Residential tier is split in to two tiers, which yields a four-tier rate structure in shortage and a three-tier structure in non-shortage. The proposed Water Shortage Surcharges maintain the same three-tier structure and the same allotments in shortage and non-shortage conditions. These recommended changes to the structure are proposed to take effect in conjunction with the non-shortage / base rate proposal in FY 2021-22.

4.6.3.CALCULATION OF PROPOSED WATER SHORTAGE SURCHARGES This subsection shows detailed calculations of proposed Water Shortage Surcharges through FY 2025-26. All proposed surcharges are first calculated for FY 2020-21 (i.e. the “test year”) to maintain consistency with the water COS analysis. Note however that the first year that surcharges would be adopted (but not implemented) is FY 2021-22. Therefore, all “proposed” FY 2020-21 surcharges shown represent cost of service results in the current fiscal year. Surcharges must be calculated for the FY 2020-21 test year to provide a basis for proposed surcharges for FY 2021-22 through FY 2025-26.

Water shortage rates are designed to recover net revenue shortfalls during periods of reduced water sales. The first step in the development of Water Shortage Surcharges is to estimate reductions in water use at each water shortage stage. Table 4-69 shows projected reductions in FY 2020-21 water use by customer class and tier. Reductions were estimated in consultation with Ventura Water staff relying on a mix of prior study assumptions, actual reductions during recent shortage conditions, and professional judgment. All reductions shown are relative to “base” (non-shortage) water use projections (from Table 4-47 for residential customers and Table 4-6 for all other customer classes). 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 83 Table 4-69: Projected Water Use Reduction by Water Shortage Stage (FY 2020-21) Description Base Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Water Use Reduction
Single Family Residential
Tier 1 N/A 8% 15% 23% 33% 45%
Tier 2 N/A 15% 35% 55% 75% 85%
Tier 3 N/A 30% 50% 75% 90% 95%
Multiple Family Residential
Tier 1 N/A 6% 11% 17% 24% 34%
Tier 2 N/A 8% 18% 28% 38% 43%
Tier 3 N/A 30% 50% 75% 90% 95%
Non-Residential N/A 7% 14% 21% 28% 35%
Non-Residential Irrigation N/A 20% 35% 55% 75% 90%
Untreated N/A 15% 35% 50% 65% 80%
Total Water Use Reduction N/A 10% 20% 30% 40% 50%
Water Use (HCF)
Single Family Residential
Tier 1 1,563,606 1,446,335 1,329,065 1,211,795 1,055,434 859,983 Tier 2 510,010 433,509 331,507 229,505 127,503 76,502
Tier 3 295,553 206,887 147,777 73,888 29,555 14,778
Multiple Family Residential
Tier 1 992,570 936,303 880,035 823,767 748,744 654,965
Tier 2 323,752 298,903 265,770 232,637 199,504 182,938
Tier 3 187,616 131,331 93,808 46,904 18,762 9,381
Non-Residential 1,544,580 1,436,460 1,328,339 1,220,218 1,112,098 1,003,977 Non-Residential Irrigation 166,992 133,594 108,545 75,146 41,748 16,699 Untreated 26,666 22,666 17,333 13,333 9,333 5,333
Total Water Use (HCF) 5,611,346 5,045,987 4,502,177 3,927,193 3,342,680 2,824,554 Table 4-70 shows the detailed calculation of Water Shortage Surcharges as a percent of base Water Volume Rates.

Stage 1 is omitted because Stage 1 calls for a voluntary 10 percent reduction in water demand. The net revenue loss to be recovered by Water Shortage Surcharges is based on three components:

1. Total rate revenue loss: As water sales decrease with each subsequent stage, revenues from Water Volume Rates also decline. Raftelis projected annualized Water Volume Rate revenues in FY 2020-21 under each stage based on proposed FY 2020-21 Water Volume Rates (from Table 4-66) and projected water demand by customer class and stage (from Table 4-69).

2. Additional Water Shortage Costs: Ventura Water staff provided Raftelis with projected cost increases at each stage to implement further conversation efforts.

3. Variable O&M Cost Savings: During periods of reduced water sales, the Water Enterprise will experience modest decreases in variable operating costs. Raftelis estimated variable weighted average costs of water supply, electricity, and water treatment chemicals to project O&M costs savings at each stage.

The total net revenue loss equals the sum of the three aforementioned components and represents the additional revenue required from Water Shortage Surcharges at each stage. Dividing the net revenue loss by annualized Water Volume Rate revenue under “base rates” results in the proposed FY 2020-21 Water Shortage Surcharges (as a percent of base rates).
84 VENTURA WATER
Table 4-70: Calculation of Water Shortage Surcharges (Test Year FY 2020-21) Description Base Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Revenue Loss
Projected Water Sales (HCF) 5,611,346 5,045,987 4,502,177 3,927,193 3,342,680 2,824,554 % Change in Projected Water
Sales from Base 0% -10% -20% -30% -40% -50%
Annualized Rate Revenue
under Base Rates $20,952,427 $18,549,180 $16,311,726 $13,897,189 $11,606,378 $9,783,480 Total Rate Revenue Loss $0 $2,403,247 $4,640,701 $7,055,238 $9,346,048 $11,168,947 Additional Water Shortage Costs
Professional Services $0 $100,000 $200,000 $200,000 $300,000 $300,000 Advertising $0 $20,000 $30,000 $50,000 $60,000 $60,000
Conservation Hardware $0 $0 $5,000 $10,000 $10,000 $10,000 Total Additional Costs $0 $120,000 $235,000 $260,000 $370,000 $370,000 Variable O&M Cost Savings
Projected Water Loss 7.0% 7.0% 7.0% 7.0% 7.0% 7.0%
Supply Reduction (HCF) 0 607,913 1,192,654 1,810,917 2,439,426 2,996,550 Weighted Average Variable
Supply Cost ($/HCF) $0.67 $0.67 $0.67 $0.67 $0.67 $0.67 Weighted Average Variable
Electrical Cost ($/HCF) $0.22 $0.22 $0.22 $0.22 $0.22 $0.22 Weighted Average Variable
Chemical Cost ($/HCF) $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 Projected Supply Savings $0 ($408,176) ($800,795) ($1,215,920) ($1,637,926) ($2,012,000) Projected Electrical Savings $0 ($134,793) ($264,448) ($401,536) ($540,895) ($664,427) Projected Chemical Savings $0 ($22,302) ($43,754) ($66,436) ($89,494) ($109,932) Total Change in O&M $0 ($565,271) ($1,108,997) ($1,683,892) ($2,268,314) ($2,786,360) Net Revenue Loss $0 $1,957,975 $3,766,704 $5,631,346 $7,447,734 $8,752,588 Surcharge (% of Base Rate) 10.6% 23.1% 40.5% 64.2% 89.5% Table 4-71 shows the calculation of Water Shortage Surcharges per HCF at each stage for the test year (FY 2020-21). Surcharges per HCF are equal to the COS Water Volume Rates (from Table 4-66) multiplied by the corresponding surcharge percentages at each stage (from Table 4-70). This approach ensures that surcharges by class, tier, and stage are proportional to the cost of service analysis and the cost to service each respective user. In this way the results of the cost of service are maintained through shortage conditions and over the five-year rate-setting period.

Table 4-71: Calculated Water Shortage Stage Surcharges per HCF (Test Year FY 2020-21) Description COS Base
Rate
Stage 2
Surcharge
Stage 3
Surcharge
Stage 4
Surcharge
Stage 5
Surcharge
Stage 6
Surcharge
Water Shortage Surcharge
(% of Base Rates) N/A 10.6% 23.1% 40.5% 64.2% 89.5%
Customer Class/Tier
Residential Tier 1 $2.73 $0.29 $0.63 $1.10 $1.75 $2.44
Residential Tier 2 $4.50 $0.47 $1.04 $1.82 $2.89 $4.02
Residential Tier 3 $5.82 $0.61 $1.34 $2.36 $3.74 $5.21
Non-Residential $4.23 $0.45 $0.98 $1.72 $2.72 $3.79
Non-Residential Irrigation $4.82 $0.51 $1.11 $1.95 $3.09 $4.31 Untreated $2.88 $0.30 $0.66 $1.17 $1.85 $2.57
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 85 Table 4-72 shows the proposed five-year schedule of Water Shortage Surcharges for FY 2021-22 to FY 2025-26.

Proposed FY 2021-22 surcharges were calculated by increasing the COS surcharges for the test year (from Table 4-71 by the proposed FY 2021-22 revenue adjustment of 7 percent (from Table 4-26). All proposed surcharges in subsequent years are then increased by 7 percent per year based on the schedule of proposed revenue adjustments (from Table 4-26). All proposed surcharges are rounded up to the nearest cent to ensure adequate revenue recovery.

Table 4-72: Proposed Five-Year Schedule of Water Shortage Surcharges Proposed Water Shortage Surcharges
(per HCF)
Proposed
July 2021
Proposed
July 2022
Proposed
July 2023
Proposed
July 2024
Proposed
July 2025
Revenue Adjustment 7.0% 7.0% 7.0% 7.0% 7.0%
Stage 1 (10% Voluntary Reduction)
Residential Tier 1 $0.00 $0.00 $0.00 $0.00 $0.00
Residential Tier 2 $0.00 $0.00 $0.00 $0.00 $0.00
Residential Tier 3 $0.00 $0.00 $0.00 $0.00 $0.00
Non-Residential $0.00 $0.00 $0.00 $0.00 $0.00
Non-Residential Irrigation $0.00 $0.00 $0.00 $0.00 $0.00 Untreated $0.00 $0.00 $0.00 $0.00 $0.00
Stage 2 (10% Mandatory Reduction)
Residential Tier 1 $0.31 $0.33 $0.36 $0.38 $0.41
Residential Tier 2 $0.51 $0.55 $0.59 $0.63 $0.67
Residential Tier 3 $0.66 $0.71 $0.76 $0.81 $0.87
Non-Residential $0.48 $0.52 $0.55 $0.59 $0.63
Non-Residential Irrigation $0.55 $0.59 $0.63 $0.67 $0.72 Untreated $0.33 $0.35 $0.38 $0.40 $0.43
Stage 3 (20% Mandatory Reduction)
Residential Tier 1 $0.68 $0.73 $0.78 $0.83 $0.89
Residential Tier 2 $1.12 $1.19 $1.28 $1.37 $1.46
Residential Tier 3 $1.44 $1.54 $1.65 $1.77 $1.89
Non-Residential $1.05 $1.12 $1.20 $1.29 $1.38
Non-Residential Irrigation $1.20 $1.28 $1.37 $1.46 $1.57 Untreated $0.72 $0.77 $0.82 $0.88 $0.94
Stage 4 (30% Mandatory Reduction)
Residential Tier 1 $1.19 $1.27 $1.36 $1.45 $1.55
Residential Tier 2 $1.96 $2.09 $2.24 $2.39 $2.56
Residential Tier 3 $2.53 $2.71 $2.90 $3.10 $3.31
Non-Residential $1.84 $1.97 $2.11 $2.25 $2.41
Non-Residential Irrigation $2.09 $2.24 $2.40 $2.56 $2.74 Untreated $1.25 $1.34 $1.43 $1.53 $1.64
Stage 5 (40% Mandatory Reduction)
Residential Tier 1 $1.88 $2.01 $2.15 $2.30 $2.46
Residential Tier 2 $3.09 $3.31 $3.54 $3.79 $4.05
Residential Tier 3 $4.00 $4.28 $4.58 $4.90 $5.25
Non-Residential $2.91 $3.12 $3.33 $3.57 $3.82
Non-Residential Irrigation $3.31 $3.55 $3.79 $4.06 $4.34 Untreated $1.98 $2.12 $2.27 $2.43 $2.59
Stage 6 (50% Mandatory Reduction)
Residential Tier 1 $2.61 $2.80 $2.99 $3.20 $3.42
Residential Tier 2 $4.31 $4.61 $4.94 $5.28 $5.65
Residential Tier 3 $5.58 $5.97 $6.39 $6.83 $7.31
Non-Residential $4.06 $4.34 $4.65 $4.97 $5.32
Non-Residential Irrigation $4.62 $4.94 $5.29 $5.66 $6.05 Untreated $2.76 $2.95 $3.16 $3.38 $3.62
86 VENTURA WATER

5.Wastewater Rate Study

5.1.Key Inputs and Assumptions
Raftelis developed a wastewater rate model in Microsoft Excel to project financial calculations over the next ten fiscal years with projections shown in this section through the five-year rate-setting period of FY 2025-26 (i.e. the “study period”). Please refer to Appendix C for ten-year financial plan projections through FY 2029-30. The City’s fiscal year spans from July 1 through June 30. Projections in future years were generally made based on actual or estimated FY 2018-19 or FY 2019-20 data using key assumptions outlined below. Assumptions were discussed with and reviewed by Ventura Water, Public Works, and Finance staff to ensure that the City wastewater system’s unique characteristics are accurately accounted for. Note that most table values shown throughout this report are rounded to the last digit shown and may therefore not sum precisely to the totals shown.

5.1.1.CURRENT WASTEWATER RATES
Table 5-1 shows the wastewater rates currently in effect in FY 2020-21, which were developed during the prior rate study in 2014. Rates and charges vary by customer class. Residential customers are subject to a bimonthly Fixed Charge per dwelling unit plus a variable Flow Charge based on average winter water use (subject to a maximum or “cap”). Commercial customers and churches also pay a bimonthly Fixed Charge plus a variable Flow Charge based on actual water use each billing period. Schools pay a bimonthly charge per average daily attendance (ADA). Industrial customers pay three different charges: per million gallons of wastewater flows, per 1,000 pounds of chemical oxygen demand (COD), and per 1,000 pounds of suspended solids (SS) based on actual measurement of each industrial customer’s wastewater discharge. All customers are currently subject to an Estuary Protection Charge equal to 10 percent of each wastewater bill. Wastewater rates have not changed since July 2017. All current charges are shown on a bimonthly basis. However, Ventura Water plans to transition from bimonthly to monthly billing beginning in July 2021. All proposed rates and charges presented in subsequent sections of this report are therefore shown in monthly terms.
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 87 Table 5-1: Current Wastewater Rate Schedule
Description FY 2020-21
Single Family Residential
Bimonthly Fixed Charge $25.68
Flow Charge (per HCF)61 $3.76
Multiple Family Residential
Bimonthly Fixed Charge (per dwelling unit) $19.01
Flow Charge (per HCF)62 $3.76
Commercial
Bimonthly Fixed Charge $25.68
Flow Charge (per HCF)
Group 1 $4.94
Group 2 $5.63
Group 3 $7.24
Group 4 $8.94
Group 5 $7.94
Group 6 $1.73
Churches
Bimonthly Fixed Charge $25.68
Flow Charge (per HCF) $3.70
Schools
Bimonthly Charge (per ADA) $201.28
Industrial
Flow (per million gallons) $5,814.85
Chemical Oxygen Demand (per 1,000 lbs.) $224.18
Suspended Solids (per 1,000 lbs.) $484.93
Estuary Protection Charge
All Customer Classes (% of WW Bill) 10%
Commercial customers are currently subject to the same Fixed Charge. However, Flow Charges vary based on commercial establishment type to account for differences in wastewater discharge flow and strength characteristics.

Currently, the City classifies its non-residential users into six major groups. Churches, schools, and industrial customers are in their own separate groups. Group 1 consists of non-residential customers with low strength wastewater, such as laundromats, car washes, professional offices, retail establishments, gym, theaters, etc. Group 2 consists of customers with low-medium strength such as hotels and motels without dining facilities and commercial laundries. Group 3 consists of customers with medium strength such as hotels with dining facilities.

Group 4 consists of medium-high strength customers, including groceries with garbage grinders and mortuaries.

Group 5 consists of high strength customers, such as restaurants, bakeries and multi-use shopping centers. Group 6 consists of plant nurseries, which is considered low strength but typically uses a lot of water for Non-Residential Irrigation purposes. It is appropriate to consider nurseries, churches, and schools as separate customer classes since their water usage and wastewater generation differs greatly from other non-residential customers. Raftelis finds that 61 Single family residential wastewater customers are currently charged based on average winter water usage subject to a cap of 30 HCF per bimonthly billing period, or 15 HCF per month. 62 Multiple family residential wastewater customers are currently charged based on average winter water usage subject to a cap of 24 HCF per bimonthly billing period per dwelling unit, or 12 HCF per month. 88 VENTURA WATER
the existing non-residential customer classification is consistent with industry standards and publicly available wastewater strength data; thus, Raftelis is not proposing any changes to the classifications. Table 5-2 defines the six commercial groups by establishment type.

Table 5-2: Current Wastewater Commercial Customer Classification Commercial Customer
Classification Types of Establishments
Group 1
Laundromats, Car Wash, Professional Offices, Convalescent Homes, Wholesale Establishments, Offices, Retail Establishments, Public Buildings, Barber & Beauty Shops, Gas Stations & Garages, Bars without Dining Facilities, Theaters, Gyms, Hospitals, Grocery Stores without Garbage Grinders Group 2 Hotels & Motels w/o Dining Facilities, Commercial Laundries Group 3 Hotels with Dining Facilities
Group 4 Mortuaries, Grocery Stores with Garbage Grinders Group 5 Bakeries, Restaurants, Multi-Use Shopping Centers Group 6 Plant Nurseries

5.1.2.WASTEWATER ENTERPRISE FINANCIAL ASSUMPTIONS
Inflationary assumptions shown in Table 5-3 are used to escalate projected non-rate revenues and operations and maintenance (O&M) expenses beyond FY 2020-21. For O&M expenses, the general inflation rate is consistent with long-term changes in the Consumer Price Index (CPI). Salary and benefit inflationary increases were provided by Ventura Water and Finance staff, as wastewater utility personnel cost increases are typically agency-specific. All other O&M expense inflationary assumptions were developed by Raftelis based on professional judgement. The capital inflation factor is used to adjust uninflated capital project cost estimates provided to Raftelis by Ventura Water staff. All inflationary assumptions are consistent with inflationary assumptions used in the water rate study.

Table 5-3: Wastewater Enterprise Inflationary Assumptions Inflationary Categories FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Non-Rate Revenues
Miscellaneous 0.00% 0.00% 0.00% 0.00% 0.00%
Expenses
General 3.00% 3.00% 3.00% 3.00% 3.00%
Salaries 5.38% 3.87% 3.53% 3.53% 1.08%
Benefits 5.38% 3.87% 3.53% 3.53% 1.08%
Utilities 5.00% 5.00% 5.00% 5.00% 5.00%
Chemicals 5.00% 5.00% 5.00% 5.00% 5.00%
Capital 4.00% 4.00% 4.00% 4.00% 4.00%
Additional financial assumptions relating to interest earnings are shown in Table 5-4. Interest earnings on cash reserves are projected assuming a one percent annual interest rate.

Table 5-4: Additional Wastewater Enterprise Financial Assumptions Description Value
Interest Earnings
Annual Interest Rate 1.0%
2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 89

5.1.3.PROJECTED WASTEWATER BILLING UNITS OF SERVICE
Wastewater connection growth projections are necessary to estimate wastewater rate revenues over the study period.

Ventura Water staff provided Raftelis with the number of billing units by customer class for FY 2018-19. Raftelis then applied a 0.54% annual account growth rate63 to all billing units to develop projections over the study period (see Table 5-5). No additional demand factor was applied to billed wastewater flows to ensure sufficiently conservative rate revenue projections and to maintain consistency with water demand projections. All billing units shown below are based on the current wastewater rate structure.

Table 5-5: Projected Wastewater Billing Units Under Existing Rate Structure Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Projected Annual Growth 0.54% 0.54% 0.54% 0.54% 0.54% 0.54% Fixed Charge Billing Units
Single Family Residential (# of
connections) 21,680 21,797 21,915 22,033 22,152 22,272
Multiple Family Residential (# of
dwelling units) 20,686 20,797 20,910 21,023 21,136 21,250 Commercial (# of connections) 1,814 1,824 1,834 1,844 1,854 1,864 Churches (# of connections) 59 59 60 60 60 61
Schools (# of ADAs) 282 284 285 287 288 290
Billed Wastewater Flows (HCF)
Single Family Residential 1,778,075 1,753,808 1,775,477 1,774,171 1,784,408 1,788,898 Multiple Family Residential 1,260,388 1,267,194 1,274,037 1,280,916 1,287,833 1,294,788 Commercial Group 1 645,694 649,181 652,687 656,211 659,755 663,317 Commercial Group 2 58,536 58,852 59,170 59,490 59,811 60,134 Commercial Group 3 42,020 42,247 42,475 42,705 42,935 43,167 Commercial Group 4 18,241 18,340 18,439 18,539 18,639 18,739 Commercial Group 5 196,453 197,513 198,580 199,652 200,730 201,814 Commercial Group 6 0 0 0 0 0 0
Churches 14,554 14,633 14,712 14,791 14,871 14,951
Industrial Billing Units
Flow (million gallons) 31.90 32.08 32.25 32.42 32.60 32.78 Chemical Oxygen Demand
(1,000 lbs.) 171.81 172.74 173.67 174.61 175.55 176.50
Suspended Solids (1,000 lbs.) 82.98 83.43 83.88 84.33 84.78 85.24 Reclaimed Water Use (HCF)
All Reclaimed Customers 258,036 259,430 260,831 262,239 263,655 265,079

5.2.Wastewater Financial Plan
Section 5.2 details the development of a proposed Wastewater Enterprise financial plan for Ventura Water over the study period. The following subsections include estimates and projections of annual revenues, O&M expenses, debt service payments, capital expenditures, and reserve funding through FY 2025-26. The overall purpose of the 63 Consistent with water connection growth assumptions from water rate study. Assumptions are from Ventura Water’s 2020 Comprehensive Water Resources Report. The growth rate is provided to Ventura Water staff by Planning staff and is based on the Department of Finance historical data for population.
90 VENTURA WATER
financial plan is to determine annual wastewater rate revenues required to achieve sufficient cash flow, maintain adequate reserves, and meet debt coverage requirements.

5.2.1.WASTEWATER ENTERPRISE REVENUE UNDER CURRENT RATES The Wastewater Enterprise’s revenue sources consist of wastewater rates, connection fees, interest earnings on cash reserves, and other non-rate revenues. The rate revenue projections shown in this section assume that current FY 2020-21 wastewater rates are effective throughout the study period, and therefore represent estimated revenues in the absence of any wastewater rate increases. This status quo scenario provides a baseline from which Raftelis evaluated the need for revenue adjustments (i.e. gross rate revenue increases).

Calculated Wastewater Rate Revenues
Raftelis projected annual wastewater rate revenues over the study period based on current FY 2020-21 water rates (from Table 5-2) and projected number of billing units (from Table 5-5). Table 4-8 shows projected wastewater rate revenues under current rates over the study period, calculated as follows:

Fixed Charge Revenue = [ FY 2020-21 bimonthly charge] × [Number of connections or dwelling units] × [6 Bills per year] Variable Rate Revenue = [ FY 2020-21 unit rate] × [Number of billing units] 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 91 Table 5-6: Projected Rate Revenues under Current Wastewater Rates Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Fixed Charges
Single Family Residential $3,340,495 $3,358,534 $3,376,670 $3,394,904 $3,413,236 $3,431,668 Multiple Family
Residential $2,359,400 $2,372,141 $2,384,951 $2,397,829 $2,410,778 $2,423,796 Commercial $279,517 $281,026 $282,544 $284,069 $285,603 $287,146 Churches $9,111 $9,160 $9,210 $9,260 $9,310 $9,360
Schools $340,592 $342,431 $344,280 $346,139 $348,008 $349,887 Subtotal $6,329,115 $6,363,292 $6,397,654 $6,432,201 $6,466,935 $6,501,857 Flow Charges
Single Family Residential $6,685,561 $6,594,317 $6,675,794 $6,670,885 $6,709,375 $6,726,257 Multiple Family
Residential $4,739,058 $4,764,649 $4,790,378 $4,816,246 $4,842,254 $4,868,402 Commercial Group 1 $3,189,730 $3,206,955 $3,224,273 $3,241,684 $3,259,189 $3,276,788 Commercial Group 2 $329,558 $331,338 $333,127 $334,926 $336,735 $338,553 Commercial Group 3 $304,226 $305,869 $307,521 $309,181 $310,851 $312,529 Commercial Group 4 $163,078 $163,959 $164,844 $165,734 $166,629 $167,529 Commercial Group 5 $1,559,834 $1,568,257 $1,576,726 $1,585,240 $1,593,800 $1,602,407 Commercial Group 6 $0 $0 $0 $0 $0 $0
Churches $53,849 $54,140 $54,433 $54,727 $55,022 $55,319 Subtotal $17,024,895 $16,989,483 $17,127,095 $17,178,622 $17,273,855 $17,347,784 Industrial Charges
Flow $185,521 $186,522 $187,530 $188,542 $189,560 $190,584 Chemical Oxygen
Demand $38,516 $38,724 $38,933 $39,143 $39,355 $39,567
Suspended Solids $40,239 $40,456 $40,674 $40,894 $41,115 $41,337 Subtotal $264,275 $265,702 $267,137 $268,579 $270,030 $271,488 Reclaimed Water Sales
All Reclaimed
Customers $245,135 $246,458 $247,789 $249,127 $250,472 $251,825 Estuary Protection
Charges
All Customers $2,386,342 $2,386,494 $2,403,967 $2,412,853 $2,426,129 $2,437,295 Total $26,249,761 $26,251,429 $26,443,642 $26,541,383 $26,687,422 $26,810,249 Other Wastewater Enterprise Revenues
Table 5-7 shows all other Wastewater Enterprise revenues. All FY 2020-21 other revenues are based on the City’s FY 2020-21 budget and escalated annually by the miscellaneous inflation rate (from Table 5-3), except where noted otherwise. Interest revenue is estimated in the financial plan model beginning in FY 2020-21 based on projected fund balances and the assumed interest rate (from Table 5-4). 92 VENTURA WATER
Table 5-7: Other Wastewater Enterprise Revenues
Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Wastewater Operating Fund (51) – Other Revenues
Interest Earnings $179,931 $193,366 $228,899 $273,806 $326,499 $372,591 Other Miscellaneous Revenue $531,700 $531,700 $531,700 $531,700 $531,700 $531,700 Subtotal $711,631 $725,066 $760,599 $805,506 $858,199 $904,291 Wastewater Capital Fund (71) – Other Revenues
Wastewater Connection Fees64 $908,417 $908,417 $908,417 $908,417 $908,417 $908,417 Interest Earnings $255,019 $76,290 $0 $0 $0 $0
Subtotal $1,163,436 $984,707 $908,417 $908,417 $908,417 $908,417 Estuary Protection Fund (75) – Other Revenues
Interest Earnings $135,712 $149,001 $150,491 $151,996 $153,516 $155,051 Subtotal $135,712 $149,001 $150,491 $151,996 $153,516 $155,051 Total $2,010,780 $1,858,775 $1,819,507 $1,865,919 $1,920,132 $1,967,760 Summary of Projected Wastewater Enterprise Revenues
Table 5-8 shows a summary of all projected Wastewater Enterprise revenues under current rates over the study period. This includes all projected revenues shown in Table 5-6 and Table 5-7. This revenue summary represents expected revenues in the absence of any rate increase over the study period.

Table 5-8: Summary of Projected Wastewater Enterprise Revenues Under Current Rates Description Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Wastewater Operating Fund (51)
Wastewater Rates $23,863,419 $23,864,936 $24,039,675 $24,128,530 $24,261,292 $24,372,954 Interest Earnings $179,931 $193,366 $228,899 $273,806 $326,499 $372,591 Other Miscellaneous Revenue $531,700 $531,700 $531,700 $531,700 $531,700 $531,700 Subtotal $24,575,050 $24,590,002 $24,800,274 $24,934,036 $25,119,491 $25,277,245 Wastewater Capital Fund (71)
Wastewater Connection Fees $908,417 $908,417 $908,417 $908,417 $908,417 $908,417 Interest Earnings $255,019 $76,290 $0 $0 $0 $0
Subtotal $1,163,436 $984,707 $908,417 $908,417 $908,417 $908,417 Estuary Protection Fund (75)
Estuary Protection Charges $2,386,342 $2,386,494 $2,403,967 $2,412,853 $2,426,129 $2,437,295 Interest Earnings $135,712 $149,001 $150,491 $151,996 $153,516 $155,051 Subtotal $2,522,054 $2,535,495 $2,554,459 $2,564,849 $2,579,645 $2,592,347 Total $28,260,541 $28,110,204 $28,263,150 $28,407,303 $28,607,554 $28,778,009 64 Wastewater connection fees equal the annual average of actuals over the last four fiscal years through FY 2019-20. 2021 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 93

5.2.2.WASTEWATER ENTERPRISE OPERATIONS & MAINTENANCE EXPENSES Table 5-9 shows a summary of all Wastewater Enterprise O&M expenses over the study period. O&M expenditures include the cost of operating and maintaining wastewater collection, treatment, and disposal facilities.

O&M expenses also include the costs of providing technical services such as laboratory services and other administrative costs of the wastewater system. These costs are a normal obligation of the system, and are met from operating revenues as they are incurred. It is projected that O&M expenses will increase by approximately 4.75 percent per year on average over the study period. All five-year O&M expenses were provided by Ventura Water and Finance staff in current dollars and then adjusted for inflation by Raftelis (based on inflationary assumptions shown in Table 5-3). Additional Wastewater Enterprise O&M expenses associated with VenturaWaterPure are shown in detail in Appendix A. Note the approximate $2.5M increase in additional O&M in FY 20225-26 when VenturaWaterPure is anticipated to begin operations. Table 5-9: Projected Wastewater Enterprise O&M Expenses O&M Expenses Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Rev Mgmt - Wastewater (22051) $500,000 $515,000 $530,450 $546,364 $562,754 $579,637 Wastewater Operations (64101) $8,875,521 $6,784,811 $7,017,603 $7,096,130 $7,257,484 $7,281,539 Wastewater Maintenance
(64111) $5,569,530 $6,393,103 $6,347,698 $6,849,984 $7,320,589 $7,809,385 Wastewater Environmental
compliance (64115) $773,403 $994,639 $958,476 $1,098,807 $909,041 $927,399 Wastewater Treatment (64121) $5,552,243 $5,917,508 $6,281,542 $6,420,955 $6,688,063 $6,902,691 Wastewater Estuary Phase III
(64125) $300,000 $618,000 $636,540 $655,636 $675,305 $695,564 Wastewater Laboratory (64131) $1,708,446 $1,873,426 $1,939,960 $2,163,154 $2,084,734 $2,297,487 VenturaWaterPure O&M $36,002 $195,402 $202,627 $209,571 $216,749 $2,767,943 Total O&M Expenses $23,315,145 $23,291,889 $23,914,896 $25,040,600 $25,714,720 $29,261,646 % Change -0.10% 2.67% 4.71% 2.69% 13.79%
94 VENTURA WATER

5.2.3.WASTEWATER ENTERPRISE DEBT
Table 5-10 shows the Wastewater Enterprise’s projected debt service obligations over the study period. Existing debt service consists of the City’s 2020 Wastewater Refunding Bonds, which were recently issued to refinance the City’s 2012 Wastewater Revenue Bonds and 2014 Wastewater Revenue Bonds. This refinancing of existing bonds is projected to reduce the Wastewater Enterprise’s existing debt service payments by approximately $300K per year over the study period. Proposed Wastewater Enterprise debt service associated with VenturaWaterPure is also shown (see Appendix A for details). Note that proposed debt service for VenturaWaterPure represents preliminary projections based on the best information available at the time this study. Table 5-10: Wastewater Enterprise Debt Service Debt Service FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Existing Debt Service
2020 Wastewater Revenue
Refunding Bonds - Series A $1,537,437 $2,200,792 $2,197,979 $2,199,107 $2,202,363 $2,199,464 Subtotal $1,537,437 $2,200,792 $2,197,979 $2,199,107 $2,202,363 $2,199,464 Proposed Debt Service for VenturaWaterPure
WIFIA Loan $0 $80,899 $195,776 $314,697 $838,096 $838,096 SRF Loan $0 $0 $0 $0 $66,322 $529,958
Revenue Bond $0 $0 $0 $0 $0 $417,597
Subtotal $0 $80,899 $195,776 $314,697 $904,418 $1,785,651 Total $1,537,437 $2,281,691 $2,393,755 $2,513,805 $3,106,780 $3,985,115 Table 5-11 shows existing debt proceeds available to fund capital expenditures (excluding VenturaWaterPure) and proposed debt proceeds to fund VenturaWaterPure Projects (see Appendix A for details). Amounts are shown in the year the proceeds are assumed to be spent to fund capital projects.

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