Clovis City Council
January 20, 2026

January 20, 2026 - 1 - 12:44 PM A G E N D A • C I T Y C O U N C I L M E E T I N G

January 20, 2026 6:00 PM Council Chamber

In compliance with the Americans with Disabilities Act, if you need special assistance to access the City Council Chamber to participate at this meeting, please contact the City Clerk or General Services Director at (559) 324 -2060 (TTY – 711). Notificatio n 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the Council Chamber.

The Clovis City Council meetings are open to the public at the physical address listed above. There are numerous ways to participate in the City Council meetings: you are able to attend in person; you may submit written comments as described below; and you may view the meeting which is webcast and accessed at www.clovisca.gov/agendas.

Written Comments

 Members of the public are encouraged to submit written comments at:
www.clovisca.gov/agendas at least two (2) hours before the meeting (4:00 p.m.). You will be prompted to provide:

 Council Meeting Date
 Item Number
 Name
 Email
 Comment

 Please submit a separate form for each item you are commenting on.

 A copy of your written comment will be provided to the City Council noting the item number.

If you wish to make a verbal comment, please see instructions below.

 Please be aware that any written comments received that do not specify a particular agenda item will be marked for the general public comment portion of the agenda.

 If a written comment is received after 4:00 p.m. on the day of the meeting, efforts will be made to provide the comment to the City Council during the meeting. However, staff cannot guarantee that written comments received after 4:00 p.m. will be provided to City Council during the meeting. All written comments r eceived prior to the end of the meeting will be made part of the record of proceedings.

Council Chamber, 1033 Fifth Street, Clovis, CA 93612 (559) 324-2060 www.clovisca.gov
1 January 20, 2026 - 2 - 12:44 PM CAMPAIGN CONTRIBUTION PROHIBITIONS AND MANDATORY DISCLOSURE – Pursuant to Government Code section 84308, a Councilmember shall not accept, solicit, or direct a campaign contribution of more than $500 from any party or their agent, or from any participant or their agent, while a proceeding involving a license, permit, contract, or other entitlement for use is pending before the City or for 12 months after a final decision is rendered in that proceeding. Any Councilmember who has received a campaign contribution of more than $500 within the preceding 12 months from a pa rty or their agent, or from a participant or their agent, must disclose that fact on the record of the proceeding and shall not make, participate in making, or in any way attempt to use their official position to influence the decision.

Pursuant to Government Code section 84308, subdivision (e), any party to a covered proceeding before the City Council is required to disclose on the record of the proceeding any campaign contribution, including aggregated contributions, of more than $500 made within the pre ceding 12 months by the party or their agent to any Councilmember. The disclosure shall be made as required by Government Code Section 84308, subdivision (e)(1) and California Code of Regulations, Title 2, section 18438.8. No party or their agent, and no p articipant or their agent, shall make a campaign contribution of more than $500 to any Councilmember during the covered proceeding or for 12 months after a final decision is made in that proceeding. The foregoing statements do not constitute legal advice, and parties and participants are urged to consult with their own legal counsel regarding the applicable requirements of the law.

CALL TO ORDER

FLAG SALUTE - Councilmember Basgall

ROLL CALL

PUBLIC COMMENTS - This is an opportunity for the members of the public to address the City Council on any matter within the City Council’s jurisdiction that is not listed on the Agenda. In order for everyone to be heard, please limit your comments to 3 minutes or less, or 10 minutes per topic. Anyone wishing to be p laced on the Agenda for a specific topic should contact the City Manager’s office and submit correspondence at least 10 days before the desired date of appearance.

CONSENT CALENDAR - Items considered routine in nature are to be placed upon the Consent Calendar. They will all be considered and voted upon in one vote as one item unless a Councilmember requests individual consideration. A Councilmember’s vote in favor of the Consent Calendar is considered and recorded as a separate affirmative vote in favor of each action listed. Motions in favor of adoption of the Consent Calendar are deemed to include a motion to waive the reading of any ordinance or resolution on the Consent Calendar. For adoption of ordinances, only those that have received a unanimous vote upon introduction are considered Consent items.

1. Administration - Approval - Minutes from the January 12, 2026, Council Meeting.

2. General Services – Approval - Claim Rejection of the General Liability Claim on behalf of Sarah Borjas.

3. Planning and Development Services – Approval – Res. 26-___, Accept the Quitclaim Deed to Abandon and Vacate an Unused Ten foot (10’) Public Landscaping Easement for Lots 4 through 7 of Final Map for Tract 5386 located at the southwest corner of Ashlan Avenue and Armstrong Avenue.
2 January 20, 2026 - 3 - 12:44 PM

4. Planning and Develop ment Services – Approval – Bid Award for CIP 25 -07 ADA – Sidewalk Improvements Citywide to Platinum General Engineering, LLC, in the amount of $125,422.79; and Authorize the City Manager to execute the contract on behalf of the City.

ADMINISTRATIVE ITEMS - Administrative Items are matters on the regular City Council Agenda other than Public Hearings.

5. Consider Approval – Final Draft Water Rate Study Report and Authorize Staff to Proceed with a Proposition 218 Public Hearing and Majority Protest Vote to Amend Water Charges, Fees, and Recycled Water Charges.

Staff: Kevin Tuttle, Assistant Public Utilities Director Recommendation: Approval

6. Workshop: Public Utilities Department Update.

Staff: Scott Redelfs, Public Utilities Department Director Recommendation: Receive and File

COUNCIL ITEMS

7. Consider Appointment - Appointment to the Consolidated Mosquito Abatement District.

Staff: Andrew Haussler, City Manager
Recommendation: Consider Appointment

8. Consider Appointment - Fresno County Transportation Authority Urban at Large Board Member.

Staff: Andrew Haussler, City Manager
Recommendation: Consider Appointment

CITY MANAGER COMMENTS

COUNCIL COMMENTS

CLOSED SESSION - A “closed door” (not public) City Council meeting, allowed by State law, for consideration of pending legal matters and certain matters related to personnel and real estate transactions.

9. Government Code Section 54957.6

CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: Andrew Haussler, Paul Armendariz, Amy Hance, and Scott Cross
Employee Organizations: Clovis Police Officers Association, Clovis Firefighters Association, Clovis Public Safety Employees Association, Clovis Professional and Technical Association, and Unrepresented Employees

RECONVENE INTO OPEN SESSION AND REPORT FROM CLOSED SESSION 3 January 20, 2026 - 4 - 12:44 PM

ADJOURNMENT

FUTURE MEETINGS

Regular City Council Meetings are held at 6:00 P.M. in the Council Chamber. The following are future meeting dates:

Feb. 2, 2026 (Mon.)
Feb. 9, 2026 (Mon.)
Feb. 17, 2026 (Tue.)
4 PRELIMINARY - SUBJECT TO APPROVAL

CLOVIS CITY COUNCIL MEETING

January 12, 2026 6:00 P.M. Council Chamber

Meeting called to order by Mayor Mouanoutoua at 6:00
Flag Salute led by Councilmember Ashbeck

Roll Call: Present: Councilmembers Ashbeck, Basgall, Bessinger, Mayor Pro Tem Pearce Mayor Mouanoutoua

PUBLIC COMMENTS – 6:02

Karen Telaro, resident, shared neighborhood concerns about allowing southbound left turns from Willow into Escalon.

Mayor Mouanoutoua noted for the record that written public comments regarding potential ICE action plans by the City Council were received by Donna Dodd.

CONSENT CALENDAR – 6:08

Upon call, there was no public comment.

Motion by Councilme mber Ashbeck, seconded by Councilmember Bessinger, that the items on the Consent Calendar be approved. Motion carried by unanimous vote.

1. Administration - Approval - Minutes from the January 5, 2026, Council Meeting.

2. Administration - Receive and File – Business Organization of Old Town (BOOT) Second Quarter Report, October through December 2025.

3. Finance – Receive and File – Status Report of Community Facilities District 2004 -1 Revenues and Expenditures.

ADMINISTRATIVE ITEMS – 6:09

6:09 ITEM 4 - Receive and File – Findings and Recommendations from Measure Y Oversight Committee.

Measure Y Oversight Committee Chair Snow and Committee Member Rollins addressed the City Council.

The above item was received and filed.

6:17 ITEM 5 - Workshop: Economic Development Update.

Kay E rrotaberre, resident, suggested creating a short video highlighting new restaurants and developments in Clovis that could be shared with the community.

The above item was received and filed.
5 AGENDA ITEM NO. 1.

PRELIMINARY - SUBJECT TO APPROVAL

COUNCIL ITEMS – 7:17

7:17 ITEM 6 - Receive and File - Community Survey Results on “In God We Trust” Displays in Council Chamber.

The following residents addressed the City Council regarding the “In God We Trust” item: Kathy Reinhardt; Dr. Jeni-Ann Kren; Eric Rollins; Crystal; Claire Diaz; Tara Wink; and Bill Scott.

Mayor Mouanoutoua noted for the record that written public comments regarding the display of “In God We Trust” in the Council Chamber were received by Nancy Mendez and Rachel Youdlman.

Motion by Councilmember Ashbeck, seconded by Councilmember Bessinger, to direct staff to agendize the “In God We Trust” item for future Council consideration and discussion . Motion carried by unanimous vote.

CITY MANAGER COMMENTS – 7:52

City Manager Haussler announced the upcoming annual Community Breakfast honoring the Reverend Dr. Martin Luther King Jr., Saturday, January 17, 2026.

COUNCIL COMMENTS – 7:52

There was no formal Council direction for staff.

CLOSED SESSION – 8:02

Upon call, there was no public comment.

ITEM 7 - GOVERNMENT CODE SECT ION 54956.9(D)(1) CONFERENCE WITH LEG AL COUNSEL – EXISTING LITIGATION Case Name: Desiree Martinez v. City of Clovis, et al., Case No. 19CECG03855

RECONVENE INTO OPEN SESSION AND REPORT FROM CLOSED SESSION

No action taken.

ADJOURNMENT

Mayor Mouanoutoua adjourned the meeting of the Council to January 20, 2026.

Meeting adjourned: 8:32 p.m.

______________________________ ________________________________ Mayor City Clerk
6 AGENDA ITEM NO. 1.

TO: Mayor and City Council
FROM: General Services Department
DATE: January 20, 2026
SUBJECT: General Services – Approval - Claim Rejection of the General Liability Claim on behalf of Sarah Borjas.

ATTACHMENTS: None.

RECOMMENDATION
Reject the General Liability Claim filed on behalf of Sarah Borjas

EXECUTIVE SUMMARY
On behalf of Sarah Borjas (claimant), the City received a claim on December 17, 2025, alleging the City of Clovis failed to maintain its public property, which caused her to trip and fall. Ms.

Borjas is seeking compensation in excess of the minimal civil court limits . It is recomm ended that the City reject the claim at this time, send notice of rejection, and refer the matter to the City’s third-party administrator for liability claims for further investigation and handling.

BACKGROUND
On June 19, 2025, Ms. Sarah Borjas allegedly fell and injured herself while frequenting Papa’s Place located at 453 Pollasky Avenue, due to an allegedly misaligned paver in the patio area of the aforementioned business.

On December 17, 2025, a General Liability Claim was filed against the City of Clovis on behalf of Ms. Borjas. The claim alleges the City of Clovis’ property condition and location constituted a dangerous condition, which the City is directly and legally liable for Ms. Borjas personal injuries and damages. The claim was considered legally sufficient and timely.

FISCAL IMPACT
Rejection of the claim does not result in any fiscal impact.

REASON FOR RECOMMENDATION
It is recommended that the claim be rejected. The City’s li ability is disputed, and although the claim is legally sufficient, the amount of the alleged damages sustained by the claimant may also be disputed. Rejecting the claim and sending notice of rejection in accordance with the 7 AGENDA ITEM NO. 2.

Government Claims Act will commence the time in which claimant may file a lawsuit against the City based on the claim.

ACTIONS FOLLOWING APPROVAL
A rejection notice letter will be sent to the claimant informing her that the claim has been rejected.

CONFLICT OF INTEREST
None.

Prepared by: Charles W. Johnson, Senior Management Analyst

Reviewed by: City Manager AH

8 AGENDA ITEM NO. 2.

TO: Mayor and City Council
FROM: Planning and Development Services Department
DATE: January 20, 2026
SUBJECT: Planning and Development Services – Approval – Res. 26-___, Accept the Quitclaim Deed to Abandon and Vacate an Unused Ten foot (10’) Public Landscaping Easement for Lots 4 through 7 of Final Map for Tract 5386 located at the southwest corner of Ashlan Avenue and Armstrong Avenue.

ATTACHMENTS: 1. Res. 26-___

2. Vicinity Map

RECOMMENDATION
For the City Council to approve Res. 26-___, which will:

1. Accept the Qui tclaim Deed to Abandon and Vacate an unused Ten foot (10’) Public Landscaping Easement for Lots 4 through 7 of Final Map for Tract 5386;

EXECUTIVE SUMMARY
The Final Map for Tract 5386 was approved and accepted with a ten foot (10’) Public Landscaping Easement on the west side of Armstrong Avenue running through the eastern 10 feet (10’) of Lots 4 through 7. This easement has never been used.

Through the use of a Quitclaim Deed, the Engineering Division plans to abandon and vacate this easement.

BACKGROUND
This ten foot (10’) Public Landscape Easement was brought to the attention of the Engineering Division during a review of projected improvements to the property at 2191 Buckingham Avenue by the property owner. Research of the property, the Final Tract Map of Tract 5386, and historical and current use of this easement was performed and found that it should be abandoned and vacated since this easement was not used.

FISCAL IMPACT
No fiscal impact identified. No use or improvements in the ten foot (10’) Public Landscaping Easement and abandoning and vacating this easement does not cause any future fiscal impacts. 9 AGENDA ITEM NO. 3.

REASON FOR RECOMMENDATION
This ten foot (10’) Public Landscaping Easement is not serving any useful function for the City.

There is no public landscaping here nor will there be any in the future. This easement is not only unnecessary but is causing permitting issues for the homeowners as they ca nnot make any improvements in this easement. Abandoning and vacating this easement is in the best interests of both the City and the homeowners.

ACTIONS FOLLOWING APPROVAL
Record the Quitclaim Deed to Abandon and Vacate an unused Ten foot (10’) Public Landscaping Easement.

CONFLICT OF INTEREST
None.

Prepared by: Bruce Bloom, Engineer II

Reviewed by: City Manager AH

10 AGENDA ITEM NO. 3.

Attachment 1
RESOLUTION 26-__

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS
APPROVING THE VACATION AND ABANDONMENT OF THE TEN FOOT (10’) PUBLIC

LANDSCAPING EASEMENT WEST OF ARMSTRONG AVENUE AND SOUTH OF

ASHLAN AVENUE

WHEREAS, the final map of Tract 5386 was accepted and recorded with a ten foot (10’) Public Landscaping Easement, herein referred to as the “Easement”; and

WHEREAS, the Easement has not been utilized and served no useful function to the City; and

WHEREAS, the City has decided to abandon and vacate the Easement through the use of a Quitclaim Deed to be recorded with the County of Fresno Recorders Office.

NOW, THEREFORE, BE IT RESOLVED, that the City of Clovis abandon and vacate the Easement through the use of a Qui tclaim Deed to be recorded with the County of Fresno Recorders Office.

* * * * *

The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on January 20, 2026, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN

DATED:

______________________________ ______________________________ Mayor City Clerk

11 AGENDA ITEM NO. 3.

International
Shaw
Gettysburg
Copper
Dakota
Behymer
Perrin
Shepherd
T eague
Nees
Sierra
Bullard
Barstow
Ashlan
DockeryThompsonHighlandLeonardDeWolfLocanT emperanceArmstrongFowlerSunnysideClovisMinnewawaPeachWillow Shields
Alluvial
Herndon
McCall

VICINITY MAP
Legend
City Limits
Sphere of Influence
TRACT 5386
Attachment 2
Bruce Bloom
Print Date: January 7th, 2026
Tract 5386 Landscape Easement
12 AGENDA ITEM NO. 3.

TO: Mayor and City Council
FROM: Planning and Development Services Department
DATE: January 20, 2026
SUBJECT: Planning and Development Services – Approval – Bid Award for CIP 25- 07 ADA – Sidewalk Improvements Citywide to Platinum General Engineering, LLC, in the amount of $125,422.79; and Authorize the City Manager to execute the contract on behalf of the City.

ATTACHMENTS: 1. Vicinity Map

RECOMMENDATION

1. For the City Council to award a contract for CIP 25 -07 ADA – Sidewalk Improvements Citywide to Platinum General Engineering, LLC, in the amount of $125,422.79; and

2. For the City Council to authorize the City Manager to execute the contract on behalf of the City.

EXECUTIVE SUMMARY
Staff is recommending that City Council award the contract to Platinum General Engineering LLC, who was the lowest responsible bidder from a bid opening that took place on January 13, 2026, and authorize the City Manager to execute the project contract on behalf of the City.

This project involves installing missing segments of concrete sidewalk and concrete drive approaches, concrete retaining curbs, reinstalling mailboxes, and the removal of three small trees. All work will be performed within the City of Clovis in the street right-of-way along the south side of Sierra Avenue, east of Willow Avenue, and on the east side of Adler Avenue, south of Sierra Avenue.

BACKGROUND
The following is a summary of the bids received on January 13, 2026:

BIDDERS BASE BID

Platinum General Engineering, LLC $125,422.79
Ares ENG, Inc. $128,020.00
Juarez Brothers General Engineering, Inc. $129,781.25
13 AGENDA ITEM NO. 4.

Dave Christian Construction Co., Inc. $138,671.50
Tosted Asphalt, Inc. $142,513.17
Seal Rite Paving & Grading $146,341.00
American Paving Co. $178,520.00

ENGINEER’S ESTIMATE $142,615.00

All bids were examined, and the bidder’s submittals were found to be in order, except for a few arithmetic and clerical errors that did not affect the order of the bid results. For this reason, Platinum General Engineering , LLC, is the lowest responsible bidder. Staff has validated the lowest bidder contractor’s license status and bid bond.

FISCAL IMPACT
This project was approved in the Community Investment Program 2025-2026 fiscal year budget and is funded by Community Development Block Grant (CBDG) program.

REASON FOR RECOMMENDATION
Platinum General Engineering, LLC, is the lowest responsible bidder. There are sufficient funds available for the anticipated cost of this project.

ACTIONS FOLLOWING APPROVAL

1. The contract will be prepared and executed, subject to the Contractor providing performance security that is satisfactory to the City.

2. Construction will begin approximately two (2) weeks after the contract execution and be completed in thirty (30) working days thereafter.

CONFLICT OF INTEREST
None.

Prepared by: Gerry Villalobos, Project Engineer

Reviewed by: City Manager AH

14 AGENDA ITEM NO. 4.
0 1 20.5
Miles
International
Shaw
Gettysburg
Copper
Dakota
Behymer
Perrin
Shepherd
T eague
Nees
Sierra
Bullard
Barstow
Ashlan
DockeryThompsonHighlandLeonardDeWolfLocanT emperanceArmstrongFowlerSunnysideClovisMinnewawaPeachWillow Shields
Alluvial
Herndon
McCall

VICINITY MAP
Legend
City Limits
Sphere of Influence
Gerry Villalobos
Print Date: January 14, 2026
CIP 25-07 ADA - Sidewalk Improvements Citywide
Project Locations
Attachment 1
15 AGENDA ITEM NO. 4.

TO: Mayor and City Council
FROM: Public Utilities Department
DATE: January 20, 2026
SUBJECT: Consider Approval – Final Draft Water Rate Study Report and Authorize Staff to Proceed with a Proposition 218 Public Hearing and Majority Protest Vote to Amend Water Charges, Fees, and Recycled Water Charges.

Staff: Kevin Tuttle, Assistant Public Utilities Director Recommendation: Approval

ATTACHMENTS: 1. Water Rate Study Report Final Draft

RECOMMENDATION
For City Council to authorize staff to proceed with a Proposition 218 public hearing and majority protest proceeding to amend water charges, fees, and recycled water charges in consideration of the final draft water rate study report, and set a public hearing for April 13, 2026.

EXECUTIVE SUMMARY
The City’s current water rate and fee structure was approved in April 2016 to meet revenue requirements for operating and maintaining the City’s water system as an enterprise fund and to avoid the need to use the General Fund for the City’s water system. Since 2016, additional operations and maintenance regulatory requirements have been imposed, which have increased the cost of operating and maintaining the water system. Additionally, the City has experienced significant increases in costs over the past five years due to inflation and other factors related to cost increases in labor, capital , and material components for operating the water system . The City has also determined the need for funding to replace aging infrastructure and provide redundancy for critical infrastructure to adequately maintain the water system.

The Five-Year Forecast projects a need to generate necessary revenue to maintain required working capital and to set aside funds for near-term and future capital projects necessary to keep the water system running effectively and efficiently . Additionally, recent court decisions have necessitat ed a review of the current water rate structure and have shown structural changes are needed to the water rates to remain compliant with prevailing legal challenges. The City’s Water Rate Study consultant, Raftelis, evaluated the existing rate structure an d worked 16 AGENDA ITEM NO. 5.
with staff over the past year and a half to develop potential revenue scenarios that meet the City’s financial and water system needs, while also ensuring compliance with applicable legal requirements governing water rates, including Proposition 218 and related statutory provisions.

The report (Attachment 1) makes recommendations to address revenue shortfalls to sustainably maintain the Water Enterprise Fund.

BACKGROUND
The 2016 Water Rate Report recommended tiered water rates based on a revised cost of service analysis. This report was largely generated in light of the San Juan Capistrano court decision in 2015, which ruled the City of San Juan Capistrano failed to show the cost of providing water to high-usage customers increased proportionally with consumption. Since that time, a 2024 decision in Coziahr v . Otay Water District concluded that the Otay Water District failed to demonstrate that higher tiers incur a proport ionally higher cost to provide similar service.

Effectively, this decision stated that data used for tiered water rates must be based on actual data of the agency, not industry standards . Similarly, in Patz v. City of San Diego (2025) , the court ruled that rates must be based on the actual cost to provide service at each tiered rate.

These decisions reinforce the need to reassess and potentially remove tiered water rate structures.

Since the 2016 Water Rate Report and adjustments made to water rates in 2017, inflation from the economic impacts of the COVID-19 pandemic have increased project costs significantly. To ensure compliance with the court decisions mentioned above relating to tiered water rates, and to address projected revenue shortfalls due to additional regulatory requirements, higher costs of operating the water system than projected in 2016, and funds needed for future capital, maintenance, operations, and projects related to compliance with the Sustainable Groundwater Management Act (SGMA), staff retained the services of a consultant, Raftelis, to conduct a comprehensive water rate study to provide a review of the current Water Enterprise Fund’s financial structure.

Raftelis’s work consisted of providing a financial plan that meets the City’s revenue requirements, while also providing a cost -of-service analysis that bases the rate recommendations on the realities of current water utility needs. Staff’s core criteria for the updated rate structure were: 1) the rates are legally defensible within the current confines of applicable case law and Proposition 218, and 2) the rate s meet the revenue requirements for maintenance and operations of a sustainable water system.

The development of the water r ate study consisted of documenting revenue requirements to meet needs for maintenance and operations, establishing a funding mechanism for needed capital improvement projects, and maintaining current levels of reserve funding. The cost of service is then developed by:
 Separating revenue needs based on supply, customer service, metering, etc.  Allocating those revenue needs to their appropriate cost basis, such as volume, bills, and equivalent meters.
 Determining a cost-per-unit of service, such as equivalent meters, number of customers, or number of bills.
17 AGENDA ITEM NO. 5.
 Distributing the developed cost to each customer class using the unit costs and the proportional impact of each customer class on the system.

The rates are then designed based on the cost of service and the revenue requirements. Finally, a report is prepared that serves as the administrative record and support document to meet the requirements of Proposition 218.

The rate shown in this report provide s the necessary funding for maintenance and ope rations, and phases the increase to rates over three consecutive years (2027-2029) to close the financial gap identified in the report. Rate increases return to the standard 3% escalation in the subsequent years. Staff believes the proposed rate structure is necessary and appropriate to meet future revenue requirements of the Water Enterprise Fund, and recommend Council initiate the Proposition 218 proceedings to increase water rates and fees.

The proposed rate structure as shown below would begin on January 1, 2027 and continue for three consecutive calendar years as follows:
 CY2027 – 21%
 CY2028 – 21%
 CY2029 – 18% and additional 3% effective July 1, 2029

Overall average increase in the first year would be about 21%, with each customer class being affected by differing percentages due to the removal of tiers and other adjustments to the structure of the water rates to be compliant with current law. Rates in the y ears following the initial 3-year period would be authorized to increase at an escalator of 3%, which has historically been the City’s practice. These increases would follow in the same manner as the Solid Waste and Sewer Enterprise accounts, where Council will evaluate staff’s recommendations during the annual budget cycle to determine if the authorized increase is required for the upcoming budget.

The authorized 3% annual increase in subsequent years is intended to limit larger future rate increases, allow for the funding of major infrastructure maintenance projects, and allow the Water Enterprise Fund to maintain adequate reserve levels to help mitigate future market and cost fluctuations.

PROPOSITION 218 PROCEDURES
Per the requirements of Proposition 218, the City is required to provide a 45-day notice and hold a public hearing where a majority protest proceeding is conducted. Staff will prepare public notices that will be mailed to all property owners of parcels receiving service and paying current water fees. The notices will include informa tion about the public hearing time and place, the amount of the fees, the basis of the fees, and the reasons for the increases. All protests to the rate increases must be in writing, and they must identify the property affected, be signed by the property owner or tenant, and be clear that they are protesting the increases. Protests must be received by the City prior to the closing of the public hearing. Protests will be accepted from either the tenant or property owner , but only one protest per property wil l be counted. E -mails will not be accepted as there is no legal method for signing. The protests will be confidential until tabulated and may be withdrawn by the signatory of the protest prior to the close of the hearing.

The City Clerk will tabulate the n umber of protests and verify their validity. If more than half of 18 AGENDA ITEM NO. 5.
the total number of properties in the City protests the rate increases, the rates cannot be approved.

PROPOSED RATE STRUCTURE
The proposed water rates are included in Table 2 and Table 3 on the following page s. This includes the three-year consecutive rate increases, as well as a 3% increase in following years, should those be necessary. The study also evaluated drought rate surcharges, which allow the City to maintain adequate cash flow during times of reduced water use in a State -mandated drought reduction period.

This study provided a review of other miscellaneous costs and fees that are charged through the Water Enterprise Fund, including the following:

 Private Fireline Costs. For private firelines, the American Water Works Association manual recommends firelines be billed according to the service line connection, and staff believes this approach for rate setting is appropriate.  Construction Water Costs. Construction water costs were previously billed based on the unmetered Tarpey Village water use rate. This previous billing was based on a 1 -inch meter and 63,000 gallons of usage. As all customers are now metered, a new cost was derived for construction water and is billed as a 1-inch water service at 60,000 gallons of usage per bill.
 Hydrant Meters. Hydrant meters are billed on a monthly basis and based on a 2-inch water service. Volumetric rates are the same as commercial and landscape customers.  Recycled Water Rates. Recycled water rates were also updated as part of this study, including the pressurized and non-pressurized systems.
19 AGENDA ITEM NO. 5.

20 AGENDA ITEM NO. 5.

FISCAL IMPACT
The proposed rates are designed to address the increasing cost of operations, maintenance, planned infrastructure, and projects related to compliance with applicable legal and regulatory requirements, including SGMA, and to provide a fiscally responsible financial plan for funding necessary improvements to aging infrastructure. The increase in rates allows for continued operational cost coverage, addresses debt service, provides for capital improvements, and maintains necessary operational reserves for future un certainties. The proposed rate increase also provides debt service coverage necessary to satisfy bonding requirements, should those become necessary in the future.

This rate study also includes similar provisions to 2016 that allow for continued 3% increases anticipated to start in Fiscal Year 29/30. These incremental increases help alleviate the need for periodic large rate increases. Under normal circumstances, these modest increases allow revenues to keep up with the in crease in standard energy and material costs, like chemicals, fuel, vehicles, and personnel costs. Ideally, the smaller increases help reduce the need for larger increases over time. This strategy has been adopted previously by Council for both the Water and Sewer Enterprise Funds.

Finally, the chart below includes a bill comparison example, comparing an average current water bill to the future water bill for the same service after the proposed first year (21%) initial rate increase. The current estimated water rate s for other local agencies are also included for comparison. Note that these bill estimates were generated for comparison purposes and are based on the best publicly available information. The City of Clovis is likely to be in the lower half of the identified cities, even after the proposed increase.

21 AGENDA ITEM NO. 5.

REASON FOR RECOMMENDATION
The City is required to comply with State law regarding implementation of water rates and fees, and the City must simultaneously ensure the adequacy of the Water Enterprise Fund.

Accordingly, a thorough Water Rate Study analysis was completed by Raftelis . The proposed rate structure meet s the legal requirements and address es the financial needs of the Water Enterprise Fund. Although the study proposes increasing rates for three consecutive years, the City of Clovis still remains very competitive with other local water agencies.

ACTIONS FOLLOWING APPROVAL
Staff will send out notices to all affected property owners, as well as customers who are tenants.

This will include information regarding the water rate adjustments and the opportunity to protest the fees in accordance with Proposition 218. Staff anticipates bringing a proposed ordinance to Council in Fall 2026. The tentative schedule is outlined below:
 January 20, 2026: Authorize staff to proceed with a Proposition 218 hearing  February 2026: Mail written notices to all affected property owners & rate-paying tenants  April 13, 2026 (Tentative): Conduct a Proposition 218 hearing  Fall 2026: Municipal Code update
 January 1, 2027: Rates become effective

CONFLICT OF INTEREST
None.

Prepared by: Kevin Tuttle, Assistant Public Utilities Director

Reviewed by: City Manager AH
22 AGENDA ITEM NO. 5.

CITY OF CLOVIS
Water Rate Study
FINAL DRAFT REPORT / JANUARY 13, 2026
ATTACHMENT 1
23 AGENDA ITEM NO. 5.

January 2026
Mr.

Kevin Tuttle
Supervising Civil Engineer
City of Clovis – Public Utilities Department
155 N. Sunnyside Avenue
Clovis, CA 93611
Su
bject: Water Cost of Service and Rate Study Report
De
ar Mr. Tuttle,
Ra
ftelis is pleased to provide this Water Cost of Service and Rate Study Report to the City of Clovis. This report presents the analyses, rationales, and methodologies utilized in the study to determine cost of service-based water rates that meet the requirements of California Constitution Article XIII D, Section 6 (commonly referred to as Proposition 218).

Th
e study's major objectives included:
» Develop a five-year financial plan to ensure financial sufficiency, meet operating costs, fund the long -term capital improvement plan, satisfy debt service coverage requirements, and maintain target reserves. » Complete a cost-of-service analysis to ensure rates are proportionate to the costs of serving each customer class.
» Review the City’s existing water rate structure and recommend changes as necessary to ensure that proposed rates achieve financial sufficiency.
» Develop a five-year schedule of water rates that are fair, equitable, and compliant with Proposition 218 requirements.

It ha
s been a pleasure working with you, and we thank you and other City staff for the support provided to Raftelis during this study.

Si
ncerely,
Todd Cristiano
Project Manager
24 AGENDA ITEM NO. 5.

CITY OF CLOVIS

Table of Contents
EXECUTIVE SUMMARY...................................................................................................................................... 1 Introduction ...................................................................................................................................................... 1 Study Findings and Conclusions ..................................................................................................................... 1 Financial Plan......................................................................................................................................................................... 1 Cost of Service ....................................................................................................................................................................... 1 Rate Design ........................................................................................................................................................................... 1 Customer Bill Impacts ............................................................................................................................................................ 1 INTRODUCTION .................................................................................................................................................. 1 Report Organization ........................................................................................................................................ 1 Legal Requirements ........................................................................................................................................ 2 Rate-Setting Methodology ............................................................................................................................... 3 Reliance on City Provided Data ...................................................................................................................... 3 FINANCIAL PLAN ............................................................................................................................................... 5 Introduction ...................................................................................................................................................... 5 Financial Plan .................................................................................................................................................. 5 Capital Fund Cash Flow ......................................................................................................................................................... 5 Operating Fund Cash Flow .................................................................................................................................................... 7 Reserve Funds ..................................................................................................................................................................... 10 COST OF SERVICE ANALYSIS ....................................................................................................................... 11 Introduction .................................................................................................................................................... 11 Cost of Service Process ................................................................................................................................ 11 FY27 Revenue at Current Rates ................................................................................................................... 11 Test Year Revenue Requirement .................................................................................................................. 12 Revenue Requirement Allocation .................................................................................................................. 12 Functional Cost Components ............................................................................................................................................... 12 Allocation Factors ................................................................................................................................................................. 14 Allocation of Functionalized Costs ....................................................................................................................................... 15 Allocated Revenue Requirement Adjustments ..................................................................................................................... 17 Unit Cost of Service ............................................................................................................................................................. 19 Distribution of Costs to Customer Classes ........................................................................................................................... 19 Comparison of Cost of Service to Revenue at Existing Rates ............................................................................................. 20 RATE DESIGN ................................................................................................................................................... 21 Introduction .................................................................................................................................................... 21 Existing Rates ................................................................................................................................................ 21 Proposed Rates ............................................................................................................................................. 21 Development of Fixed Charges ..................................................................................................................... 22 Development of Volume Rates ...................................................................................................................... 22 Proposed Five-Year Rate Schedule .............................................................................................................. 23 Customer Bill Impacts .................................................................................................................................... 25 Drought Rate Volumetric Surcharges ........................................................................................................... 26

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CITY OF CLOVIS

List of Tables
Table 1: Proposed Water Rate Adjustments ................................................................................................................ 1 Table 2: Comparison of Existing and Proposed Service Charges ................................................................................ 2 Table 3: Comparison of Existing and Proposed Volume Rates .................................................................................... 3 Table 4: FY25 through FY31 Capital Improvements by Category ................................................................................ 6 Table 5: Capital Fund Cash Flow ................................................................................................................................. 7 Table 6: Operating Fund Cash Flow ............................................................................................................................. 9 Table 7: Reserve Fund Inflows and Outflows ............................................................................................................. 10 Table 8: FY27 Revenue at Existing Rates .................................................................................................................. 11 Table 9: Test Year Revenue Requirement ................................................................................................................. 12 Table 10: Test Year O&M Functional Allocation ......................................................................................................... 13 Table 11: Test Year Capital Cost Functional Allocation ............................................................................................. 14 Table 12: Development of System Demand Factors .................................................................................................. 15 Table 13: Summary of Allocated Net O&M Expense to Cost Components ................................................................ 17 Table 14: Allocation of Capital Costs to Cost Components ........................................................................................ 17 Table 15: Allocated Revenue Requirement Adjustments ........................................................................................... 18 Table 16: Summarized Units of Service ..................................................................................................................... 19 Table 17: Unit Cost of Service .................................................................................................................................... 19 Table 18: Distribution of Costs to Customer Classes Summary ................................................................................. 19 Table 19: Comparison of Cost of Service to Revenue at Existing Rates ................................................................... 20 Table 20: Development of Fixed Charges .................................................................................................................. 22 Table 21: Service Charge Calculation by Meter Size ................................................................................................. 22 Table 22: Development of Volume Rates ................................................................................................................... 22 Table 23: Comparison of Existing and Proposed Service Charges ............................................................................ 24 Table 24: Comparison of Existing and Proposed Volume Rates ................................................................................ 25 Table 25: Consumption Assumptions Utilized in Drought Response Charge Analysis .............................................. 26 Table 26: Drought Response Surcharges by Conservation Goal and Fiscal Year .................................................... 26

List of Figures
Figure 1: Single Family Residential Monthly Bill Impacts ............................................................................................. 1 Figure 2: Single Family Residential Monthly Bill Impacts ........................................................................................... 25

26 AGENDA ITEM NO. 5.

WATER RATE STUDY 1

Executive Summary

INTRODUCTION
The City of Clovis (City) retained Raftelis to conduct a comprehensive financial planning, cost of service, and rate design study for its water utility. The City’s overall objectives for this study included:

» Develop a multi-year financial plan for FY 2026 through FY 2031 (study period), for the City’s water enterprise and capital funds to ensure that revenues from rates, fees, and charges are sufficient to cover annual operating expenses, the capital improvement program net of bond and loan proceeds and meet the City’s reserve and debt service coverage requirements.
» Complete a comprehensive cost of service analysis to determine the cost to provide service to each customer class.
» Review and update the water rate structure to meet this City’s objectives and comply with Proposition 218, AB 755, and SB 1157.

STUDY FINDINGS AND CONCLUSIONS
Financial Plan
Projected water sales revenues at existing rates will be inadequate to meet the water utility’s revenue requirements throughout the Study Period. Table 1 shows the recommended rate revenue adjustments necessary to meet the forecasted revenue requirements. These adjustments are required to pay for future water utility operating expenses, fund the capital improvement program, provide adequate reserves, and satisfy debt service coverage requirements throughout the Study Period.

Table 1: Proposed Water Rate Adjustments

Cost of Service
Raftelis completed a comprehensive cost of service analysis to determine the cost to provide service to customer classes. The cost-of-service analysis is a multi-step process which considers the volume of water by class, class peak rates of demand, number of customers, and other relevant factors. The underlying principle in cost allocation is to convert the test year revenue requirement into costs that best reflect the costs associated with customer water demands placed on the system. Those costs are proportionally allocated to customer classes based on the costs of delivering water service to each class of customers. Customer service characteristics that contribute to costs include average day, peak day and peak hour demands, the number of accounts, and the number of equivalent meters.

Line
No. Description Existing FY27 FY28 FY29 FY30 FY31
Current Proposed Proposed Proposed Proposed Proposed
1 Months Increase is Effective in First Year January 1, 2027 January 1, 2028 January 1, 2029 July 1, 2029 July 1, 2030 2 Annualized Percentage Increase 0.0% 21.0% 21.0% 18.0% 3.0% 3.0% 3 Cumulative Increase 0.0% 21.0% 46.4% 72.8% 77.9% 83.3% 27 AGENDA ITEM NO. 5.

WATER RATE STUDY 1

Rate Design
The primary objective of the utility cost of service analysis and rate design is to develop rates and charges that will meet, as nearly as practical, the cost of providing service for each customer class while not exceeding the proportional costs of delivering service to each parcel. A rate structure for each individual customer would place a financial and administrative burden on the utility’s resources. Instead, grouping customers into classes based on the costs to deliver water service to each class is a more manageable and practical method. The existing rate study consists of a bimonthly service charge which varies by class and by meter size.

Existing Rates
The residential class includes single family, multifamily, and mobile home customers. It also includes customers served outside the City limits in Tarpey Village. Tarpey Village consists of three residential customer classes; metered residential, non-metered residential, and non-metered large lot residential. Metered residential customers are assessed a per-dwelling unit service charge that does not vary by meter size and a tiered volume charge based on use. Tarpey Village non-residential large lot rate customers are assessed a service charge based on square footage. Tarpey Village non-metered customers are charged a fixed service charge. All Tarpey non-metered residential and non-metered large lot customers will have transitioned to metered service by the time of the FY27 rate implementation.

The commercial class includes commercial and industrial customers who are assessed a service charge based on meter size and a tiered volume charge based on use. Recycled water customers are assessed a service charge by meter size and a volume charge based on pressurized or non-pressurized use. Private firelines are assessed a service charge that does not vary by line size. Construction water accounts are temporary, unmetered customers that use water service for homes under construction. Construction water is assessed a service charge equal to the Tarpey un- metered service charge. Hydrant meter rates are assessed a service charge plus a volume rate for all usage.

Proposed Rates
The customer classes for the proposed rates have been reclassified to apply to three classes: potable retail users, recycled water users, and private fire capacity users. Service charges apply to each class based on meter size or fireline size, as applicable. To ensure that all customers are assessed a proportionate share of costs to provide service, volume rates now apply uniformly to each type of water use: potable, recycled, pressurized, and recycled non-pressurized.

The potable retail class combines the existing residential, commercial, and landscape customers into one class that is assessed a service charge that varies by meter size and a uniform volume rate.

The recycled water class is assessed a service charge that varies by meter size and a volume rate based on whether the use is pressurized or non-pressurized. The private fire capacity class is assessed a stand-by charge that varies by fireline size. Raftelis proposes that proposed construction water charges for FY27 through FY31 be based on the 1” meter service charge plus 60,000 gallons of water use at the proposed volume rates. Hydrant meter rates will increase at the same percentage as the annual financial plan increases.

Table 2 on the following page compares the existing and proposed cost of service rates for the study period.

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WATER RATE STUDY 2

Table 2: Comparison of Existing and Proposed Service Charges

Existing Proposed
Description FY26 FY27 FY28 FY29 FY30 FY31
BIMONTHLY SERVICE CHARGE, $ PER BILL
Residential
Single Family [1] $27.71
Multifamily [1] 27.71
Mobile Home [1] 27.71
Tarpey Metered Residential [1,2] 27.71
Tarpey - Non-Metered Res Large Lot [1,2] 6.67
Tarpey - Non-Metered [1,2] 139.05
Residential [3], Commercial, and Landscape (Retail Potable Water Users) Meter Size
Inches
5/8 $22.30 $33.46 $40.49 $47.78 $49.21 $50.69
3/4 22.30 33.46 40.49 47.78 49.21 50.69
1 22.30 33.46 40.49 47.78 49.21 50.69
1 1/2 29.66 55.36 66.99 79.05 81.42 83.86
2 40.97 81.64 98.78 116.56 120.06 123.66
3 81.13 151.72 183.58 216.62 223.12 229.81
4 204.08 230.57 278.99 329.21 339.09 349.26
6 814.05 449.58 543.99 641.91 661.17 681.01
8 1,443.03 800.00 968.00 1,142.24 1,176.51 1,211.81
10 2,260.71 1,062.81 1,286.00 1,517.48 1,563.00 1,609.89 Recycled
Meter Size
inches
5/8 $22.30 $25.87 $31.30 $36.93 $38.04 $39.18
3/4 22.30 25.87 31.30 36.93 38.04 39.18
1 22.30 25.87 31.30 36.93 38.04 39.18
1 1/2 29.66 40.18 48.62 57.37 59.09 60.86
2 40.97 57.35 69.39 81.88 84.34 86.87
3 81.13 103.14 124.80 147.26 151.68 156.23
4 204.08 154.66 187.14 220.83 227.45 234.27
6 814.05 297.76 360.29 425.14 437.89 451.03
8 1,443.03 526.71 637.32 752.04 774.60 797.84
10 2,260.71 698.43 845.10 997.22 1,027.14 1,057.95
Private Fireline
Line Size
inches
4 and less $204.08 $20.15 $24.38 $28.77 $29.63 $30.52
6 204.08 36.52 44.18 52.13 53.69 55.30
8 204.08 64.74 78.34 92.44 95.21 98.07
10 204.08 107.20 129.72 153.07 157.66 162.39
12 204.08 166.05 200.92 237.09 244.20 251.53
Construction Water $139.05 $154.66 $186.89 $220.58 $227.41 $234.29 Hydrant Meter Water, $ per bill per month $40.57 $40.82 $49.39 $58.28 $60.03 $61.83 [1] The proposed service charge by meter size applies to all customer classes.

Under existing rate structure, residential customers were charged a fixed, per dwelling charge. [2] Tarpey are billed the same as inside City residential. [3] Service charge applies to all Residential classes in FY27. [4] Current construction water charges are based on Tarpey Non-Metered charges.

Proposed construction water charges are based on the 1" meter charge plus 60,000 of water usage at the proposed volume rates for each year.

Note [1]
Note [1]
Note [1]
Note [1,2]
Note [1,2]
Note [1,2]
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WATER RATE STUDY 3

Table 3 compares the existing and proposed volumetric rates for the study period.

Table 3: Comparison of Existing and Proposed Volume Rates

Existing Proposed
Description FY26 FY27 FY28 FY29 FY30 FY31
VOLUME RATES, $ PER 1,000 GALLONS
Resdential - Single Family, Multifamily, Mobile Home [1] Tier 1: (0 - 23,000 gal) $1.13 $2.02 $2.44 $2.88 $2.97 $3.06 Tier 2: (23,000 - 40,000 gal) 1.88 2.02 2.44 2.88 2.97 3.06 Tier 3: (Over 40,000 gal) 2.33 2.02 2.44 2.88 2.97 3.06 Commercial and Landscape
Tier 1: (0 - 23,000 gal) $1.13 $2.02 $2.44 $2.88 $2.97 $3.06 Tier 2: (Over 23,000 gal) 1.53 2.02 2.44 2.88 2.97 3.06 Recycled
Pressurized $0.71 $0.87 $1.05 $1.24 $1.28 $1.32
Non-Pressurized 0.076 0.072 0.090 0.110 0.110 0.110
Hydrant Meter Water $ per 1,000 gallons [2] Note [2] $2.02 $2.44 $2.88 $2.97 $3.06 [1] Tarpey are billed the same as inside City residential [2] Existing hydrant meter volume rate based on Commercial and Landscape volume rates. 30 AGENDA ITEM NO. 5.

WATER RATE STUDY 1

Customer Bill Impacts
Figure 1 shows a comparison of a typical monthly bill for a residential customer with a 1 -inch meter under the existing and proposed rate structures for various use levels over a two-month period: low (8 kgal), average (24 kgal), and high usages (32 kgal). Raftelis and City staff chose a 1” meter size as this is the minimum required size for new residential development and is the most common meter size for City customers. For each category of usage t he column on the left indicates the bill under the existing rate structure. The column on the right indicates the bill under the proposed rate structure given identical usage. The total bill shown for each level of consumption has been stated on a monthly basis.

Figure 1: Single Family Residential Monthly Bill Impacts

31 AGENDA ITEM NO. 5.

WATER RATE STUDY 1

Introduction

The City of Clovis provides water service to approximately 40,600 potable and non -potable customers. Potable customers include single family residential customers, multifamily residential customers, mobile home customers, and commercial and industrial customers. Recycled water customers are served by the pressurized system or through unpressurized gravity flows. The City’s water system consists of wells, a surface water treatment plant (WTP), storage tanks and an integrated distribution system network. The WTP has a capacity of 22.5 million gallons per day (mgd), the water system’s 37 wells have a combined total capacity of 31,740 gallons per minute (gpm). The water system has three storage tanks, and three booster pump stations. The distribution system contains 585 miles of mains. The City’s recycled water system currently has 42 miles of distribution mains serving 133 connections at 69 sites. This overview is based on data provided by the City.

REPORT ORGANIZATION
This report contains the following sections:

» Executive Summary. Summarizes the study results for the water financial plan, cost of service analysis and rate design.
» Introduction. Provides an overview and purpose of the study as well as key components of the study process.
» Financial Plan. Details the development of the financial plan, discussion of operating expenses, capital expenditures, debt service, reserve requirements, debt service coverage, and additional bond test requirements.
» Cost of Service Analysis. Details the process for functionalizing, allocating, and distributing the revenue requirement to customer classes.
» Rate Design. Details the process for recovering the revenue requirement between the monthly fixed service charge and the volume rates for each customer class.

The City’s financial operations are reported on a fiscal year basis. The fiscal years are the twelve-month periods ending June 30 of each year. In this report the fiscal years are shown as FYXX.

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WATER RATE STUDY 2

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 service, are as follows:

1. The revenues derived from a property-related charge (such as water rates) 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. No fee or charge may be imposed for general government services.

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

7. If written protests against the proposed fee or charge are presented by a majority of owners of the affected parcels, the agency shall not impose the proposed fee or 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 Manual M1 to ensure this s tudy meets Proposition 218 requirements and establishes rates that do not exceed the proportionate cost of providing water services on a parcel basis.

To preclude costly legal challenges, the state legislature has enacted legislation that can be included with the Proposition 218 Notices that provide a limited time to challenge rates.

1. Limitation to Rate Challenges - Pursuant to California Government Cost Section 53759, there is a 120-day statute of limitations for judicially challenging rates from the date the legislative body adopts the resolution approving rates.

2. Exhaustion of Administrative Remedies - Pursuant to California Government Code Sections 53759.1 and 53759.2, if the local agency meets the all of the requirements specified in section 53759.1 a person or entity will be prohibited from bringing a judicial action or proceeding alleging that the proposed rates do not comply with Proposition 218 unless that person or entity has submitted a written objection to the proposed rates in response to the Proposition 218 Notice. This is known as an Exhaustion of Administrative Remedies requirement and is separate from the Proposition 218 majority Protest process.

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 through conservation. Section 106 of the Water Code declares that the highest priority use of water is for domestic purposes, with irrigation secondary. Thus, the management of water resources is part of the property-related service provided by public water suppliers to ensure the resource is available over time.

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RATE-SETTING METHODOLOGY
This study was conducted using industry-standard principles outlined by the AWWA Manual. The process and approach Raftelis utilized in the study to determine water rates is informed by the City’s policy objectives, the current water system and rates, and the legal requirements in California that include Proposition 218. The resulting financial plan, cost of service analysis, and rate design process followed five key steps, outlined below, to determine the proposed rate struture that fulfills the City’s objectives, meets industry standards, and compl ies with all relevant regulations.

1. Financial Plan: The first study step was to develop a multi-year financial plan that projects the City’s water related revenues, expenses, capital project financing, annual debt service, and reserve funding. The financial plan was used to determine the revenue adjustment, the difference between the revenues generated by the exisiting rate structure and the revenue requirement (as described below).

2. Revenue Requirement: After completing the financial plan, the revenue requirement was determined for the test year, also known as the rate -setting year. The test year used for this study is FY 202 7. The revenue requirement is the amount needed to sufficiently fund the City’s water related operating costs, annual debt service (including coverage requirements), capital expenditures, and reserve funding as projected based on the annual budget estimates.

3. Cost of Service Analysis: The revenue requirement is distributed to customer classes commensurate with their use of and burden on the water system and the proportional costs of providing service to each customer class. 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, customer service, etc.
» Allocate to cost causation components – the functionalized costs are allocated to cost causation components such as volume, bills, equivalent meters, etc. » Develop unit costs – unit costs for each cost causation component are determined using units of service, such as total use, equivalent meters, number of customers, etc., for each component. » Distribute cost components – the cost components are allocated to each customer class using the unit costs in proportion to their demand and burden on the system.

4. Rate Design: After allocating the revenue requirement to each customer class, the project team designs and calculates rates. This process also includes a rate impact analysis and sample customer bill impacts.

5. Administrative Record (Report) Preparation and Rate Adoption: The administrative record is developed in conjunction with the rate adoption process. This rate study 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 string ent legal environment and communicating the rationale for revenue adjustments and proposed rates to customers and key stakeholders.

RELIANCE ON CITY PROVIDED DATA
During this project, the City (and/or its representatives) provided Raftelis with a variety of technical information, including cost and revenue data. Raftelis reviewed the data provided for reasonableness but did not independently assess or test for the accuracy of such data – historic or projected. Raftelis has relied on this data in the formulation 34 AGENDA ITEM NO. 5.

WATER RATE STUDY 4

of our findings and subsequent recommendations, as well as in the preparation of this report. Raftelis also relied on cost allocation data provided by the City needed to complete the cost-of-service analysis.

There are often differences between actual and projected data. Some of the assumptions used for projections in this report will not be realized, and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between the data or results projected in this report and actual results achieved, and those differences may be material. As a result, Raftelis takes no responsibility for the accuracy of data or projections provided by or prepared on behalf of the City, nor do we have any responsibility for updating this report for events occurring after the date of this report.

In conducting the cost-of-service analysis, Raftelis reviewed the books, records, agreements, capital improvement programs, customer sales, and financial projections for the City's water system. The documents, information and data were provided to the consultant by the City. Raftelis also conferred with City staff, including finance, planning, and engineering staff. Per capita demands from customers are projected to decrease in alignment with “Making Conservation a California Way of Life Regulations” being implemented over the course of the study period.

In the study, Raftelis made rate calculations using the best estimates of the City's expected costs, planned capital improvements, and future customer demands. Making such calculations in advance is normal for public water providers because providers need to recover revenue matched to public budgets adopted in advance of their fiscal periods. For this reason, and others, achieving mathematical exactitude in rate calculations is impossible. Instead, there are methods and techniques available to water providers that yield reasonable proportionality between the costs incurred to provide water service and the demand for that service.

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WATER RATE STUDY 5

Financial Plan

INTRODUCTION
The City’s water utility is a self-supporting enterprise fund. The City has one combined fund which includes four subfunds.
» Capital cash flow. Tracks financial activities associated with non-growth capital funding and spending. The primary sources of revenue are transfers from the operating fund. The primary uses of funds are capital repair and replacement projects (CIP), and payments on existing and proposed debt service. » Operating cash flow. Tracks financial activities associated with operating and maintaining the water utility on a daily basis. Primary sources of funds are rate revenue, other non-rate revenue, and transfers from the general fund. Uses of funds consist of operations and maintenance expenses (O&M), transfers to the capital fund, and transfers to reserve funds
» Development impact fee fund. Tracks financial activities associated with funding growth-related projects.

Primary sources are development impact fees and revenue bonds. Primary uses include growth-related capital projects and debt service associated with those projects. » Reserve funds. This fund tracks activities associated with funding various operating and capital programs.

Reserves have been set aside for the water treatment plant membrane replacement, maintaining a drought contingency, funding for future SGMA projects, and funding for TCP treatment. These reserves are funded primarily through operating revenues, including rate revenue.

This report focuses on the capital and operating funds because these financial activities are associated with the revenue requirements used in the cost-of-service analysis. The operating fund does account for the reserve fund requirements through transfers out to that fund. These transfers are captured as part of the revenue requirement.

Detailed O&M, CIP, and cash flow tables are included in Appendix A.

FINANCIAL PLAN

Capital Fund Cash Flow

Beginning Balance
The FY25 beginning balance is assumed to be $7.1 million.

Sources of Funds
Sources of funds consist primarily of transfers from the operating fund. Transfers are projected to increase from approximately $3.8 million in FY27 to $12.7 million in FY31 to fund capital repair and replacement projects.

There are no bond or loan issues proposed during the study period.

Uses of Funds
The City has several capital improvement projects anticipated over the study period. Major projects include main replacement, water treatment plant upgrades, storage improvements and other miscellaneous projects. Table 4 shows the total capital improvements by category with and without inflation. Columns in Table 4 shows the capital improvement project costs with and without an annual inflation allowance of 4.0%. 36 AGENDA ITEM NO. 5.

WATER RATE STUDY 6

Table 4: FY25 through FY31 Capital Improvements by Category

Capital Reserves
Capital reserves are an industry best practices considering the significant level of capital infrastructure required to collect, treat, and deliver water to customers. Capital reserves are established to provide a utility with sufficient funds to meet unanticipated capital needs, such as an infrastructure failure or unexpected repair and replacement project costs. Capital reserve targets can be defined in several ways given that capital expenditures generally fluctuate more than operating costs on a year-to-year basis. Utilities tend to choose targets they find reasonably easy to administer, and that differ depending on where the utilities are in their infrastructure lifecycle. For example, one utility may not have experienced major growth for years and has largely depreciated its assets, another may have more recently constructed facilities, and another utility may be rapidly growing and has just built a new treatment plant.

A common capital reserve target is one year of depreciation expense. Based on the projected depreciation expense, the target capital reserve increases from approximately $3.5 million in FY25 to $4.5 million in FY31. Table 5 summarizes the capital fund cash flow required to meet the target capital reserve.

Line Millions ($)
No. Description Exc. Inflation Inc. Inflation
1 Mains $1.32 $1.50
2 WTP 17.09 20.50
3 Storage 4.13 4.71
4 Misc 8.22 9.91
5 Well 2.60 3.01
6 Pump 0.00 0.00
7 Recharge Basin 1.13 1.17
8 Total $34.48 $40.81
FY25 - FY31
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Table 5: Capital Fund Cash Flow

Operating Fund Cash Flow
Beginning Balance
The projected FY25 beginning fund balance is assumed to be $22.7 million.

Revenues
Operating revenue is derived from water rates, investment income, transfers in, and other non-rate revenues.

Water sales revenue under current rates is based on the projected number of water accounts and water usage amounts for each customer class. Revenue under existing rates is projected to range from $21.5 million in FY25 to $23.6 million in FY31 based on projected annual customer growth of approximately 2.0%. Other sources of non- operating revenues include a periodic annual $700,000 transfer from the general fund for repayment of an interfund loan that will continue annually through the entire study period. Transfers in from the drought contingency reserve fund are scheduled in FY25 through FY27 which total $2.6 million. Investment income is projected to average approximately $732,000 annually. Investment income projections are based on the average fund balance of the operating fund and the various reserve funds.

Revenue Requirements
Revenue requirements include operation and maintenance expense (O&M), transfers to the capital fund, debt transfers to the development impact fee fund, transfers to reserve funds, funding the operating reserve and meeting debt service coverage requirements.

O&M consists of personnel, professional and contractual services, repairs and maintenance, materials and supplies.

O&M is projected to increase from $26.6 million in FY25 to $31.3 million in FY31. Transfers to the capital fund are projected to occur annually starting in FY27 to provide funding for projects such as the Surface Water Treatment Plant upgrades. Transfers to the development impact fee fund are projected to occur annually during the study period until FY28 when the revenue refunding bonds mature. The revenue refunding bond debt service is projected to be paid 25% from the operating fund and 75% from the developer impact fee fund. These debt service payments made from the operating fund are projected to average $730,000 annually until maturity.

Line Fiscal Period Ending June 30
No. Description FY25 FY26 FY27 FY28 FY29 FY30 FY31
$ $ $ $ $ $ $
Sources of Funds
1 Transfer From Operating Fund - - 3,834,334 2,469,746 8,161,797 10,626,694 12,740,489 2 Revenue Bond Proceeds (Non-Growth) - - - - - - - 3 State Loans (Non-Growth) - - - - - - - 4 Investment Income 134,979 103,152 38,694 52,874 - - - 5 Total Sources 134,979 103,152 3,873,028 2,522,619 8,161,797 10,626,694 12,740,489 Uses of Funds
6 Capital Projects (Non-Growth) 756,000 2,696,720 3,955,411 2,372,619 8,001,797 10,456,694 12,570,489 7 Transfer To Operating Fund - - - - - - - 8 Total Uses 756,000 2,696,720 3,955,411 2,372,619 8,001,797 10,456,694 12,570,489 9 Annual Surplus (Deficiency) (621,021) (2,593,568) (82,383) 150,000 160,000 170,000 170,000 10 Beginning Balance 7,126,972 6,505,951 3,912,383 3,830,000 3,980,000 4,140,000 4,310,000 11 Ending Balance 6,505,951 3,912,383 3,830,000 3,980,000 4,140,000 4,310,000 4,480,000 12 Target Reserve (Annual Depreciation) 3,536,323 3,680,000 3,830,000 3,980,000 4,140,000 4,310,000 4,480,000 13 Unrestricted Capital Reserves 2,969,629 232,383 - - - - - 38 AGENDA ITEM NO. 5.

WATER RATE STUDY 8

Operating Reserve
A minimum operating reserve equal to 90 days of operating expenses is recommended, which is typical in the industry and for a utility of this size.

Debt Service Coverage
The City has one outstanding issue of water revenue bonds, the 2023 Water Revenue Refunding Bonds, which were issued to refund the City’s 2013 water revenue bonds. The City funds 25% of the debt service payments on the refunding bonds from rate and other operating revenues and the remaining 75% from development impact fees.

Bond covenants require a minimum debt service coverage of 1.25x refunding bond debt service. The refunding bonds mature in FY28. Debt service coverage is projected to be adequate through the study period.

Indicated Water Sales Revenue Adjustments
Water rate revenue must be sufficient to meet revenue requirements, maintain adequate reserves, and comply with bond covenants. To achieve these goals, an annual adjustment of 21% is required to meet the FY27 revenue requirements, followed by an annual increase of 21% for the FY28 revenue requirements and 18% for the FY29 revenue requirements. Equal annual adjustments of 3% are projected to be required to meet the FY30 and FY31 revenue requirements. Table 6 summarizes the operating fund cash flow.

39 AGENDA ITEM NO. 5.

WATER RATE STUDY 9

Table 6: Operating Fund Cash Flow

Line Fiscal Period Ending June 30
No. Description FY25 FY26 FY27 FY28 FY29 FY30 FY31
$ $ $ $ $ $ $
Sources of Funds 0.21% 1.87% 1.88% 1.88%
1 Revenue from Existing Water Service Rates 21,491,253 21,536,600 21,940,138 22,351,660 22,771,327 23,200,392 23,637,962 2 Additional Water Sales Revenue Required - - 2,303,714 7,533,627 13,568,728 18,083,943 19,686,904 3 Total Water Service Rate Revenue 21,491,253 21,536,600 24,243,852 29,885,287 36,340,054 41,284,335 43,324,866 4 Miscellaneous Revenue 1,547,204 1,554,844 1,562,637 1,570,586 1,578,693 1,586,963 1,595,398 5 Debt Proceeds (Transfers In) 770,000 770,000 770,000 770,000 770,000 770,000 770,000 6 Reserve Transfers In (Mem Replace, Drought, SGMA) 500,000 1,000,000 400,000 - - - 536,038 7 Interest Income 866,994 803,066 701,472 636,991 640,954 685,520 750,366 8 Total Sources 25,175,452 25,664,511 27,677,962 32,862,864 39,329,701 44,326,819 46,976,668 Uses of Funds
9 Operation and Maintenance Expense 26,603,928 27,665,934 29,137,928 29,685,545 30,750,785 29,660,598 31,255,080 Transfers to Reserves
10 Transfer to Membrane Replacement 100,000 100,000 100,000 200,000 200,000 250,000 250,000 11 Transfer to Drought Contingency - - - - - - - 12 Transfer to SGMA - 500,000 500,000 - - 500,000 500,000 13 Transfer to TCP Treatment 620,000 620,000 620,000 620,000 620,000 620,000 620,000 Transfers to Subfunds
14 Transfer to Capital Fund - - 3,834,334 2,469,746 8,161,797 10,626,694 12,740,489 15 Transfer to DIF Subfund 25% of Total Debt Service 732,125 730,750 732,938 728,438 - - - 16 Total Uses of Funds 28,056,053 29,616,684 34,925,200 33,703,728 39,732,582 41,657,292 45,365,569 17 Annual Surplus (Deficiency) (2,880,601) (3,952,173) (7,247,238) (840,863) (402,881) 2,669,527 1,611,099 18 Beginning Balance 22,730,000 19,849,399 15,897,226 8,649,988 7,809,124 7,406,243 10,075,770 19 Ending Balance 19,849,399 15,897,226 8,649,988 7,809,124 7,406,243 10,075,770 11,686,870 Target Reserves
20 Target Operating Reserves (90 Days O&M) 6,650,000 6,920,000 7,280,000 7,420,000 7,690,000 7,420,000 7,810,000 21 Unrestricted Operating Reserves 13,199,399 8,977,226 1,369,988 389,124 (283,757) 2,655,770 3,876,870 22 Annual Water Service Revenue Increase 0.0% 0.0% 21.0% 21.0% 18.0% 3.0% 3.0% 23 Debt Service Coverage 3.22 2.96 3.39 5.25 N/A N/A N/A 24 Cumulative Revenue Increase 0.0% 0.0% 21.0% 46.4% 72.8% 77.9% 83.3% 40 AGENDA ITEM NO. 5.

WATER RATE STUDY 10

Reserve Funds
The City maintains reserve funds for a variety of projects including regular replacement of its Surface Water Treatment Plant (SWTP) membranes; funding for the Sustainable Groundwater Management Act (SGMA), drought contingency fund for periods of reduced revenue due to drought conditions, and additional infrastructure to meet additional water quality standards associated with treating Per- and Polyfluoroalkyl Substances (PFAS) and 1,2,3 Trichloropropane (TCP). Table 7 shows the projected inflows and outflows needed to maintain the reserve funds.

Table 7: Reserve Fund Inflows and Outflows

Line Estimated Budget
No. Description FY25 FY26 FY27 FY28 FY29 FY30 FY31
$ $ $ $ $ $ $
Membrane Replacement
1 Transfer From Operating Fund (In) 100,000 100,000 100,000 200,000 200,000 250,000 250,000 2 Transfer to Operating Fund (Out) Membrane Repl - 0 400,000 - - - 536,038 3 Annual Surplus (Deficiency) 100,000 100,000 (300,000) 200,000 200,000 250,000 (286,038) 4 Beginning Balance 1,180,000 1,280,000 1,380,000 1,080,000 1,280,000 1,480,000 1,730,000 5 Ending Balance 1,280,000 1,380,000 1,080,000 1,280,000 1,480,000 1,730,000 1,443,962 Drought Contingency
6 Transfer From Operating Fund - - - - - - - 7 Transfer to Operating Fund (Out) 500,000 1,000,000 - 8 Annual Surplus (Deficiency) (500,000) (1,000,000) - - - - - 9 Beginning Balance 7,500,000 7,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 10 Ending Balance 7,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 SGMA
11 Transfer From Operating Fund - 500,000 500,000 - - 500,000 500,000 12 Transfer to Operating Fund (Out) - - - - - - - 13 Annual Surplus (Deficiency) - 500,000 500,000 - - 500,000 500,000 14 Beginning Balance 5,000,000 5,000,000 5,500,000 6,000,000 6,000,000 6,000,000 6,500,000 15 Ending Balance 5,000,000 5,500,000 6,000,000 6,000,000 6,000,000 6,500,000 7,000,000 TCP Treatment
16 Transfer From Operating Fund 620,000 620,000 620,000 620,000 620,000 620,000 620,000 17 Transfer to Operating Fund (Out) - - - - - - - 18 Annual Surplus (Deficiency) 620,000 620,000 620,000 620,000 620,000 620,000 620,000 19 Beginning Balance 8,270,000 8,890,000 9,510,000 10,130,000 10,750,000 11,370,000 11,990,000 20 Ending Balance 8,890,000 9,510,000 10,130,000 10,750,000 11,370,000 11,990,000 12,610,000 21 Total Reserve Balance 22,170,000 22,390,000 23,210,000 24,030,000 24,850,000 26,220,000 27,053,962 Projected (Fiscal Year Ending June 30)
41 AGENDA ITEM NO. 5.

WATER RATE STUDY 11

Cost of Service Analysis

INTRODUCTION
Equitable water rates fairly recover the costs required to provide service to each respective customer class.

Determination of cost of service requires accounting for the volume of water used by the class, class peak rates of demand, the number of customers within the class, and other relevant factors.

The cost-of-service analysis is conducted for a test year which is considered representative of the period in which resultant rates are expected to be in effect. The year 2027 was selected as the test year for this study.

COST OF SERVICE PROCESS
The cost-of-service process assigns costs based on each customer class’s proportionate share of water demands and number of customers. The cost-of-service analysis consists of the following nine steps:

1. Determine the test year rate revenue at existing rates

2. Determine the test year revenue requirement

3. Functionalize the revenue requirement

4. Allocate functionalized costs to cost components

5. Determine the total system units of service

6. Determine the unit costs of service

7. Determine customer class units of service

8. Distribute costs to customer classes

9. Design rates to recover class cost-of-service and the total revenue requirement

FY27 REVENUE AT CURRENT RATES
Raftelis developed FY27 rate revenue projections at existing rates using detailed billing records provided by the City based on the current number of customers by meter size and class, projected use per account and growth in the number of accounts by class. The FY27 revenue projected to be generated by the existing rates is shown in Table 8.

This projection of revenue generated by the existing rates serves as the basis for determining the FY27 revenue requirement. Projections are also used in the units of service analysis.

Table 8: FY27 Revenue at Existing Rates

Line
No. Customer Class Bills Volume Revenue
1,000 gal
1 Retail 276,873 7,897,634 20,974,374
2 Recycled Water-Pressurized 2,052 235,739 346,430
3 Recycled Water-Non-Pressurized 12 16,286 28,106
4 Private Fire Protection 4,252 - 591,228 5 Total 283,189 8,149,659 $21,940,138
42 AGENDA ITEM NO. 5.

WATER RATE STUDY 12

TEST YEAR REVENUE REQUIREMENT
Table 9 shows the components of the revenue requirement for 2027. As shown in the table below, the revenue requirement is the sum of operating and maintenance expense, debt service, capital R&R projects, DIF debt service transfers and transfers to reserves (Lines 1 through 6). Adjustments to the revenue requirement are made to account for miscellaneous revenues, interfund debt repayment, reserve transfers, interest income, and operating reserve increases (Lines 7 through 12). The individual revenue requirements for Operating and Capital, respectively, are shown on Line 13. The total net revenue requirement is shown on Line 14.

Table 9: Test Year Revenue Requirement

REVENUE REQUIREMENT ALLOCATION
The underlying principle in cost allocation is to convert the test year revenue requirement into costs that best reflect the cost associated with customer water demands placed on the system. Those costs are proportionally allocated to customer classes based on their respective customer class units of service to determine class cost of service.

Customer class units of service include average day, peak day, and peak hour demands, the number of equivalent meters, and the number of bills.

Functional Cost Components
Water systems are comprised of several facilities (unit processes or functions) that are designed and operated to collect, treat, and distribute water to customers. The separation of costs into functional components provides a means for distributing costs to customer classes based on their respective proportional costs to service.

O&M Functional Costs
The City’s O&M revenue requirement can be functionalized into cost categories based on the line-item descriptions in the budget. O&M functional cost categories include expenses for day-to-day operations and management during Line
No. Description
Operating
Expense
Capital
Expense Total
$ $ $
Revenue Requirements
1 Operating & Maintenance Expense $29,137,928 $29,137,928 2 Debt Service - -
3 Capital R&R Projects 3,834,334 3,834,334
4 DIF Debt Service Transfer 732,938 732,938 5 Transfer to Reserves 1,220,000 1,220,000
6 Total Revenue Requirements $29,137,928 $5,787,272 $34,925,200 Revenue Requirement Adjustments
7 Miscellaneous Revenue (1,562,637) (1,562,637) 8 Interfund Debt Repayment (770,000) (770,000) 9 Reserve Transfers In (400,000) (400,000)
10 Interest Income (585,235) (116,237) (701,472) 11 Operating Reserve Increase (Decrease) (4,124,358) (819,165) ($4,943,524) 12 Total Adjustments ($6,272,230) ($2,105,403) ($8,377,633) 13 Subtotal $22,865,697 $3,681,869 $26,547,567
14 Net Revenue Requirement $26,547,567
43 AGENDA ITEM NO. 5.

WATER RATE STUDY 13

the applicable year. Table 10 shows the FY27 O&M revenue requirement allocated to functional categories. The allocation of O&M to functional cost categories is based on an evaluation of each O&M line item assigned to a functional category most aligned with that expense. Raftelis provided guidance on this approach but ultimately relied on the City’s expertise in assigning the O&M costs to the functional cost categories. Table 10 summarizes the functional O&M costs for the FY27 test year.

Table 10: Test Year O&M Functional Allocation

Capital Functional Costs
Table 11 shows the FY27 capital cost revenue requirements allocated to the functional cost categories based on the proportionate value of assets. The value of water system assets provides a reasonable basis for allocating the expenses in the capital cost categories to the cost components. Annual capital improvement program costs vary significantly from year to year as well as project types which may cause fluctuation in future cost of service analysis. Allocating the test year capital costs on a project-by-project basis alone may result in a distribution of cost allocations that can fluctuate significantly from year to year. Therefore, Raftelis allocated the capital cost categories based on the value of existing assets, plus project additions from the City’s capital improvement program.

Line FY27 Test Year
No. Description Total
Operation and Maintenance Expense
1 Wells/WTP/Purchased Water 11,665,665
2 Pumping 3,392,204
3 Treated Storage 377,170
4 Trans/Dist 3,635,536
5 Hydrants/Fire Protection 403,144
6 Meters &Services 5,215,017
7 Customer Billing 4,170,898
8 All Other/Infrastructure 0
9 All Other/General 0
10 Recycled Water Pressurized 260,524
11 Recycled Water Non-Pressurized 17,770
12 Total O&M Expense $29,137,928
44 AGENDA ITEM NO. 5.

WATER RATE STUDY 14

Table 11: Test Year Capital Cost Functional Allocation

Allocation Factors
Water systems are designed and operated to meet the average and peak demands of their customers. Therefore, data on annual consumption and peak demand contributions are needed to allocate costs equitably among customer classes. Since customers do not exert their maximum demand for water at the same time, water facilities are designed to meet the coincidental demands on the system. Using system peak demands to average demand ratios provides a means for distributing costs equitably to customer classes.

For every facility on the system, there is an underlying average demand, or uniform rate of usage, exerted coincidentally by customers for which the average day cost component applies. Certain facilities are operated and designed to meet the demand above the average day demand or maximum day extra-capacity demand. Costs associated with those facilities are allocated to both the average day and maximum day cost components.

Similarly, other facilities are designed to meet demands in excess of maximum day requirements or maximum hour extra-capacity. Costs associated with these facilities are allocated to the average day, maximum day, and maximum hour cost components.

The ratio of maximum day and average day demand is used to allocate costs between average day and maximum day cost components. A maximum day to average day ratio of 1.7 is used based on the City most recent Water Master Plan (WMP). This indicates approximately 58.8% of the capacity of facilities designed and operated for maximum day demand is needed for average day demands use. Accordingly, the remaining 41.2% is for maximum day extra-capacity requirements.

A ratio of maximum hour to average day water use of 3.0 was used based on the City’s WMP ratio of maximum hour demand to maximum day demand of 1.30. This ratio indicates approximately 33.3% of the capacity of facilities designed and operated for maximum hour demand is needed for average day demands, approximately

23.3% is required to meet maximum day extra-capacity demand, and the remaining approximately 43.3% is for maximum hour extra-capacity demand. These ratios are used to allocate the line item functionalized costs to cost components. Other cost allocations are based on the allocation of all other categories. Table 12 shows the development of the percent allocation of system maximum day demands and maximum hour demands.

Line RCNLD Test Year
No. Description Assets [1] Capital
1 Land $3,236,338 $40,009
2 Source of Supply 15,100,155 186,675
3 Pumping Station 2,129,204 26,322
4 Wells / Treatment 201,367,903 2,489,402
5 Treated Storage 66,298,972 819,618
6 Transmission Reserve 9,203,145 113,773
7 Capacity Reserve 13,021 161
8 Customer Billing 0 0
9 Meters and Services 477,858 5,908
10 Total $297,826,597 $3,681,869
[1] RCNLD: Replacement cost new less accumulated depreciation 45 AGENDA ITEM NO. 5.

WATER RATE STUDY 15

Table 12: Development of System Demand Factors

Other revenue requirements can be directly assigned to specific cost components. Billing and administrative costs such as meter reading are allocated directly to the billing cost component. Indirect expenditures not specifically assigned are allocated in proportion to all other operations and maintenance cost components.

Allocation of Functionalized Costs
Once costs have been separated by function, they can be further allocated to cost components using the demand factors identified above. Allocating costs to cost components provides a means of assigning functionalized costs based on the design and functional parameters that facility serves in the system. Functionalized costs are grouped under two categories: volume and customer. Volume cost components include average day demand, peak rates of demand. Customer costs include meters and services, billing, reserve capacity, and public fire capacity costs. This allocation approach is referred to as the base-extra capacity method of allocating costs. This is the most common method to allocating revenue requirements in the cost-of-service process. Below is a definition of the customer service characteristics.

Volume Cost Components
Water utility costs are allocated to customer classes based on their demand patterns, which dictate the necessary system infrastructure and operations. This methodology categorizes costs into three components:

• Average Day: Covers costs for average daily water usage and the system's fundamental size required to meet it.
• Maximum (max) day extra capacity: Accounts for costs to meet daily demands in excess of average day demands.
• Maximum (max) hour extra capacity: Covers costs for the highest, short-term hourly peak demands placed on the system.

These max day and max hour components are calculated using system-wide demand factors to allocate costs incurred for supporting peak demands. These terms refer to the system's design and operational capacity needed for different demand levels, not specific usage times. The significant incremental costs of building and operating facilities to handle above-average demands are assigned to the max day and max hour components. This ensures customers who place higher demands on the system contribute proportionally to the cost of the expanded infrastructure needed to serve them.

Line
No. Description System Demands Factor Allocation
mgd
Max Day Extra Capacity
1 Average Day 17.9 1.00 58.8%
2 Max Day Extra Capacity 15.1 0.70 41.2%
3 Max Day 33.0 1.70 100.0%
Max Hour Extra Capacity
4 Average Day 17.9 1.00 33.3%
5 Max Day Extra Capacity 15.1 0.70 23.3%
6 Max Hour Extra Capacity 20.7 1.30 43.3%
7 Max Hour 53.7 3.00 100.0%

46 AGENDA ITEM NO. 5.

WATER RATE STUDY 16

Functional O&M costs are generally allocated to the cost components that best reflect the design or functional parameter associated with that facility’s expense. For example, water supply costs are allocated to the base or average day costs as source of supply facilities are designed to meet average day demands. Pump stations are designed to meet maximum day demands. These costs are allocated to the average day and maximum day cost components. Similarly, wells and treatment, and transmission mains are designed to meet maximum day demand.

Treated storage and distribution main facilities are designed to meet maximum hour demands. These costs are allocated to the average day, maximum day, and maximum hour cost components. Meter repair is associated with repair and replacement of customer meters. These costs are allocated directly to the meters and services cost component.

Water system assets provide a reasonable basis for allocating annual capital costs. The wells, treatment, pumping, and transmission facilities are designed to meet the peak demands on the system. These costs are allocated to the average day and maximum day cost component. Treated storage and distribution mains are designed to meet maximum hour demands. These costs are allocated to the average day, maximum day, and maximum hour demands. Other costs not specifically allocated are allocated in proportion to all other assets.

Customer Cost Components
Customer costs are those costs directly related with serving customers irrespective of any water use. Customer costs include the following categories:

• Meters and Services. Costs associated with reading meters, servicing meters, and field service calls to customers. Meter and services costs increase by meter size based on the assumption that as meter sizes increase, the more capacity must be available for the customer at any point in time. • Billing Costs. Costs associated with billing customers. This includes billing representatives, IT costs, and some general administrative costs related to billing services. • Reserve Capacity. This represents the portion of customer stand-by capacity costs. • Public Fire Capacity. This recovers the costs of providing public fire water capacity to all customers connected to the system. These costs include the capacity requirement to meet the specific fire flow design requirements of the system and the cost of maintaining fire hydrants.

Table 13 summarizes the allocated revenue requirement for operation and maintenance expenses reflecting the allocation of functionalized cost analysis discussed above. The allocated operation and maintenance revenue requirement can then be distributed to customer classes based on their proportionate share of total customer service characteristics. Additional details on the allocation of revenue to the cost causation components is found in the Appendix.

47 AGENDA ITEM NO. 5.

WATER RATE STUDY 17

Table 13: Summary of Allocated Net O&M Expense to Cost Components

Table 14 summarizes the allocated capital revenue requirement to cost components. The allocated capital cost revenue requirement can then be distributed to customer classes based on their proportionate share of total customer service characteristics. Additional details on the allocation of revenue to the cost causation components is found in the Appendix.

Table 14: Allocation of Capital Costs to Cost Components

Allocated Revenue Requirement Adjustments
With assistance from City staff, Raftelis adjusted the allocated revenue requirement to recover a portion of the maximum hour extra capacity costs in the customer reserve capacity cost component. To avoid recovering a portion of public fire capacity costs in the reserve capacity component, the public fire capacity maximum hour extra capacity costs and hydrant-related costs are combined and shown as a separate line item. These combined costs are recovered in the customer cost component. Table 15, column b shows the reallocation of public fire capacity. Column c shows the net revenue requirement to be used in the reserve capacity reallocation, column d shows the reallocation of maximum hour extra capacity costs to the reserve capacity customer cost component.

Column e shows the net adjusted revenue requirement.

Allocated
Line Allocated Non-Rate Net Allocated
No. Description O&M Revenue O&M
1 Average Day $10,257,164 ($2,207,957) $8,049,207
2 Max Day Extra Capacity 7,180,015 (1,545,570) 5,634,445 3 Max Hour Extra Capacity 1,633,395 (351,605) 1,281,791 4 Meters and Services 5,215,017 (1,122,585) 4,092,433
5 Billing 4,170,898 (897,827) 3,273,070
6 Capacity Reserve 0 0 0
7 Fire Protection 403,144 (86,781) 316,364
8 Recycled Water-Pressurized 260,524 (56,080) 204,443
9 Recycled Water-Non-Pressurized 17,770 (3,825) 13,945
10 Total Allocated O&M Expense $29,137,928 ($6,272,230) $22,865,697 Line Allocated
No. Description Capital
1 Average Day $2,046,708
2 Max Day Extra Capacity 1,274,016
3 Max Hour Extra Capacity 355,238
4 Meters and Services 5,908
5 Billing 0
6 Capacity Reserve 0
7 Fire Protection 0
8 Recycled Water-Pressurized 0
9 Recycled Water-Non-Pressurized 0
10 Total Allocated Capital Costs $3,681,869
48 AGENDA ITEM NO. 5.

WATER RATE STUDY 18

Table 15: Allocated Revenue Requirement Adjustments

Customer Class Units of Service
The units of service form the basis for allocating costs to different customer classes. Each customer class has distinct water usage patterns and demand characteristics. Since cost-of-service is based on proportionality, service characteristics of each class are analyzed to proportionally distribute the allocated system costs according to their respective demand profiles. The units of service for this cost-of-service study are divided into the following classes:

• Retail Customers: This category includes all current potable water customers including single-family residential, multi-family residential, mobile homes, commercial, and landscape customers. • Recycled Water Customers: This category consists of customers receiving recycled water, served by either a pressurized system or a gravity-fed system.
• Public Fire Capacity: This category includes costs associated with providing system-wide fire service.

These costs are redistributed to the retail and recycled customer classes, as they directly benefit from the service.
• Private Fire Capacity: This category covers commercial customers who have a separate fire line for fire sprinklers.

Since the retail class combines the water demands of all potable water customers, only one set of demand factors is needed to represent the overall usage characteristics of the class. Recycled water customers are served by the wastewater system, so their peak demands do not affect the peak demands on the potable water system. Public and private fire capacity are considered "standby costs," meaning the costs allocated to these classes represent the capacity required to serve them. Table 16 shows the summarized units of service by customer class.

(a) (b) (c) (d) (e)
Public/Private Adj. Allocated
Line Allocated Fire Protection Net Capacity Revenue
No. Description Capital Reallocation Reallocation Reallocation Requirement 1 Average Day $10,095,915 $0 $10,095,915 $0 $10,095,915 2 Max Day Extra Capacity 6,908,461 (221,113) 6,687,348 (1,337,470) 5,349,878 3 Max Hour Extra Capacity 1,637,028 (62,294) 1,574,734 (1,055,072) 519,662 4 Meters and Services 4,098,340 0 4,098,340 0 4,098,340 5 Billing 3,273,070 0 3,273,070 0 3,273,070
6 Capacity Reserve 0 0 0 2,392,542 2,392,542
7 Fire Protection 316,364 (316,364) 0 0 0
8 Recycled Water-Pressurized 204,443 0 204,443 0 204,443 9 Recycled Water-Non-Pressurized 13,945 0 13,945 0 13,945 10 Public Fire Protection 0 563,239 563,239 0 563,239
11 Private Fire Protection 0 36,532 36,532 0 36,532
12 Total Allocated Capital Costs $26,547,567 $0 $26,547,567 $0 $26,547,567 49 AGENDA ITEM NO. 5.

WATER RATE STUDY 19

Table 16: Summarized Units of Service

Unit Cost of Service
The unit cost of service is the quotient of the allocated revenue requirement by cost component divided by the units of service for each.

Table 17 shows the calculation of the unit cost of service.

Table 17: Unit Cost of Service

Distribution of Costs to Customer Classes
Table 18 shows the distributed cost-of-service to customer classes. The customer class units of service in Table 16 are multiplied by the unit cost of service in Table17 to determine the customer class cost of service.

Table 18: Distribution of Costs to Customer Classes Summary

Line Extra Capacity Equivalent Meters
No. Customer Class Average Day Max Day Max Hour Bills Capacity Hydrants Recycled Water gpd gpd gpd Eq. 1" Meter gpd
1 Retail Customers 21,637 19,598 51,131 276,873 315,175 - - 2 Recycled Water-Pressurized - - - 2,052 10,008 - 646 3 Recycled Water-Non-Pressurized - - - 12 576 - 527 4 Public Fire Protection - 569 1,708 - - 5,129 - 5 Private Fire Protection - 79 315 4,252 - - - (a) (b) (c) (d) (e) (f) (g) (h) (i)=(g)/(h)
Allocated
Line Revenue Recycled Water Fire Protection Units of Unit Cost No. Description Requirement Retail Pressurized Non-Pressurized Public Private Service Units of Service 1 Average Day $10,095,915 7,897,634 - - - - 7,897,634 1,000 gal $1.28 2 Max Day Extra Capacity 5,349,878 19,598 - - - - 19,598 gpd $272.98 3 Max Hour Extra Capacity 519,662 51,131 - - - - 51,131 gpd $10.16 4 Meters and Services 4,098,340 315,175 10,008 576 - - 325,759 Eq Billed Meters [1] $12.58 5 Billing 3,273,070 276,873 2,052 12 - 4,252 283,189 Total Bills [1] $11.56 6 Capacity Reserve 2,392,542 315,175 - - - - 315,175 Eq. Billed Meter [2] $7.59 7 Recycled Water-Pressurized 204,443 - 235,739 - - - 235,739 1,000 gal $0.87 8 Recycled Water-Non-Pressurized 13,945 - - 192,497 - - 192,497 1,000 gal $0.07 9 Public Fire Protection 563,239 - - - 5,129 - 5,129 Hydrants $109.81 10 Private Fire Protection 36,532 - - - - 4,252 4,252 4" Eq. Fireline Bills $8.59 11 Total Revenue Requirement $26,547,567
[1] Includes retail and recycled water customers
[2] Includes retail customers only. The water system is not impacted by Recycled water customer demands Line Recycled Water Fire Protection
No. Description Retail Pressurized Non-Pressurized Public Private Total 1 Average Day $10,095,915 $0 $0 $0 $0 $10,095,915
2 Max Day Extra Capacity 5,349,878 0 0 0 0 $5,349,878
3 Max Hour Extra Capacity 519,662 0 0 0 0 $519,662
4 Meters and Services 3,965,184 125,910 7,247 0 0 $4,098,340 5 Billing 3,200,072 23,717 139 0 49,143 $3,273,070
6 Capacity Reserve 2,392,542 0 0 0 0 $2,392,542
7 Recycled Water-Pressurized 0 0 0 0 0 $0
8 Recycled Water-Non-Pressurized 0 204,443 0 0 0 $204,443 9 Public Fire Protection 0 0 13,945 0 0 $13,945
10 Private Fire Protection 0 0 0 563,239 36,532 $599,771 11 Total $25,523,253 $354,070 $21,330 $563,239 $85,675 $26,547,567 50 AGENDA ITEM NO. 5.

WATER RATE STUDY 20

Comparison of Cost of Service to Revenue at Existing Rates Table 19 compares the calculated cost of service to revenue at existing rates.

Table 19: Comparison of Cost of Service to Revenue at Existing Rates

(a) (b) (c) (d) (e) (f) (g) (h)
FY27 Revenue Public Fire Reallocation
Line Cost of Public Fire Adjusted at Current Equivalent No. Customer Class Service Adjustment [1] COS Rates Change $ Change - % Meter % of Total 1 Residential $20,523,805 $463,658 $20,987,463 17,323,932 $3,663,530 21.1% 268,165 82.32% 2 Commercial/Industrial 2,443,077 46,175 2,489,253 1,751,545 737,707 42.1% 26,706 8.20% 3 Recycled Water - Pressurized 354,070 17,304 371,374 374,536 (3,162) -0.8% 10,008 3.07% 4 Recycled Water - Non-Pressurized 21,330 996 22,326 0 22,326 N/A 576 0.18% 5 Landscape 1,793,551 19,887 1,813,438 1,307,757 505,681 38.7% 11,502 3.53% 6 Tarpey 762,819 15,219 778,038 591,139 186,899 31.6% 8,802 2.70% 7 Public Fire Protection 563,239 (563,239) 0 0 0 N/A - 0.00% 8 Private Fire Protection 85,675 85,675 591,228 (505,552) -85.51% - 0.00% 9 Total $26,547,567 $0 $26,547,567 $21,940,138 $4,607,429 21.0% 325,759 100.0% 21,940,138
[1] Allocated based on the proportion of equivalent meters by class to total equivalent meters in Column h 51 AGENDA ITEM NO. 5.

WATER RATE STUDY 21

Rate Design

INTRODUCTION
Customer class rate structures serve as the method to recover the cost to provide service for each customer classification. The City’s existing and proposed rate structures include a service charge and a volume rate. The proposed rate structure was designed based on the cost-of-service analysis such that each customer class is paying their proportionate share of costs required to serve them.

EXISTING RATES
The residential class includes single family, multifamily, and mobile home customers. It also includes customers served outside the City limits in Tarpey Village. Tarpey Village consists of three residential customer classes; metered residential, non-metered residential, and non-metered large lot residential. Metered residential customers are assessed a per-dwelling unit service charge that does not vary by meter size and a tiered volume charge based on use. Tarpey Village non-residential large lot rate customers are assessed a service charge based on square footage. Tarpey Village non-metered customers are charged a fixed service charge. All Tarpey non-metered residential and non-metered large lot customers will have transitioned to metered service by the time of the FY27 rate implementation.

The commercial class includes commercial and industrial customers who are assessed a service charge based on meter size and a tiered volume charge based on use. Recycled water customers are assessed a service charge by meter size and a volume charge based on pressurized or non-pressurized use. Private firelines are assessed a service charge that does not vary by line size. Construction water accounts are temporary, unmetered customers that use water service for homes under construction. Construction water is assessed a service charge equal to the Tarpey un- metered service charge. Hydrant meter rates are assessed a service charge plus a volume rate for all usage.

The Inside City residential class includes a 3-tiered volume rate where the rate increases through each threshold. In a similar fashion, the commercial and industrial classes are assessed a 2-tiered volume rate which increases in each tier.

PROPOSED RATES
The customer classes for the proposed rates have been reclassified to apply to three classes, potable retail users, recycled water users, and private fire capacity users. Service charges apply to each class based on meter size or fireline size, as applicable. To ensure that all customers are assessed a proportionate share of costs to provide service, volume rates now apply uniformly to each type of water use, potable, recycled pressurized and recycled non-pressurized.

The potable retail class combines the existing residential, commercial, and landscape customers into one class that is assessed a service charge that varies by meter size and a uniform volume rate.

The recycled water class is assessed a service charge that varies by meter size and a volume rate based on whether the use is pressurized or non-pressurized. The private fire capacity class is assessed a stand-by charge that varies by fireline size. Raftelis proposes that proposed construction water charges for FY27 through FY31 be based on the 1” meter service charge plus 60,000 gallons of water use at the proposed volume rates. Hydrant meter rates are based on the 2-inch water meter service charge and the uniform volumetric use rate. 52 AGENDA ITEM NO. 5.

WATER RATE STUDY 22

DEVELOPMENT OF FIXED CHARGES
The potable retail, recycled, and private fireline fixed charges are based on the allocated customer cost of service components and their appropriate units of service. Table 20 shows the fixed charges, allocated costs, and associated units of service. Table 21 shows the scaling of the fixed charge across meter sizes.

Table 20: Development of Fixed Charges

Table 21: Service Charge Calculation by Meter Size

DEVELOPMENT OF VOLUME RATES
Volume rates for the potable retail and recycled water customers are calculated in a similar fashion to the fixed charges. Table 22 shows the development of the volume rates for both classes.

Table 22: Development of Volume Rates

Line Cost of Units of Unit Cost
No. COS Component Service Service Units of Service
$ per Eq Meter
1 Meters & Services $4,098,340 325,759 Equiv Meter Capacity [1] $12.58 2 Billing 3,273,070 283,189 Bills 11.56
3 Public Fire Protection 563,239 325,759 Equiv Meter Capacity [1] 1.73 4 Capacity Reserve 2,392,542 315,175 Equiv Meter Capacity [1,2] 7.59 5 Total $10,327,191 $33.46
6 Private Fireline (Capacity Portion) $36,532 4,252 4" Equivalent Fireline Bills [3] $8.59 [1] Includes residential, commercial, landscape, and recylced equivalent meters but excludes private firelines [2] Capacity reserve is related to potable water system only. Recycled water is excluded. [3] Total charge includes both private fire protection capacity and billing component costs (a) (b) (c) (d) (e)=(a)+(b)+(c)+(d) (f) (g)=(a)+(b)+(c) Monthly Monthly Public Readiness Total Recycled
Line Capacity Meter Billing Fire to Service Monthly Water No. Meter Size Equivalency Charge Charge Protection Capacity Charge Rounded Only 1 5/8 inch 1.00 $12.58 $11.56 $1.73 $7.59 $33.46 $33.46 $25.87 2 3/4 inch 1.00 12.58 11.56 1.73 7.59 33.46 33.46 25.87 3 1 inch 1.00 12.58 11.56 1.73 7.59 33.46 33.46 25.87
4 1.5 inch 2.00 25.16 11.56 3.46 15.18 55.36 55.36 40.18 5 2 inch 3.20 40.26 11.56 5.53 24.29 81.64 81.64 57.35
6 3 inch 6.40 80.52 11.56 11.07 48.58 151.72 151.72 103.14 7 4 inch 10.00 125.81 11.56 17.29 75.91 230.57 230.57 154.66 8 6 inch 20.00 251.62 11.56 34.58 151.82 449.58 449.58 297.76 9 8 inch 36.00 452.91 11.56 62.24 273.28 800.00 800.00 526.71 10 10 inch 48.00 603.88 11.56 82.99 364.38 1,062.81 1,062.81 698.43 Line Cost of Units of Unit Cost
No. COS Component Service Service Units of Service
1,000 gal $ per 1,000 gal
1 Volume Cost of Service $15,965,455 7,897,634 Potable water $2.02 2 Pressurized 204,443 235,739 Recycled water 0.87 3 Nonpressured 13,945 192,497 Recycled water 0.07 53 AGENDA ITEM NO. 5.

WATER RATE STUDY 23

PROPOSED FIVE-YEAR RATE SCHEDULE
Table 23 and Table 24 compares existing FY26 rates to proposed rates for FY27 through FY30. These rates are designed to recover the revenue identified in the operating fund cash flows. Rates for FY27 are based on this cost- of-service analysis and rates for FY28 through FY30 are based on FY27 with the annual rate increases shown in the operating fund cash flow.

54 AGENDA ITEM NO. 5.

WATER RATE STUDY 24

Table 23: Comparison of Existing and Proposed Service Charges

55 AGENDA ITEM NO. 5.

WATER RATE STUDY 25

CUSTOMER BILL IMPACTS
Figure 2 compares the current and FY27 proposed rates by showing a monthly bill for single family residential customers with a 1-inch meter. The comparison is further broken out by low (8 kgal), average (24 kgal), and high usage (32 kgal). The bill comparisons are shown on a monthly basis.

Figure 2: Single Family Residential Monthly Bill Impacts

Table 24: Comparison of Existing and Proposed Volume Rates 56 AGENDA ITEM NO. 5.

WATER RATE STUDY 26

DROUGHT RATE VOLUMETRIC SURCHARGES
The City is obligated to meet its annual net revenue requirements regardless of whether consumption levels decline due to State mandated conservation. Even if consumption levels decline, the City will continue to incur costs and must have a revenue-neutral mechanism to ensure fiscal sustainability. To this end, drought rates are intended to maintain the necessary level of revenues for the water utility.

Table 25 shows the baseline FY 2027 consumption as well as the projected consumption at each mandated conservation level.

Table 25: Consumption Assumptions Utilized in Drought Response Charge Analysis

Table 26 shows the maximum drought rate volumetric surcharge that could be enacted by the City Council in the event of mandated shortage level. The volumetric surcharges shown in the table would be applied to the potable uniform volumetric rate in place at the time of implementation.

Table 26: Drought Response Surcharges by Conservation Goal and Fiscal Year

Shortage Level1
Potable Water
Consumption
(1,000 gal/yr.)
Difference to
Baseline
(1,000 gal)
1 7,897,634 0
2 7,107,870 (789,763)
3 6,318,107 (1,579,527)
4 5,528,343 (2,369,290)
5 4,738,580 (3,159,053)
6 3,948,817 (3,948,817)

1. State Water Resources Control Board Water Shortage Contingency Plan Shortage Level.

2. Drought levels based on the State Water Resources Control Board Drought Emergency Water Conservation.

3. This represents the baseline consumption for FY 2027 consumption.

Conservation percentage for each drought stage is relative to the baseline consumption.

Up to 50% Conservation
Greater than 50% Conservation
Percent Shortage Range2
Less than 10% Conservation3
Up to 20% Conservation
Up to 30% Conservation
Up to 40% Conservation
FY 2027 Consumption Assumptions
Conservation Goal FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 < 10% $0.00 $0.00 $0.00 $0.00 $0.00
Up to 20% $0.23 $0.27 $0.32 $0.33 $0.34
Up to 30% $0.51 $0.61 $0.72 $0.74 $0.77
Up to 40% $0.87 $1.05 $1.23 $1.27 $1.31
Up to 50% $1.35 $1.63 $1.92 $1.98 $2.04
> 50% $2.02 $2.44 $2.88 $2.97 $3.06
Drought Response Surcharge ($/1,000 gal)
57 AGENDA ITEM NO. 5.

Appendix A
Financial Plan
58 AGENDA ITEM NO. 5.

City of Clovis Table A-1
Water Utility
Operating Fund (Enterprise Fund) Cash Flow Analysis
Line Fiscal Period Ending June 30
No. Description FY25 FY26 FY27 FY28 FY29 FY30 FY31
$ $ $ $ $ $ $
Sources of Funds 0.21% 1.87% 1.88% 1.88%
1 Revenue from Existing Water Service Rates 21,491,253 21,536,600 21,940,138 22,351,660 22,771,327 23,200,392 23,637,962 2 Additional Water Sales Revenue Required - - 2,303,714 7,533,627 13,568,728 18,083,943 19,686,904 3 Total Water Service Rate Revenue 21,491,253 21,536,600 24,243,852 29,885,287 36,340,054 41,284,335 43,324,866 4 Miscellaneous Revenue 1,547,204 1,554,844 1,562,637 1,570,586 1,578,693 1,586,963 1,595,398 5 Debt Proceeds (Transfers In) 770,000 770,000 770,000 770,000 770,000 770,000 770,000 6 Reserve Transfers In (Mem Replace, Drought, SGM 500,000 1,000,000 400,000 - - - 536,038 7 Interest Income 866,994 803,066 701,472 636,991 640,954 685,520 750,366 8 Total Sources 25,175,452 25,664,511 27,677,962 32,862,864 39,329,701 44,326,819 46,976,668 Uses of Funds
9 Operation and Maintenance Expense 26,603,928 27,665,934 29,137,928 29,685,545 30,750,785 29,660,598 31,255,080 Transfers to Reserves
10 Transfer to Membrane Replacement 100,000 100,000 100,000 200,000 200,000 250,000 250,000 11 Transfer to Drought Contingency - - - - - - - 12 Transfer to SGMA - 500,000 500,000 - - 500,000 500,000 13 Transfer to TCP Treatment 620,000 620,000 620,000 620,000 620,000 620,000 620,000 Transfers to Subfunds
14 Transfer to Capital Fund - - 3,834,334 2,469,746 8,161,797 10,626,694 12,740,489 15 Transfer to DIF Subfund 25% of Total Debt Service 732,125 730,750 732,938 728,438 - - - 16 Total Uses of Funds 28,056,053 29,616,684 34,925,200 33,703,728 39,732,582 41,657,292 45,365,569 17 Annual Surplus (Deficiency) (2,880,601) (3,952,173) (7,247,238) (840,863) (402,881) 2,669,527 1,611,099 18 Beginning Balance 22,730,000 19,849,399 15,897,226 8,649,988 7,809,124 7,406,243 10,075,770 19 Ending Balance 19,849,399 15,897,226 8,649,988 7,809,124 7,406,243 10,075,770 11,686,870 Target Reserves
20 Target Operating Reserves (90 Days O&M) 6,650,000 6,920,000 7,280,000 7,420,000 7,690,000 7,420,000 7,810,000 21 Unrestricted Operating Reserves 13,199,399 8,977,226 1,369,988 389,124 (283,757) 2,655,770 3,876,870 22 Annual Water Service Revenue Increase 0.0% 0.0% 21.0% 21.0% 18.0% 3.0% 3.0% 23 Debt Service Coverage 3.22 2.96 3.39 5.25 N/A N/A N/A 24 Cumulative Revenue Increase 0.0% 0.0% 21.0% 46.4% 72.8% 77.9% 83.3% 59 AGENDA ITEM NO. 5.

City of Clovis Table A-2
Water Utility
Capital Fund Cash Flow Analysis
Line Fiscal Period Ending June 30
No. Description FY25 FY26 FY27 FY28 FY29 FY30 FY31
$ $ $ $ $ $ $
Sources of Funds
1 Transfer From Operating Fund - - 3,834,334 2,469,746 8,161,797 10,626,694 12,740,489 2 Revenue Bond Proceeds (Non-Growth) - - - - - - - 3 State Loans (Non-Growth) - - - - - - - 4 Investment Income 134,979 103,152 38,694 52,874 - - - 5 Total Sources 134,979 103,152 3,873,028 2,522,619 8,161,797 10,626,694 12,740,489 Uses of Funds
6 Capital Projects (Non-Growth) 756,000 2,696,720 3,955,411 2,372,619 8,001,797 10,456,694 12,570,489 7 Transfer To Operating Fund - - - - - - - 8 Total Uses 756,000 2,696,720 3,955,411 2,372,619 8,001,797 10,456,694 12,570,489 9 Annual Surplus (Deficiency) (621,021) (2,593,568) (82,383) 150,000 160,000 170,000 170,000 10 Beginning Balance 7,126,972 6,505,951 3,912,383 3,830,000 3,980,000 4,140,000 4,310,000 11 Ending Balance 6,505,951 3,912,383 3,830,000 3,980,000 4,140,000 4,310,000 4,480,000 12 Target Reserve (Annual Depreciation) 3,536,323 3,680,000 3,830,000 3,980,000 4,140,000 4,310,000 4,480,000 13 Unrestricted Capital Reserves 2,969,629 232,383 - - - - - 60 AGENDA ITEM NO. 5.

City of Clovis Table A-3
Water Utility
Reserves Cash Flow Analysis
Line Estimated Budget
No. Description FY25 FY26 FY27 FY28 FY29 FY30 FY31
$ $ $ $ $ $ $
Membrane Replacement
1 Transfer From Operating Fund (In) 100,000 100,000 100,000 200,000 200,000 250,000 250,000 2 Transfer to Operating Fund (Out) Membrane Replacement - 0 400,000 - - - 536,038 3 Annual Surplus (Deficiency) 100,000 100,000 (300,000) 200,000 200,000 250,000 (286,038) 4 Beginning Balance 1,180,000 1,280,000 1,380,000 1,080,000 1,280,000 1,480,000 1,730,000 5 Ending Balance 1,280,000 1,380,000 1,080,000 1,280,000 1,480,000 1,730,000 1,443,962 Drought Contingency
6 Transfer From Operating Fund - - - - - - -
7 Transfer to Operating Fund (Out) 500,000 1,000,000 -
8 Annual Surplus (Deficiency) (500,000) (1,000,000) - - - - - 9 Beginning Balance 7,500,000 7,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 10 Ending Balance 7,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 SGMA
11 Transfer From Operating Fund - 500,000 500,000 - - 500,000 500,000 12 Transfer to Operating Fund (Out) - - - - - - -
13 Annual Surplus (Deficiency) - 500,000 500,000 - - 500,000 500,000 14 Beginning Balance 5,000,000 5,000,000 5,500,000 6,000,000 6,000,000 6,000,000 6,500,000 15 Ending Balance 5,000,000 5,500,000 6,000,000 6,000,000 6,000,000 6,500,000 7,000,000 TCP Treatment
16 Transfer From Operating Fund 620,000 620,000 620,000 620,000 620,000 620,000 620,000 17 Transfer to Operating Fund (Out) - - - - - - -
18 Annual Surplus (Deficiency) 620,000 620,000 620,000 620,000 620,000 620,000 620,000 19 Beginning Balance 8,270,000 8,890,000 9,510,000 10,130,000 10,750,000 11,370,000 11,990,000 20 Ending Balance 8,890,000 9,510,000 10,130,000 10,750,000 11,370,000 11,990,000 12,610,000 21 Total Reserve Balance 22,170,000 22,390,000 23,210,000 24,030,000 24,850,000 26,220,000 27,053,962 22 (2,660,601) (3,732,173) (6,427,238) (20,863) 922,263 4,487,195 2,923,395 23 42,019,399 38,287,226 31,859,988 31,839,124 32,761,387 37,248,582 40,171,976 24 Target Operating Reserves 6,650,000 6,920,000 7,280,000 7,420,000 7,690,000 7,420,000 7,810,000 25 Annual Water Service Revenue Increase 0.0% 0.0% 21.0% 21.0% 18.0% 3.0% 3.0% 26 Cumulative Revenue Increase 0.0% 0.0% 21.0% 46.4% 72.8% 77.9% 83.3% Operating Surplus (Deficiency)
(Lines 3, 8, 13, 18, 21, and Table 5, Line 17)
Total Operating Ending Balance
(Lines 5, 10, 15, 20, Table 5, Line 16)
Projected (Fiscal Year Ending June 30)
61 AGENDA ITEM NO. 5.

City of Clovis Table A-4
Water Utility
Projected Operation and Maintenance Expense
Line Budget Projected
No. Account Title FY25 FY26 FY27 FY28 FY29 FY30 FY31
$ $ $ $ $ $ $
Personnel Services
1 61000 SALARIES REGULAR 4,009,200 4,089,384 4,171,172 4,254,595 4,382,233 4,513,700 4,649,111 2 61150 SPEC TEAM PREMIUM 19,600 19,992 20,392 20,800 21,424 22,066 22,728 3 61160 ACTING/OUT OF CLASS PAY 12,000 12,240 12,485 12,734 13,117 13,510 13,915 4 61200 OVERTIME REGULAR 85,000 86,700 88,434 90,203 92,909 95,696 98,567 5 61207 OVERTIME-CALLOUT 1,600 1,632 1,665 1,698 1,749 1,801 1,855 6 61210 OVERTIME-SPECIAL EVENTS 5,000 5,100 5,202 5,306 5,465 5,629 5,798 7 61211 HOLIDAY BUYOUT 11,000 11,220 11,444 11,673 12,023 12,384 12,756 8 61214 OVERTIME COVID19 - - - - - - -
9 61216 CTO BUYBACK 50,000 51,000 52,020 53,060 54,652 56,292 57,981 10 61300 EXTRA HELP 1,000 1,020 1,040 1,061 1,093 1,126 1,160 11 61301 EXTRA HELP-INTERNS/AIDES 5,000 5,100 5,202 5,306 5,465 5,629 5,798 12 Subtotal Personnel Services 4,199,400 4,283,388 4,369,056 4,456,437 4,590,130 4,727,834 4,869,669 Employee Related Expenditures
13 62001 RETIREMENT-MISC 894,700 939,435 977,012 1,006,323 1,036,512 1,067,608 1,099,636 14 62002 RETIREMENT-SAFETY 20,600 21,630 22,495 23,170 23,865 24,581 25,319 15 62004 DEFERRED COMP CONTRIBUTION 92,400 97,020 100,901 103,928 107,046 110,257 113,565 16 62005 WORKER'S COMPENSATION 144,300 151,515 157,576 162,303 167,172 172,187 177,353 17 62006 HEALTH BENEFIT PLAN 730,000 766,500 797,160 821,075 845,707 871,078 897,211 18 62007 MEDICARE 64,000 67,200 69,888 71,985 74,144 76,369 78,660 19 62010 SICK LEAVE INCENTIVE 53,400 56,070 58,313 60,062 61,864 63,720 65,632 20 62011 SOC SEC/PERS-EXTRA HELP 1,400 1,470 1,529 1,575 1,622 1,671 1,721 21 62012 OTHER BENEFITS 11,500 12,075 12,558 12,935 13,323 13,722 14,134 22 62013 WORKER'S COMP-EH 800 840 874 900 927 955 983
23 62014 HEALTH INS REBATE 40,900 42,945 44,663 46,003 47,383 48,804 50,268 24 62020 UNIFORM ALLOWANCE 11,700 12,285 12,776 13,160 13,554 13,961 14,380 25 VANTAGE CARE CONTRIBUTION - - - - - - -
26 Subtotal Employee Related Expenditures 2,065,700 2,168,985 2,255,744 2,323,417 2,393,119 2,464,913 2,538,860 Professional Services
27 63000 FLEET- O/M CHARGE 333,500 350,175 367,684 386,068 405,371 425,640 446,922 28 63001 FLEET REPLACEMENT CHARGE 422,700 431,154 439,777 448,573 462,030 475,891 490,167 29 FLEET LEASE CHARGES - - - - - - -
30 63003 VEHICLE RENTAL - OUTSIDE VENDO 1,000 1,020 1,040 1,061 1,093 1,126 1,160 31 63004 VEHICLE ALLOWANCE 49,500 50,490 51,500 52,530 54,106 55,729 57,401 32 63009 FLEET ADMIN CHARGES 130,300 132,906 135,564 138,275 142,424 146,696 151,097 33 63100 ENERGY 5,810,000 6,187,650 6,589,847 6,886,390 7,196,278 7,520,110 7,858,515 34 63260 CELLULAR COMMUNICATION 18,000 18,360 18,727 19,102 19,675 20,265 20,873 35 PAGING SERVICES - - - - - - -
36 63300 PROFESSIONAL & PUBLIC SERVIC 11,200 11,424 11,652 11,886 12,242 12,609 12,988 37 63301 CONSULTING SERVICES 300,000 306,000 312,120 318,362 327,913 337,751 347,883 38 63302 LEGAL SERVICES 100,000 102,000 104,040 106,121 109,304 112,584 115,961 39 63304 MARKETING SERVICES 30,000 30,600 31,212 31,836 32,791 33,775 34,788 40 63310 LAB SERVICES 250,000 255,000 260,100 265,302 273,261 281,459 289,903 41 63315 OTHER SERVICES 245,000 249,900 254,898 259,996 267,796 275,830 284,105 42 63317 LANDSCAPE MAINTENANCE CONTRA 100,000 105,000 110,250 115,763 121,551 127,628 134,010 43 63333 SPECIAL EVENTS 1,400 1,428 1,457 1,486 1,530 1,576 1,623 44 63345 SURFACE WATER PURCHASE 1,850,000 1,887,000 1,924,740 1,963,235 2,022,132 2,082,796 2,145,280 45 63347 DBCP-LEGAL SERVICES 63,500 64,770 66,065 67,387 69,408 71,491 73,635 46 63350 TEMP PERSONNEL SERVICES 21,200 21,624 22,056 22,498 23,173 23,868 24,584 47 63390 CREDIT CARD CHARGES 95,200 97,104 99,046 101,027 104,058 107,180 110,395 48 63441 REPAIR & MAINTENANCE-COMPUTE - - - - - - -
49 63450 MISC EQUIPMENT REPAIR 3,700 3,885 4,079 4,283 4,497 4,722 4,958 50 63455 REPAIR & MTCE-OUTSIDE VENDOR 617,705 648,590 681,020 715,071 750,824 788,366 827,784 51 63459 REPAIR & MTCE-CORP YARD 50,000 52,500 55,125 57,881 60,775 63,814 67,005 52 REPAIR & MAINT-SEWER LIFT STAT - - - - - - -
53 63464 REPAIR & MAINT-WATER VALVES 75,000 78,750 82,688 86,822 91,163 95,721 100,507 54 63471 LAUNDRY SERVICES 5,000 5,250 5,513 5,788 6,078 6,381 6,700 62 AGENDA ITEM NO. 5.

City of Clovis Table A-4
Water Utility
Projected Operation and Maintenance Expense
Line Budget Projected
No. Account Title FY25 FY26 FY27 FY28 FY29 FY30 FY31
$ $ $ $ $ $ $
55 Subtotal Professional Services 10,583,905 11,092,580 11,630,201 12,066,742 12,559,473 13,073,007 13,608,244 Staff Development
56 64101 GENERAL OFFICE SUPPLIES-OTHE 2,000 2,100 2,184 2,250 2,317 2,387 2,458 57 64103 FORMS & PRINTING 20,000 21,000 21,840 22,495 23,170 23,865 24,581 58 64105 POSTAGE/SHIPPING 22,000 23,100 24,024 24,745 25,487 26,252 27,039 59 64210 FIRST AID 1,500 1,575 1,638 1,687 1,738 1,790 1,844 60 64221 UNIFORMS-NON-SWORN 13,000 13,650 14,196 14,622 15,061 15,512 15,978 61 64230 MISCELLANEOUS 75,000 78,750 81,900 84,357 86,888 89,494 92,179 62 64231 MISCELLANEOUS SUPPLIES COVID - - - - - - -
63 64237 SWTP LAB SUPPLIES 22,248 23,360 24,295 25,024 25,774 26,548 27,344 64 64240 PLUMBING & PIPE FITTINGS 200,000 210,000 218,400 224,952 231,701 238,652 245,811 65 64241 SPRINKLER SUPPLIES - - - - - - -
66 64242 CHEMICALS & FERTILIZERS 15,000 15,750 16,380 16,871 17,378 17,899 18,436 67 64243 PAINT AND SUPPLIES 8,000 8,400 8,736 8,998 9,268 9,546 9,832 68 64244 SIGNS & MATERIALS 1,000 1,050 1,092 1,125 1,159 1,193 1,229 69 64245 PAVING MATERIALS & SUPPLIES 4,000 4,200 4,368 4,499 4,634 4,773 4,916 70 64246 GRANULAR ACT. CARBON-SUPPLIE 150,000 157,500 163,800 168,714 173,775 178,989 184,358 71 64247 ELECTRICAL SUPPLIES 10,000 10,500 10,920 11,248 11,585 11,933 12,291 72 64249 TCP GRANULAR ACTIVATED CARBO TCP fund 150,000 157,500 163,800 168,714 173,775 178,989 184,358 73 64250 CHLORINE GENERATION 250,000 262,500 273,000 281,190 289,626 298,314 307,264 74 64255 SURFACE WATER TREAT-SUPPLIES 750,000 787,500 819,000 843,570 868,877 894,943 921,792 75 64260 RECYCLED WATER SUPPLIES 20,000 21,000 21,840 22,495 23,170 23,865 24,581 76 64402 PERSONAL SAFETY EQUIPMENT 10,000 10,500 10,920 11,248 11,585 11,933 12,291 77 64603 WELDING SUPPLIES 3,000 3,150 3,276 3,374 3,476 3,580 3,687 78 64604 TOOLS 25,000 26,250 27,300 28,119 28,963 29,831 30,726 79 Subtotal Staff Development 1,751,748 1,839,335 1,912,909 1,970,296 2,029,405 2,090,287 2,152,996 Maintenance and Operations
80 65001 TRAVEL-CONFERENCES 1,000 1,020 1,040 1,061 1,093 1,126 1,160 81 65002 TRAVEL-MEETINGS 4,000 4,080 4,162 4,245 4,372 4,503 4,638 82 65101 TRAINING-EDUCATIONAL INCENTI 40,000 40,800 41,616 42,448 43,722 45,033 46,384 83 65102 TRAINING-CLASSES & SEMINARS 10,000 10,200 10,404 10,612 10,930 11,258 11,596 84 65103 TRAINING-MATERIALS 1,500 1,530 1,561 1,592 1,640 1,689 1,739 85 65104 TRAINING-SAFETY 6,000 6,120 6,242 6,367 6,558 6,755 6,958 86 65201 MEMBERSHIP/ASSOCIATION DUES 5,000 5,100 5,202 5,306 5,465 5,629 5,798 87 65202 SUBSCRIPTIONS 1,200 1,224 1,248 1,273 1,312 1,351 1,392 88 65203 PUBLICATIONS & BOOKS 500 510 520 531 547 563 580 89 MEMBRANE REPLACEMENT - 0 400,000 - - - 536,038
90 Subtotal Maintenance and Operations 69,200 70,584 471,996 73,436 75,639 77,908 616,283 Other Expenditures
91 66001 GENERAL ADMINISTRATION CHARG 1,116,000 1,149,480 1,183,964 1,219,483 1,256,068 1,293,750 1,332,562 92 66002 IMPACT/EASEMENT RENTAL 785,900 809,477 833,761 858,774 884,537 911,073 938,406 93 66003 GENERAL SERVICE CHARGES 1,292,300 1,331,069 1,371,001 1,412,131 1,454,495 1,498,130 1,543,074 94 66005 PROPERTY & LIABILITY INS CHG 830,100 855,003 880,653 907,073 934,285 962,313 991,183 95 66020 PROPERTY TAXES 3,000 3,090 3,183 3,278 3,377 3,478 3,582 96 66803 GEN LIABILITY CLAIM-PROP - - - - - - -
97 Subtotal Other Expenditures 4,027,300 4,148,119 4,272,563 4,400,739 4,532,762 4,668,744 4,808,807 Capital Outlay
98 68103 FURNISHINGS 5,000 5,200 5,408 5,624 5,849 6,083 6,327 99 68104 CABINETS - - - - - - -
100 GPS-VEHICLE TRACKING SYSTEM - - - - - - -
101 68502 TRAFFIC CONTROL EQUIP 6,000 6,240 6,490 6,749 7,019 7,300 7,592 102 SIGNS - - - - - - -
103 SEWER VIDEO EQUIPMENT - - - - - - -
104 68525 MISC SEWER EQUIPMENT - - - - - - -
105 68530 WATER METERS & BOXES 3,086,470 3,209,929 3,338,326 3,471,859 3,610,733 1,560,000 1,622,400 63 AGENDA ITEM NO. 5.

City of Clovis Table A-4
Water Utility
Projected Operation and Maintenance Expense
Line Budget Projected
No. Account Title FY25 FY26 FY27 FY28 FY29 FY30 FY31
$ $ $ $ $ $ $
106 68531 HYDRANTS 80,000 83,200 86,528 89,989 93,589 97,332 101,226 107 68532 TELEMETRY EQUIPMENT 150,000 156,000 162,240 168,730 175,479 182,498 189,798 108 68533 WATER MONITORING EQUIP 39,543 41,125 42,770 44,481 46,260 48,111 50,035 109 68541 DIAGNOSTIC EQUIPMENT 1,000 1,040 1,082 1,125 1,170 1,217 1,265 110 68560 TURF EQUIPMENT 1,500 1,560 1,622 1,687 1,755 1,825 1,898 111 68562 SPRINKLER EQUIPMENT - - - - - - -
112 68603 CELLULAR PHONES - - - - - - -
113 STANDARD PICK UP - - - - - - -
114 VANS-NON-TRANSIT - - - - - - -
115 LIGHT DUTY TRUCK 1-5 TON - - - - - - -
116 68750 SPECIALTY EQUIPMENT 437,162 454,648 472,834 491,748 511,417 531,874 553,149 117 CORPORATION YARD EXPANSION - - - - - - -
118 PLANT AND TRUNK CAPITAL - - - - - - -
119 PEACH/STUART LIFT STATION - - - - - - -
120 RECHARGE FACILITY- BARSTOW PARK 100,000 104,000 108,160 112,486 116,986 121,665 126,532 121 Subtotal Capital Outlay 3,906,675 4,062,942 4,225,460 4,394,478 4,570,257 2,557,905 2,660,221 126 Total Operating & Maintenance Expense 26,603,928 27,665,934 29,137,928 29,685,545 30,750,785 29,660,598 31,255,080 29% 4% 5% 2% 4% -4% 5%
Description
1 Administrative Assistant 0.250 0.250 0.250 0.250 0.250 0.250 0.250 2 Assistant Public Utilities Director 0.250 0.250 0.250 0.250 0.250 0.250 0.250 3 Assistant Water Systems Technician 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4 Communications & Marketing Analyst 0.100 0.100 0.100 0.100 0.100 0.100 0.100 5 Deputy Public Utilities Director 0.450 0.450 0.450 0.450 0.450 0.450 0.450 6 Electrician 1.000 1.000 1.000 1.000 1.000 1.000 1.000 7 Engineer I 2.350 2.350 2.350 2.350 2.350 2.350 2.350
8 Engineer II 2.350 2.350 2.350 2.350 2.350 2.350 2.350 9 Civil Engineer 2.350 2.350 2.350 2.350 2.350 2.350 2.350 10 Engineering Inspector 0.500 0.500 0.500 0.500 0.500 0.500 0.500 11 Senior Engineering Inspector 0.500 0.500 0.500 0.500 0.500 0.500 0.500 12 Engineering Tech 1.150 1.150 1.150 1.150 1.150 1.150 1.150 13 Senior Engineering Tech 1.150 1.150 1.150 1.150 1.150 1.150 1.150 14 Maintenance Leadworker 3.000 3.000 3.000 3.000 3.000 3.000 3.000 15 Maintenance Worker 13.600 13.600 13.600 13.600 13.600 13.600 13.600 16 Senior Maintenance Worker 13.600 13.600 13.600 13.600 13.600 13.600 13.600 17 Management Analyst 0.240 0.240 0.240 0.240 0.240 0.240 0.240 18 Meter Reader 4.000 4.000 4.000 4.000 4.000 4.000 4.000 19 Principal Office Assistant 1.400 1.400 1.400 1.400 1.400 1.400 1.400 20 Principal Utilities Engineer 0.350 0.350 0.350 0.350 0.350 0.350 0.350 21 Public Utilities Director 0.300 0.300 0.300 0.300 0.300 0.300 0.300 22 Senior Management Analyst 0.300 0.300 0.300 0.300 0.300 0.300 0.300 23 Staff Analyst 0.500 0.500 0.500 0.500 0.500 0.500 0.500 24 Supervising Civil Engineer 0.690 0.690 0.690 0.690 0.690 0.690 0.690 25 Utilities Manager 0.500 0.500 0.500 0.500 0.500 0.500 0.500 26 Utility Worker 7.330 7.330 7.330 7.330 7.330 7.330 7.330 27 Water Production Manager 1.000 1.000 1.000 1.000 1.000 1.000 1.000 28 Water Systems Supervisor 1.000 1.000 1.000 1.000 1.000 1.000 1.000 29 Water Systems Technician 1.000 1.000 1.000 1.000 1.000 1.000 1.000 30 Water Treatment Plant Operator 3.000 3.000 3.000 3.000 3.000 3.000 3.000 Salary/Benefit Cost per FTE
1 Administrative Assistant PS 84,072 85,753 87,469 89,218 91,002 92,822 94,679 2 Assistant Public Utilities Director PS 191,664 195,497 199,407 203,395 207,463 211,613 215,845 3 Assistant Water Systems Technician PS 88,944 90,723 92,537 94,388 96,276 98,201 100,165 4 Communications & Marketing Analyst PS 119,304 121,690 124,124 126,606 129,138 131,721 134,356 5 Deputy Public Utilities Director PS 205,668 209,781 213,977 218,257 222,622 227,074 231,616 6 Electrician PS 104,496 106,586 108,718 110,892 113,110 115,372 117,679 64 AGENDA ITEM NO. 5.

City of Clovis Table A-4
Water Utility
Projected Operation and Maintenance Expense
Line Budget Projected
No. Account Title FY25 FY26 FY27 FY28 FY29 FY30 FY31
$ $ $ $ $ $ $
7 Engineer I PS 110,928 113,147 115,409 117,718 120,072 122,473 124,923 8 Engineer II PS 122,292 124,738 127,233 129,777 132,373 135,020 137,721 9 Civil Engineer PS 144,348 147,235 150,180 153,183 156,247 159,372 162,559 10 Engineering Inspector PS 97,788 99,744 101,739 103,773 105,849 107,966 110,125 11 Senior Engineering Inspector PS 110,808 113,024 115,285 117,590 119,942 122,341 124,788 12 Engineering Tech PS 80,052 81,653 83,286 84,952 86,651 88,384 90,152 13 Senior Engineering Tech PS 90,468 92,277 94,123 96,005 97,925 99,884 101,882 14 Maintenance Leadworker PS 97,752 99,707 101,701 103,735 105,810 107,926 110,085 15 Maintenance Worker PS 65,112 66,414 67,743 69,097 70,479 71,889 73,327 16 Senior Maintenance Worker PS 82,320 83,966 85,646 87,359 89,106 90,888 92,706 17 Management Analyst PS 115,824 118,140 120,503 122,913 125,372 127,879 130,437 18 Meter Reader PS 73,608 75,080 76,582 78,113 79,676 81,269 82,895 19 Principal Office Assistant PS 69,876 71,274 72,699 74,153 75,636 77,149 78,692 20 Principal Utilities Engineer PS 182,520 186,170 189,894 193,692 197,566 201,517 205,547 21 Public Utilities Director PS 237,144 241,887 246,725 251,659 256,692 261,826 267,063 22 Senior Management Analyst PS 127,980 130,540 133,150 135,813 138,530 141,300 144,126 23 Staff Analyst PS 79,848 81,445 83,074 84,735 86,430 88,159 89,922 24 Supervising Civil Engineer PS 161,136 164,359 167,646 170,999 174,419 177,907 181,465 25 Utilities Manager PS 160,524 163,734 167,009 170,349 173,756 177,231 180,776 26 Utility Worker PS 54,504 55,594 56,706 57,840 58,997 60,177 61,380 27 Water Production Manager PS 150,264 153,269 156,335 159,461 162,651 165,904 169,222 28 Water Systems Supervisor PS - - - - - -
29 Water Systems Technician PS 106,536 108,667 110,840 113,057 115,318 117,624 119,977 30 Water Treatment Plant Operator PS 106,536 108,667 110,840 113,057 115,318 117,624 119,977 Total FTE Cost
1 Administrative Assistant 21,018 21,438 21,867 22,304 22,751 23,206 23,670 2 Assistant Public Utilities Director 47,916 48,874 49,852 50,849 51,866 52,903 53,961 3 Assistant Water Systems Technician 355,776 362,892 370,149 377,552 385,103 392,805 400,662 4 Communications & Marketing Analyst 11,930 12,169 12,412 12,661 12,914 13,172 13,436 5 Deputy Public Utilities Director 92,551 94,402 96,290 98,215 100,180 102,183 104,227 6 Electrician 104,496 106,586 108,718 110,892 113,110 115,372 117,679 7 Engineer I 260,681 265,894 271,212 276,637 282,169 287,813 293,569 8 Engineer II 287,386 293,134 298,997 304,977 311,076 317,298 323,644 9 Civil Engineer 339,218 346,002 352,922 359,981 367,180 374,524 382,014 10 Engineering Inspector 48,894 49,872 50,869 51,887 52,924 53,983 55,063 11 Senior Engineering Inspector 55,404 56,512 57,642 58,795 59,971 61,170 62,394 12 Engineering Tech 92,060 93,901 95,779 97,695 99,648 101,641 103,674 13 Senior Engineering Tech 104,038 106,119 108,241 110,406 112,614 114,867 117,164 14 Maintenance Leadworker 293,256 299,121 305,104 311,206 317,430 323,778 330,254 15 Maintenance Worker 885,523 903,234 921,298 939,724 958,519 977,689 997,243 16 Senior Maintenance Worker 1,119,552 1,141,943 1,164,782 1,188,078 1,211,839 1,236,076 1,260,797 17 Management Analyst 27,798 28,354 28,921 29,499 30,089 30,691 31,305 18 Meter Reader 294,432 300,321 306,327 312,454 318,703 325,077 331,578 19 Principal Office Assistant 97,826 99,783 101,779 103,814 105,890 108,008 110,168 20 Principal Utilities Engineer 63,882 65,160 66,463 67,792 69,148 70,531 71,942 21 Public Utilities Director 71,143 72,566 74,017 75,498 77,008 78,548 80,119 22 Senior Management Analyst 38,394 39,162 39,945 40,744 41,559 42,390 43,238 23 Staff Analyst 39,924 40,722 41,537 42,368 43,215 44,079 44,961 24 Supervising Civil Engineer 111,184 113,408 115,676 117,989 120,349 122,756 125,211 25 Utilities Manager 80,262 81,867 83,505 85,175 86,878 88,616 90,388 26 Utility Worker 399,514 407,505 415,655 423,968 432,447 441,096 449,918 27 Water Production Manager 150,264 153,269 156,335 159,461 162,651 165,904 169,222 28 Water Systems Supervisor 0 0 0 0 0 0 0
29 Water Systems Technician 106,536 108,667 110,840 113,057 115,318 117,624 119,977 30 Water Treatment Plant Operator 319,608 326,000 332,520 339,171 345,954 352,873 359,931 31 Subtotal 5,920,467 6,038,876 6,159,653 6,282,846 6,408,503 6,536,673 6,667,407 Source: 'Detail of Positions.xlsm'
65 AGENDA ITEM NO. 5.

City of Clovis Table A-5
Water Utility
Enterprise Capital Improvement Program (Uninflated)
Annual
Line Inflation Bugdet Projected Total
No. Account Title Factor FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY25 - FY31 $ $ $ $ $ $ $ $
1 76010 Various Water Main Replacement 4% 25,000 25,000 25,000 25,000 25,000 125,000 2 76010 Clovis Avenue - Gettysburg to Donner 4% 115,000 115,000 3 76509 Sierra Avenue - DeWitt to SR168 4% 140,000 140,000 4 76509 Tarpey Service Area - Redundancy 4% 160,000 160,000 5 76509 Rotary Park - Pump, Motor, Electrical, and Piping 4% - 6 76615 Railroad Park (Peach/Alluvial) - Pump, Motor, Electrical, and Piping4% - 7 76615 Cottonwood Park & Dry Creek Trail - Pump, Motor, Electrical, and Piping4% - 8 77528 SWTP Pretreatment 4% 1,604,720 5,369,640 5,369,640 12,344,000 9 77531 SWTP Process Addition 4% -
10 75126 Loma Vista Recharge Basin 4% 131,000 1,000,000 1,131,000 11 77532 Water Storage Reservoir #6 - Additional Reservoir at SE-SWTP 4% 250,000 1,941,250 1,941,250 4,132,500 12 77516 Well Panel Upgrades - Wells 8A,23,25 4% 700,000 700,000 13 77761 Well 40 - Fowler/Gettysburg - Treatment 4% 1,000,000 1,000,000 14 77650 Well 6 Replacement Willow/Barstow Avenues - Drill and Develop4% - 15 77650 Well 6 Replacement Willow/Barstow Avenues -Pump and Motor4% - 16 77650 Well 6 Replacement Willow/Barstow Avenues -Chlorination Facilities4% - 17 77600 Well 35 - DeWitt/Santa Ana - Pump and Motor 4% 600,000 600,000 18 77600 Well 35 - DeWitt/Santa Ana - Chlorination 4% 155,000 155,000 19 77600 Well 35 - DeWitt/Santa Ana - Auxiliary Power 4% 143,000 143,000 20 77600 Well T9 Gettysburg/Minnewawa - Drill and Develop 4% - 21 77600 Well T9 Gettysburg/Minnewawa - Pump and Motor 4% - 22 77600 Well T9 Gettysburg/Minnewawa - Pump and Motor 4% - 23 77600 Various Well Replacement 4% 775,000 775,000
24 Raw Water Main 4% -
25 Water Storage Reservoir #10 4% -
26 Water Storage Reservoir #7 4% -
27 Pump Station at Reservoir #10 4% -
28 Northeast SWTP 4% 600,000 600,000
29 Northeast SWTP Pump Station 4% -
30 I&C Architecture and Equipment 4% 522,000 522,000
31 Canal Intake 4% 41,000 41,000
32 MF Feed Pumps and Strainers 4% 4,565,000 4,565,000
33 Pall Microfiltration System Upgrades 4% 1,525,000 1,525,000 34 Chemical Storage and Feed Facilities 4% 1,791,000 1,791,000 35 High Service Pump Station VFD 4% 2,354,000 2,354,000 36 Increased Power Supply 4% 1,566,000 1,566,000
37 Total Water Capital Improvement Plan Enterprise Fund (Uninflated) 756,000 2,593,000 3,657,000 2,109,250 6,839,970 8,594,640 9,934,640 34,484,500 Source: 'WaterEntCIP-FY24-25-FINAL.pdf'
66 AGENDA ITEM NO. 5.

City of Clovis Table A-5
Water Utility
Enterprise Capital Improvement Program (Inflated)
Annual
Line Inflation Bugdet Projected Total
No. Account Title Factor FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY25 - FY31 $ $ $ $ $ $ $ $
1 76010 Various Water Main Replacement 4% 25,000 26,000 27,040 28,122 29,246 - - 135,408 2 76010 Clovis Avenue - Gettysburg to Donner 4% - - 124,384 - - - - 124,384 3 76509 Sierra Avenue - DeWitt to SR168 4% - - - - 163,780 - - 163,780 4 76509 Tarpey Service Area - Redundancy 4% - - 173,056 - - - - 173,056 5 76509 Rotary Park - Pump, Motor, Electrical, and Piping 4% - - - - - - - - 6 76615 Railroad Park (Peach/Alluvial) - Pump, Motor, Electrical, and Piping4% - - - - - - - - 7 76615 Cottonwood Park & Dry Creek Trail - Pump, Motor, Electrical, and Piping4% - - - - - - - - 8 77528 SWTP Pretreatment 4% - - - - 1,877,295 6,532,988 6,794,308 15,204,591 9 77531 SWTP Process Addition 4% - - - - - - - -
10 75126 Loma Vista Recharge Basin 4% 131,000 1,040,000 - - - - - 1,171,000 11 77532 Water Storage Reservoir #6 - Additional Reservoir at SE-SWTP4% - 260,000 - 2,183,642 2,270,988 - - 4,714,630 12 77516 Well Panel Upgrades - Wells 8A,23,25 4% - - - - - 851,657 - 851,657 13 77761 Well 40 - Fowler/Gettysburg - Treatment 4% - - - - - 1,216,653 - 1,216,653 14 77650 Well 6 Replacement Willow/Barstow Avenues - Drill and Develop4% - - - - - - - - 15 77650 Well 6 Replacement Willow/Barstow Avenues -Pump and Motor4% - - - - - - - - 16 77650 Well 6 Replacement Willow/Barstow Avenues -Chlorination Facilities4% - - - - - - - - 17 77600 Well 35 - DeWitt/Santa Ana - Pump and Motor 4% - 624,000 - - - - - 624,000 18 77600 Well 35 - DeWitt/Santa Ana - Chlorination 4% - 161,200 - - - - - 161,200 19 77600 Well 35 - DeWitt/Santa Ana - Auxiliary Power 4% - - - 160,856 - - - 160,856 20 77600 Well T9 Gettysburg/Minnewawa - Drill and Develop 4% - - - - - - - - 21 77600 Well T9 Gettysburg/Minnewawa - Pump and Motor 4% - - - - - - - - 22 77600 Well T9 Gettysburg/Minnewawa - Pump and Motor 4% - - - - - - - - 23 77600 Various Well Replacement 4% - - - - 906,640 - - 906,640 24 Raw Water Main 4% - - - - - - - -
25 Water Storage Reservoir #10 4% - - - - - - - -
26 Water Storage Reservoir #7 4% - - - - - - - -
27 Pump Station at Reservoir #10 4% - - - - - - - -
28 Northeast SWTP 4% 600,000 - - - - - - 600,000
29 Northeast SWTP Pump Station 4% - - - - - - - -
30 I&C Architecture and Equipment 4% - 542,880 - - - - - 542,880 31 Canal Intake 4% - 42,640 - - - - - 42,640
32 MF Feed Pumps and Strainers 4% - - - - - - 5,776,181 5,776,181 33 Pall Microfiltration System Upgrades 4% - - - - - 1,855,396 - 1,855,396 34 Chemical Storage and Feed Facilities 4% - - 1,937,146 - - - - 1,937,146 35 High Service Pump Station VFD 4% - - - - 2,753,847 - - 2,753,847 36 Increased Power Supply 4% - - 1,693,786 - - - - 1,693,786 38 Total Water Capital Improvement Plan Enterprise Fund (Uninflated) 756,000 2,696,720 3,955,411 2,372,619 8,001,797 10,456,694 12,570,489 40,809,731 TRUE
67 AGENDA ITEM NO. 5.

City of Clovis Table A-6
Water Utility
Non-Rate Revenue
Line Estimated Budget Projected (Fiscal Year Ending June 30) No. Description Fund Inflation FY25 FY26 FY27 FY28 FY29 FY30 FY31 $ $ $ $ $ $ $
1 G.S. Interfund Loan Payback (Principal) 770,000 770,000 770,000 770,000 770,000 770,000 770,000 2 Construction Meters 150,000 150,000 150,000 150,000 150,000 150,000 150,000 3 Hydrant Rentals 91,824 91,824 91,824 91,824 91,824 91,824 91,824 4 Private Well 380 380 380 380 380 380 380
5 Water Service Penalties 621,000 621,000 621,000 621,000 621,000 621,000 621,000 6 Water Service Installation 382,000 389,640 397,433 405,381 413,489 421,759 430,194 7 Water Conservation Penalty - - - - - - -
8 Land Rental 105,000 105,000 105,000 105,000 105,000 105,000 105,000 9 Entitlement Processing Fees 5,000 5,000 5,000 5,000 5,000 5,000 5,000 10 Miscellaneous Receipts 2,000 2,000 2,000 2,000 2,000 2,000 2,000 11 Miscellaneous Receipts 20,000 20,000 20,000 20,000 20,000 20,000 20,000 12 Legal Settlements 170,000 170,000 170,000 170,000 170,000 170,000 170,000 13 Total Non-Rate Revenue 2,317,204 2,324,844 2,332,637 2,340,586 2,348,693 2,356,963 2,365,398 14 Total Non-Rate Revenue Excluding Interfund Loan 1,547,204 1,554,844 1,562,637 1,570,586 1,578,693 1,586,963 1,595,398 68 AGENDA ITEM NO. 5.

Appendix B
Cost of Service
69 AGENDA ITEM NO. 5.

City of Clovis Table B-1
Water Utility
System Demand Factors for Cost Allocation
Cost Component Allocation, mgd
Average Day 17.90 6533.5
Max Day 30.43
Max Hour 53.70
AD of MM 25.25 Max Month Demand: 770 mg
Max Day to AD of MM 1.21
Max Hour to Max Day 1.76
Source: '2017-0404 WMP Final Draft_Compiled_Optimized.pdf' Line
No. System Coincidental Demands
Master Plan
Values
Recommended
Values
1 System Max Day to Average Day 1.70 1.7
2 System Max Hour to Average Day 3.00 3.0
Source: '2017-0404 WMP Final Draft_Compiled_Optimized.pdf', pg 5-14 Line
No. Description System Demands Factor Allocation
mgd
Max Day Extra Capacity
1 Average Day 17.9 1.00 58.8%
2 Max Day Extra Capacity 15.1 0.70 41.2%
3 Max Day 33.0 1.70 100.0%
Max Hour Extra Capacity
4 Average Day 17.9 1.00 33.3% 0.333333333 TRUE
5 Max Day Extra Capacity 15.1 0.70 23.3% 0.281191806 FALSE 6 Max Hour Extra Capacity 20.7 1.30 43.3%
7 Max Hour 53.7 3.00 100.0%
Source: '2017-0404 WMP Final Draft_Compiled_Optimized.pdf' 70 AGENDA ITEM NO. 5.

City of Clovis Table B-2
Water Utility
Demand Factors
2021 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2022 Annual
Line Fiscal Year 2022 Monthly Consumption (kgal) Consumption No Customer Class Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total Days in Month 31 31 30 31 30 31 31 28 31 30 31 30
1 Residential 786,360 622,639 828,399 557,790 552,537 341,193 301,691 252,624 352,250 323,599 499,928 481,007 5,900,017 2 Commercial/Industrial 48,544 140,784 51,889 141,257 44,804 86,868 27,153 67,698 28,881 77,897 36,547 100,928 853,250 3 Recycled Water
4 Landscape 98,831 118,814 110,880 115,696 58,912 45,498 11,974 20,520 19,930 42,688 50,427 84,954 779,124 5 Tarpey 227 51,641 202 41,005 176 18,165 104 15,546 48 24,309 111 35,279 186,813 6 Total 933,962 933,878 991,370 855,748 656,429 491,724 340,922 356,388 401,109 468,493 587,013 702,168 7,719,204 7 All Retail Classes 933,962 933,878 991,370 855,748 656,429 491,724 340,922 356,388 401,109 468,493 587,013 702,168 7,719,204 Annual
Line Bi Monthly Bills (FY 2022) Bills
No Customer Class Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2022 Days in Month 31 31 30 31 30 31 31 28 31 30 31 30
1 Residential 19,597 15,361 19,596 15,383 19,677 15,480 19,656 15,489 19,737 15,552 19,772 15,631 210,931 2 Commercial/Industrial 357 1,094 359 1,091 361 1,095 362 1,097 360 1,100 359 1,100 8,735 3 Recycled Water
4 Landscape 217 325 217 328 218 327 217 328 219 328 218 329 3,271 5 Tarpey 13 987 8 988 13 986 9 987 11 990 9 992 5,993
6 Total 20,184 17,767 20,180 17,790 20,269 17,888 20,244 17,901 20,327 17,970 20,358 18,052 228,930 7 All Retail Classes 20,184 17,767 20,180 17,790 20,269 17,888 20,244 17,901 20,327 17,970 20,358 18,052 228,930 Line Monthly Consumption per Account FY 2022 Max
No Customer Class Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total Month Days in Month 31 31 30 31 30 31 31 28 31 30 31 30
1 Residential 40.1 40.5 42.3 36.3 28.1 22.0 15.3 16.3 17.8 20.8 25.3 30.8 335.7 42.3 2 Commercial/Industrial 136.0 128.7 144.5 129.5 124.1 79.3 75.0 61.7 80.2 70.8 101.8 91.8 1,223.4 144.5 3 Recycled Water
4 Landscape 455.4 365.6 511.0 352.7 270.2 139.1 55.2 62.6 91.0 130.1 231.3 258.2 2,922.5 511.0 5 Tarpey 17.5 52.3 25.3 41.5 13.5 18.4 11.6 15.8 4.4 24.6 12.3 35.6 272.6 52.3 6 Residential & Tarpey 40.1 41.2 42.3 36.6 28.1 21.8 15.3 16.3 17.8 21.0 25.3 31.1 336.9 42.3 All Retail Classes 46.3 52.6 49.1 48.1 32.4 27.5 16.8 19.9 19.7 26.1 28.8 38.9 406.2 52.6 Demand Factors
(a) (b) (c) (d) (e) (f) (g) (h)
Class Metrics System Metrics Peaking Factors
Avg Day in System Max Day Customer Customer
Line Average Max Avg Day in Annual Max Month to to Avg Day of Class Max Class Max No Customer Class Month [1] Month Max Month [2] Avg. Day [3] Avg. Day [4] Max Month [5] Day Hour 1 Residential 28.0 42.27 1.41 0.92 1.53 1.21 1.85 3.26
2 Commercial/Industrial 102.0 144.54 4.82 3.35 1.44 1.21 1.73 3.06 <= Should be around 2.5 3 Recycled Water - Pressurized
4 Recycled Water - Non-Pressurized
5 Landscape 243.5 510.97 17.03 8.01 2.13 1.21 2.56 4.52 6 Tarpey 22.7 52.32 1.69 0.75 2.26 1.21 2.72 4.81
7 Residential & Tarpey 28.1 42.27 1.41 0.92 1.53 1.21 1.84 3.25 8 All Classes 62.5 52.6 1.70 1.11 1.52 1.21 1.84 3.24
[1] 12 month retail classes average
[2] Max month / days in month
[3] Annual use / 365
[4] (Max month divided by days in month) / (Average Day) [5] System Max Day: 33 mgd / Average Day in Max Month: 25.25 mgd 71 AGENDA ITEM NO. 5.

City of Clovis Table B-3
Water Utility
Demand Factors
2022 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 2023 Annual
Line Calendar Year FY 2023 Monthly Consumption (kgal) Consumption No Customer Class Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total Days in Month 31 31 30 31 30 31 31 28 31 30 31 30
1 Residential 688,896 587,450 856,848 558,024 580,883 368,207 327,791 245,857 250,194 227,889 398,205 468,801 5,559,045 2 Commercial/Industrial 43,757 130,197 57,166 143,408 43,074 89,017 26,481 66,803 24,065 69,986 32,556 99,910 826,420 3 Recycled Water
4 Landscape 93,256 111,372 124,886 92,899 63,850 51,015 15,049 18,136 7,992 15,263 32,125 67,811 693,654 5 Tarpey 224 49,433 188 42,413 56 19,420 18 14,812 70 16,133 22 34,537 177,326 6 Total 826,133 878,452 1,039,088 836,744 687,863 527,659 369,339 345,608 282,321 329,271 462,908 671,059 7,256,445 7 All Retail Classes 826,133 878,452 1,039,088 836,744 687,863 527,659 369,339 345,608 282,321 329,271 462,908 671,059 7,256,445 Annual
Line Monthly Bills (FY 2023) Bills
No Customer Class Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2023 Days in Month 31 31 30 31 30 31 31 28 31 30 31 30
1 Residential 19,884 15,657 19,888 15,615 19,852 15,517 19,932 15,730 20,029 15,762 20,044 15,907 213,817 2 Commercial/Industrial 363 1,106 362 1,102 363 1,104 364 1,106 371 1,112 372 1,112 8,837 3 Recycled Water
4 Landscape 222 335 222 337 223 338 223 341 224 344 224 346 3,379 5 Tarpey 8 997 9 997 12 1,003 6 1,004 3 1,009 5 1,012 6,065 6 Total 20,477 18,095 20,481 18,051 20,450 17,962 20,525 18,181 20,627 18,227 20,645 18,377 232,098 7 All Retail Classes 20,477 18,095 20,481 18,051 20,450 17,962 20,525 18,181 20,627 18,227 20,645 18,377 232,098 Line Monthly Consumption per Account FY 2023 Max
No Customer Class Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total Month Days in Month 31 31 30 31 30 31 31 28 31 30 31 30
1 Residential 34.6 37.5 43.1 35.7 29.3 23.7 16.4 15.6 12.5 14.5 19.9 29.5 312.3 43.1 2 Commercial/Industrial 120.5 117.7 157.9 130.1 118.7 80.6 72.8 60.4 64.9 62.9 87.5 89.8 1,163.9 157.9 3 Recycled Water
4 Landscape 420.1 332.5 562.5 275.7 286.3 150.9 67.5 53.2 35.7 44.4 143.4 196.0 2,568.1 562.5 5 Tarpey 28.0 49.6 20.9 42.5 4.7 19.4 3.0 14.8 23.3 16.0 4.4 34.1 260.6 49.6 6 Residential & Tarpey 34.6 38.2 43.1 36.1 29.2 23.5 16.4 15.6 12.5 14.6 19.9 29.7 313.5 43.1 7 All Retail Classes 40.3 48.5 50.7 46.4 33.6 29.4 18.0 19.0 13.7 18.1 22.4 36.5 376.7 50.7 Demand Factors
Class Metrics System Metrics Peaking Factors
Avg Day in System Max Customer Customer Average Average Line Average Max Avg Day in Annual Max Month to Day to Avg Day Class Max Class Max Max Max No Customer Class Month Month Max Month Avg. Day Avg. Day of Max Month Day Hour Day Hour 1 Residential 26.0 43.08 1.44 0.86 1.68 1.21 2.02 3.57 1.93 3.41 2 Commercial/Industrial 97.0 157.92 5.26 3.19 1.65 1.21 1.99 3.51 1.86 3.28 3 Recycled Water - Pressurized
4 Recycled Water - Non-Pressurized
5 Landscape 214.0 562.55 18.75 7.04 2.67 1.21 3.21 5.67 2.89 5.10 6 Tarpey 21.7 49.58 1.60 0.71 2.24 1.21 2.70 4.76 2.71 4.79 7 Residential & Tarpey 26.1 43.07 1.44 0.86 1.67 1.21 2.01 3.56 1.93 3.40 8 All Classes 58.0 50.7 1.69 1.03 1.64 1.21 1.98 3.49 1.91 3.36 [1] 12 month retail classes average
[2] Max month / days in month
[3] Annual use / 365
[4] (Max month divided by days in month) / (Average Day) [5] System Max Day: 33 mgd / Average Day in Max Month: 25.25 mgd 72 AGENDA ITEM NO. 5.

City of Clovis Table B-4
Water Utility
Test Year Revenue Requirement
Line
No. Description
Operating
Expense
Capital
Expense Total
$ $ $
Revenue Requirements
1 Operating & Maintenance Expense $29,137,928 $29,137,928 2 Debt Service - -
3 Capital R&R Projects 3,834,334 3,834,334
4 DIF Debt Service Transfer 732,938 732,938
5 Transfer to Reserves 1,220,000 1,220,000
6 Total Revenue Requirements $29,137,928 $5,787,272 $34,925,200 Revenue Requirement Adjustments
7 Miscellaneous Revenue (1,562,637) (1,562,637)
8 Interfund Debt Repayment (770,000) (770,000)
9 Reserve Transfers In (400,000) (400,000)
10 Interest Income (585,235) (116,237) (701,472)
11 Operating Reserve Increase (Decrease) (4,124,358) (819,165) ($4,943,524) 12 Total Adjustments ($6,272,230) ($2,105,403) ($8,377,633) 13 Subtotal $22,865,697 $3,681,869 $26,547,567
14 Net Revenue Requirement $26,547,567
73 AGENDA ITEM NO. 5.

City of Clovis Table B-5
Water Utility
Allocation of Capital Costs and Assets
System Volume Customer Related
Line Assets Maximum Maximum Meters & Capacity Fire Recycled Water Infrastructure No. Description RCNLD [1] Base Day Demand Hour Demand Services Billing Reserve Protection Pressurized Unpressurized Indirect Total Water System Assets
1 Land $1,788,493 100% 100.0%
2 Source of Supply 8,344,779 100% 100.0%
3 Pumping Station 1,176,659 59% 41% 100.0%
4 Wells / Treatment 111,281,673 59% 41% 100.0%
5 Treated Storage 36,638,712 33% 23% 43% 100.0%
6 Transmission Mains 5,085,921 59% 41% 100.0%
7 Distribution Mains 7,196 33% 23% 43% 100.0%
8 Customer Billing 0 100% 100.0%
9 Meters and Services 264,078 100% 100.0%
10 Public Fire 0 0.0%
11 Private Fire 0 0.0%
12 Common to Irrigation 0 0.0%
13 All Other Infrastructure 118,265,562 100% 100.0%
14 All Other General 13,574,913 100% 100.0%
15 Vehicles 1,398,611 100% 100.0%
16 Total $297,826,597
Source: Asset List for COS.xlsx
[1] RCNLD:Replacement Cost Less Accumulated Depreciation 74 AGENDA ITEM NO. 5.

City of Clovis Table B-6
Water Utility
Allocation of Capital Costs and Assets
Volume Customer Related
System Extra Capacity
Line Assets Average Maximum Maximum Meters & Capacity Fire Recycled Water No. Description RCNLD [1] Day Day Demand Hour Demand Services Billing Reserve Protection Pressurized Unpressurized Indirect Total $ $ $ $ $ $ $ $ $ $ $ $
1 Land $1,788,493 $1,788,493 $0 $0 $0 $0 $0 $0 $0 $0 $0 1,788,493 2 Source of Supply 8,344,779 8,344,779 - - - - - - - - - 8,344,779 3 Pumping Station 1,176,659 692,152 484,507 - - - - - - - - 1,176,659 4 Wells / Treatment 111,281,673 65,459,807 45,821,865 - - - - - - - - 111,281,673 5 Treated Storage 36,638,712 12,212,904 8,549,033 15,876,775 - - - - - - - 36,638,712 6 Transmission Reserve 5,085,921 2,991,718 2,094,203 - - - - - - - - 5,085,921 7 Capacity Reserve 7,196 2,399 1,679 3,118 - - - - - - - 7,196 8 Customer Billing 0 - - - - - - - - - - -
9 Meters and Services 264,078 - - - 264,078 - - - - - - 264,078 10 Public Fire 0 - - - - - - - - - - -
11 Private Fire 0 - - - - - - - - - - -
12 Common to Irrigation 0 - - - - - - - - - - - 13 All Other Infrastructure 118,265,562 - - - - - - - - - 118,265,562 118,265,562 14 All Other General 13,574,913 - - - - - - - - - 13,574,913 13,574,913 15 Vehicles 1,398,611 - - - - - - - - - 1,398,611 1,398,611 16 Total Water System Assets $297,826,597 $91,492,253 $56,951,287 $15,879,893 $264,078 $0 $0 $0 $0 $0 $133,239,087 $297,826,597 TRUE
Reallocation of Indirect
17 All Other Infrastructure 65,742,429 40,922,764 11,410,614 189,755 (118,265,562) - 18 All Other General 7,546,134 4,697,251 1,309,748 21,781 (13,574,913) - 19 Vehicles 777,472 483,954 134,942 2,244 0 (1,398,611) - 20 Reallocated Assets $297,826,597 $165,558,287 $103,055,255 $28,735,197 $477,858 $0 $0 $0 $0 $0 $0 17 Percent of Total 55.6% 34.6% 9.6% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 21 Annual Capital Costs $3,681,869 $2,046,708 $1,274,016 $355,238 $5,908 $0 $0 $0 $0 TRUE
[1] RCNLD:Replacement Cost Less Accumulated Depreciation 75 AGENDA ITEM NO. 5.

City of Clovis Table B-7
Water Utility
Allocatio of O&M Expesnes to Functional Cost Components Projected O&M Functional Allocation
Adjusted Allocation to Account for Recycled Water
1 2 3 4 5 6 7 8 9 10 11 12
Indirect Costs
Line Test Year Purchased Water Wells Trans/Dist Treated Trans/ Hydrants Meters & Customer All Other All Other Recycled Water No. 2026 SOS WTP Pumping Storage Dist Fire Protection Services Billing Infrastructure General Pressurized Non-Pressurized Total 1 SALARIES REGULAR 4,171,172 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 2 SPEC TEAM PREMIUM 20,392 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 3 ACTING/OUT OF CLASS PAY 12,485 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 4 OVERTIME REGULAR 88,434 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 5 OVERTIME-CALLOUT 1,665 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 6 OVERTIME-SPECIAL EVENTS 5,202 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 7 HOLIDAY BUYOUT 11,444 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 8 OVERTIME COVID19 0 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 9 CTO BUYBACK 52,020 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 10 EXTRA HELP 1,040 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 11 EXTRA HELP-INTERNS/AIDES 5,202 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 12 RETIREMENT-MISC 977,012 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 13 RETIREMENT-SAFETY 22,495 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 14 DEFERRED COMP CONTRIBUTION 100,901 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 15 WORKER'S COMPENSATION 157,576 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 16 HEALTH BENEFIT PLAN 797,160 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 17 MEDICARE 69,888 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 18 SICK LEAVE INCENTIVE 58,313 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 19 SOC SEC/PERS-EXTRA HELP 1,529 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 20 OTHER BENEFITS 12,558 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 21 WORKER'S COMP-EH 874 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 22 HEALTH INS REBATE 44,663 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 23 UNIFORM ALLOWANCE 12,776 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 24 VANTAGE CARE CONTRIBUTION 0 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 25 FLEET- O/M CHARGE 367,684 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 26 FLEET REPLACEMENT CHARGE 439,777 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 27 FLEET LEASE CHARGES 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 28 VEHICLE RENTAL - OUTSIDE VENDO 1,040 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 29 VEHICLE ALLOWANCE 51,500 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 30 FLEET ADMIN CHARGES 135,564 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 31 ENERGY 6,589,847 0.0% 70.0% 30.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 32 CELLULAR COMMUNICATION 18,727 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 33 PAGING SERVICES 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 34 PROFESSIONAL & PUBLIC SERVIC 11,652 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 35 CONSULTING SERVICES 312,120 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 100.0% 36 LEGAL SERVICES 104,040 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100% 0.0% 0.0% 0.0% 0.0% 100.0% 37 MARKETING SERVICES 31,212 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100% 0.0% 0.0% 0.0% 0.0% 100.0% 38 LAB SERVICES 260,100 0.0% 100% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 39 OTHER SERVICES 254,898 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 40 LANDSCAPE MAINTENANCE CONTRA 110,250 0.0% 48.4% 24.2% 24.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 3.1% 0.2% 100.0% 41 SPECIAL EVENTS 1,457 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 42 SURFACE WATER PURCHASE 1,924,740 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 100.0% 43 DBCP-LEGAL SERVICES 66,065 0.0% 96.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 3.1% 0.2% 100.0% 44 TEMP PERSONNEL SERVICES 22,056 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 45 CREDIT CARD CHARGES 99,046 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100% 0.0% 0.0% 0.0% 0.0% 100.0% 46 REPAIR & MAINTENANCE-COMPUTE 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 47 MISC EQUIPMENT REPAIR 4,079 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 48 REPAIR & MTCE-OUTSIDE VENDOR 681,020 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 100.0% 76 AGENDA ITEM NO. 5.

City of Clovis Table B-7
Water Utility
Allocatio of O&M Expesnes to Functional Cost Components Projected O&M Functional Allocation
Adjusted Allocation to Account for Recycled Water
1 2 3 4 5 6 7 8 9 10 11 12
Indirect Costs
Line Test Year Purchased Water Wells Trans/Dist Treated Trans/ Hydrants Meters & Customer All Other All Other Recycled Water No. 2026 SOS WTP Pumping Storage Dist Fire Protection Services Billing Infrastructure General Pressurized Non-Pressurized Total 49 REPAIR & MTCE-CORP YARD 55,125 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 50 REPAIR & MAINT-SEWER LIFT STAT 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 51 REPAIR & MAINT-WATER VALVES 82,688 0.0% 0.0% 0.0% 0.0% 96.7% 0.0% 0.0% 0.0% 0.0% 0.0% 3.3% 0.0% 100.0% 52 LAUNDRY SERVICES 5,513 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 53 GENERAL OFFICE SUPPLIES-OTHE 2,184 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 54 FORMS & PRINTING 21,840 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100% 0.0% 0.0% 0.0% 0.0% 100.0% 55 POSTAGE/SHIPPING 24,024 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100% 0.0% 0.0% 0.0% 0.0% 100.0% 56 FIRST AID 1,638 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 57 UNIFORMS-NON-SWORN 14,196 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 58 MISCELLANEOUS 81,900 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 59 MISCELLANEOUS SUPPLIES COVID 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 60 SWTP LAB SUPPLIES 24,295 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 61 PLUMBING & PIPE FITTINGS 218,400 0.0% 0.0% 20.0% 0.0% 20.0% 0.0% 60.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 62 SPRINKLER SUPPLIES 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 63 CHEMICALS & FERTILIZERS 16,380 0.0% 60.0% 20.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 20.0% 0.0% 0.0% 100.0% 64 PAINT AND SUPPLIES 8,736 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 65 SIGNS & MATERIALS 1,092 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 66 PAVING MATERIALS & SUPPLIES 4,368 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 67 GRANULAR ACT. CARBON-SUPPLIE 163,800 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 68 ELECTRICAL SUPPLIES 10,920 0.0% 60.0% 20.0% 10.0% 0.0% 0.0% 0.0% 0.0% 0.0% 10.0% 0.0% 0.0% 100.0% 69 TCP GRANULAR ACTIVATED CARBO 163,800 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 70 CHLORINE GENERATION 273,000 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 71 SURFACE WATER TREAT-SUPPLIES 819,000 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 72 RECYCLED WATER SUPPLIES 21,840 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 73 PERSONAL SAFETY EQUIPMENT 10,920 0.0% 25.0% 25.0% 25.0% 25.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 74 WELDING SUPPLIES 3,276 0.0% 25.0% 25.0% 25.0% 25.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 75 TOOLS 27,300 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 76 TRAVEL-CONFERENCES 1,040 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 77 TRAVEL-MEETINGS 4,162 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 78 TRAINING-EDUCATIONAL INCENTI 41,616 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 79 TRAINING-CLASSES & SEMINARS 10,404 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 80 TRAINING-MATERIALS 1,561 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 81 TRAINING-SAFETY 6,242 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 82 MEMBERSHIP/ASSOCIATION DUES 5,202 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 83 SUBSCRIPTIONS 1,248 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 84 PUBLICATIONS & BOOKS 520 0.0% 19.3% 5.0% 3.1% 24.1% 3.0% 12.3% 0.7% 24.4% 4.8% 3.1% 0.2% 100.0% 85 MEMBRANE REPLACEMENT 400,000 100% 100.0%
86 GENERAL ADMINISTRATION CHARG 1,183,964 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100% 0.0% 0.0% 0.0% 0.0% 100.0% 87 IMPACT/EASEMENT RENTAL 833,761 0.0% 0.0% 0.0% 0.0% 100% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 88 GENERAL SERVICE CHARGES 1,371,001 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 89 PROPERTY & LIABILITY INS CHG 880,653 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 90 PROPERTY TAXES 3,183 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 91 GEN LIABILITY CLAIM-PROP 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 92 FURNISHINGS 5,408 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 93 CABINETS 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 77 AGENDA ITEM NO. 5.

City of Clovis Table B-7
Water Utility
Allocatio of O&M Expesnes to Functional Cost Components Projected O&M Functional Allocation
Adjusted Allocation to Account for Recycled Water
1 2 3 4 5 6 7 8 9 10 11 12
Indirect Costs
Line Test Year Purchased Water Wells Trans/Dist Treated Trans/ Hydrants Meters & Customer All Other All Other Recycled Water No. 2026 SOS WTP Pumping Storage Dist Fire Protection Services Billing Infrastructure General Pressurized Non-Pressurized Total 94 GPS-VEHICLE TRACKING SYSTEM 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 95 TRAFFIC CONTROL EQUIP 6,490 0.0% 0.0% 0.0% 0.0% 100% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 96 SIGNS 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 97 SEWER VIDEO EQUIPMENT 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 98 MISC SEWER EQUIPMENT 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 99 WATER METERS & BOXES 3,338,326 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100 HYDRANTS 86,528 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 101 TELEMETRY EQUIPMENT 162,240 0.0% 80.0% 10.0% 10.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 102 WATER MONITORING EQUIP 42,770 0.0% 25.0% 25.0% 25.0% 25.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 103 DIAGNOSTIC EQUIPMENT 1,082 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 104 TURF EQUIPMENT 1,622 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 105 SPRINKLER EQUIPMENT 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 106 CELLULAR PHONES 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 107 STANDARD PICK UP 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 108 VANS-NON-TRANSIT 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 109 LIGHT DUTY TRUCK 1-5 TON 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 110 SPECIALTY EQUIPMENT 472,834 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 111 CORPORATION YARD EXPANSION 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 112 PLANT AND TRUNK CAPITAL 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 113 PEACH/STUART LIFT STATION 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 114 RECHARGE FACILITY- BARSTOW PARK 108,160 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 115 29,137,928 - 8,308,898 2,416,106 268,640 2,589,419 287,141 4,294,052 3,434,322 2,628,707 4,681,496 214,516 14,632 29,137,928 TRUE 0.0% 28.5% 8.3% 0.9% 8.9% 1.0% 14.7% 11.8% 9.0% 16.1% 0.7% 0.1% 100.0% Summary Projected O&M Functional Allocation
1 2 3 4 5 6 7 8 9 10 11 12
Indirect Costs
Line Test Year Purchased Water Wells Trans/Dist Treated Trans/ Hydrants Meters & Customer All Other All Other Recycled Water No 2026 Source of Supply WTP Pumping Storage Dist Fire Protection Services Billing Infrastructure General Pressurized Non-Pressurized Total 1 - 8,308,898 2,416,106 268,640 2,589,419 287,141 4,294,052 3,434,322 2,628,707 4,681,496 214,516 14,632 29,137,928 2 All Other Infrastructure Reallocation -% 59.9% 17.4% 1.9% 18.7% 2.1% 3 Reallocation, % - 1,574,718 457,905 50,913 490,752 54,419 2,628,707 4 All Other General Reallocation -% 38.1% 11.1% 1.2% 11.9% 1.3% 19.7% 15.7% 1.0% 0.1% 1.0000E+00 5 Reallocation, % - 1,782,049 518,194 57,616 555,365 61,584 920,966 736,575 46,008 3,138 4,681,496 6 Total Reallocated O&M Expenses - 11,665,665 3,392,204 377,170 3,635,536 403,144 5,215,017 4,170,898 260,524 17,770 29,137,928 7 -% 40.0% 11.6% 1.3% 12.5% 1.4% 17.9% 14.3% 0.9% 0.1% 100.0% 78 AGENDA ITEM NO. 5.

City of Clovis Table B-8
Water Utility
Allocation of O&M Expense - %
Volume Customer Related
Extra Capacity
Line FY27 Test Year Average Maximum Maximum Meters & Capacity Fire Recycled Water No. Description Total Day Day Demand Hour Demand Services Billing Reserve Protection Pressurized Unpressurized Total % % % % % % % % %
Operation and Maintenance Expense
1 Wells/WTP/Purchased Water $11,665,665 59% 41% 100.0%
2 Pumping 3,392,204 33% 23% 43% 100.0%
3 Treated Storage 377,170 33% 23% 43% 100.0%
4 Trans/Dist 3,635,536 59% 41% 100.0%
5 Hydrants/Fire Protection 403,144 100% 100.0%
6 Meters &Services 5,215,017 100% 100.0%
7 Customer Billing 4,170,898 100% 100.0%
8 Recycled Water Pressurized 260,524 100% 100.0%
9 Recycled Water Non-Pressurized 17,770 100% 100.0%
10 Total O&M Expense $29,137,928
79 AGENDA ITEM NO. 5.

City of Clovis Table B-9
Water Utility
Allocation of O&M Expense - $
Volume Customer Related
Extra Capacity
Line Average Maximum Maximum Meters & Capacity Fire Recycled Water No. Description Total Day Day Demand Hour Demand Services Billing Reserve Protection Pressurized Unpressurized Total $ $ $ $ $ $ $ $ $
Operation and Maintenance Expense
1 Wells/WTP/Purchased Water $11,665,665 6,862,156 4,803,509 - - - - - - - 11,665,665 2 Pumping 3,392,204 1,130,735 791,514 1,469,955 - - - - - - 3,392,204 3 Treated Storage 377,170 125,723 88,006 163,440 - - - - - - 377,170 4 Trans/Dist 3,635,536 2,138,550 1,496,985 - - - - - - - 3,635,536 5 Hydrants/Fire Protection 403,144 - - - - - - 403,144 - - 403,144 6 Meters &Services 5,215,017 - - - 5,215,017 - - - - - 5,215,017 7 Customer Billing 4,170,898 - - - - 4,170,898 - - - - 4,170,898 8 All Other/Infrastructure 0 - - - - - - - - - -
9 All Other/General 0 - - - - - - - - - -
10 Recycled Water Pressurized 260,524 - - - - - - - 260,524 - 260,524 11 Recycled Water Non-Pressurized 17,770 - - - - - - - - 17,770 17,770 12 Total O&M Expense $29,137,928 $10,257,164 $7,180,015 $1,633,395 $5,215,017 $4,170,898 $0 $403,144 $260,524 $17,770 $29,137,928 13 Percent of Total 99.0% 35.2% 24.6% 5.6% 17.9% 14.3% -% 1.4% 0.9% 0.1% 14 Miscellaneous Revenue Offsets (6,272,230) (2,207,957) (1,545,570) (351,605) (1,122,585) (897,827) 0 (86,781) (56,080) (3,825) 14 Net Annual O&M Expenses $22,865,697 $8,049,207 $5,634,445 $1,281,791 $4,092,433 $3,273,070 $0 $316,364 $204,443 $13,945 $22,865,697 TRUE
80 AGENDA ITEM NO. 5.

City of Clovis Table B-10
Water Utility
Test Year Units of Service
Water Use Maximum Day Demand Maximum Hour Demand
Line Average Demand Total Extra Demand Total Extra Equivalent Meters No. Customer Class Annual Day Factor Demand Capacity Factor Demand Capacity Bills Capacity Hydrants 1,000 gal 1,000 gal 1,000 gpd 1,000 gpd 1,000 gpd 1,000 gpd bills 1 Residential 6,022,843 16,501 191% 31,447 14,946 336% 55,494 38,993 254,276 268,165 2 Commercial/Industrial 884,768 2,424 191% 4,620 2,196 336% 8,152 5,728 10,015 26,706 3 Recycled Water - Pressurized 235,739 646 100% 646 - 100% 646 - 2,052 10,008 4 Recycled Water - Non-Pressurized 192,497 527 100% 527 - 100% 527 - 12 576 4 Landscape 750,833 2,057 191% 3,920 1,863 336% 6,918 4,861 3,780 11,502 5 Tarpey 239,189 655 191% 1,249 594 336% 2,204 1,549 8,802 8,802 6 Public Fire Protection - 569 569 2,277 1,708 5,129
7 Private Fire Protection - 79 79 315 315 4,252 709
8 Total 8,325,870 22,811 43,057 20,246 76,534 53,154 283,189 325,759 5,838 9 Total Excluding Recycled Water 7,897,634 21,637 41,883 20,246 75,360 53,154 281,125 315,175 5,838 81 AGENDA ITEM NO. 5.

City of Clovis Table B-11
Water Utility
Allocated Revenue Requirement
Volume Customer Related
Extra Capacity
Line Maximum Maximum Meters & Capacity Fire Recycled Water No. Description Total Base Day Demand Hour Demand Services Billing Reserve Protection Pressurized Non-Pressurized Cost of Service
1 Operation and Maintenance Expense $22,865,697 $8,049,207 $5,634,445 $1,281,791 $4,092,433 $3,273,070 $0 $316,364 $204,443 $13,945 2 Capital Cost 3,681,869 2,046,708 1,274,016 355,238 5,908 0 0 0 0 0 3 Total Cost of Service $26,547,567 $10,095,915 $6,908,461 $1,637,028 $4,098,340 $3,273,070 $0 $316,364 $204,443 $13,945 4 Percent of Total 100% 38% 26% 6% 15% 12% 0% 1% 1%
82 AGENDA ITEM NO. 5.

City of Clovis Table B-12
Water Utility
Development of Unit Cost of Service
Volume Customer Related
Extra Capacity
Line Maximum Maximum Meters & Reserve Fire Recycled Water No Description Cost of Service Average Day Day Demand Hour Demand Services Billing Capacity Protection Pressurized Non-Pressurized Total 1 Average Day $10,095,915 100.0% 100.0%
2 Max Day Extra Capacity 6,908,461 100.0% 100.0%
3 Max Hour Extra Capacity 1,637,028 100.0% 100.0%
4 Meters and Services 4,098,340 100.0% 100.0%
5 Billing 3,273,070 100.0% 100.0%
6 Capacity Reserve 0 100.0% 100.0%
7 Fire Protection 316,364 100.0% 100.0%
8 Recycled Water-Pressurized 204,443 100.0% 100.0%
9 Recycled Water-Non-Pressurized 13,945 100.0% 100.0%
10 Adjusted Cost of Service $26,547,567 $10,095,915 $6,908,461 $1,637,028 $4,098,340 $3,273,070 $0 $316,364 $204,443 $13,945 Equivalent Equivalent
Meter Meter Equivalanet
Units of Service 1,000 gal gpd gpd Capacity # Bills Capacity Firelines 1,000 gal 1,000 gal 21 Retail Customers 7,897,634 20,246 53,154 315,175 276,873 315,175 22 Recycled Water - Pressurized 10,008 2,052 235,739
23 Recycled Water - Non-Pressurized 576 12 192,497
24 Public Fire Protection 5,129
25 Private Fire Protection 4,252
26 Total Units of Service 7,897,634 20,246 53,154 325,759 283,189 315,175 5,129 235,739 192,497 27 Unit Cost of Service $1.28 $341.22 $30.80 $12.58 $11.56 $0.00 $61.68 $0.87 $0.07 83 AGENDA ITEM NO. 5.

City of Clovis Table B-13
Water Utility
Public and Private Fire Protection Adjustment
Volume Customer Related
Extra Capacity
Line Maximum Maximum Meters & Reserve Fire Recycled Water Fire Protection No. Description Total Average Day Day Demand Hour Demand Services Billing Capacity Protection Pressurized Non-Pressurized Public Private 1 Unit Cost of Service $1.28 $341.22 $30.80 $12.58 $11.56 $0.00 $61.68 $0.87 $0.07 Public Fire Protection
2 Units of Service 569 1,708 5,129
3 Cost of Service - $ ($563,239) ($194,272) ($52,603) ($316,364) $563,239 Private Fire Protection
4 Units of Service 79 315
5 Cost of Service - $ ($36,532) ($26,842) ($9,691) $36,532 6 Total Fire Protection Adj ($599,771) $0 ($221,113) ($62,294) $0 $0 $0 ($316,364) $0 $0 $563,239 $36,532 7 Adjusted Cost of Service $26,547,567 $10,095,915 $6,687,348 $1,574,734 $4,098,340 $3,273,070 $0 $0 $204,443 $13,945 $563,239 $36,532 84 AGENDA ITEM NO. 5.

City of Clovis Table B-14
Water Utility
Adjusted Cost of Service
Volume Customer Related
Extra Capacity
Line Maximum Maximum Meters & Reserve Fire Recycled Water Fire Protection No Description Cost of Service Average Day Day Demand Hour Demand Services Billing Capacity Protection Pressurized Non-Pressurized Public Private 1 Average Day $10,095,915 100.0% 0.0%
2 Max Day Extra Capacity 6,687,348 80.0% 20.0%
3 Max Hour Extra Capacity 1,574,734 33.0% 67.0%
4 Meters and Services 4,098,340 100.0%
5 Billing 3,273,070 100.0%
6 Capacity Reserve 0 100.0%
7 Fire Protection 0
8 Recycled Water-Pressurized 204,443 100.0%
9 Recycled Water-Non-Pressurized 13,945 100.0%
10 Publlic Fire Protection 563,239 100.0%
11 Private Fire Protection 36,532 100.0%
12 Total Cost of Service $26,547,567 $10,095,915 $5,349,878 $519,662 $4,098,340 $3,273,070 $2,392,542 $0 $204,443 $13,945 $563,239 $36,532 TRUE
Equivalent Equivalent
Meter Meter Equivalanet Equivalent Equivalent
Units of Service 1,000 gal gpd gpd Capacity # Bills Capacity Firelines 1,000 gal 1,000 gal Hydrants Firelines Residential 6,022,843 14,946 38,993 268,165 254,276 268,165 - - - Commercial/Industrial 884,768 2,196 5,728 26,706 10,015 26,706 - - - Recycled Water - Pressurized - - 10,008 2,052 - - 235,739 - Recycled Water - Non-Pressurized - - 576 12 - - - 192,497 Landscape 750,833 1,863 4,861 11,502 3,780 11,502 - - - Tarpey 239,189 594 1,549 8,802 8,802 8,802 - - -
Public Fire Protection - - - - - - - - - 5,129
Private Fire Protection - - - - 4,252 - - - - 4,252
Total Units of Service 7,897,634 19,598 51,131 325,759 283,189 315,175 - 235,739 192,497 5,129 4,252 Unit Costs $1.28 $272.98 $10.16 $12.58 $11.56 $7.59 $0.00 $0.87 $0.07 $109.81 $8.59 Units of Service
13 Retail Customers 7,897,634 19,598 51,131 315,175 276,873 315,175 - - 14 Recycled Water - Pressurized 10,008 2,052 235,739
15 Recycled Water - Non-Pressurized 576 12 192,497
16 Public Fire Protection 5,129
17 Private Fire Protection 4,252 4,252
18 Total Units of Service 7,897,634 19,598 51,131 325,759 283,189 315,175 - 235,739 192,497 5,129 4,252 19 Unit Cost of Service $1.28 $272.98 $10.16 $12.58 $11.56 $7.59 $0.00 $0.87 $0.07 $109.81 $8.59 85 AGENDA ITEM NO. 5.

City of Clovis Table B-15
Water Utility
Capacity of Costs to Customer Classes
Volume Customer Related
Extra Capacity
Line Maximum Maximum Meters & Reserve Fire Recycled Water Fire Protection No. Description Total Average Day Day Demand Hour Demand Services Billing Capacity Protection Pressurized Non-Pressurized Public Private 1 Unit Cost of Service - $/Unit $1.28 $272.98 $10.16 $12.58 $11.56 $7.59 $0.00 $0.87 $0.07 $109.81 $8.59 Retail Customers
2 Units 7,897,634 19,598 51,131 315,175 276,873 315,175 3 Cost of Service - $ $25,523,253 $10,095,915 $5,349,878 $519,662 $3,965,184 $3,200,072 $2,392,542 $0 $0 $0 $0 $0 Recycled Water - Pressurized
4 Units 10,008 2,052 235,739
5 Cost of Service - $ $354,070 $0 $0 $0 $125,910 $23,717 $0 $0 $204,443 $0 $0 $0 Recycled Water - Non-Pressurized
6 Units 576 12 192,497
7 Cost of Service - $ $21,330 $0 $0 $0 $7,247 $139 $0 $0 $0 $13,945 $0 $0 Public Fire Protection
8 Units 5,129
9 Cost of Service - $ $563,239 $0 $0 $0 $0 $0 $0 $0 $0 $0 $563,239 $0 Private Fire Protection
10 Units 4,252 4,252
11 Cost of Service - $ $85,675 $0 $0 $0 $0 $49,143 $0 $0 $0 $0 $0 $36,532 12 Total Cost of Service $26,547,567 $10,095,915 $5,349,878 $519,662 $4,098,340 $3,273,070 $2,392,542 $0 $204,443 $13,945 $563,239 $36,532 86 AGENDA ITEM NO. 5.

City of Clovis Table B-16
Water Utility
Adjusted Cost of Service with Fire Protection Adjustment (a) (b) (c) (d) (e) (f) (g) (h)
FY27 Revenue Public Fire Reallocation
Line Cost of Public Fire Adjusted at Current Equivalent No. Customer Class Service Adjustment [1] COS Rates Change $ Change - % Meter % of Total 1 Retail Customers $25,523,253 $544,939 $26,068,192 20,974,374 $5,093,818 24.3% 315,175 96.75% 2 Recycled Water - Pressurized 354,070 17,304 371,374 374,536 (3,162) -0.8% 10,008 3.07% 3 Recycled Water - Non-Pressurized 21,330 996 22,326 0 22,326 N/A 576 0.18% 4 Public Fire Protection 563,239 (563,239) 0 0 0 N/A - 0.00% 5 Private Fire Protection 85,675 0 85,675 591,228 (505,552) -85.5% - 0.00% 6 Total $26,547,567 $0 $26,547,567 $21,940,138 $4,607,429 21.0% 325,759 100.0% [1] Allocated Average Day on the percentages in Column h. 87 AGENDA ITEM NO. 5.

City of Clovis Table B-17
Water Utility
Development of Cost of Service Service Charge
Line Cost of Units of Unit Cost
No. COS Component Service Service Units of Service
1 Meters & Services $4,098,340 325,759 Equiv Meter Capacity [1] $12.58 2 Billing $3,273,070 283,189 Bills 11.56
3 Public Fire Protection $563,239 325,759 Equiv Meter Capacity [1] 1.73 4 Capacity Reserve $2,392,542 315,175 Equiv Meter Capacity [1,2] 7.59 5 Total $10,327,191 $33.46
6 Private Fireline (Capacity Portion) $36,532 4,252 4" Equivalent Fireline Bills [3] $8.59 7 Volume Cost of Service $15,965,455 7,897,634 $2.02
8 Pressurized $204,443 235,739 0.87
9 Nonpressured $13,945 192,497 0.07
10 Total COS $26,547,567 TRUE
Check
[1] Includes residential, commercial, landscape, and recylced equivalent meters but excludes private firelines [2] Capacity reserve is related to potable water system only. Recycled water is excluded. [3] Total charge includes both private fire protection capacity and billing component costs [4] Billing cost component of private fireline is calculated in line 2 which applies to all customers.

Line 6 is the capacity portion only (maximum day and maximum hour extra capacity costs 88 AGENDA ITEM NO. 5.

City of Clovis Table B-18
Water Utility
Development of Service Charge
(a) (b) (c) (d) (e)=(a)+(b)+(c)+(d) (f) (g)=(a)+(b)+(c) (h) (i) (j) = (h) + (i) Monthly Monthly Public Readiness Total Recycled
Line Capacity Meter Billing Fire to Service Monthly Water Connection Capacity Private Fireline (4" Equivalent) No. Meter Size Equivalency Charge Charge Protection Capacity Charge Rounded Only Size Ratios Billing Capacity Total 1 5/8 inch 1.00 $12.58 $11.56 $1.73 $7.59 $33.46 $33.46 $25.87 1.5 inch 1.00 $11.56 $8.59 $20.15 2 3/4 inch 1.00 12.58 11.56 1.73 7.59 33.46 33.46 25.87 2 inch 1.00 11.56 8.59 20.15 3 1 inch 1.00 12.58 11.56 1.73 7.59 33.46 33.46 25.87 3 inch 1.00 11.56 8.59 20.15 4 1.5 inch 2.00 25.16 11.56 3.46 15.18 55.36 55.36 40.18 4 inch 1.00 11.56 8.59 20.15 5 2 inch 3.20 40.26 11.56 5.53 24.29 81.64 81.64 57.35 6 inch 2.90 11.56 24.96 36.52 6 3 inch 6.40 80.52 11.56 11.07 48.58 151.72 151.72 103.14 8 inch 6.19 11.56 53.19 64.74 7 4 inch 10.00 125.81 11.56 17.29 75.91 230.57 230.57 154.66 10 inch 11.13 11.56 95.65 107.20 8 6 inch 20.00 251.62 11.56 34.58 151.82 449.58 449.58 297.76 12 inch 17.98 11.56 154.49 166.05 9 8 inch 36.00 452.91 11.56 62.24 273.28 800.00 800.00 526.71 10 10 inch 48.00 603.88 11.56 82.99 364.38 1,062.81 1,062.81 698.43 89 AGENDA ITEM NO. 5.

Table B-19
Residential Commercial/Industrial Recycled Water - Pressurized Recycled Water - Non-Pressurized Bill Capacity Bills Revenue Bill Capacity Bills Revenue Bill Capacity Bills Revenue Bill Capacity Bills Revenue

18.8% 47,827 $1,600,255 18.2% 1,825 $61,062 -% - $0 0.0% 0 $0

0.3% 851 28,467 0.8% 78 2,608 -% - 0 0.0% 0 0

78.5% 199,597 6,678,304 20.1% 2,013 67,364 1.2% 24 621 0.0% 0 0

1.2% 2,936 162,517 13.5% 1,351 74,784 4.7% 96 3,857 0.0% 0 0

1.1% 2,702 220,580 39.9% 3,994 326,090 67.8% 1,392 79,831 0.0% 0 0

0.1% 182 27,592 2.9% 292 44,343 9.9% 204 21,041 0.0% 0 0

0.0% 78 17,970 4.1% 409 94,339 14.0% 288 44,541 0.0% 0 0

0.0% 19 8,760 0.4% 39 17,519 1.8% 36 10,719 0.0% 0 0

0.0% 84 67,545 0.1% 7 5,386 0.6% 12 6,321 0.0% 0 0

0.1% 7 7,156 -% - 0 100.0% 12 8,381
100.0% 254,276 $8,811,989 100.0% 10,015 $700,650 100.0% 2,052 $166,930 100.0% 12 $8,381 Customer Cost 254,276 $6,312,651 Customer Cost 10,015 $451,743 Customer Cost 2,052 $149,626 Customer Cost 12 $7,385 Fire Protection $463,658 Fire Protection $46,175 Fire Protection $17,304 Fire Protection $996 Capacity Reserve $2,035,680 Capacity Reserve $202,732 Capacity Reserve $0 Capacity Reserve $0 Total $8,811,989 Total $700,650 Total $166,930 Total $8,381 Check TRUE Check TRUE Check TRUE Check $0
90 AGENDA ITEM NO. 5.

City of Clovis
Water Utility
Service Charge Check
Line
No Meter Size
1 5/8 inch
2 3/4 inch
3 1 inch
4 1.5 inch
5 2 inch
6 3 inch
7 4 inch
8 6 inch
9 8 inch
10 10 inch
Table B-19 (continued)
Irrigation Tarpey Total
Bill Capacity Bills Revenue Bill Capacity Bills Revenue Bills Revenue

0.9% 32 $1,087 0.2% 16 $541 49,669 $1,662,944

0.0% 0 0 0.0% 0 0 929 31,075

18.2% 688 23,034 99.8% 8,786 293,965 210,420 7,063,287

18.4% 695 38,471 0.0% 0 0 4,383 279,629

54.5% 2,059 168,082 0.0% 0 0 8,088 794,582

4.1% 156 23,649 0.0% 0 0 678 116,624

3.6% 136 31,446 0.0% 0 0 775 188,297

0.2% 6 2,920 0.0% 0 0 94 39,918

0.0% 0 0 0.0% 0 0 79,252

0.2% 6 6,903 0.0% 0 0 22,439
100.0% 3,780 $295,591 100.0% 8,802 $294,506 275,036 $10,278,048 Customer Cost 3,780 $188,392 Customer Cost 8,802 $212,470 Fire Protection $19,887 Fire Protection $15,219
Capacity Reserve $87,313 Capacity Reserve $66,817
Total $295,591 Total $294,506
Check $0 Check $0
91 AGENDA ITEM NO. 5.

Appendix C
Rate Design
92 AGENDA ITEM NO. 5.

City of Clovis Table C-1
Water Utility
Comparison of Current and Proposed Service Charges
Existing Proposed
Description FY26 FY27 FY28 FY29 FY30 FY31
BIMONTHLY SERVICE CHARGE, $ PER BILL
Residential
Single Family [1] $27.71
Multifamily [1] 27.71
Mobile Home [1] 27.71
Tarpey Metered Residential [1,2] 27.71
Tarpey - Non-Metered Res Large Lot [1,2] 6.67
Tarpey - Non-Metered [1,2] 139.05
Residential [3], Commercial, and Landscape (Retail Potable Water Users) Meter Size
Inches
5/8 $22.30 $33.46 $40.49 $47.78 $49.21 $50.69
3/4 22.30 33.46 40.49 47.78 49.21 50.69
1 22.30 33.46 40.49 47.78 49.21 50.69
1 1/2 29.66 55.36 66.99 79.05 81.42 83.86
2 40.97 81.64 98.78 116.56 120.06 123.66
3 81.13 151.72 183.58 216.62 223.12 229.81
4 204.08 230.57 278.99 329.21 339.09 349.26
6 814.05 449.58 543.99 641.91 661.17 681.01
8 1,443.03 800.00 968.00 1,142.24 1,176.51 1,211.81
10 2,260.71 1,062.81 1,286.00 1,517.48 1,563.00 1,609.89 Recycled
Meter Size
inches
5/8 $22.30 $25.87 $31.30 $36.93 $38.04 $39.18
3/4 22.30 25.87 31.30 36.93 38.04 39.18
1 22.30 25.87 31.30 36.93 38.04 39.18
1 1/2 29.66 40.18 48.62 57.37 59.09 60.86
2 40.97 57.35 69.39 81.88 84.34 86.87
3 81.13 103.14 124.80 147.26 151.68 156.23
4 204.08 154.66 187.14 220.83 227.45 234.27
6 814.05 297.76 360.29 425.14 437.89 451.03
8 1,443.03 526.71 637.32 752.04 774.60 797.84
10 2,260.71 698.43 845.10 997.22 1,027.14 1,057.95
Private Fireline
Line Size
inches
4 and less $204.08 $20.15 $24.38 $28.77 $29.63 $30.52
6 204.08 36.52 44.18 52.13 53.69 55.30
8 204.08 64.74 78.34 92.44 95.21 98.07
10 204.08 107.20 129.72 153.07 157.66 162.39
12 204.08 166.05 200.92 237.09 244.20 251.53
Construction Water $139.05 $154.66 $186.89 $220.58 $227.41 $234.29 Hydrant Meter Water, $ per bill per month $40.57 $40.82 $49.39 $58.28 $60.03 $61.83 [1] The proposed service charge by meter size applies to all customer classes.

Under existing rate structure, residential customers were charged a fixed, per dwelling charge. [2] Tarpey are billed the same as inside City residential. [3] Service charge applies to all Residential classes in FY27. [4] Current construction water charges are based on Tarpey Non-Metered charges.

Proposed construction water charges are based on the 1" meter charge plus 60,000 of water usage at the proposed volume rates for each year.

Note [1]
Note [1]
Note [1]
Note [1,2]
Note [1,2]
Note [1,2]
93 AGENDA ITEM NO. 5.

City of Clovis Table C-1 (continued)
Water Utility
Comparison of Existing and Proposed Volume Rates
Existing Proposed
Description FY26 FY27 FY28 FY29 FY30 FY31
VOLUME RATES, $ PER 1,000 GALLONS
Resdential - Single Family, Multifamily, Mobile Home [1] Tier 1: (0 - 23,000 gal) $1.13 $2.02 $2.44 $2.88 $2.97 $3.06 Tier 2: (23,000 - 40,000 gal) 1.88 2.02 2.44 2.88 2.97 3.06 Tier 3: (Over 40,000 gal) 2.33 2.02 2.44 2.88 2.97 3.06 Commercial and Landscape
Tier 1: (0 - 23,000 gal) $1.13 $2.02 $2.44 $2.88 $2.97 $3.06 Tier 2: (Over 23,000 gal) 1.53 2.02 2.44 2.88 2.97 3.06 Recycled
Pressurized $0.71 $0.87 $1.05 $1.24 $1.28 $1.32
Non-Pressurized 0.076 0.072 0.090 0.110 0.110 0.110
Hydrant Meter Water $ per 1,000 gallons [2] Note [2] $2.02 $2.44 $2.88 $2.97 $3.06 [1] Tarpey are billed the same as inside City residential [2] Existing hydrant meter volume rate based on Commercial and Landscape volume rates. 94 AGENDA ITEM NO. 5.

TO: Mayor and City Council
FROM: Public Utilities Department
DATE: January 20, 2026
SUBJECT: Workshop: Public Utilities Department Update.

Staff: Scott Redelfs, Public Utilities Department Director Recommendation: Receive and File

Public Utilities Department Director Scott Redelfs will give a verbal presentation on this item.

Please direct questions to the City Manager’s office at 559-324-2060. 95 AGENDA ITEM NO. 6.

TO: Mayor and City Council
FROM: Administration
DATE: January 20, 2026
SUBJECT: Consider Ap pointment - Appointment to the Consolidated Mosquito Abatement District.

Staff: Andrew Haussler, City Manager
Recommendation: Consider Appointment

ATTACHMENTS: 1. Mosquito Abatement District Letter

2. Application and Resume (Redacted) – John Varin

RECOMMENDATION
For the Mayor, subject to approval by the City Council, to make appointment to the Consolidated Mosquito Abatement District.

EXECUTIVE SUMMARY
Jennifer Willems, who has served as the City’s representative to the Consolidated Mosquito Abatement District Board of Trustees since 2021, recently submitted her resignation. John Varin has expressed interest in serving as the City’s new representative and submitted an application and resume summarizing his qualifications (Attachment 2) . Upon review of Mr. Var in's qualifications, the Mayor recommends that John Varin be appointed to the Board of Trustees for the remaining term which will expire on December 31, 2026.

BACKGROUND
The term of appointment for the City’s representative, Jennifer Willems, would have e xpired on December 31, 2026, but she would like to retire effective immediately. Ms. Willems has served as representative of the City of Clovis to the Consolidated Mosquito Abatement District ("District") Board of Trustees since 2021, and she has served t he District well. Mr. Varin was interviewed by the Mayor and City Manager and is being recommended for appointment to the District.

FISCAL IMPACT
None.

96 AGENDA ITEM NO. 7.

REASON FOR RECOMMENDATION
Pursuant to the California Health and Safety Code, appointments to the Consolidated Mosquito Abatement District Board of Trustees shall be acted upon by the City Council.

ACTIONS FOLLOWING APPROVAL
Staff will notify John Varin of the action taken by the City Council, and notice will be sent to the Consolidated Mosquito Abatement District.

CONFLICT OF INTEREST
None.

Prepared by: Rebecca Simonian, Executive Assistant

Reviewed by: City Manager AH
97 AGENDA ITEM NO. 7.

ATTACHMENT 1
98 AGENDA ITEM NO. 7.
.

I
Received
DEC 1 7 2025

CITY OF CLOVIS
/\OMN/CI f YMGR

APPLICATION FOR APPOINTMENT TO COMMISSION

OR COMMITTEE
(Please complete a separate form for each commiss ion or committee appointment desired.) Name of commission or committee you are interested in serving on:
the Consolidated Mosquito Abatement District Board
Name: John Varin
Home Address: __ City: Clovis Zip:----
Phone Number: Number of Years Clovis Resident: 1.2 --
Email Address:

Current Employer & Position: Self-employed Consultant Dietitian Business Address: lovis, CA _.,___ _____________ _
Business Phone: _______ Years/Months Employed: ____,_4=6 __ Please list past or present City appointments, as well as any other public service appointment or elected position held with dates served: None
Please list all clubs/organizations you belong to and any volunteer work you have performed:

California Dietetic Association-Central Valley District, Past President and Treasurer Reedley Youth Football volunteer coach
What experience or special knowledge can you bring to your area of interest? Please list occupational experience, if applicable:
l grew up in Sanger on the bluff above the waste treatment plant grades 6-12 working ag jobs sununers and after school; everything from picking fruit, driving tractors & sprayers in grapes, citrus, nut & stone fruit orchards, and 3 summers at United Packing in Parlier. After graduating from Calif.

State University Fresno and getting my Master of Public Health at UC Berkeley, I returned to the valley and began my career in healthcare. I lived in the rural Reedley area from 1990-2024 and moved to Clovis in October 2024.

During my career as a consultant to healthcare organizations and faciHties I have worked decades in Fresno, Clovis, Selma, Sanger, Reedley, Orange Cove, Kingsburg, Fowler, Coalinga, Corcoran, Caruthers, Firebaugh, Kerman, Huron, Hanford, Madera, and Visalia.

In my current affiliation with Fresno/Madera Area Agency on Aging, I monitor 22 senior lw1ch sites as well as the home delivered meal services in both counties.

I also perform nutrition and health related presentations quarterly at the Clovis Senior Activity Center and the 21 other senior nutrition sites in Fresno and Madera counties. [ know this area well, both its assets and its challenges.

We have a serious problem in this district when people cannot even enjoy being outside without being attacked by squadrons of mosquitos!
I'm passionate about this situation and determined to do whatever I can to see it come under significantly better control than what we have seen for most of my life in thjs valley! ATTACHMENT 2
99 AGENDA ITEM NO. 7.
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AGENDA ITEM NO. 7.
101
AGENDA ITEM NO. 7.

TO: Mayor and City Council
FROM: Administration
DATE: January 20, 2026
SUBJECT: Consider Appointment - Fresno County Transportation Authority Urban at Large Board Member.

Staff: Andrew Haussler, City Manager
Recommendation: Consider Appointment

ATTACHMENTS: None.

RECOMMENDATION
It is recommended for the Mayor, subject to approval by the City Councils of both City of Clovis and City of Fresno, to make an appointment for the Fresno County Transportation Authority Urban at Large Board Member.

EXECUTIVE SUMMARY
The Fresno County Transportation Authority (FCTA) has reached out to the City Managers of the City of Clovis and the City of Fresno with a potential candidate f or a board member for the FCTA. The FCTA Urban at Large Board Member position has been held by Sarah Harris since 2022. The FCTA Board is made up of nine (9) members. One of which is “…one member appointed jointly by the city councils of Fresno and Clovis with the appointee residing within the incorporated area of Fresno or Clovis.” Over the past eight years both jurisdictions have not been able to come up with a candidate both could agree upon.

Larry Westerland has indicated an interest in serving o n the FCTA Board. Mr. Westerland has served on the Measure C Renewal Executive Committee and has worked with elected officials from both Fresno and Clovis. The FCTA believes Mr. Westerland would be a great addition to the FCTA Board.

BACKGROUND
From the legislative code from the enabling legislation for the FCTA Board:

142051. The authority shall consist of nine members selected as follows:
102
AGENDA ITEM NO. 8.
(a) Two members of the board of supervisors appointed by the board, consisting of one member from rural district 1, 4, or 5 and one member from urban district 2 or 3. (b) Two members representing the City of Fresno, consisting of the mayor thereof and a member of the city council of that city appointed by the city council. (c) One member representing the City of Clovis appointed by the city council of that city. (d) Two members representing the other cities within the county, consisting of one westside member appointed by a committee comprised of the mayor or each of those cities west of State Highway Route 99, and one eastside member appointed by a committee comprised of the mayors of each of those cities east of State Highway Route 99. (e) Two members of the public at large, consisting of one member appointed by the board of supervisors with the appointee residing outside of the incorporated areas of Fresno and Clovis, and one member appointed jointly by the city councils of Fresno and Clovis with the appointee residing within the incorporated area of Fresno or Clovis.

FISCAL IMPACT
None.

REASON FOR RECOMMENDATION
Appointment of the Fresno County Transportation Authority Urban at Large Board Member shall be acted upon jointly by the City Councils of both City of Clovis and City of Fresno.

ACTIONS FOLLOWING APPROVAL
Staff will inform the appointed FCTA and nominated Urban At Large Board Member of the action taken by the Clovis City Council and will be conditioned upon the City of Fresno Council approval.

CONFLICT OF INTEREST
None.

Prepared by: Rebecca Simonian, Executive Assistant

Reviewed by: City Manager AH
103
AGENDA ITEM NO. 8.