Cities Index.
Item 4.1 - Sweetwater Authority 2023 Water Rate Study Presentation.pdf

Chula Vista City Council
November 28, 2023

Document
Item 4.1 - Sweetwater Authority 2023 Water Rate Study Presentation.pdf
Meeting
November 28, 2023
Body
Chula Vista City Council
Original file
1.7 MB
Text extracted from the city's file for reading and search. Open the original on pub-chulavista.escribemeetings.com. That file is the official record.

Sweetwater Authority:

We’re Here to Serve
Rich Stevenson, Director of Finance
November 28, 2023
Ditas Yamane
2023-2026
Steve Castaneda
SBID Div. 1
2022-2026
Ron Morrison
2023-2026
Board of Directors
National City
Paulina Martinez-Perez
SBID Div. 2
2020-2024
Josie Calderon-Scott
SBID Div. 5
2020-2024
Manny Delgado
SBID Div. 3
2023-2024
Hector Martinez
SBID Div. 4
2022-2026
2 • Safe, reliable water since 1977
• 36 square mile service area
• Approx. 200,000 customers
• 33,000+ service connections
• 2 dams, 2 reservoirs, 20 storage tanks and 17 pump stations • Surface water treatment, groundwater desalination, freshwater wells and imported water
About Us
3 4
Securing Affordable Water Supply
Loveland Reservoir
82% of capacity
Sweetwater Reservoir
55% of capacity
5 Partnering With Our Community
• Educational Partnerships
- Hydro Station (with CVESD and Otay Water District)
- Unique learning experience that teaches students about careers and opportunities in the water industry
- Olivewood Gardens
- Official Water Provider, supporting efforts that
promote the safety, value, and efficiency of tap water
- The Water Conservation Garden
- Educational resource for residents and school programs • Community Engagement
- Community events
- Partnerships with local nonprofits
- Bonita Museum & Cultural Center, Living Coast Discovery Center Pipeline display at Bonita Museum
Hydro Station at Reynolds Desalination Facility
Sweetwater Authority Water Rates
6 • The Authority is funded through customer water use rates (no property taxes) • Proposition 218 Requirements to proportion costs to customers • Only collect revenue for what is necessary to provide services • Only spend revenues for water service
• Fees may not exceed proportional cost of service to a parcel • Fees are only for services that are used and available to a parcel • 45-day Written notice of proposed rate changes public hearing to adopt the changes The 2023 Water Rate Study will accomplish these requirements through a Cost of Service and Water Rate Design Study
2023 Water Rate Study – Major Objectives
7 • Set rates for 3 year: 1/1/2024, 1/1/2025, and 1/1/2026 • Based on FY 2023-24 Budget and Financial Projections
Revenue Requirement:
• Commodity-Demand Methodology – focuses on two cost components • Commodity Costs
• Typically variable costs associated with actual consumptions • Energy required to produce water
• Demand Costs
• Typically considered fixed costs regardless of actual consumption • Pipeline maintenance

2023 Water Rate Study
8 • Allocation of Fixed and Variable Charges (more costs allocated to the Meter Charge) • Continue to use a Single-Family Residential Tier Design based on Source of Supply YEAR 1 YEAR 2 YEAR 3
13% 16% 19%
87% 84% 81%
% Fixed
3-Year Phase-In Assumptions
% Variable
Single-family Residential Rate
Based on Supply Source
Proposed
Tier Units
Tier 1: National City Wells $ 0 to 4 Units
Tier 2: Surface Water $$ 4 to 13 Units
Tier 3: Desalination $$$ 13 to 24 Units
Tier 4: Imported $$$$$ 24+ Units
Customer
Bill
Impacts
9 $ %
Residential 5 $45.95 $46.77 $54.44 $63.10 $17.15 37%
Residential 10 $70.20 $77.87 $86.24 $95.65 $25.45 36%
Residential 15 $99.15 $109.25 $118.32 $128.50 $29.35 30% Residential 20 $128.74 $141.05 $150.82 $161.80 $33.06 26% Residential 30 $191.90 $215.81 $227.70 $241.00 $49.10 26% Residential 40 $263.60 $298.01 $312.50 $328.60 $65.00 25% Multi-family 15 $121.60 $115.52 $124.86 $135.55 $13.95 11% Multi-family 200 $1,404.40 $1,378.13 $1,438.56 $1,508.98 $104.58 7% Commercial 500 $3,257.40 $3,343.13 $3,448.56 $3,572.98 $315.58 10% HCF = volumetric unit for water billing, hundred cubic feet Does not include SDWCA Pass-through charges
3rd Year Increase
Customer Class Water
Use - HCF Current Bill Proposed
1/1/2024
Proposed
1/1/2025
Proposed
1/1/2026
Bill Estimator
Tool for customers to
view how proposed
rates will impact their
water bill
www.sweetwater.org/billestimator
10 San Diego County Water Authority Passthrough Charges 11 • SDCWA Charges = Collected by Sweetwater and Passed Through to SDCWA • Monthly Fixed Charges (even if no water is purchased) Infrastructure Access Charge
Customer Service Charge
Emergency Storage Charge
Supply Reliability Charge
Readiness-to-Serve Charge (MWD)
Capacity Charge (MWD)
12 Rate Study Schedule
• June 28-Board Meeting (Budget Approval)
• August 23-final Board policy direction provide to rate consultant • September 21-Rate Study-Open House
• September 27-2023 Water Rate Study presented to Board • October-Proposition 218 Mailer Sent to Customers
• December 6-Rate Study Public Hearing

Development Services Program
Ongoing Process Improvement
13 • Tenets of Operation:
• Trust established processes and direct challenges to
appropriate person
• Continue to regularly review process
• Implement new procedures as necessary
• Provide regular Board updates
• Recent Actions Taken:
• Continue to seek feedback from developers
• Present to our Committee/Board for further input
• Present to stakeholders/partner agencies for
further input

Improvement of Interagency Coordination and
Cooperation
14 • Interagency protocols will facilitate permitting and construction
• Management meetings between Authority and City of C.V. and National City staff for improved coordination
• Improved development literature

Improvement of Information Availability
15 • Improved website capabilities:
• Increase understanding of requirements
• Implement application tracking tool
• Updated development brochure – currently placed at National City Building Department Counter and Chula Vista Development Services Counter
• In process to implement interagency checklist with National City (Required Agency Clearance Form)
• Chula Vista has offered to include the Application Guide on the Development Services website

Connect with us
@swawater
@sweetwaterauth
@sweetwaterauthority
(619) 420-1413
www.sweetwater.org

← All documents from this meeting